FTB-C000119 / Formula component

Split Factor

A split factor is the declared conversion ratio between new and old per-share units for a stock split.

Also known asshare split factorsplit ratio factor

Intermediate Formula defined 8 linked topicsPublished

Definitions

In plain terms

A four-for-one split has a new-shares-per-old-share factor of 4; price and share series move in opposite directions under adjustment.

Technical

The factor must declare orientation, effective boundary, cumulative versus event form, treatment of missing events, and whether it applies to price, shares, or volume.

Scope

Vendor fields may store reciprocal or cumulative conventions, so the number is unsafe without its orientation.

Formula

F_split = new shares / old shares
LaTeX: F_{split}=N_{new}/N_{old}
SymbolMeaningUnit
N_newnew shares after conversionshares
N_oldold shares before conversionshares

Output unit: share ratio

Examples

  • A governed calculation records split factor with its exact basis, effective time, source, and units.

Common misconceptions

  • Split Factor does not have one universal treatment without the applicable methodology, event terms, and data context.

Concept relationships

Prerequisites

Related

Where this concept is used

Evidence and governance

  1. CRSP US Stock and Indexes Databases Data Descriptions Guide Center for Research in Security Prices · official platform documentation

    Supports: preferred label, short definition, technical definition, formula

    Limits: CRSP conventions, fields, codes, and licensed observations are provider-specific and are not reproduced as universal rules.

  2. 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