If all the convertible securities a company had issued were converted at once to common stock, the stock would be diluted; Diluted EPS reveals by how much.
Companies will sometimes entice investors to buy bonds or preferred stock by giving them an option to convert them into shares of common stock. If a bond is converted, shareholders equity increases on the balance sheet and liabilities go down, since a debt liability is being retired.
But, if this occurs many times, the amount of earnings each share experiences will go down noticeably; keep in mind that even though the company saw a windfall of money by terminating a debt obligation and liquidating the reserves that backed the obligation, the cash flow and earnings are probably not going to continue to support that uptick in shareholder equity.
The diluted earnings per share is a calculation which states the hypothetical earnings per share the company would have if all of the convertible securities were converted into common stock at one time. Analysts and investors are skeptical of a company with a high diluted EPS.
Too much dilution can potentially trigger a death spiral where short sellers and additional conversions pile on a downtrend.
Mutual funds that do not charge a front-end or back-end sales load are known as no-load funds
There is no vesting required for self-employed 401(k) (aka Solo K) plans, since you are the employer and the employee
The MSCI World is perhaps the most well regarded index for global stocks. The index is maintained by Morgan Stanley
Even people who only make an average salary can easily become millionaires. Doing so boils down to a very basic formula
A homeowner’s association (HOA) will exist in many planned communities and subdivisions, and the association will...
Lifetime Reserve Days are part of the structure of Medicare Part A. After the benefit period, lifetime reserve days are used
The Commodity Channel Index can be used for ETFs, stocks, and so on. It basically displays the relative daily difference
REITs allow individual investors to buy shares in companies that own, develop, and manage residential, commercial, and industrial properties.
Markets have been around for much longer than most people think. The Tulip bubble happened in the 1500's!
Some advisors have practices that focus on specific types of investments or niche markets