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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
The date a company checks who owns shares to pay dividends.
Why It Matters
The record date is when the company takes attendance - it checks who's on the shareholder list to receive the dividend. But because stock trades take time to settle, you need to buy before the ex-dividend date (which is set based on the record date). For most investors, the ex-date matters more than the record date.
Key Points
- Record date: When company checks its books for dividend-eligible shareholders
- You must be a 'shareholder of record' on this date to receive the dividend
- Ex-date is set based on record date and settlement times (T+1 currently)
Related Terms
Common Questions
The date a company checks who owns shares to pay dividends. The record date is when the company takes attendance - it checks who's on the shareholder list to receive the dividend. But because stock trades take time to settle, you need to buy before the ex-dividend date (which is set based on the record date).
The record date is when the company takes attendance - it checks who's on the shareholder list to receive the dividend. But because stock trades take time to settle, you need to buy before the ex-dividend date (which is set based on the record date). For most investors, the ex-date matters more than the record date.
Record date: When company checks its books for dividend-eligible shareholders
You must be a 'shareholder of record' on this date to receive the dividend
Ex-date is set based on record date and settlement times (T+1 currently)