ORFDWHG YHU\ FORVH WR HDFK RWKHU LQ D KDSKD]DUG ZD\ DV

ZHOODVWKHSRRUVFDQQLQJUHVXOWVREWDLQHGEHFDXVHRIORZ
SULQW TXDOLW\ RU GHWHULRUDWLRQ WKURXJK WLPH $QRWKHU
,QWHJUDWHG$OJRULWKPVIRU LPSRUWDQW SUREOHP ZDV WKH UHSHDWHG FKDQJHV LQ OD\RXW
1HZVSDSHU3DJH'HFRPSRVLWLRQDQG KDELWVWKURXJKWLPH
%HDULQJ DOO WKH DERYH LQ PLQG ZH SURFHHGHG LQ
$UWLFOH7UDFNLQJ GHVLJQLQJDQGLPSOHPHQWLQJDVHWRIDOJRULWKPVWKDWFRXOG
LQ HIIHFW DXWRPDWH WKH PDUNXS SURFHGXUH RI SDJH
%*DWRV6/0DQW]DULV.9 VHJPHQWV DQG DOORZ WKURXJK SRVWSURFHVVLQJ RI
&KDQGULQRV$7VLJULV6-3HUDQWRQLV DXWRPDWLFDOO\ VHJPHQWHGSDJHVDUXOHEDVHGDSSURDFKWR
DUWLFOHWUDFNLQJDQGLGHQWLILFDWLRQ
/DPEUDNLV3UHVV6$+H\GHQ6WU :HHYDOXDWHGRXUPHWKRGVLQWKHIUDPHZRUNRIDQ
H[WHQVLYHQHZVSDSHUGLJLWL]DWLRQSURMHFWDWWKH/DPEUDNLV
$WKHQV*UHHFH 3UHVV 6$ 7KH FRPSDQ\ RZQV QHZVSDSHUV UDQJLQJ LQ
EJDW#GROQHWJU SXEOLFDWLRQWLPHIURP WR GDWH DPRXQWLQJ WR D WRWDO
,QVWLWXWHRI,QIRUPDWLFVDQG RI   PLOOLRQ SDJHV )RU WKLV ZRUN ZH XVHG DUFKLYDO
FRSLHV RI WKH QHZVSDSHU 72 9,0$ SXEOLVKHG GDLO\
7HOHFRPPXQLFDWLRQV IURPWRDQGZHHNO\WKHUHRI
1DWLRQDO5HVHDUFK&HQWHU³'HPRNULWRV´ 7KLVSDSHULVRUJDQL]HGDVIROORZV,Q6HFWLRQZH
$WKHQV*UHHFH SUHVHQW WKH DOJRULWKPV IRU SDJH VHJPHQWDWLRQ ,Q 6HFWLRQ
VSHU#LLWGHPRNULWRVJU  ZH SUHVHQW RXU UXOHEDVHG V\VWHP IRU DUWLFOH
LGHQWLILFDWLRQ 6HFWLRQ  KDV H[SHULPHQWDO UHVXOWV ZKLOH
$EVWUDFW7KHFRQYHUVLRQRIQHZVSDSHUSDJHVLQWRGLJLWDO 6HFWLRQFRQFOXGHVWKLVSDSHUDQGVHWVRXWIXWXUHSODQV
UHVRXUFHVLVDQLPSRUWDQWWDVNWKDWJUHDWO\FRQWULEXWHVWR
WKH SUHVHUYDWLRQ DQG DFFHVV WR QHZVSDSHU DUFKLYHV ,Q 3DJH6HJPHQWDWLRQ
WKLV SDSHU DQ LQWHJUDWHG PHWKRGRORJ\ LV SUHVHQWHG IRU
VHJPHQWLQJ QHZVSDSHU SDJH DQG LGHQWLI\LQJ QHZVSDSHU $WWKHSDJHVHJPHQWDWLRQSKDVH WKH QHZVSDSHU LPDJH LV
DUWLFOHV,QDILUVWVWDJHDVXFFHVVLRQRILPDJHSURFHVVLQJ GHFRPSRVHG LQ LWV EDVLF SULQFLSDO FRPSRQHQWV VXFK DV
DQG GRFXPHQW DQDO\VLV DOJRULWKPV LV HPSOR\HG IRU WH[WDUHDVWLWOHV LPDJHV OLQHV HWF 7KH KDSKD]DUG OD\RXW
VHJPHQWLQJ QHZVSDSHU SDJH LPDJHV LQWR YDULRXV REMHFWV RI QHZVSDSHU DUWLFOHV DQG WKH FORVH FRQWDFW RI GLIIHUHQW
