Definitions
In plain terms
If a share rises from 100 to 105, its price return is 5%, regardless of any dividend paid during the period.
Technical
For comparable start and end price bases, price return is the ending price minus starting price divided by starting price; corporate actions and currency basis must be controlled.
Scope
It excludes distributions and is not the same as an investor's total economic return.
Formula
R_price = (P1 - P0) / P0R_{price}=(P_1-P_0)/P_0| Symbol | Meaning | Unit |
|---|---|---|
P0 | starting comparable price | currency |
P1 | ending comparable price | currency |
Output unit: decimal return
Examples
- A governed calculation records price return with its exact basis, effective time, source, and units.
Common misconceptions
- Price Return does not have one universal treatment without the applicable methodology, event terms, and data context.
Concept relationships
Where this concept is used
- ImportantBackward Split AdjustmentD02-F01-A01
- ImportantForward 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
- ImportantRights-Issue TERP AdjustmentD02-F02-A01
- PrimaryPrice-Return IndexD03-F04-A01
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, formula
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