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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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 ?

EDT on September 17, 2019, the record date. Each Nuance stockholder of record will receive a distribution of one share of Cerence Inc.

Nuance board of directors declares spin-off dividend of Cerence shares

Accordingly, the fund will issue transferable subscription rights to its common shareholders on the record date of 18 July 2019 set by its board of trustees (record date shareholders), who can subscribe for new GLQ common shares (the primary subscription).

Clough Global Equity Fund declares effectiveness of registration statement filed with SEC

TULSA SemGroup Corp.'s board of directors declared a quarterly cash dividend of 47.25 cents per share payable May 20 with a record date of May 10.

SemGroup sets cash dividend

BANKING AND CREDIT NEWS-March 22, 2019--CVB Financial corrects record date for dividend

CVB Financial corrects record date for dividend

In this case, the board will make separate resolutions on each distribution of the dividend and/or equity repayment so that the preliminary record and payment dates will be 29 March 2019 preliminary payment date, with 15 March 2019 as preliminary record date; 28 June 2019 as preliminary payment date, with 21 June 2019 as preliminary record date; 30 September 2019 as preliminary payment date, with 23 September 2019 as preliminary record date and 30 December 2019 as preliminary payment date, with 19 December 2019 as preliminary record date.

Citycon reports on board proposal for asset distribution proposal

AUB said they will pay the dividends in two tranches-P1 per share on the end of May for record date May 15 and the other P0.60 per share on August 10 for record date August 3.

AUB plans to pay stockholders P776 million in cash dividends

fixed the close of business on May 30, 2018 as the record date for determination of stockholders entitled to participate in the Fund's previously announced common stock rights offering.

Royce Value Trust, Inc. fixes close of business

Holders of record of the outstanding common shares of ETNI of the record date as of 30 May 2018 as well as the holders of record of the shares of any outstanding series of the preferred shares of ETNI of the record date as of 30 May 2018 shall receive one common share of Zander Therapeutics Inc for each 17 common and/or preferred shares of ETNI held as of the record date on the distribution date of 11 June 2018.

Entest Group approves dividend of 3m common stock

Delphi Automotive PLC (NYSE: DLPH), a global technology company serving the automotive sector, has received approval from its board of directors for the record date, distribution date and distribution ratio for the spin-off of its Powertrain Systems segment into a new publicly traded company, Delphi Technologies PLC.

Delphi Automotive receives directors' approval for Powertrain Systems spin-off into Delphi Technologies

For the fourth quarter, the preferred shareholders to be bestowed with dividends are those as of record date November 24, 2014.

News in brief

Compuware Corporation (NASDAQ: CPWR) said it has completed its distribution of all of its 31,384,920 shares of Covisint Corporation (NASDAQ: COVS) common stock as a pro rata dividend on shares of Compuware common stock, and on shares of Compuware common stock deliverable under restricted stock units relating to Compuware common stock, outstanding on October 20, 2014, the record date.