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Clarification on diluted shares

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Q. What is the difference between "shares" and "diluted shares"? --Larry Banner, vice president, Charlottesville Regional Chamber of Commerce

A. The difference is that diluted shares take into account any stock options or restricted stock granted to executives but not exercised or received. It's considered the better number, but with most companies, these two numbers don't differ unless the company has given out a huge number of stock options. Tech companies would be a good example.

-- Chris Roush, assistant professor, University of North Carolina at Chapel Hill, former business reporter with The Atlanta Journal-Constitution

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