Earnings per share (basic)may not include the dilutive effects of all of a firm's convertible bonds.

Name: Earnings per share (basic)may not include the dilutive effects of all of a firm's convertible bonds.
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Earnings per share (basic) only considers the effects of basic shares outstanding and does not include the dilutive effects of convertible securities, such as bonds. Therefore, the true earnings per share (fully diluted) may be lower than what is reported by the company.

Earnings Per Share (Basic)may Not Include the Dilutive Effects of All