What is Record Date in Finance?

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.

What is Record Date in Finance?
What is Record Date in Finance?
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