Adjusted price
Also called: adjusted prices, split-adjusted price, adjustment factor, unadjusted price
A historical price rescaled for splits, bonus issues and sometimes dividends, so the price history is comparable over time.
A 1:5 split cuts the price to about a fifth without changing anyone's wealth. Adjusted data divides earlier prices by the adjustment factor so charts, indicators and backtests do not show false crashes. Unadjusted data shows the prices that actually traded.
Example
After a 1:2 bonus issue, earlier prices are divided by 1.5, so ₹900 before the bonus appears as ₹600.
Learn more in these lessons
- Adjusted and unadjusted pricesWhy are the old prices on a chart sometimes different from the prices that traded?
Related terms
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