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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.
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.