Based on the provided reference, Distribution Value is a specific calculation used in financial contexts, relating to the trading price of shares.
Definition of Distribution Value
According to the reference, Distribution Value means the volume weighted average trading price of the Shares on the Exchange for the five (5) trading days immediately preceding the Settlement Date.
Understanding the Components
This precise definition breaks down into several key components that determine how the Distribution Value is calculated:
- The Asset: The definition refers to "Shares," indicating specific stock or equity units are being valued.
- The Marketplace: The value is based on activity that occurs "on the Exchange," meaning a recognized stock exchange where the shares are publicly traded.
- The Time Period: The calculation looks at data from "the five (5) trading days immediately preceding the Settlement Date." This specifies both the duration (five days) and the timeframe relative to a significant event (the Settlement Date).
- The Reference Date: The "Settlement Date" serves as the fixed point in time from which the five-day trading period is counted backward.
- The Calculation Method: The core of the definition is "the volume weighted average trading price." This is a specific type of average price that takes into account the volume of shares traded at each price point over the five-day period, giving more weight to prices where higher volumes were traded.
How is it Determined?
Determining the Distribution Value involves a structured process:
- Identify the specific Shares and the relevant Exchange.
- Determine the critical Settlement Date.
- Count back exactly five trading days from the Settlement Date to establish the calculation window.
- Gather the trading price and volume data for the Shares on the Exchange for each of those five trading days.
- Calculate the volume weighted average price using this data.
The resulting number is the Distribution Value as defined by the reference. This specific calculation is typically used in agreements or contracts where a precise, market-based valuation of shares is required based on recent trading activity leading up to a particular date.
