Definitions
In plain terms
Dividends, splits, rights issues, spin-offs, mergers, and delistings can all require coordinated changes to prices, shares, identifiers, or returns.
Technical
A governed event model preserves action type, affected securities, terms, dates, status, source, effective and availability times, elections, corrections, and downstream treatments.
Scope
Event classification and treatment can differ among legal, tax, accounting, market-data, and index contexts.
Examples
- A governed calculation records corporate action with its exact basis, effective time, source, and units.
Common misconceptions
- Corporate Action does not have one universal treatment without the applicable methodology, event terms, and data context.
Concept relationships
Where this concept is used
- PrerequisiteBackward Split AdjustmentD02-F01-A01
- PrerequisiteForward Split Adjustment: carry later observations onto an earlier share basisD02-F01-A02
- ImportantCRSP Cumulative Price Adjustment: Respect the Vendor Basis, Sign, and GapsD02-F01-A04
- ImportantCRSP Cumulative Share/Volume AdjustmentD02-F01-A05
- PrerequisiteRights-Issue TERP AdjustmentD02-F02-A01
- PrerequisiteSpin-Off Price Adjustment: Separate Parent Price from Distributed ValueD02-F02-A02
- PrerequisiteStock-Dividend Adjustment: Convert Price and Quantity Bases Without Inventing ValueD02-F02-A03
- PrerequisiteSpecial-Dividend Adjustment: Preserve Return Meaning Across the Ex-DateD02-F02-A04
- PrerequisiteReturn-of-Capital Adjustment: Keep Price, Return, and Tax Views SeparateD02-F02-A05
- PrerequisiteMerger Predecessor/Successor Mapping: Preserve Identity and Entitlements Without Inventing ContinuityD02-F03-A04
- PrerequisiteDelisting Return Reconstruction: Separate Observed Proceeds from EstimatesD02-F03-A05
- ImportantDivisor Continuity AdjustmentD03-F01-A03
- PrimaryCorporate-Action Divisor BridgeD03-F01-A04
- ImportantPrice-Weighted IndexD03-F02-A01
- ImportantPrice-Return IndexD03-F04-A01
- ImportantReconstitution AlgorithmD03-F06-A05
Evidence and governance
- Corporate Actions and Events Guide FTSE Russell, London Stock Exchange Group · first party methodology
Supports: preferred label, short definition, technical definition
Limits: Rules are specific to applicable FTSE Russell indices and can contain market, eligibility, tax, and timing exceptions.
- 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