Why are companies required to report the diluted earnings per share figures in addition to the basic earnings per share figures?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
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Why are companies required to report the diluted earnings per share figures in addition to the basic earnings per share figures?

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