Adjustment of Dividends

Use

The dividend amount affects the forward price of a forward securities transaction. If the paid dividends differ from the expected dividends defined in the system, you can use this function to make adjustments.

Adjustments can be made using the Dividend Adjustment activity category that is provided in the activity chain for the forward security transaction.

Activities

  1. Choose Start of the navigation path Derivatives Next navigation step Trading/Back Office Processing Next navigation step Edit Financial Transaction. End of the navigation path

  2. Enter the Company code and the Transaction number .

  3. Choose Adjust Dividends .

  4. The Dividends tab page appears.

  5. Define the actual dividends and the dividend date.

  6. Under Value Flow , you can enter the dividend flow.

    These flows are only used for information purposes in transaction management. However, they are taken into account when using the Market Risk Analyzer to determine net present value.

  7. To change the forward price, call the Structure tab page and define a new forward price.

  8. Save your entries.

  9. The transaction is saved with the new data and it changes to activity category Dividend Adjustment .