WH[WLPDJHVDQGGUDZLQJVWLWOHV$UXOHEDVHGDSSURDFK VHJPHQWV KLQGHUV WKH DSSOLFDWLRQ RI PDQ\ VWDQGDUG SDJH
LVVXEVHTXHQWO\DSSOLHGWRWKHREMHFWVLGHQWLILHGGXULQJWKH VHJPHQWDWLRQDOJRULWKPVHJ>@>@:HSURSRVHDQHZ
SDJH VHJPHQWDWLRQ SKDVH IRU UHFRQVWUXFWLQJ LQGLYLGXDO WHFKQLTXH IRU QHZVSDSHU SDJH VHJPHQWDWLRQ EDVHG RQ
DUWLFOHV ([SHULPHQWDO UHVXOWV REWDLQHG IURP D ODUJH VPHDULQJ DQG ODEHOLQJ RI UHJLRQV DQG RQ JUDGXDO
WHVWEHG RI ROG QHZVSDSHU LVVXHV DUH SUHVHQWHG ZKLFK H[WUDFWLRQ RI LPDJH FRPSRQHQWV LQ WKH IROORZLQJ RUGHU
FOHDUO\ GHPRQVWUDWH WKH DSSOLFDELOLW\ RI RXU LQWHJUDWHG /LQHV LPDJHV DQG GUDZLQJV EDFNJURXQG OLQHV WH[W DQG
DSSURDFKWRVXFFHVVIXOQHZVSDSHUSDJHVHJPHQWDWLRQDQG WLWOH EORFNV %DFNJURXQG OLQHV DUH QDUURZ IRUHJURXQG
LGHQWLILFDWLRQRIQHZVSDSHUDUWLFOHV EODQN VWULSHV EHWZHHQ WH[W FROXPQV ,W LV HVVHQWLDO WR
SUHVHUYH YHUWLFDO EDFNJURXQG OLQHV DV D ERUGHU EHWZHHQ
.H\ZRUGV 3DJH VHJPHQWDWLRQ SDJH OD\RXW DQDO\VLV QHDUO\ WRXFKLQJ WH[W FROXPQV 2XU FRPSRQHQW H[WUDFWLRQ
GRFXPHQW XQGHUVWDQGLQJ UHJLRQ LGHQWLILFDWLRQ DUWLFOH PHWKRGVDUHGHVFULEHGLQWKHVXVEHTXHQWVXEVHFWLRQV
WUDFNLQJQHZVSDSHUSDJHDQDO\VLV
/LQHH[WUDFWLRQ
 ,QWURGXFWLRQ +RUL]RQWDO DQG YHUWLFDO IRUHJURXQG OLQHV DUH WKH
ILUVWHOHPHQWVWREHLGHQWLILHGEHFDXVHWKH\XVXDOO\DUHWRR
$XWRPDWLF GHFRPSRVLWLRQ RI GLJLWL]HG QHZVSDSHU SDJHV FORVH WR RWKHU NLQGV RI VHJPHQWV KHQFH DOO RWKHU UHJLRQ
FDQ UHVXOW LQ FRVWHIIHFWLYH VROXWLRQV FRQFHUQLQJ WKH FDWHJRULHV WH[W LPDJHV HWF ZLOO EH PRUH HIIHFWLYHO\
WUDQVIRUPDWLRQRISDSHU DUFKLYHV WR GLJLWDO FROOHFWLRQV $ H[WUDFWHG LI OLQHV DUH UHPRYHG IURP WKH RULJLQDO LPDJH
QXPEHURIWHFKQLTXHVKDYHEHHQSURSRVHGLQWKHOLWHUDWXUH 0RUHRYHULWLVHVVHQWLDOWRH[WUDFWKRUL]RQWDODQGYHUWLFDO
GHVFULELQJ DOJRULWKPV WR IDFLOLWDWH DXWRPDWLF SDJH IRUHJURXQGOLQHVEHFDXVHWKH\DUHXVHGDVWDJVIRUDUWLFOH
GHFRPSRVLWLRQ +RZHYHU PDQ\ RI WKHVH DOJRULWKPV DUH LGHQWLILFDWLRQ VHH 6HFWLRQ  0DLQ DSSURDFKHV IRU OLQH
QRW GLUHFWO\ DSSOLFDEOH WR QHZVSDSHU LPDJHV ZKLFK LGHQWLILFDWLRQ DUH EDVHG RQ +RXJK 7UDQVIRUP DV ZHOO DV
