Earnings per share (EPS) is a fundamental ratio used as a measure of a company's profitability. In the United States, EPS appears in the companies' income statements.
Earnings per share is calculated by dividing the company's net income minus the dividends on preferred stock by the average shares outstanding.
Diluted EPS is another measure derived from the EPS. It is calculated by adding the shares of convertibles or warrants outstanding to the number of shares outstanding in the above formula.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.