The Stock investment asset should be used to model any type of ownership shares of a public corporation. It represents common stock, not preferred stock that receives dividends.
Cash Flows & Timing
All cash flows on the Stock investment asset occur at the beginning of each projection month.
Model Point File
The following fields are included on the default Slope Library model point file definition for Stock.
Asset ID – A string field that is used for identification purposes only. This could be an ID from your asset administration system, the CUSIP, or any other identifier for the model point. This field is not used by any of the variables on the product and is for informational purposes only. It can be safely removed from the model point file definition if not needed.
AVR Line Number – The line number of this Stock investment asset should appear in the Asset Valuation Reserve. This value is used to lookup the appropriate factors for AVR calculation as well as the RBC C-1 Other factor to apply for Risked Based Capital.
Initial Book Value – The book value of the Stock as of the projection start date.
Initial Market Value – The market value of the Stock as of the projection start date.
Issue Date – The original issue date of the Stock investment asset.
This section describes inputs that control how the product works that are not included on the model point file. If these inputs need to vary by model point, then you should modify the formulas to pull the data from an appropriate source.
GAAP Classification – An integer value that indicates how the asset is reported on the GAAP Balance sheet. The following 3 options are available.
- Available For Sale (AFS)
- Held to Maturity (HTM)
AFS and Trading assets are held at Market (Fair) Value. Held to Maturity assets are reported at amortized cost. By default the product is set to classify all assets as Available For Sale (1).
Monthly Return – A decimal representing the assumed future monthly investment return for the Stock investment asset beginning at Time Index = 0, the valuation date.