The article discusses how a new way of measuring earnings per share for public companies has been introduced to simplify calculations and align with global standards. The study shows that investors value earnings as a key indicator of company performance. The new diluted earnings per share measure is found to be more informative than the previous methods. Combining basic and diluted earnings per share explains stock prices just as well as the old method. Overall, the changes made by the FASB have achieved their goals of simplification and alignment without losing usefulness.