Earnings Per Share

The Company calculates its basic and diluted earnings per share in accordance with US GAAP. Basic earnings per share is calculated by dividing net income attributable to the Company's common stockholders by the weighted average number of common shares outstanding for the period. As of June 30, 2019, there were 29,480,287 shares of Class A common stock outstanding. As of June 30, 2019, the Company has included 174,285 fully vested, unissued restricted stock units in its calculation of basic earnings per share. As of December 31, 2018, there were 28,437,860 shares of Class A common stock outstanding. As of December 31, 2018, the Company has included 253,772 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 items. The Company uses the treasury stock method to reflect the potential dilutive effect of the warrants (see Note 6(a)), unvested restricted shares, restricted stock units, and SAR's. 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 and warrants are assumed to have been exercised, for the entire period being presented. The number of performance-linked unvested restricted stock units that are included in the calculation are at the amount that could be earned using current payout rates. The assumed proceeds from the assumed vesting, delivery and exercising were calculated as the amount of compensation cost attributed to future services and not yet recognized.

The Company can elect to settle the Series A Convertible Preferred Stock in shares, cash, or a combination of both. The Company's intent is to settle in cash and, based on current and projected liquidity needs, the Company has the ability to do so.

The computation of earnings per share is as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
	(dollars in thousands, except share and per share data)
Net income (loss)	$	10,143	$	30,006	$	22,132	$	58,015
Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and investment funds	4,331		24,607		6,537		35,763
Net income (loss) attributable to Cowen Inc.	5,812		5,399		15,595		22,252
Preferred stock dividends	1,698		1,698		3,396		3,396
Net income (loss) attributable to Cowen Inc. common stockholders	$	4,114	$	3,701	$	12,199	$	18,856

Shares for basic and diluted calculations:
Weighted average shares used in basic computation	29,769		29,769		29,766		29,688
Restricted stock	1,753		951		1,806		772
Weighted average shares used in diluted computation	31,522		30,720		31,572		30,460
Earnings (loss) per share:
Basic	$	0.14	$	0.12	$	0.41	$	0.64
Diluted	$	0.13	$	0.12	$	0.39	$	0.62