- CFA Exams
- CFA Exam: Level I 2021
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 21. Understanding Income Statements
- Subject 7. Earnings per Share
CFA Practice Question
Which of the following securities represents a potential dilution of a company's earnings per share?
II. Stock options
III. Warrants
I. Convertible bonds
II. Stock options
III. Warrants
Correct Answer: I, II and III
Convertible bonds, stock options, and warrants all represent potential dilution of a company's earnings per share.
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