SUHVHQW VSHFLDO SUREOHPV 7KH PRVW VLJQLILFDQW SUREOHPV RQ PRUSKRORJLFDO WUDQVIRUPDWLRQV >@ :H SURSRVH D
LGHQWLILHGLQFOXGHWKHFRPSOH[OD\RXWRIQHZVSDSHUSDJHV QHZ WHFKQLTXH EDVHG RQ JUD\VFDOH WUDQVIRUPDWLRQ RI WKH
LQ SDUWLFXODU WKH ROGHVW RQHV ZKHUH WH[W FROXPQV DUH ELQDU\LPDJHDVVLJQLQJ YDOXHV IRU HYHU\ SL[HO DFFRUGLQJ
WRWKHOHQJWKRIWKHKRUL]RQWDORUYHUWLFDOOLQHHYHU\SL[HO GHWHFWHG)RUWKLVUHDVRQZHXVHDQRYHOWHFKQLTXHZKLFK
EHORQJVWR7KLVWHFKQLTXHFRPELQHVIDVWLPSOHPHQWDWLRQ LVEDVHGRQDSUHOLPLQDU\VHDUFKRQO\IRULPDJHVHJPHQWV
ZLWK DFFXUDWH UHVXOWV DQG FDQ EH VXPPDUL]HG LQ WKH ,QWKLVVWDJHRXUREMHFWLYHLVWRGHWHFWFRPSRVLWHUHJLRQV
IROORZLQJVWHSV ZKRVH VXUURXQGLQJ ER[ KHLJKW ZLOO KHOS XV GLVWLQJXLVK
6WHS  ,PDJH VXEVDPSOLQJ ZLWK UHVSHFW WR IRUHJURXQG WH[W DQG LPDJH RU GUDZLQJ UHJLRQV 7KHUHIRUH ZH WU\ WR
SL[HOV NHHSWH[WOLQHVVHSDUDWHZKLOHDWWKHVDPHWLPHFRQQHFWLQJ
6WHS  )URP WKH UHVXOWLQJ LPDJH ZH H[WUDFW WZR GLIIHUHQW UHJLRQV RI WKH VDPH LPDJH 7KLV LV GRQH E\
JUD\VFDOH LPDJHV )  DQG )  DVVLJQLQJ WR HYHU\
+ 9 VXEVDPSOLQJ WKH LPDJH RQO\ ZLWK UHVSHFW WR EDFNJURXQG
IRUHJURXQG SL[HO WKH OHQJWK RI WKH YHUWLFDO IRU )  RU
9 SL[HOV 7KLV VWDJH RIWHQ VXIILFHV WR GLVWLQJXLVK EHWZHHQ
KRUL]RQWDOOLQHIRU) LWEHORQJVWR
+ WH[W DQG LPDJHV RU GUDZLQJV 5HVXOWV IURP WKH
6WHS  /LQHV WKDW DUH LQWHUHVWLQJ WR LGHQWLI\ DUH SUHOLPLQDU\VWDJHDUH LPSURYHG E\ D IXUWKHU FKHFN EDVHG
FKDUDFWHUL]HG E\ DQ D SULRUL NQRZQ PLQLPXP OHQJWK DQG RQ WKH ))7 RI WKH KRUL]RQWDO SURMHFWLRQV RI VHJPHQWHG
PD[LPXP ZLGWK ,PDJHV UHVXOWLQJ IURP VWHS  DUH UHJLRQV 7KH DOJRULWKP ZH XVH IRU LPDJH DQG GUDZLQJ
WKUHVKROGHG VR WKDW WKH RQO\ UHPDLQLQJ SL[HOV EHORQJ WR H[WUDFWLRQLVVXPPDUL]HGLQWKHIROORZLQJVWHSV
OLQHV ZKRVH OHQJWKZLGWK DUH UHVSHFWLYHO\ ODUJHUVPDOOHU 6WHS  :H HPSOR\ VXEVDPSOLQJ ZLWK UHVSHFW WR
WKDQDWKUHVKROG:HH[WUDFWWKHELQDU\LPDJHV/ DQG) 
+ 9 EDFNJURXQGSL[HOV
6WHS  /LQHV DUH GHILQHG XVLQJ D &RQWRXU )ROORZLQJ 6WHS  )URP WKH UHVXOWLQJ LPDJH ZH H[WUDFW WZR
WHFKQLTXHIRUDOOSRLQWVRI/ DQG) 
+ 9 JUD\VFDOH LPDJHV %  DQG %  UHWXUQLQJ IRU HYHU\
+ 9

