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Oracle Treasury User Guide
Release 12.1
Part Number E13426-04
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Equities

Equity Market Deals

This section explains how to purchase and resell equity deals.

Equities

In Treasury, an equity is a share of stock that your company either invests in or wishes to track. You use the equities deal type and related windows to set up stock issue information, purchase, track and resell shares of stock, process cash dividends, and settle, revalue, and account for stock investment activities. You can also enter and maintain stock information for clients of your company.

Note: The purpose of the Treasury equities functionality is to manage your company's investment or trade in stocks issued by other companies. The Treasury equities functionality is not designed to administer your company's own stock offerings, nor is it intended to be used by a brokerage firm to manage high trading volumes.

Purchasing Stocks

Use the Stocks window to record purchases and sales of stock. You can also use the Stocks window to access other windows to view cash dividend transactions, deal summaries, or the history of your equity deals.

Deal Status

The status of an equity deal can change in these ways:

Prerequisites

To purchase stocks

  1. Navigate to the Stocks window.

  2. Enter the Dealer for this stock deal.

    The dealers that you can choose from the list of values are the users in your company who are authorized to engage in stock transactions.

  3. If necessary, update the Deal Date. The deal date must be on or after the stock issue date.

  4. Enter the Company that is purchasing the stock.

  5. Enter the stock broker for this deal in the Counterparty field.

  6. If you are purchasing the stock on behalf of a client, enter the Client name.

  7. Enter the Portfolio for the deal.

  8. Choose the Main Details tab. Treasury automatically populates the Buy Deal Subtype.

  9. Enter the stock Currency. If you leave this field blank, the field is populated when you enter an Issue Code.

  10. Enter the stock Issue Code. If you already entered a currency, the list of available issue codes is limited by the currency you entered.

  11. Enter a Product Type for this stock issue. Treasury populates this field with the product type assigned to the stock issue, if there is one, but you can change it.

    Note: You can only enter product types that you have authorization to use.

  12. Enter a Settlement Date for this deal. The settlement date must be on or after both the system date and the stock issue date.

  13. Enter the Price per Share that you are buying. The value in this field can have a maximum of six decimal places.

    Note: You can increase the number of outstanding shares by purchasing additional shares at a price of zero as a method to support stock dividends or stock splits. The system properly accounts for positions, settlements, and accounting of the stock at the stock issue level. It is important to note that the individual deals reflect the actual purchase prices, so revaluation gains or losses may be overstated for one deal and understated for the other. The net effect should be correct since you can set up the accounting entries for both deals of the stock issue to post to the same GL accounts.

  14. Enter the Number of Shares that you are buying.

  15. Treasury populates the Shares Remaining and Consideration fields. Consideration is the calculated consideration price for the shares. The number of decimal places displayed in the Consideration field depends on the number of decimal places specified for the price and the maximum number of decimal places for the currency of the stock.

  16. Complete the necessary fields in the Additional Details tabbed region.

  17. Use the Comments fields to enter any comments about the deal. Use the Reference fields to enter reference information, such as a deal number or dealer number.

  18. Enter a Link Code if you want to link this deal to other deals.

  19. If necessary, enter a Limit for this deal. You can enter a limit code from any authorized counterparty limit that matches the company and issuer for this deal.

  20. Complete the necessary fields in the Brokerage/Tax tabbed region.

  21. Save your work.

  22. To resell this stock, choose the Resales button. See: Reselling Stocks.

  23. To view dividends for this stock, choose the Dividends button. See: Viewing Cash Dividends.

  24. To view summary information for this stock, choose the Deal Summary button. See: Viewing Deal Summary.

  25. To view the transaction history for this stock, choose the Deal History button. See: Viewing Resale and Dividend History.

Reselling Stocks

Use the Stock Resales window to resell stocks.

Prerequisite

To resell an equity

  1. Navigate to the Stock Resales window. The Find Stocks for Resale window appears.

  2. In the Find Stocks for Resale window, query the stocks that you want to resell.

    The Stock Resales window appears with the stocks that match your query.

  3. In the Resale Shares field, enter the number of shares that you want to resell. The value you enter must be less than or equal to the number of shares in the Number of Shares field.

