Record Date
The date established by a corporation on which a shareholder must be registered on the company's books to be entitled to receive a dividend, vote at a meeting, or participate in a corporate action.
Full Definition
The record date is a cut-off date set by the board of directors that determines which shareholders are entitled to a specific right or benefit, such as a dividend payment, a rights offering, or the ability to vote at a shareholder meeting. Only shareholders whose names appear on the transfer agent's records as of the close of business on the record date qualify. The record date must be disclosed in regulatory filings and corporate communications and is distinct from the ex-dividend date, which is set by the exchange and falls one business day before the record date for most U.S. securities. Editors should present this as two unhyphenated words and always pair it with an exact date in formal documents.
Usage
Usage note: Do not hyphenate. Distinguish carefully from 'ex-dividend date' (the exchange-set date) and 'payment date' (the date funds are disbursed). All three dates are often mentioned in close proximity in dividend-related documents.
In Context
- "Shareholders of record as of the close of business on the record date, March 15, 2024, will be eligible to vote at the annual meeting." — Proxy statement
- "The board declared a quarterly dividend payable on April 30, 2024, to shareholders of record on April 5, 2024." — Dividend announcement / 8-K filing