EXHIBIT 11 FIRST MONTAUK FINANCIAL CORP. COMPUTATION OF EARNINGS PER SHARE Years ended December 31, 1999 1998 1997 Basic: Net income (loss) $ 2,283,278 $(2,762,847) $ 1,476,825 Less: Preferred stock dividends (67,750) -- -- --------- --------- --------- Net income (loss) for basic computation $ 2,215,528 $(2,762,847) $ 1,476,825 ========= ========= ========= Weighted average common shares outstanding 9,878,129 9,725,116 8,788,734 ========= ========= ========= Per share - basic $.22 $(.28) $.17 Diluted: Net income (loss) for basic computation $ 2,215,528 $(2,762,847) $ 1,476,825 Additions: Preferred stock dividends 67,750 -- -- Interest on convertible debt, net of taxes 28,384 -- -- --------- --------- --------- Net income (loss) for diluted computation $ 2,311,662 $(2,762,847) $ 1,476,825 ========= ========= ========= Weighted average common shares outstanding 9,878,129 9,725,116 8,788,734 Additions: Incremental shares from assumed conversion of stock options and warrants using the treasury stock method 691,759 -- 1,562,298 Incremental shares from assumed conversion of convertible debt and preferred stock using the if-converted method 692,820 -- -- -------- --------- ---------- Weighted average common and common equivalent shares outstanding - diluted 11,262,708 9,725,116 10,351,032 ========== ========= ========== Per share - diluted $.21 $(.28) $.14