The computation of earnings per share is as follows:



	Year Ended December 31,
(Amounts in thousands, except per share data)	2013			2012			2011
Net income/(loss) from continuing operations applicable to Piper Jaffray Companies	$	49,829		$	47,075		$	(90,772	)
Net loss from discontinued operations	(4,739		)	(5,807		)	(11,248		)
Net income/(loss) applicable to Piper Jaffray Companies	45,090			41,268			(102,020		)
Earnings allocated to participating securities (1)	(4,494		)	(5,933		)	—
Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders (2)	$	40,596		$	35,335		$	(102,020	)

Shares for basic and diluted calculations:
Average shares used in basic computation	15,046			15,615			15,672
Stock options	15			1			13
Restricted stock	—			—			2,892
Average shares used in diluted computation	15,061			15,616			18,577			(3)

Earnings/(loss) per basic common share:
Income/(loss) from continuing operations	$	2.98		$	2.58		$	(5.79	)
Loss from discontinued operations	(0.28		)	(0.32		)	(0.72		)
Earnings/(loss) per basic common share	$	2.70		$	2.26		$	(6.51	)

Earnings/(loss) per diluted common share:
Income/(loss) from continuing operations	$	2.98		$	2.58		$	(5.79	)
Loss from discontinued operations	(0.28		)	(0.32		)	(0.72		)
Earnings/(loss) per diluted common share	$	2.70		$	2.26		$	(6.51	)	(3)


(1)	Represents the allocation of earnings to participating securities. Losses are not allocated to participating securities. Participating securities include all of the Company’s unvested restricted shares. The weighted average participating shares outstanding were 1,667,067; 2,622,438 and 3,528,624 for the years ended December 31, 2013, 2012 and 2011, respectively.

(2)

Net income/(loss) applicable to Piper Jaffray Companies’ common shareholders for diluted and basic EPS may differ under the two-class method as a result of adding the effect of the assumed exercise of stock options to dilutive shares outstanding, which alters the ratio used to allocate earnings to Piper Jaffray Companies’ common shareholders and participating securities for purposes of calculating diluted and basic EPS.


(3)	Earnings per diluted common share is calculated using the basic weighted average number of common shares outstanding for periods in which a loss is incurred.