7KH SURSRVHG PHWKRG IRU OLQH H[WUDFWLRQ KDV EDFNJURXQG SL[HO WKH OHQJWK RI WKH YHUWLFDO IRU %  RU 9

WROHUDQFH WR VOLJKW OLQH VNHZLQJ OLQHV KDYH VXFFHVVLYH KRUL]RQWDO EDFNJURXQG OLQH IRU %  LW EHORQJV WR
+

KRUL]RQWDOYHUWLFDOSL[HOVHYHQLIWKH\KDYHDVOLJKWVORSH &DQGLGDWHLPDJHGUDZLQJSRLQWVDUHVLQWKH,'5WDEOH
DQGWRWKHSUHVHQFHRIEURNHQOLQHVGXHWRVXEVDPSOLQJ
ZLWKUHVSHFWWRIRUHJURXQGSL[HOLQIRUPDWLRQ$SSOLFDWLRQ ÙLI %+ [ \<F + Æ%9 [ \<F 9  >@
=Ú
,'5 [ \   

RIWKHPHWKRGLVVKRZQLQ)LJ ÛRWKHUZLVH
)RUEDFNJURXQGOLQHH[WUDFWLRQWKHVDPHWHFKQLTXH 3DUDPHWHUV& DQG& FRUUHVSRQGWR PD[LPXPOHQJWKRI
LVDSSOLHGWKLVWLPHZRUNLQJZLWKEDFNJURXQGSL[HOV
+ 9

KRUL]RQWDODQGYHUWLFDOEDFNJURXQGOLQHV
6WHS  :H H[WUDFW VHJPHQWV XVLQJ &RQQHFWHG
&RPSRQHQW $QDO\VLV >@ RI WKH LPDJH ,'5 )URP DOO
UHVXOWLQJVHJPHQWVZHVHOHFWWKRVHZLWKVLJQLILFDQWKHLJKW
JUHDWHU WKDQ WKLV RI WKH ODUJHVW H[SHFWHG WLWOH OHWWHU $Q
H[DPSOHIRUWKLVSURFHGXUHLVJLYHQDW)LJ
6WHS)RUHDFKH[WUDFWHGDUHDKRUL]RQWDOSURMHFWLRQVDUH
XVHG %\ DQDO\]LQJ WKHLU ))7 ZH PD\ ILQG GRPLQDQW
IUHTXHQFLHV VLJQLI\LQJ WKH SHULRGLFDO VWUXFWXUH RI D WH[W
UHJLRQ ,I QR GRPLQDQW IUHTXHQFLHV DUH IRXQG WKH
FRUUHVSRQGLQJEORFNLVFODVVLILHGDVLPDJHGUDZLQJ

D E
)LJD2ULJLQDOLPDJHE9HUWLFDODQGKRUL]RQWDOOLQH
H[WUDFWLRQ

,PDJHDQGGUDZLQJH[WUDFWLRQ 
D E
7KH SUHVHQFH RI QHDUO\ WRXFKLQJ LPDJHV RU )LJ  D 2ULJLQDO LPDJH E ,PDJH ,'5 ZLWK DOO
GUDZLQJV DQG WH[W VHJPHQWV LV YHU\ IUHTXHQW LQ VHJPHQWVGHILQHGXVLQJ&RQQHFWHG&RPSRQHQW$QDO\VLV
QHZVSDSHU SDJHV 7KLV OLPLWV WKH XVHIXOQHVV RI PDQ\
FRPPRQDSSURDFKHVWRLPDJHDQGGUDZLQJLGHQWLILFDWLRQ 7H[WDQG7LWOHEORFNH[WUDFWLRQ
ZKLFKDWWHPSWWRGHWHFWPDMRUFRPSRQHQWEORFNVDQGWKHQ
$W WKLV ILQDO SDJH VHJPHQWDWLRQ VWDJH ZH H[WUDFW
XVH VLPSOH VWDWLVWLFDO WHVWV WR FODVVLI\ WKHP DV WH[W RU
WH[WDQGWLWOHDUHDVIURPWKHUHPDLQLQJLPDJH7LWOHEORFNV
LPDJHV >@>@ )RU H[DPSOH DQ LPDJH DQG LWV
DUHGLVWLQJXLVKHGWR VWDQGDUG WLWOH DQG PDVWHU WLWOH EORFNV
FRUUHVSRQGLQJFDSWLRQPD\LQWHUIHUHDQGEORFNVFDQQRWEH
DFFRUGLQJWROHWWHUKHLJKW:HSURSRVHDQRYHOPHWKRGIRU
WH[W DQG WLWOH EORFN H[WUDFWLRQ ZKLFK LV EDVHG RQ 5/6$  $UWLFOHLGHQWLILFDWLRQDQGUHFRJQLWLRQ
>@>@ZLWKDGDSWLYHSDUDPHWHUV:HILUVWIROORZVWHS
RI VHFWLRQ  DQG VWHSV  RI VHFWLRQ  WR H[WUDFW 7KH RYHUZKHOPLQJ PDMRULW\ RI WKH UHVHDUFKHUV DUH
LPDJHV %  DQG %  XVLQJ VXEVDPSOLQJ ZLWK UHVSHFW WR
+ 9 DGGUHVVLQJ WKH GRFXPHQW LPDJH XQGHUVWDQGLQJ SUREOHPV
EDFNJURXQGSL[HOVUDWLR:HWKXVHQVXUHWKDWYHUWLFDO IRUVFLHQWLILFMRXUQDOVIRUDQRYHUYLHZVHH-DLQHWDO>@
QHLJKERULQJOHWWHUVZLOOQRWFRQQHFWZKLFKLVHVVHQWLDOIRU 7KHLU UHVXOWV DUH QRW GLUHFWO\ DSSOLFDEOH WR QHZVSDSHUV
GLVFULPLQDWLQJ WH[W DJDLQVW WLWOHV 7KHQ ZH SURFHHG ZLWK ZKLFKKDYHDFRPSOHWHO\GLIIHUHQWDQGFRQVLGHUDEO\PRUH
FRQQHFWHGFRPSRQHQWDQDO\VLVDQGHYHU\IRUHJURXQGSL[HO FRPSOH[SDJHOD\RXW2XUDSSURDFKH[SORLWVWKHVHJPHQW
LVDVVLJQHGDYDOXHDFFRUGLQJWRWKH KHLJKWRI WKH ER[ RI UHODWLRQVKLSVWKDWH[LVWLQWKHSDJHOD\RXWRIDQHZVSDSHU
LWVFRQQHFWHGDUHD,QWKLVZD\VWDUWLQJIURPWKHRULJLQDO 7KHVHUHODWLRQVDUHIRUPXODWHGDVDVHWRIUXOHV$VLPLODU
LPDJH ZH H[WUDFW JUD\VFDOH LPDJH +  $IWHU WKLV
6 DSSURDFK LV JLYHQ E\ 1L\RJL >@ +RZHYHU WKH VHW RI
SURFHGXUH HYHU\ SL[HO KDV DQ DSSUR[LPDWH FODVVLILFDWLRQ UXOHV JLYHQ E\ 1L\RJL DUH LQDGHTXDWH WR KDQGOH WKH ODUJH
WR HLWKHU WH[W RU WLWOH DFFRUGLQJ WR LWV JUD\VFDOH YDOXH $W YDULHW\RISDJHOD\RXWRIRXUWHVWEHGFROOHFWLRQ
WKHVDPHWLPHSRVVLEOHUHPDLQLQJLPDJHQRLVHLVUHMHFWHG $IWHU WKH VHJPHQWDWLRQ VWDJH LW LV YHU\ LPSRUWDQW
$ QHZ LPDJH 7 LV H[WUDFWHG ZLWK YDOXHV  IRU QRLVH WRDXWRPDWLFDOO\LGHQWLI\WKHDUWLFOHVRQDSDJHVLQFHWKH

