Record Date

The record date is the date on which a company determines who is entitled to receive a dividend, capital gain distribution, or other corporate action. The record date is typically set several days before the ex-dividend date, which is the date on which the stock begins trading without the dividend attached.

The record date is important because it determines who is entitled to receive a dividend or other corporate action. For example, if a company declares a dividend on January 15, the record date will be set for January 10. This means that shareholders who own the stock on January 10 will be entitled to receive the dividend. Shareholders who purchase the stock after January 10 will not be entitled to receive the dividend.

The record date is also important for determining who is entitled to vote at a shareholder meeting. Shareholders who own the stock on the record date are entitled to vote at the meeting. Shareholders who purchase the stock after the record date will not be entitled to vote.

The record date is typically set by the company's board of directors. The board of directors will consider a number of factors when setting the record date, including the company's financial situation and the timing of the corporate action.

The record date is an important date for shareholders to know. It is the date on which a company determines who is entitled to receive a dividend, capital gain distribution, or other corporate action.