Corporate Actions Guide

Modeling Corporate Actions

A stock split is a corporate action that divides the value of each of the outstanding shares of a company. This simple example captures some aspects of a stock split, including its announcement and the registration of shares owned.

Acquiring Shareholding

First we record that an individual investor has become a shareholder in the company. This is prior to the stock split.

Modeling the Company Agent

The Company agent has two attributes, its Name and its Location. In our Chronicle domain specification this is captured as follows -

attributes:
  Name:
    type: String
  Location:
    type: String
agents:
  Company:
    attributes:
      - Name
      - Location

Modeling the Person Agent

The Person agent has two attributes, its Name and its Location. In our Chronicle domain specification this is captured as follows -

attributes:
  Name:
    type: String
  Location:
    type: String
agents:
  Person:
    attributes:
      - Name
      - Location

Modeling the Shareholding Entity

The Shareholding entity has two attributes, its Quantity and the NominalPrice per share.

attributes:
  Quantity:
    type: Int
  NominalPrice:
    type: String
entities:
  Shareholding:
    attributes:
      - Quantity
      - NominalPrice

Modeling the ShareholdingAcquired Activity

The ShareholdingAcquired activity has no attributes, but it has an Issuer and a Shareholderrole.

attributes: []
activities:
  ShareholdingAcquired:
    attributes: []
roles:
  - Issuer
  - Shareholder

Announcing Stock Split

Here we record that the company announces a stock split. The announcement includes information about the split ratio, record date, pay date, and exdate.

Modeling the Announcement Entity

The Announcement entity has four attributes, its Ratio, its RecordDate, its PayDate, and its ExDate.

attributes:
  Ratio:
    type: String
  RecordDate:
    type: String
  PayDate:
    type: String
  ExDate:
    type: String
entities:
  Announcement:
    attributes:
      - Ratio
      - RecordDate
      - PayDate
      - ExDate

Modeling the SplitAnnounced Activity

The SplitAnnounced activity has one attribute PressDate, and it also has a role Issuer.

attributes:
  PressDate:
    type: String
activities:
  SplitAnnounced:
    attributes:
  - PressDate
roles:
  - Issuer

Updating Shareholding

Here we record that the transfer agent, typically a bank or trust company who acts on behalf of the company, has updated the person's shareholding as a result of the stock split.

Modeling the TransferAgent Agent

The TransferAgent agent has two attributes, its Name and its Location. In our Chronicle domain specification this is captured as follows -

attributes:
  Name:
    type: String
  Location:
    type: String
agents:
  TransferAgent:
    attributes:
      - Name
      - Location

Modeling the ShareholdingUpdated Activity

The ShareholdingUpdated activity has no attributes, but it has two roles Issuer and Registrar.

attributes: []
activities:
  ShareholdingUpdated:
    attributes: []
roles:
  - Issuer
  - Registrar

Chronicle Domain

Combining these fragments gives us our Chronicle corpactions domain.

name: "corpactions"
attributes:
  ExDate:
    type: String
  Name:
    type: String
  Location:
    type: String
  NominalPrice:
    type: String
  PayDate:
    type: String
  PressDate:
    type: String
  Quantity:
    type: Int
  Ratio:
    type: String
  RecordDate:
    type: String
entities:
  Announcement:
    attributes:
      - Ratio
      - RecordDate
      - PayDate
      - ExDate
  ShareHolding:
    attributes:
      - Quantity
      - NominalPrice
activities:
  ShareholdingAcquired:
    attributes: []
  ShareholdingUpdated:
    attributes: []
  SplitAnnounced:
    attributes:
      - PressDate
agents:
  Company:
    attributes:
      - Name
      - Location
  Person:
    attributes:
      - Name
      - Location
  TransferAgent:
    attributes:
      - Name
      - Location
roles:
  - ISSUER
  - REGISTRAR
  - SHAREHOLDER

Recording Corporate Actions

In this example we will create a Company, a Person, and a TransferAgent agent, which will then embark on the following activities:

1. A ShareholdingAcquired activity to record that an individual investor has become a shareholder in the company.

2. A SplitAnnounced activity to record that the company announces a stock split.

3. A ShareholdingUpdated activity to record that the TransferAgent, acting on behalf of the company, updated the investor's Shareholding.

Record Agents

mutation defineAgents {
  defineCompanyAgent(
    externalId: "AcmeCorp"
    attributes: { nameAttribute: "AcmeCorp", locationAttribute: "Bahamas" }
  ) {
    context
    txId
  }
  definePersonAgent(
    externalId: "NinjaCsilla"
    attributes: { nameAttribute: "NinjaCsilla", locationAttribute: "Barcelona" }
  ) {
    context
    txId
  }
  defineTransferAgentAgent(
    externalId: "Bank"
    attributes: { nameAttribute: "Bank", locationAttribute: "London" }
  ) {
    context
    txId
  }
}