6

SL[HOV  IRU WH[W SL[HOV  IRU VWDQGDUG WLWOH SL[HOV DQG  SULPDU\XQLWRILQIRUPDWLRQLQDQHZVSDSHULVWKHDUWLFOH
IRUPDVWHUWLWOHSL[HOV,PDJH 7V LVJLYHQE\WKHIRUPXOD $Q DUWLFOH FRQVLVWV RI D KHDGOLQH DQG D FROOHFWLRQ RI
VHJPHQWVKDYLQJDORJLFDOW\SHDPRQJWKHIROORZLQJVXE
ÙLI +V [ \ < W KHDGOLQHWLWOHWH[WSLFWXUHFDSWLRQDQGUHIHUHQFHV
ÜLI + [ \ ž W Æ+ [ \ < W 2XU VHW RI UXOHV WULHV WR DFFRPSOLVK WKUHH JRDOV
Ü V  V  >@ 7KH ILUVW JRDO LV WR GLVWLQJXLVK DPRQJ VHJPHQWV RI WKH
7V [ \ =Ú
Ü  LI + V [ \ ž W  Æ + V [ \ < W  VDPH W\SH WKRVH WKDW VHSDUDWH DUWLFOHV )RU H[DPSOH
Ü
Û  LI  + V [ \ ž W    KRUL]RQWDO OLQHV FDQ EH XQGHUOLQHV RU OLQHV WKDW VHSDUDWH
ZKHUHW W W DUHUHVSHFWLYHO\PLQLPXPH[SHFWHGOHWWHU DUWLFOHV7KHVHFRQGJRDOLVWRODEHOPDVWHUWLWOHWLWOHDQG
 
 

