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How to factor in bonus and rights into charts

Chart Forum » Markets » How to factor in bonus and rights into charts

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ramaswamyrmm
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Username: ramaswamyrmm

Post Number: 2
Registered: 10-2008

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Sunday, November 02, 2008 - 11:51 pm:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



when a company issues bonus or rights, the scrip value drops drastically. which is not the value to be factored in the charts. How to factor this so that the charts give us a real picture.


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colin_twiggs
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Username: colin_twiggs

Post Number: 3260
Registered: 09-2002

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Monday, November 03, 2008 - 10:59 am:Copy highlighted text to 'New Message' boxEdit Post Delete Post Print Post    View Post/Check IP (Moderator/Admin only) Ban Poster IP (Moderator/Admin only) Move Post (Moderator/Admin Only)



The only way I know of is to adjust the data for the dilution effect of bonus or rights issues. We offer this for Australian data but Yahoo data is not adjusted.

See Dilution Adjustments

Regards, Colin

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