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Finance Dictionary and Glossary of Investment Terms
fully diluted earnings per share
Common stock earnings per share that would result if all warrants and stock options were exercised and all convertible bonds and preferred stock were converted. For a firm that has a lot of stock options, warrants, convertible bonds and preferred stock outstanding, the fully diluted earnings per share are the most appropriate way of looking at earnings on a per share basis.
Earnings per share that takes account of all the common stock that would exist if convertible securities were traded in for common shares.