WH[W WLWOH VHJPHQWV DV KHDGOLQHV DQG VXEKHDGOLQHV

KHLJKWRIDWH[WVHJPHQWDWLWOHDQGDWLWOHUHJLRQ
1H[W ZH SURFHHG ZLWK LPDJH VPRRWKLQJ XVLQJ )LQDOO\ WKH WKLUG JRDO LV WR JURXS D QXPEHU RI VHJPHQWV
DGDSWLYH5/6$ZLWKVPRRWKLQJIDFWRUVGHSHQGLQJRQWKH KDYLQJ GLIIHUHQW W\SHV DURXQG D KHDGOLQH 2XU UXOHV
ILUVW FODVVLILFDWLRQ RI HYHU\ SL[HO WR WH[W RU WLWOH H[FHHGLQQXPEHUDQGFDQEHJURXSHGDVIROORZV
EDFNJURXQG SL[HOV EHORQJLQJ WR WKH DOUHDG\ ORFDWHG D 5XOHV GHWHUPLQLQJ WKH KHDGHU DUHD RI WKH SDJH 7KHVH
YHUWLFDOEDFNJURXQGOLQHVDUHH[FOXGHG UXOHVWU\WRLGHQWLI\WKHORQJHVW KRUL]RQWDOOLQH LQ WKH WRS
8VLQJ D FRQWRXU IROORZLQJ WHFKQLTXH ZH PDQDJH DUHDRIWKHSDJHZKLFKH[FHHGVDWKUHVKROGOHQJWKYDOXH
WR H[WUDFW DOO WH[W DQG WLWOH UHJLRQV ZLWK JUHDW DFFXUDF\ E5XOHVWKDWGLVWLQJXLVKXQGHUOLQHVIURPOLQHVVHSDUDWLQJ
7KHILQDOQHZVSDSHUSDJHGHFRPSRVLWLRQVHH)LJELV DUWLFOHV6KRUWOLQHVOLQHVXQGHUPDVWHUWLWOHVWLWOHVHWFDUH
REWDLQHG DIWHU D KHXULVWLF ODEHOLQJ RI  FHUWDLQ VHJPHQWV FRQVLGHUHG DV XQGHUOLQHV ,Q FRQWUDVW OLQHV EHORZ D WH[W
VXFK DV FDSWLRQV ZKLFK DUH WH[W VHJPHQWV O\LQJ EHORZ VHJPHQWDUHFRQVLGHUHGDVOLQHVWKDWVHSDUDWHDUWLFOHV
LPDJHVDQGWH[WWLWOHVZKLFKDUHRQHOLQHWH[WVHJPHQWV F 5XOHV WKDW ORFDWH ZKLWH UHFWDQJXODU DUHDV WKDW VHSDUDWH
DUWLFOHV7KHVHUXOHVFRQVLGHUDPRQJRWKHUREMHFWVZKLWH
DUHDVWKDWH[FHHGDWKUHVKROGLQKHLJKWDQGLQOHQJWK
G5XOHVWKDWLGHQWLI\VHJPHQWVZKLFKDUHLQWKHERUGHURI
DQ DUWLFOH 7KHVH UXOHV ORFDWH VSHFLDO SDWWHUQV ZKLFK DUH
XVHGWRVHSDUDWHQHLJKERULQJDUWLFOHV
H 5XOHV WKDW ILQG WKH KHDGOLQHV 7KHVH UXOHV FRQVLGHU D
JURXS RI QHLJKERULQJ PDVWHU WLWOHV DV D KHDGOLQH ,Q
DGGLWLRQWLWOHVDQGWH[WWLWOHVEHORZDKRUL]RQWDOOLQHWKDW
VHSDUDWHVDUWLFOHVDUHFRQVLGHUHGDVKHDGOLQHV
I 5XOHV WKDW VSHFLI\ D VXEKHDGOLQH WKDW SRVVLEO\
DFFRPSDQLHV D KHDGOLQH 7KHVH UXOHV FODVVLI\ WLWOHV DQG

