- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 2. Analyzing Income Statements
- Subject 5. Earnings per Share
CFA Practice Question
All of the following can be considered a potentially dilutive security EXCEPT ______.
B. convertible debt
C. preferred stock
D. warrants
A. stock options
B. convertible debt
C. preferred stock
D. warrants
Correct Answer: C
Not all preferred stock is dilutive. Only convertible preferred stock can be potentially dilutive.
User Contributed Comments 4
| User | Comment |
|---|---|
| sarath | Important: only convertible preferred stock is dultive not the other types of preferred stock. |
| cwrolfe | Only convertible preferred stock is POTENTIALLY dilutive. |
| surob | tricky one. |
| magicchip | Well, if you know that A B and D are 100% dilutive, that would leave only one possible answer. |