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Earnings Per Share
 9 Months Ended
Sep. 30, 2014
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 September 30, 2014, there were 113,634,803 shares outstanding. The Company has included 424,479 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, unexercised stock options, warrants 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, 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 warrants were not included in the computation of diluted net income (loss) per common share for the three and nine months ended September 30, 2014 and 2013, respectively, as their inclusion would have been anti-dilutive.
The computation of earnings per share is as follows:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
 
(dollars in thousands, except per share data)
Net income (loss)
$
10,529

 
$
8,370

 
$
38,154

 
$
12,637

Net income (loss) attributable to redeemable non-controlling interests in consolidated subsidiaries and funds
4,006

 
4,759

 
13,409

 
10,509

Net income (loss) attributable to Cowen Group, Inc. stockholders
$
6,523

 
$
3,611

 
$
24,745

 
$
2,128

 
 
 
 
 
 
 
 
Shares for basic and diluted calculations:
 
 
 
 
 
 
 
Weighted average shares used in basic computation
114,969

 
118,359

 
115,407

 
116,012

Warrants
—

 
—

 
—

 
—

Stock options
—

 
—

 
—

 
—

Stock appreciation rights
59

 
311

 
57

 
296

Restricted stock
3,773

 
4,038

 
4,563

 
3,583

Weighted average shares used in diluted computation
118,801

 
122,708

 
120,027

 
119,891

Earnings (loss) per share:
 
 
 
 
 
 
 
Basic
$
0.06

 
$
0.03

 
$
0.21

 
$
0.02

Diluted
$
0.05

 
$
0.03

 
$
0.21

 
$
0.02