Earning Per Share
The EPS is calculated as the fraction of (the Earning or Profit After Tax divided by Total number of Ordinary Shares).
This implies to me that if the denominator (i.e. Total number of Ordinary Shares) increases, then it's going to decrease the EPS.
My question now is that when does the Total number of Ordinary Shares increases? Is it when more people buy the shares of such equity or when more people sell-off the shares of such equity.
Hope I make myself clear enough. Many thanks in advance.
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