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FAR STUDY GROUP
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Subject Topic: Anti-Diluted (Topic Closed Topic Closed) Post ReplyPost New Topic
  
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KSM94
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Posted: 29 Jan 2011 at 14:08 | IP Logged  

Hi

 Can some clarify that Anti-diluted Securities are not included in computing Basic or dilutive Share

Thanks


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marcus3485
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Posted: 29 Jan 2011 at 14:26 | IP Logged  

They are included in computing dilutive shares as all
convertible securities are. You just have to make sure
that they increase or decrease eps, if they increase eps
then they are thrown out.
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KSM94
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Posted: 29 Jan 2011 at 14:50 | IP Logged  

Hi marcus3485

Thanks, it means, Anti-diluted Securities are not included in computing Basic, but is included in caluculation of Dilutive Share

Thanks

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marcus3485
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Posted: 29 Jan 2011 at 16:35 | IP Logged  

They are not included in Basic or Dilutive shares, but you
must make sure that they are Anti-Dilutive compared to the
Basic EPS. If they make the EPS go up, you do not include
them and move on to the next security to see if EPS
increases or decreases.
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