fintech-algorithms

Corporate-Action Divisor Bridge

Install and import

bash
npm install fintech-algorithms
ts
import { calculate } from "fintech-algorithms/index-and-benchmark-engineering/index-initialization-and-continuity/corporate-action-divisor-bridge";

Signature

calculate(data)

Worked example

verified This is the worked example published in the article, replayed by the test suite on every run. The output cannot drift.

Input

data
{
  "preEventMarketValue": 100000000,
  "nonMarketValueChange": -4000000,
  "preEventDivisor": 100000,
  "action": "special dividend"
}

Call

calculate(data)

Returns

object with 5 fields: action, preEventLevel, postEventMarketValue, newDivisor, bridgedLevel

{
  "action": "special dividend",
  "preEventLevel": 1000,
  "postEventMarketValue": 96000000,
  "newDivisor": 96000,
  "bridgedLevel": 1000
}

Diagrams

Corporate-Action Divisor Bridge — article hero
Corporate-Action Divisor Bridge — failure guard
Corporate-Action Divisor Bridge — worked example

Calculation flow

Corporate-Action Divisor Bridge calculation flow 
flowchart LR
    A["Point-in-time inputs"] --> B["Validate units and timing"]
    B --> C{"Contract feasible?"}
    C -->|No| D["Reject with reason"]
    C -->|Yes| E["Calculate Corporate-Action Divisor Bridge"]
    E --> F["Recompute invariants"]
    F --> G{"Checks pass?"}
    G -->|No| D
    G -->|Yes| H["Publish audited output"]
Corporate-Action Divisor Bridge methodology state 
stateDiagram-v2
    [*] --> FrozenInputs
    FrozenInputs --> Validated: contract passes
    FrozenInputs --> Rejected: missing or infeasible
    Validated --> Calculated: apply named rule
    Calculated --> Audited: invariants pass
    Calculated --> Rejected: invariant fails
    Audited --> Published: version and timestamp recorded
    Published --> Revised: approved correction
    Revised --> FrozenInputs: rebuild from retained source state

How it works

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References