What are adjustments?
Adjustments are made when certain events occur that affect the securities. Examples of adjustments include changing the number of shares and/or the price in the event of a new issue or a reorganisation of capital by the company.
When this occurs a factor is disseminated by Bodhi5 and the historical data for that security is adjusted by this factor.

Example:
On the 29/06/2001, BHP Limited and Billiton Plc formally completed their merger, creating the world's leading diversified resources group, to be known as BHP Billiton. This resulted in shareholders of BHP Limited (BHP) receiving a bonus issue of 1.0651 BHP Billiton Limited shares for every existing BHP share held. Due to this there was an appropriate downward adjustment in the share price to reflect the higher number of shares on issue. On a chart, this sudden drop in price would distort the indicators and cause incorrect analysis.

The above chart shows BHP with unadjusted history. If you are using Bodhi5 and have Distribution ticked, all the historical prices for this security will be adjusted by a factor of 0.48420 keeping the accuracy of the chart (see chart below).

Applying adjustments

Unlike most data services, Bodhi5 allows its users to select which adjustments they want applied to their database/s.

The Events option box in Bodhi5 gives you six selections: Structural; Distribution; Dividend; Capital Change; Contract Swap & Demergers. By default, Structural; Distribution; Capital Change and Contract Swap are selected. These selections are made at the directory level giving you the choice of having some directories adjusted [for all or some events] and others totally unadjusted.

Information for all Users:
Changes you make on this tab may affect the way your data is distributed to your directories. These changes will only take place from today's date onwards and will not adjust your historical data. If you require these changes to be made to your historical data you will need to load the data [to empty directories] from an up-to-date history disk, after making the changes.

The table below lists the 6 events available in Bodhi5 and gives examples of the reconstructions that will be applied to your data if these are selected [ticked].

Selection	Reconstruction	Description
Structural	Stock Split	A reduction in the value of shares, which increases the number of issued shares in a corporation. A four to one split would see an investor that had 100 shares @ $4 each before the split now have 400 shares @ $1 each after the split. The total price of his investment would be unchanged.
	Stock Consolidation	The company reduces the number of issued shares, which results in an increase in the value of the shares. 400 shares @ $1 each before the consolidation becomes 100 shares @ $4 each after the split.
	Stock subdivision of no par value	A Stock Split of no par value
	Complex Capital Change	An event can be classed as a complex capital change when there is more than one event passed for a company on the same day. This may be due to multiple companies merging, resulting in the distribution of different securities to shareholders.
Distribution	Rights issue in same stock	An offer of extra shares in the same stock, given to an existing shareholder. Shares are generally offered below the current price to raise money for the company. These offers lapse unless renounceable A rights offer giving the share holder the ability to sell or transfer their right to the shares. .
	Rights issue in different stock	An offer of extra shares in a different stock, given to an existing shareholder.
	Non-renounceable rights issue in same stock	A rights offer in the same stock that can be taken or forfeited. It cannot be traded on the market.
	Non-renounceable rights issue in different stock	A rights offer in a different stock that can be taken or forfeited. It cannot be traded on the market.
	Scrip issue in same stock or Non-renounceable scrip issue in same stock	Shares in the same stock that are issued free (bonus) to the existing shareholder. A company may make a scrip issue as an alternative to increasing its dividend payout. New shares are issued to shareholders in proportion to their holdings (ie. One bonus share for every five shares held).
	Scrip issue in different stock or Non-renounceable scrip issue in different stock	Shares in a different stock that are issued free (bonus) to the existing shareholder.
Dividend	Cash Dividend	This is the cash amount paid in dividends to each ordinary shareholder for each share held for the financial year. To be entitled to a dividend the shareholder must have purchased shares before the ex dividend date.
	Scrip Dividend	A dividend paid in the form of new shares rather than cash. In the U.S.A. a scrip dividend is a common way to implement a stock split. You should select this event type if you download AMEX, NASDAQ or NYSE.
	Stock Dividend in different stock	A dividend paid in the form of additional shares in a subsidiary company.
Capital	Return of Capital	A distribution of cash resulting from depreciation tax savings, the sale of capital asset or securities, or any other transaction unrelated to retained earnings.
	Write-up of Capital	A revaluation of an asset downwards (upwards).
	Write-off of Capital	To charge an expense or cost of as asset to profit. Also called charge off.
	Unspecified Capital Change event
Contracts	Future Contract Swap	This only effects future continuous contracts. Every time the contract changes an adjustment is passed to make the swap-over smoother.
Demerger	Stock Dividend in same stock	A dividend paid in the form of additional shares in the company.
	Rescinded Capital change	Reconsidered capital change event.

Turning on/off adjustments to an individual directory

The user can control which type of adjustments are applied to their directories.

To do this:
1. Open Bodhi5 and click the Configure button.

   

2. In the Data Distribution section of this screen, click the Custom button.

   

3. The Distribution window will be displayed. This window lists all the active directories (folders) Bodhi5 is updating. The active directories will be in blue whilst the inactive directories are displayed in grey. Active directories relate to the formats you've selected on the Configuration screen.

   

   If you have the Normal profile selected you will need to create a copy of it before you can edit it.
   To make a copy:
   1. Go to File>Copy Selected Profile.

      

   2. Enter a name for your new profile (i.e. MyLists) then click the OK button. Your new profile will be selected.
4. Click on the directory (so it is highlighted) that you want to make adjustment changes to.

   

5. The Events categories are located on the Configure tab. Simply tick or untick the events you want applied to your database.

   

   Please Note: If you make changes in this section it will only take effect from that day forward. To correct your historical data you will need to delete it completely then install your
   Bodhi History Your history disk will need to be under 6-months old as Bodhi5 only has access to this much history on its servers.
   CD/USB again and bring the data up-to-date using Bodhi5.

Turning on Dividends for U.S.A. Exchanges
In the U.S.A. a scrip dividend is a common way to implement a stock split. To ensure your charts are correct, you should select this event type if you download AMEX, NASDAQ or NYSE data through Bodhi5.

The above image shows some of the events passed for the NASDAQ Exchange on the 31/08/2020. In between the usual cash dividends you can see Tesla Inc (TSLA) passing a scrip dividend with a factor of 0.2.

The above chart shows Tesla Inc with unadjusted history. If you are using Bodhi5 and have Dividend ticked, all the historical prices before 31/08/2020 will be adjusted by a factor of 0.2 keeping the accuracy of the chart (see chart below).