Finance Data Entities - Financial Power

Here’s a description of finance data entities, formatted in HTML:

Finance data entities are the building blocks of financial analysis and reporting. They represent distinct, identifiable pieces of information within the financial domain. Understanding these entities and their relationships is crucial for effectively managing and interpreting financial data.

Key Finance Data Entities

Company/Entity: This is a fundamental entity, representing a business organization. Attributes include name, ticker symbol (for publicly traded companies), industry classification (SIC/NAICS codes), address, and legal structure. Publicly available data sources like SEC filings provide extensive information about companies.
Security/Instrument: This represents a tradable financial asset. Examples include stocks, bonds, options, futures, and derivatives. Key attributes include ticker symbol, ISIN (International Securities Identification Number), CUSIP (Committee on Uniform Securities Identification Procedures), asset class, maturity date (for bonds), and coupon rate.
Transaction: A transaction represents an exchange of value. This could be a purchase or sale of a security, a loan disbursement, a dividend payment, or an interest payment. Attributes include date, amount, security involved (if applicable), counterparty, and transaction type.
Account: This represents a record of financial activity. Examples include bank accounts, brokerage accounts, retirement accounts, and loan accounts. Attributes include account number, account type, institution holding the account, and current balance.
Market Data: This entity captures information about market prices and trading volumes. Examples include stock prices, bond yields, interest rates, and exchange rates. Attributes include timestamp, price (open, high, low, close), volume, and source.
Financial Statement Item: These represent the line items found within financial statements, such as revenue, cost of goods sold, net income, assets, liabilities, and equity. Attributes include item name, value, period (e.g., quarterly or annual), and financial statement (e.g., income statement, balance sheet, cash flow statement). XBRL (eXtensible Business Reporting Language) is a standard format for tagging these items.
Economic Indicator: This represents macroeconomic data that can influence financial markets. Examples include GDP growth, inflation rate, unemployment rate, and consumer confidence index. Attributes include indicator name, value, period, and source.
Fund: Represents a pooled investment vehicle, such as a mutual fund or hedge fund. Attributes include fund name, ticker symbol, management company, expense ratio, and investment strategy.

Relationships Between Entities

These entities are rarely isolated. They are interconnected through relationships. For example:

A Transaction involves a Security and impacts an Account.
A Company issues Securities.
Market Data provides prices for Securities.
Financial Statement Items describe the performance of a Company.
Economic Indicators can influence the performance of Companies and Securities.

Understanding these entities and their relationships is essential for data modeling, financial reporting, risk management, and investment analysis. Properly identifying, storing, and analyzing these data entities enables informed decision-making in the financial industry.