Antidilutive Securities

question 9

Multiple Choice

Antidilutive securities

• A) should be included in the computation of diluted earnings per share but not basic earnings per share.
• B) are those whose inclusion in earnings per share computations would cause basic earnings per share to exceed diluted earnings per share.
• C) include stock options and warrants whose exercise price is less than the average market price of common stock.
• D) should be ignored in all earnings per share calculations.

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Definitions:

Truth In Lending Act

A U.S. law designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

Terminate Credit Plan

The process of ending a credit agreement, closing the account, and settling any outstanding debts.

Home Equity Loan

A type of loan in which the borrower uses the equity of their home as collateral.

Material Misrepresentations

False statements or omissions of facts that are significant enough to influence an individual's decision to enter into a contract or transaction.