25 March 2011
Diluted means reduction in earning per share due to issue of new shares. For ex. at present u have 10.00 lakh earning and 10000 shares it measn eps is 10 per share but if your co. has reedemable pref. share and ur compnay is going to convert those shares into equity shares then for same earning EPS will fall down due to increase in no. of shares. This is called as dilution in earning
26 March 2011
Diluation is a measure of reduction in EPS due to additioan to the equity shares. Diluation may be happend in other cases such as bonus shares, there is an addition in number of shares but no value for the same being received....
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