Value Microcaps Motherboard

[researcher59]

littlejohn: diluted shares are outstanding shares plus any 'in the money' warrants and executive stock options as well as convertible bonds ... basically anything convertible into common stock. Diluted share count does not include 'out of the money' warrants and options, so beware that a rise in the stock price may further increase the diluted share count as more warrants go 'in the money'. The average price of the stock over the quarter (10Q), or year(10K), determine the 'cutoff' price for considering which warrants to include in the diluted share count. 'In the money' means that a warrant/option has an exercise/strike price that is below the market price of the stock.

Greater dilution, of course, reduces EPS because net income must be divided by a greater share count.