The output should look something like this -

{
  "data": {
    "defineCompanyAgent": {
      "context": "chronicle:agent:AcmeCorp",
      "txId": "412701fd-9b4c-480b-a264-f6b05027704f"
    },
    "definePersonAgent": {
      "context": "chronicle:agent:NinjaCsilla",
      "txId": "12b258ab-6fb1-4477-868a-e76b5094af73"
    },
    "defineTransferAgentAgent": {
      "context": "chronicle:agent:Bank",
      "txId": "adb3adca-3cc9-445b-8fba-c9c1651640be"
    }
  }
}

Record a ShareholdingAcquiredActivity

Here we define the activity and the roles of the company as the ISSUER and the individual investor as the SHAREHOLDER.

mutation defineShareholdingAcquisition {
  defineShareholdingAcquiredActivity(externalId: "Acme-Shareholding-001") {
    context
    txId
  }
  company: wasAssociatedWith(
    activity: { externalId: "Acme-Shareholding-001" }
    responsible: { externalId: "AcmeCorp" }
    role: ISSUER
  ) {
    context
    txId
  }
  shareholder: wasAssociatedWith(
    activity: { externalId: "Acme-Shareholding-001" }
    responsible: { externalId: "NinjaCsilla" }
    role: SHAREHOLDER
  ) {
    context
    txId
  }
}

The output should look something like this -

{
  "data": {
    "defineShareholdingAcquiredActivity": {
      "context": "chronicle:activity:Acme-Shareholding-001",
      "txId": "0e4070cd-a096-4e60-93ec-3b4434999a9c"
    },
    "company": {
      "context": "chronicle:agent:AcmeCorp",
      "txId": "f885d54a-b74f-41ce-a6ae-6907f0008c2a"
    },
    "shareholder": {
      "context": "chronicle:agent:NinjaCsilla",
      "txId": "b54054c4-98ef-4126-aa17-d339db31fde5"
    }
  }
}

Record the Execution of the ShareholdingAcquiredActivity

Here we record the instantaneous execution of a shareholding acquisition along with the details of the shareholding, in this case 100 shares each with a nominal value of $1.00.

mutation recordShareholdingAcquisition {
  instantActivity(id: { externalId: "Acme-Shareholding-001" }) {
    context
    txId
  }
  defineShareHoldingEntity(
    externalId: "Shareholding"
    attributes: { quantityAttribute: 100, nominalPriceAttribute: "$1.00" }
  ) {
    context
  }
  wasGeneratedBy(
    id: { externalId: "Shareholding" }
    activity: { externalId: "Acme-Shareholding-001" }
  ) {
    context
    txId
  }
}

The output should look something like this -

{
  "data": {
    "instantActivity": {
      "context": "chronicle:activity:Acme-Shareholding-001",
      "txId": "4ac7acad-d92e-41dc-9afc-9b0a10263fc8"
    },
    "defineShareHoldingEntity": {
      "context": "chronicle:entity:Shareholding"
    },
    "wasGeneratedBy": {
      "context": "chronicle:entity:Shareholding",
      "txId": "0533c114-9c29-4c5d-ae44-345eae5d2d03"
    }
  }
}

Record the SplitAnnouncedActivity

Here we define the activity and the role of the company as the ISSUER.

mutation defineSplitAnnouncement {
  defineSplitAnnouncedActivity(
    externalId: "SplitAnnounced"
    attributes: { pressDateAttribute: "Yesterday" }
  ) {
    context
    txId
  }
  wasAssociatedWith(
    activity: { externalId: "SplitAnnounced" }
    responsible: { externalId: "AcmeCorp" }
    role: ISSUER
  ) {
    context
    txId
  }
}

The output should look something like this -

{
  "data": {
    "defineSplitAnnouncedActivity": {
      "context": "chronicle:activity:SplitAnnounced",
      "txId": "7df145b2-1ae9-4fc3-94fd-350c0cc6c91f"
    },
    "wasAssociatedWith": {
      "context": "chronicle:agent:AcmeCorp",
      "txId": "8f26649f-292c-4470-a8c7-aa1224579564"
    }
  }
}

Record the Execution of the SplitAnnouncedActivity

Here we record the instantaneous execution of a stock split announcement along with the details of the stock split, in this case 2:1.

mutation recordSplitAnnouncement {
  instantActivity(
    id: { externalId: "SplitAnnounced" }
  ) {
    context
    txId
  }
  defineAnnouncementEntity(
    externalId: "Announcement"
    attributes: {
      ratioAttribute: "2:1"
      recordDateAttribute: "Today"
      payDateAttribute: "Tomorrow"
      exDateAttribute: "Day After Tomorrow"
    }
  ) {
    context
    txId
  }
  wasGeneratedBy(
    activity: { externalId: "SplitAnnounced" }
    id: { externalId: "Announcement" }
  ) {
    context
    txId
  }
}

The output should look something like this -

{
  "data": {
    "instantActivity": {
      "context": "chronicle:activity:SplitAnnounced",
      "txId": "e02a9a52-9b38-4aff-ae7f-1c609a2c661b"
    },
    "defineAnnouncementEntity": {
      "context": "chronicle:entity:Announcement",
      "txId": "d379ab66-9502-4d8a-8a99-ee776de98742"
    },
    "wasGeneratedBy": {
      "context": "chronicle:entity:Announcement",
      "txId": "1253bc46-3d1c-41a4-99c2-a0a145957f3a"
    }
  }
}

