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Adjusting Prices for Stock Splits

Hard · data_manipulation · Quant Researcher interview question · pandas, finance, time-series, data-cleaning

Historical price analysis requires adjusting for corporate actions like stock splits to maintain price continuity and prevent false signals in trading strategies. Backward adjustment modifies historical data prior to the ex-date, ensuring that past prices are comparable to current market values. This process is fundamental in quantitative finance for building accurate backtesting environments and generating reliable alpha signals. Task Write a function adjust_prices(market_data, corporate_actio