Adjusted Closing Price

The adjusted closing price is the modified closing price of a security that accounts for all corporate actions — including dividends paid, stock splits, bonus share issuances, and rights issues — that have occurred since the original trading session, ensuring historical price data is comparable and continuous for chart analysis and return calculation. Without adjustment, a stock's historical price chart shows artificial gaps and distortions on ex-dividend or ex-bonus dates — making it appear as though the stock fell sharply when in reality it simply reflected the distribution of value to shareholders. For example, a stock trading at ₹200 with a 1:1 bonus issue will show an ex-bonus price of approximately ₹100 — the adjusted closing price retroactively revises all prior prices to ₹100 level, maintaining chart continuity. In India, NSE and BSE provide adjusted price data for listed securities, and most financial data providers and charting platforms like TradingView and Screener.in display adjusted prices by default. For investors calculating actual investment returns, CAGR, and performance attribution, using adjusted closing prices rather than raw prices is essential — the adjusted series reflects the true economic return including the value of distributed corporate actions and is the correct series for any accurate long-term performance comparison.