- CFA Exams
- CFA Level I Exam
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 21. Understanding Income Statements
- Subject 7. Earnings per Share
CFA Practice Question
When calculating diluted earnings per share, convertible securities are recognized ______.
A. only if they are dilutive
B. only if they are antidilutive
C. whether they are dilutive or antidilutive
Explanation: Convertible securities are only considered if they dilute the earnings available to common shareholders.
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