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Finance Dictionary and Glossary of Investment Terms
Record date
Definition 1.
(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.
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Definition 2.
Date, set by the issuing in order to be eligible to receive a declared dividend or capital gains distribution. The date is also used by the NASD to set the ex-dividend date. also called date of record.
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Definition 3.
The date by which you must own a stock in order to get a dividend check on the pay date. When a company plans to issue a dividend to shareholders, it announces both a pay date for the dividend and a record date. The record date usually precedes the pay date by about two weeks. If you buy the stock the day after the record date, you won''t get a dividend check.
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Definition 4.
The date on which a company's records are closed to determine which stockholders are to be sent dividends, proxies, rights, etc.
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Definition 5.
The date established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution.
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