Weighted Average Shs Diluted
The number of a company's outstanding shares of stock, including the potential dilution from stock options, warrants, and convertible securities.
Weighted Average Shares Diluted (WASD) is similar to WASO but takes into account potential dilution from stock options, warrants, and convertible securities that could be converted into common stock. Dilution occurs because these securities, if exercised, would increase the number of outstanding shares of the company. This metric is important because it reflects the potential dilution of earnings per share if all dilutive securities were to be exercised. The calculation of WASD is more complex than WASO because it requires the consideration of various factors, such as the conversion or exercise price of the securities and the number of shares that would be issued upon conversion or exercise.