Record date

Record date

(1) Date by which a shareholder must officially own shares in order to be entitled to a dividend. For example, a firm might declare a dividend on Nov. 1, payable Dec. 1 to holders of record Nov. 15. Once a trade is executed, an investor becomes the "owner of record" on settlement, which currently takes five business days for securities and one business day for mutual funds. Stocks trade ex-dividend the fourth day before the record date, since the seller will still be the owner of record and is thus entitled to the dividend. (2) The date that determines who is entitled to payment of principal and interest due to be paid on a security. The record date for most MBS is the last day of the month, although the last day on which an MBS may be presented for the transfer is the last business day of the month. The record dates for CMOs and asset-backed securities vary with each issue.

Record Date

The last date on which any dividend on a stock that has been declared but not distributed belongs legally to the buyer, rather than the seller. That is, when one sells a stock on or before the record date, the dividend will go to the buyer when the next dividend comes. On the other hand, if it is sold after the record date, the dividend will go to the seller. In practical terms, the record date is the trading day immediately before the ex-dividend date. It is also called the date of record.

record date

The date on which a firm's books are closed during the process of identifying the owners of a certain class of securities for purposes of transmitting dividends, interest, proxies, financial reports, and other documentation to them. For example, only the common stockholders who are listed on the record date will receive the dividends that are to be mailed on the payment date. Also called date of record. See also ex-dividend, interest dates.

Record date.

To be paid a stock dividend, you must own the stock on the day that the corporation's board of directors names as the record date, also known as the date of record.

For example, if a company declares a dividend of 50 cents a share payable on September 1 to shareholders of record as of August 10, you must own the shares on August 10 to be entitled to the dividend.

To be the legal owner on the record date you must buy the stock at least three business days before the record date. That is the last day on which trades will settle on the record date.

If you buy the stock after that day, you are buying the stock ex-dividend, which means you are not entitled to the dividend. The first day the buyer is not entitled to receive the dividend is called the ex-dividend date and is currently two days before the record date in most cases.

References in periodicals archive ?
OTC Bulletin Board: AUOR), formerly known as Toucan Gold Corporation, today said that it postponed the setting of a new record date for distribution of ordinary shares of Toucan Mining PLC (TMP), formerly known as Toucan Mining Ltd.
The record date for Columbia's prorated dividend will be the close of business on the last business day prior to the merger effective time, provided that the merger effective time occurs on or prior to the next regular quarterly dividend record date, which is expected to be on or about April 17, 2007.
B, GMD), a leading Mexican infrastructure construction company, today announced a record date of August 3, 1994 for participation in the preemptive rights offering preceding the US$50 million investment by the company's controlling shareholders.
10 per share (the "Common Stock"), to persons who own shares of the Common Stock as of the close of business on February 5, 2007, the Record Date for the Rights Offering.
The record date for determination of the stockholders to whom this "rights offering" will initially be made will be subsequently established by the Company's Board of Directors, which will also determine the price at which the shares will be offered to stockholders of record on the record date.
CHICAGO -- In preparation for the potential closing of the merger of Peoples Energy Corporation (NSYE:PGL) with WPS Resources Corporation prior to the next Peoples Energy common stock dividend record date, and in accordance with the merger agreement, the Board of Directors of Peoples Energy today declared a special pro rata dividend to ensure that its shareholders continue to receive their dividend at the current rate until the closing of the merger.
6, 1993 regarding the change in the record date affecting the equity holders in its Plan of Reorganization under Chapter 11 was misinterpreted and needs further explanation.
A public stockholder who owned shares as of the Record Date who votes against the merger may demand that Terra Nova convert the stockholder's ("Converting Stockholder") shares into cash for the stockholder's pro rata share of the trust account.
Similarly, record holders of Wang debt securities on the record date will be eligible to receive "new" common shares.
Hospitality Properties Trust (NYSE: HPT) today announced that the record date for its planned spin off of TravelCenters of America LLC ("TA") will be the close of business on Friday, January 26, 2007.
Pursuant to the rights offering, the fund will distribute to shareholders of record on March 10, 1993 (the record date), one transferable right for each share of common stock owned on the record date.
Under the terms of the Liquidating Trust Agreement executed by AmeriVest and the Trustee, which agreement became effective as of the Record Date, each stockholder of AmeriVest on the Record Date (each, a "beneficiary") automatically became the holder of one unit of beneficial interest ("Unit") in the Trust for each share of AmeriVest common stock then held of record by such stockholder.