D E F WH[W WLOHV DV VXEKHDGOLQHV DFFRUGLQJ WR WKHLU UHODWLYH
SRVLWLRQWRDKHDGOLQH
)LJ1HZVSDSHULPDJHGHFRPSRVLWLRQDRULJLQDO  J5XOHVWKDWJURXSVHJPHQWVLQRUGHUWRIRUPDQDUWLFOH
EVHJPHQWHGLPDJHFLGHQWLILHGDUWLFOHV 7KHVH UXOHV DUH DSSOLHG ODVW DQG WDNH LQWR FRQVLGHUDWLRQ
WKH UHVXOWV RI SUHYLRXV UXOHV LQ RUGHU WR GHILQH D WKLQ
VHSDUDWRUVHJPHQWZKLFKOD\DWWKHWRSRIWKHDUWLFOH
$QDUWLFOHLGHQWLILFDWLRQH[DPSOHLVVKRZQLQ)LJF
([SHULPHQWDOUHVXOWV $Q LQWHUHVWLQJ RYHUDOO REVHUYDWLRQ LV WKDW RXU WHFKQLTXHV
DFKLHYHKLJKUHFDOODQGKLJKSUHFLVLRQDWWKHVDPHWLPH$
7KHSURSRVHGPHWKRGV IRU QHZVSDSHU SDJH VHJPHQWDWLRQ VLPLODU HIIHFW KDV DSSHDUHG LQ 6XPPHUV >@ ,Q RWKHU
DQGDUWLFOHWUDFNLQJZHUHWHVWHGH[WHQVLYHO\RQDODUJHVHW DSSOLFDWLRQV ZKHUH WKHVH PHDVXUHV DUH XVHG WKHUH LV
RI QHZVSDSHU LPDJHV 7KH WHVW VHW FRQWDLQV  SDJHV XVXDOO\ D WUDGHRII EHWZHHQ UHFDOO DQG SUHFLVLRQ ,W LV
IURP WKH QHZVSDSHU ©72 9,0$ª ZLWK SXEOLFDWLRQ GDWHV LQWHUHVWLQJWRIXUWKHUH[SORUHWKLVGLIIHUHQFHLQEHKDYLRXU
IURPWR,WLVFKDUDFWHUL]HGE\YDULHW\LQSDJH
OD\RXW DQG LQ QRLVH FRQWDPLQDWLRQ GXH WR ORZ SDSHU &RQFOXVLRQV
TXDOLW\$3HQWLXP,,SURFHVVRUDW0+]ZDVXVHGDQG
WKH DYHUDJH WLPH IRU VHJPHQWDWLRQ DQG DUWLFOH WUDFNLQJ 7KLV SDSHU SUHVHQWV D VHW RI LQWHJUDWHG DOJRULWKPV
ZDVVHF,PDJHUHVROXWLRQZDV[ IRUWKHGHFRPSRVLWLRQRIGLJLWL]HGQHZVSDSHUSDJHVDQGD
([SHULPHQWDOUHVXOWVDUHVXPPDUL]HGLQ7DEOH,Q UXOH EDVHG DSSURDFK WR LGHQWLI\ WKH DUWLFOHV RI D
RUGHU WR WUDFH WKH FRUUHFWQHVV RI WKH LGHQWLILHG HOHPHQWV GHFRPSRVHG SDJH 2XU H[SHULPHQWDO UHVXOWV LQGLFDWH WKDW
VHJPHQWVRUDUWLFOHVZHFDOFXODWHGDUHFDOOUDWHQXPEHU RXU PHWKRG LV DGHTXDWHO\ HIILFLHQW DQG SUHVHQWV D FRVW
RIFRUUHFWHOHPHQWVIRXQGGLYLGHGE\WKHWRWDOQXPEHURI HIILFLHQW DOWHUQDWLYH WR WKH FUHDWLRQ RI GLJLWDO FROOHFWLRQV
HOHPHQWV ZH DUH ORRNLQJ IRU DQG WKH SUHFLVLRQ UDWH FRPSDUHG WR WKH PDQXDO RU VHPLDXWRPDWLF PHWKRGV WKDW
QXPEHU RI FRUUHFW HOHPHQWV IRXQG GLYLGHG E\ WKH WRWDO DUH XVHG WRGD\ +RZHYHU WKHUH LV DOZD\V SODFH IRU
QXPEHURIHOHPHQWVIRXQG5HFHQWO\6XPPHUV>@XVHG LPSURYHPHQWV 5HJDUGLQJ SDJH GHFRPSRVLWLRQ
WKH VDPH FULWHULD LQ RUGHU WR HYDOXDWH KHU WHFKQLTXHV  ,Q WHFKQLTXHV IRU WKH EORFNEDVHG SDUDPHWHUL]DWLRQ RI RXU
7DEOHUHFDOODQGSUHFLVLRQYDOXHVDUHFDOFXODWHGIRUDOO DOJRULWKPV FDQ EH GHYLVHG  ,GHQWLILFDWLRQ RI VSHFLDO
EDVLF LPDJH VHJPHQWV IRXQG LQ WKH VHJPHQWDWLRQ SKDVH V\PEROVDQGYLJQHWWHVLVDOVRLPSRUWDQW5HJDUGLQJDUWLFOH
$OVR UHVXOWV DUH JLYHQ IRU DUWLFOH WUDFNLQJ DQ LGHQWLILHG WUDFNLQJ GXH WR WKH YDULHW\ LQ SDJH OD\RXWV DGGLWLRQDO
