REFS is
a mine of invaluable information for the private investor.
Selecting shares without its help is like trying to
clap with one hand tied behind your back.
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Dilution
Many companies have equity subscription
rights in the form of warrants, or have classes of debt or fixed dividend capital
which, at some future date, have rights of conversion or subscription into equity.
These companies are required to publish information on earnings per share (EPS)
which illustrates the potential dilution effect of conversion. Basic EPS can then
be compared with EPS calculated on a ‘fully diluted’ basis.
In addition to any adjustments made
within Company REFS to reflect actual share issues, all EPS and NTAV ps
figures are presented on a fully diluted basis when this produces a measurable
difference.
See Notional
dilution for futher explanation.
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