FTB-C000139 / Formula component

Base Value

Base value is the chosen numerical level assigned to an index at its base date.

Also known asindex base valuestarting index level

Foundation 5 linked topicsPublished

Definitions

In plain terms

Choosing 100 instead of 1,000 changes displayed points but not proportional performance when all later calculations are consistent.

Technical

Base value is a normalization constant linked to base date, methodology, currency and return variant; divisor or scaling state is initialized from it.

Scope

It is not a market price, portfolio investment amount, or return denominator by itself.

Examples

  • A governed index record identifies base value with its applicable methodology version, effective time, source, and units.

Common misconceptions

  • Base Value does not have one universal implementation without the named index methodology, data cutoff, and governance context.

Concept relationships

Prerequisites

Related

Required by

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

  • D03-F01-A01 Primary
  • D03-F01-A02 Important

Evidence and governance

  1. S&P Dow Jones Indices Index Mathematics Methodology S&P Dow Jones Indices · first party methodology

    Supports: preferred label, short definition, technical definition

    Limits: Authoritative for the provider's indices; conventions are not universal defaults for every index or security-level return series.

  2. Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract

    Supports: variant distinction

    Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.

Reviewed by
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.