    Note: You can decrease the number of outstanding shares by reselling shares at a price of zero as a method to support reverse stock splits. The system properly accounts for positions, settlements, and accounting of the stock at the stock issue level. It is important to note that the individual deals reflect the actual purchase and resale prices, so revaluation gains or losses may be overstated for one deal and understated for the other. The net effect should be correct since you can set up the accounting entries for both deals of the stock issue to post to the same GL accounts.

  4. In the Resale Price field, enter the price to resell the shares.

    Treasury populates these fields automatically:

  5. Save your work. The Complete Sale Details button is activated.

  6. To complete the resale, choose the Complete Sale Details button. The Stocks window appears, with deal subtype SELL and the stock resale details populated.

  7. If necessary, update the Settlement Date, Counterparty, Client, or System Date.

  8. Save your work. Treasury updates the original purchase deals in this way:

Entering Cash Dividends

Use the Cash Dividends by Issue Code window to enter cash dividends for stock issues and generate dividend transactions. You can also use this window to view the complete list of cash dividends for a stock issue.

Recording and generating cash dividends is a system-wide process that applies to all companies, regardless of the access level of the user entering the dividend. However, users can only view dividend transactions belonging to the companies for which they have appropriate authorization.

Note: When you delete a cash dividend record for a stock issue, Treasury deletes all related dividend transactions across all companies that have not been settled or journalized.

Prerequisite

To record cash dividends and generate dividend transactions

  1. Navigate to the Cash Dividends by Issue Code window. The Find Cash Dividends by Issue Code window appears.

  2. In the Find Cash Dividends by Issue Code window, query the records that you want, or choose New to enter a new record. The Cash Dividends by Issue Code window appears with the records that match your query, or a blank window for entering a new record.

    Existing records are displayed in descending order according to the generation status (records that have not had transactions generated are listed first), issue code, and declare date. The Generated box is checked for records that have transactions generated.

  3. Enter the stock Issue Code. Treasury populates the Currency field with the stock issue currency.

  4. Enter the dividend Declare Date. You must enter a date that is on or before the system date.

  5. Enter the dividend Record Date. A stock purchase deal is eligible for a cash dividend if the settlement date is on or before the Record Date.

  6. In the Payment Date field, enter the cash dividend distribution date.

  7. In the Dividend per Share field, enter the value of the dividends per share.

  8. Choose the Generate Transactions button to create cash dividend transactions for eligible deals.

  9. Save your work.

  10. Repeat steps 3 to 9 for each record that you want to generate dividend transactions. The Generate Transactions button is disabled once all records in the window have had transactions generated.

  11. To view the list of cash dividends by deal, select the record that you want and choose the View button. You can only select records that have transactions generated.

Viewing Cash Dividends

Use the View Cash Dividends by Deal window to view the cash dividends for one or more deals.

Prerequisite

To view cash dividends

  1. You can navigate to a cash dividends view in either of these ways:

  2. In the Find Cash Dividends window, query the dividends that you want to view. If you leave all of the fields blank, Treasury displays all of the deals with dividend transactions, listed in descending order by company, issue code, declare date.

    The View Cash Dividends by Deal window appears with the result of your query.

  3. Use the scroll bar to view record values. You can also run new queries in the View Cash Dividends by Deal window.

Viewing Deal Summary

Use the View Deal Summary window to view summary information for your stock deals.

Prerequisites

To view summary information for equity deals

  1. Navigate to the Stocks window.

  2. Query or enter the deal that you want.

  3. Choose the Deal Summary button. The Find Deals window appears.

  4. In the Find Deals window, query the deals that you want to view.

    The Deal Summary window appears with the result of your query.

  5. Use the scroll bar to view record values. You can also run new queries in the Deal Summary window.

Viewing Resale and Dividend History

Use the View Resale/Dividend History window to view the resell and dividend history for your stock buy deals.

Prerequisites

To view equity resales and dividend transaction history

  1. Navigate to the Stocks window.

  2. Query or enter the buy deal that you want.

  3. Choose the Deal History button. The View Resale/Dividend History window appears.

  4. Choose the Resales tab to view resale information for the deal. Choose the Cash Dividends tab to view dividend history information for the deal.

  5. You can run new queries in the View Resale/Dividend History window. Choose the deal that you want in the Deals region, then use the tabbed regions to view detailed information.