Definition of Primary Earnings Per Share

Primary Earnings Per Share is the amount of earnings available per common share, prior to the conversion of any outstanding convertible securities

Applying "Primary Earnings Per Share" to Securities Exams:

Primary Earnings Per Share or primary EPS does not take into consideration the dilution of the earnings available to each common share upon the conversion of convertible securities or the exercise of certain warrants which may be outstanding. If there are securities outstanding that could be converted into common shares the primary EPS will be higher than the fully diluted EPS.

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