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 ?

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.

Columbia Equity Trust, Inc. Declares Prorated Dividend

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.

Del Global Technologies Corp. Registration Statement Declared Effective

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.

Peoples Energy Declares Special Pro Rata Dividend in Preparation for Completing Merger with WPS Resources

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.

Terra Nova Acquisition Corporation Announces Filing of Definitive Proxy Statement

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.

Hospitality Properties Trust Announces Record Date For TravelCenters Spin Off

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.

AMV Liquidating Trust Announces Dissolution of Amerivest Properties Inc

All GFCI shareholders as of the Record Date will be issued a total of 20,000,000 two-year warrants converting on a 1:1 basis into Series A Preference Drilling Participation Shares of PDEI at a price of $.

Grifco International, Inc. Shareholders to Receive Warrants for Preference Shares with 33 1/3% Stake in N.R.I. on Gas Properties

25 per share post-split) payable on the Payment Date to shareholders of record on the Record Date.

U.S. Global Announces Mailing Definitive Proxy Statement to Shareholders

The Record Date shall be the date that the transfer agent's books will be closed.

Board of Trustees of First Trust/Value Line(R) & Ibbotson Equity Allocation Fund Approves and Adopts Plan of Termination, Liquidation and Dissolution That Results in the Termination of the Fund

What is the record date and can a shareholder still qualify for the dividend?

Silver Screen Studios Publishes Investors FAQs

Due to overwhelming requests the board of directors has decided to extend the distributions to ALL shareholders of SSSU as of a record date that will be in November 2006.

Silver Screen Studios: Shareholders FAQ Update Concerning Distributions

The final distribution ratio will be set on the record date and will be calculated by dividing the number of Verigy shares to be distributed by the number of Agilent shares outstanding as of the record date.