3. Earnings per share

Earnings per share was computed by dividing net profit attributable to Oppenheimer Holdings Inc. by the weighted average number of shares of Class A non-voting common stock (“Class A Stock”) and Class B voting common stock (“Class B Stock”) outstanding. Diluted earnings per share includes the weighted average Class A and Class B Stock outstanding and the effects of warrants issued and Class A Stock granted under share-based compensation arrangements using the treasury stock method, if dilutive.

Earnings per share has been calculated as follows:

Expressed in thousands of dollars, except share and per share amounts


	Three months ended June 30,					Six months ended June 30,
	2011			2010		2011		2010
Basic weighted average number of shares outstanding		13,658,720			13,349,551		13,605,020		13,323,410
Net dilutive effect of warrant, treasury method (1)		—			—		—		—
Net dilutive effect of share-based awards, treasury method (2)		278,655			549,816		324,500		567,451

Diluted weighted average number of shares outstanding		13,937,375			13,899,367		13,929,521		13,890,861


Net profit for the period	$	438		$	9,862	$	6,199	$	19,226
Net profit attributable to non-controlling interests		747			660		1,422		856

Net profit (loss) attributable to Oppenheimer Holdings Inc.	$	(309	)	$	9,202	$	4,777	$	18,370


Basic profit (loss) per share	$	(0.02	)	$	0.69	$	0.35	$	1.38
Diluted profit (loss) per share	$	(0.02	)	$	0.66	$	0.34	$	1.32


(1)		As part of the consideration for the 2008 acquisition of a portion of CIBC World Markets Corp.’s U.S. capital markets businesses, the Company issued a warrant to purchase 1 million shares of Class A Stock of the Company at $48.62 per share exercisable five years from the January 14, 2008 acquisition date. For the three and six months ended June 30, 2011 and 2010, the effect of the warrant is anti-dilutive.

(2)		For the three and six months ended June 30, 2011, the diluted earnings per share computations do not include the anti-dilutive effect of 1,139,695 and 1,142,028 shares of Class A Stock granted under share-based compensation arrangements together with the warrant described in (1) (1,273,416 shares of Class A Stock for both the three and six months ended June 30, 2010).