Equity Data

Overview

There are several complications modeling with equity prices.

• The number of shares is typically not constant. The company may split the shares or offer new shares to the public. This means that the percentage ownership of a company that a share represents can change over time.
• The company may issue dividends. This means that the total return earned by a shareholder will not be equal to the returns calculated solely from a price stream.

equity data.

Backadjusted Equity Prices

Some price feeds will offer backadjusted prices to account for the complications noted above. The transformation starts from the last price, and then moves backward through the price series, adjusting each price such that the calculated price return of the series will equal the total return earned by shareholders, accounting for splits and dividends.

Linking Financial Statement Data