Definitions
In plain terms
Total-return indices commonly model dividends as reinvested, but the reinvestment date, tax assumption, and price are methodology choices.
Technical
A reinvestment rule specifies eligible cash, ex or payment timing, reference price, taxes, FX, fractional units, fees, and treatment of corrections.
Scope
Modeled reinvestment is not proof that an investor actually received that execution.
Examples
- A governed calculation records reinvestment with its exact basis, effective time, source, and units.
Common misconceptions
- Reinvestment does not have one universal treatment without the applicable methodology, event terms, and data context.
Concept relationships
Prerequisites
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