DUWLFOH LV UHJDUGHG DV FRUUHFW RQO\ LI DOO LWV VHJPHQWV DUH VRXUFHV RI LQIRUPDWLRQ DUH UHTXLUHG LQ RUGHU WR LPSURYH
JURXSHG WRJHWKHU FRUUHFWO\ $GGLWLRQDOO\ WKH QXPEHU RI RXUUHVXOWV$SRVVLEOHVRXUFHLVWKHWH[WXDOFRQWHQWRIWKH
VHJPHQWVWKDWDUHFODVVLILHGFRUUHFWO\LVFDOFXODWHG$VZH VHJPHQWV SURGXFHG E\ SDJH GHFRPSRVLWLRQ 7R H[SORUH
FDQREVHUYHIURPWKHWDEOHV WKLV RSWLRQ ZH DUH DOUHDG\ FRQGXFWLQJ H[SHULPHQWV ZLWK
¡ ,PDJHVHJPHQWDWLRQLQWRPDLQFRPSRQHQWVKDVVXFFHVV 2&5PRGXOHVDQGWHUPH[WUDFWLRQIURPWH[WVHJPHQWV
UDWHVRYHULQERWKUHFDOODQGSUHFLVLRQFDOFXODWLRQ
¡ 6LJQLILFDQW VXFFHVV LV UHFRUGHG LQ WUDFLQJ WH[W LPDJHV 5HIHUHQFHV
DQGOLQHV5HFDOODQGSUHFLVLRQUDWHVH[FHHG
¡ 7KHDUWLFOHWUDFNLQJPHWKRGRORJ\H[KLELWVVXFFHVVUDWHV  -DLQ$.<X%&DVK*/+DWDPLDP0'RFXPHQW
RYHULQERWKUHFDOODQGSUHFLVLRQFDOFXODWLRQ7KLV 5HSUHVHQWDWLRQDQGLWV$SSOLFDWLRQWR3DJH'HFRPSRVLWLRQ
GRHV QRW VHHP LPSUHVVLYH FRPSDUHG WR VHJPHQWDWLRQ ,((( 7UDQVDFWLRQV RQ 3DWWHUQ $QDO\VLV DQG 0DFKLQH
UHVXOWV 7KHUH DUH WZR UHDVRQV ZKLFK H[SODLQ WKLV ,QWHOOLJHQFH9RO1R
EHKDYLRXU)LUVWLIDVHJPHQWLVLQFRUUHFWO\FODVVLILHGWR  .RQJ % &KHQ 6 +DUDOLFN 5 0 3KLOOLSV , 7
$XWRPDWLF /LQH 'HWHFWLRQ LQ 'RFXPHQW ,PDJHV 8VLQJ
DQ DUWLFOH WKHQ WZR DUWLFOHV DUH LQFRUUHFW RQH ZKLFK
5HFXUVLYH 0RUSKRORJLFDO 7UDQVIRUPV ,6 763,( 6\PS
KDVDQDGGLWLRQDOVHJPHQWDQGRQHZKLFKKDVDPLVVLQJ 2Q(OHF,PDJ'5,,
VHJPHQW &DOFXODWLQJ WKH VHJPHQWV WKDW DUH FODVVLILHG  1L\RJL ' $ .QRZOHGJH%DVHG $SSURDFK WR 'HULYLQJ
FRUUHFWO\ ZH JHW D VXFFHVV UDWH RI  RU JUHDWHU /RJLFDO 6WUXFWXUH IURP 'RFXPHQW ,PDJHV 3K' 7KHVLV
6HFRQGO\WKHUHDUHPDQ\H[FHSWLRQVWRWKHSDJHOD\RXW 6WDWH8QLYHUVLW\RI1HZ<RUN%XIIDOR
IRUPDW RI WKH QHZVSDSHU SDJH ZKLFK LV QRW IROORZHG  3DSDPDUNRV17]RUW]DNLV-*DWRV%'HWHUPLQDWLRQRI
IDLWKIXOO\E\WKHW\SHVHWWHUV 5XQ/HQJWKVPRRWKLQJYDOXHVIRUGRFXPHQWVHJPHQWDWLRQ
7KLUG ,((( ,QW &RQI 2Q (OHFWURQLFV &LUFXLWV DQG
5HFDOO 3UHFLVLRQ
6\VWHPV,&(&6
6HJPHQWVZLWK
   6WURXWKRSRXORV&3DSDPDUNRV17H[WLGHQWLILFDWLRQIRU
FRUUHFWDUWLFOH
GRFXPHQW LPDJH DQDO\VLV XVLQJ D QHXUDO QHWZRUN ,PDJH
7LWOH   FODVVLILFDWLRQ
DQG9LVLRQ&RPSXWLQJ9RO,VV
6HJPHQWDWLRQ 7H[W     6XPPHUV .0 $XWRPDWLF 'LVFRYHU\ RI /RJLFDO
,PDJH   'RFXPHQW6WUXFWXUH3K'7KHVLV&RUQHOO8QLY
 
 :DKO ) 0 :RQJ . < &DVH\ 5 * %ORFN
/LQH
6HJPHQWDWLRQ DQG 7H[W ([WUDFWLRQ LQ 0L[HG 7H[W ,PDJH
$UWLFOHWUDFNLQJ   
'RFXPHQWV&RPSXWHU*UDSKLFVDQG,PDJH3URFHVVLQJ

7DEOH([SHULPHQWDOUHVXOWV  :DQJ'6ULKDUL61&ODVVLILFDWLRQRIQHZVSDSHULPDJH
EORFNV XVLQJ WH[WXUH DQDO\VLV &RPSXWHU 9LVLRQ *UDSKLFV
DQG,PDJH3URFHVVLQJ9RO