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Earnings Per Share
 6 Months Ended
Jun. 30, 2012
Earnings Per Share [Abstract]  
Earnings Per Share
Earnings Per Share
The Company calculates its basic and diluted earnings per share in accordance with US GAAP. Basic earnings per common share is calculated by dividing net income attributable to the Company's stockholders by the weighted average number of common shares outstanding for the period. As of June 30, 2012, there were 114,208,268 shares outstanding, of which 420,276 are restricted. To the extent that outstanding restricted shares are unvested, they are excluded from the calculation of basic earnings per share. The Company has included 336,895 fully vested, unissued restricted stock units in its calculation of basic earnings per share.
Diluted earnings per common share are calculated by adjusting the weighted average outstanding shares to assume conversion of all potentially dilutive nonvested restricted stock and stock options. The Company uses the treasury stock method to reflect the potential dilutive effect of the unvested restricted shares, restricted stock units and unexercised stock options. In calculating the number of dilutive shares outstanding, the shares of common stock underlying unvested restricted shares and restricted stock units are assumed to have been delivered, and options are assumed to have been exercised, on the grant date. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the sum of (a) the amount of compensation cost attributed to future services and not yet recognized and (b) the amount of tax benefit that would be credited to additional paid-in capital assuming vesting and delivery of the restricted stock. The tax benefit is the amount resulting from a tax deduction for compensation in excess of compensation expense recognized for financial statement reporting purposes. All outstanding stock options and unvested restricted shares were not included in the computation of diluted net income per common share for the three and six months ended June 30, 2012 as their inclusion would have been anti-dilutive.
The computation of earnings per share is as follows:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2012
 
2011
 
2012
 
2011
 
(dollars in thousands, except per share data)
Net income (loss) attributable to Cowen Group, Inc. stockholders
$
(7,946
)
 
$
20,037

 
$
(3,951
)
 
$
20,119

 
 
 
 
 
 
 
 
Shares for basic and diluted calculations:
 
 
 
 
 
 
 
Weighted average shares used in basic computation
114,561

 
76,330

 
114,420

 
75,600

Stock options
—

 
—

 
—

 
—

Restricted stock
—

 
1,568

 
—

 
1,289

Weighted average shares used in diluted computation
114,561

 
77,898

 
114,420

 
76,889

Earnings (loss) per share:
 
 
 
 
 
 
 
Basic
$
(0.07
)
 
$
0.26

 
$
(0.03
)
 
$
0.27

Diluted
$
(0.07
)
 
$
0.26

 
$
(0.03
)
 
$
0.26