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
Required by
Where this concept is used
Evidence and governance
- 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.
- 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
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- published