Is the diluted shares the effect of more outstanding shares decreasing the price of the share.

IS this definition of share premium correct: A balance sheet entry represented by the difference between the price recieved by a company when it sells shares and the par value of those shares.

Flat-Yield - Yield on short and long-term maturities is equal. Could you explain this more for me please.

Lastly i take it stock options awards will be clearly explained in a financial report of a company.

Diluted shares refer to the total amount of shares outstanding if all options and convertable bonds would be exercised.

Should a lrge portion of those option holders decided to exerices them the price of the stock will most likely move lower.

Share Premium has nothing to do with par value. Mostly share premium is due to partial or full-takeovers (As I tried to explain in one of your other posts). 99% of the time you can just simply ignore this.

Flat Yield Example:

If the yield on a 5-year bond and the yield on a 10-year bond equal 4.25%. That is a flat yield.

Yes, you are right. Stock options should be explained on the financial report.