1) Use Case reminder
2) Where we are on our road map.
3) Open Action Items
4) JIRA Issues Review - https://jira.edmcouncil.org/projects/SEC/issues/SEC-7?filter=allopenissues
5) Todays content discussion.
6) For next week.
Today we started thinking about expanding on our use cases, specifically with respect to reporting on securities master data.
From Pete: Adjusting for Dividends Common distributions that affect a stock's price include cash dividends and stock dividends. The difference between cash dividends and stock dividends is that shareholders are entitled to a predetermined price per share and additional shares, respectively. For example, assume a company declared a $1 cash dividend and was trading at $51 per share before then. All other things being equal, the stock price would fall to $50 because that $1 per share is no longer part of the company's assets. However, the dividends are still part of the investor's returns. By subtracting dividends from previous stock prices, we obtain the adjusted closing prices and a better picture of returns.
Pete took an action item to do research on information we need to retain with respect to adjusted prices from a historical perspective. See https://github.com/joshuaulrich/quantmod/issues/174, for example.
From JG: The adjusted closing price amends a stock's closing price to reflect that stock's value after accounting for any corporate actions. The closing price is the raw price, which is just the cash value of the last transacted price before the market closes.
Regardless of what we decide to retain, we should confirm what historical prices published by an exchange actually are, whether they are adjusted to address stock splits only or stock splits plus dividends, etc.
We also discussed the issue with the bonds ontology in that it still brings in reference data, mainly for sovereign instruments such as treasuries. From JG: I think we should have a separate category for sovereign instruments and put all the government instruments there. The main reason is that how they are issued is quite different from normal bonds. Sovereign bonds are issued via auctions. Note that municipal bonds shouldn’t be put under sovereign bonds since municipalities aren’t “sovereign” – don’t know how better to say it – and municipal bonds aren’t issued via auction.
This makes a lot of sense, so rather than creating a number of individual jurisdiction-specific ontologies, for now we will move sovereign debt instruments to a separate ontology. That ontology can bring in additional reference data, such as the governments that issue these instruments, which we would exclude from the about FIBO prod - tbox only, but include in the reference data one.