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Greetings licker,

I know EPS is earnings per share, but what is the "diluted" referring to?

From www.investorwords.com :
"Earnings per share, including common stock, preferred stock, unexercised stock options, unexercised warrants, and some convertible debt. In companies with a large amount of convertibles, warrants and stock options, diluted earnings per share are usually a more accurate measure of the company's real earning power than earnings per share. "

Does that help or do you need more elaboration?

Regards,
JB
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