- 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
Examples of potentially dilutive securities include all of the following EXCEPT ______.
B. non-convertible bonds
C. convertible preferred stock
D. warrants
A. options
B. non-convertible bonds
C. convertible preferred stock
D. warrants
Correct Answer: B
Preferred stock and bonds are only considered to be potentially dilutive if they are convertible. Warrants and options are always considered to be potentially dilutive.
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