Disclaimer & Affiliate disclosure: The information provided on this post is for general informational purposes only and should not be considered financial or legal advice. Always consult with a financial advisor or attorney before making any financial decisions. Some of the links in this post are affiliate links, meaning, at no additional cost to you, we will earn a commission if you click through and make a purchase.
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.
