Definition
The record date is the cutoff date that determines which shareholders are eligible to receive a declared dividend or participate in corporate actions like voting. Shareholders listed in the company's records as of this date receive the dividend, regardless of when they subsequently sell. Due to the T+1 settlement cycle, the ex-dividend date is typically one business day before the record date. The record date is also used for stock splits, rights offerings, and annual meeting voting eligibility.
Example
A company declares a dividend with a record date of March 15. The ex-dividend date is March 14. If you buy on March 13 and your trade settles by March 15, you're on record to receive the dividend.
FAQ
What is Record Date?
The date determining which shareholders are eligible to receive a dividend or vote.
Why is Record Date important?
Record Date helps investors evaluate corporate actions and make more informed decisions.