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## 21. Net (Loss) Income Per Share 

## Radian Group Inc. Notes to Consolidated Financial Statements - (Continued) 

Basic net (loss) income per share is based on the weighted average number of common shares outstanding, while diluted net (loss) income per share is based on the weighted average number of common shares outstanding and common stock equivalents that would arise from the exercise of stock options. 

The calculation of the basic and diluted net (loss) income per share was as follows: 

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 As a result of our net loss in 2012 and 2010, 5,872,600 and 4,366,342 shares, respectively, of our common stock equivalents issued under our stock-based compensation plans were not included in the calculation of diluted net loss per share because they were anti-dilutive. For the year ended December 31, 2011, 2,490,462 shares of our common stock equivalents issued under our stock-based compensation plans were not included in the calculation of diluted net income per share as of such date because they were anti-dilutive. 

