Definitions
In plain terms
A holder may receive cash, successor shares, or a mixture, and the old security may cease trading.
Technical
Data processing requires predecessor and successor identities, consideration components, ratios, dates, elections, proration, fractions, FX, status, and evidence.
Scope
Legal merger structure does not alone determine accounting, tax, index, or return treatment.
Examples
- A governed calculation records merger with its exact basis, effective time, source, and units.
Common misconceptions
- Merger does not have one universal treatment without the applicable methodology, event terms, and data context.
Concept relationships
Broader concepts
Where this concept is used
- PrimaryMerger Predecessor/Successor Mapping: Preserve Identity and Entitlements Without Inventing ContinuityD02-F03-A04
- MentionedDelisting Return Reconstruction: Separate Observed Proceeds from EstimatesD02-F03-A05
- ImportantDivisor Continuity AdjustmentD03-F01-A03
- ImportantCorporate-Action Divisor BridgeD03-F01-A04
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