In the case of stocks, the record date refers to dividend payouts.
When a corporation declares a dividend, it therefore specifies who is called a shareholder. This is the group of owners that will be paid a dividend.
Typically, the firm specifies a deadline on which an owner must own shares in order to receive a dividend. This is referred to as the record date.
Investors who do not own the stock or who purchase it after the record date are ineligible for the dividend.
Post Disclaimer
Information provided on this website is for Educational & Informational purposes only and is not considered to be advice or recommendation of any kind whatsoever. Anyone who wishes to apply the concept & ideas contained in this shall take full responsibility. Readers should always do their own diligence on any information perceived from this site to form their own opinion and best judgments. Any action you take upon the information you find on this website (letsthinkwise.com), is strictly at your own risk.