what is the difference between basic eps and diluted eps 
analysts will sometimes distinguish between basic and diluted eps basic eps consists of the company s net income divided by its outstanding shares it is the figure most commonly reported in the financial media and is also the simplest definition of eps diluted eps on the other hand will always be equal to or lower than basic eps because it includes a more expansive definition of the company s shares outstanding specifically it incorporates shares that are not currently outstanding but could become outstanding if stock options and other convertible securities were to be exercised 