Antidilutive securities are financial instruments that, if converted into common stock, would result in an increase in earnings per share (EPS), making the company appear more profitable. These securities include convertible bonds, stock options, and warrants that do not dilute the existing shareholders' value when they are included in the calculation of diluted EPS. They are excluded from the calculation of diluted EPS because their conversion would actually boost the EPS rather than reduce it.
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