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```							                      What Exactly is Adjusted Close?1
Adjusted Close provides the closing price for the requested day, week, or month, adjusted
for all applicable splits and dividend distributions. Data is adjusted using appropriate split
and dividend multipliers, adhering to Center for Research in Security Prices (CRSP)
<http://gsbwww.uchicago.edu/research/crsp/> standards.
Split multipliers are determined by the split ratio. For instance, in a 2 for 1 split, the pre-
split data is multiplied by 0.5.
Dividend multipliers are calculated based on dividend as a percentage of price, primarily
to avoid negative historical pricing. For example, when a \$0.08 cash dividend is
distributed on Feb 19 (ex-date), and the Feb 18 closing price was 24.96, the pre-dividend
data is multiplied by (1-0.08/24.96) = 0.9968. Below is a detailed example of adjusted close
calculations.
2/13/03 Close = 46.99
2/14/03 Close = 48.30
2/18/03 Split = 2:1
2/18/03 Close = 24.96
2/19/03 Cash Dividend = 0.08 (ex-date)
2/19/03 Close = 24.53
Split Multiplier = 0.5
Dividend Multiplier = 1 (0.08/24.96) = 0.9968
2/13/03 Adj. Close = 0.5 * 0.9968 * 46.99 = 23.42
2/14/03 Adj. Close = 0.5 * 0.9968 * 48.30 = 24.07
2/18/03 Adj. Close = 0.9968 * 24.96 = 24.88

1   Courtesy of Jesus Tamez (MBA ’08)

```
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