Record the ShareholdingUpdatedActivity

Here we define the activity, the role of the transfer agent as the REGISTRAR, the fact that it is acting on behalf of the company as its REGISTRAR, and the fact that it uses both the original shareholding and the announcement.

mutation defineShareholdingUpdate {
  defineShareholdingUpdatedActivity(externalId: "ShareholdingUpdated") {
    context
    txId
  }
  wasAssociatedWith(
    activity: { externalId: "ShareholdingUpdated" }
    responsible: { externalId: "Bank" }
    role: REGISTRAR
  ) {
    context
    txId
  }
  announcement: used(
    activity: { externalId: "ShareholdingUpdated" }
    id: { externalId: "Announcement" }
  ) {
    context
  }
  shareholding: used(
    activity: { externalId: "ShareholdingUpdated" }
    id: { externalId: "Shareholding" }
  ) {
    context
  }
  actedOnBehalfOf(
    responsible: { externalId: "AcmeCorp" }
    activity: { externalId: "ShareholdingUpdated" }
    delegate: { externalId: "Bank" }
    role: REGISTRAR
  ) {
    context
    txId
  }
}

The output should look something like this -

{
  "data": {
    "defineShareholdingUpdatedActivity": {
      "context": "chronicle:activity:ShareholdingUpdated",
      "txId": "2612cc21-4bc6-4fe2-b60f-e847f2ec145b"
    },
    "wasAssociatedWith": {
      "context": "chronicle:agent:Bank",
      "txId": "2c3e0855-0bf4-4d87-9667-5ad3964f6289"
    },
    "announcement": {
      "context": "chronicle:entity:Announcement"
    },
    "shareholding": {
      "context": "chronicle:entity:Shareholding"
    },
    "actedOnBehalfOf": {
      "context": "chronicle:agent:AcmeCorp",
      "txId": "45d4187c-f19c-4daf-b7a8-7dc8976d8590"
    }
  }
}

Record the revision of the ShareholdingEntity

Here we create a revised version of the shareholding, in this case 200 shares each with a nominal value of $0.50, as a consequence of the split.

mutation recordShareholdingUpdate {
  defineShareHoldingEntity(
    externalId: "RevisedShareholding"
    attributes: { quantityAttribute: 200, nominalPriceAttribute: "$0.50" }
  ) {
    context
    txId
  }
  wasRevisionOf(
    generatedEntity: { externalId: "RevisedShareholding" }
    usedEntity: { externalId: "Shareholding" }
  ) {
    context
    txId
  }
}

The output should look something like this -

{
  "data": {
    "defineShareHoldingEntity": {
      "context": "chronicle:entity:RevisedShareholding",
      "txId": "2a880631-112f-40b8-b331-cf757a7cbd01"
    },
    "wasRevisionOf": {
      "context": "chronicle:entity:RevisedShareholding",
      "txId": "0ade083b-8fba-4bef-81b1-cd28c171466e"
    }
  }
}

Querying Corporate Actions

Here is an example of how you can query the timeline of the activities that have been created:

query timeline {
  activityTimeline(
    activityTypes: [
      ShareholdingAcquiredActivity
      SplitAnnouncedActivity
      ShareholdingUpdatedActivity
    ]
    forAgent: []
    forEntity: []
  ) {
    nodes {
      __typename
      ... on ShareholdingAcquiredActivity {
        id
        wasAssociatedWith {
          responsible {
            agent {
              __typename
            }
            role
          }
        }
      }
      ... on SplitAnnouncedActivity {
        id
        wasAssociatedWith {
          responsible {
            agent {
              __typename
            }
            role
          }
        }
      }
      ... on ShareholdingUpdatedActivity {
        id
        wasAssociatedWith {
          responsible {
            agent {
              __typename
            }
            role
          }
          delegate {
            agent {
              __typename
            }
          }
        }
      }
    }
  }
}

Here are the results of the timeline query:

{
  "data": {
    "activityTimeline": {
      "nodes": [
        {
          "__typename": "SplitAnnouncedActivity",
          "id": "chronicle:activity:SplitAnnounced",
          "wasAssociatedWith": [
            {
              "responsible": {
                "agent": {
                  "__typename": "CompanyAgent"
                },
                "role": "ISSUER"
              }
            }
          ]
        },
        {
          "__typename": "ShareholdingAcquiredActivity",
          "id": "chronicle:activity:Acme-Shareholding-001",
          "wasAssociatedWith": [
            {
              "responsible": {
                "agent": {
                  "__typename": "CompanyAgent"
                },
                "role": "ISSUER"
              }
            },
            {
              "responsible": {
                "agent": {
                  "__typename": "PersonAgent"
                },
                "role": "SHAREHOLDER"
              }
            }
          ]
        }
      ]
    }
  }
}