recorddate

Recorddate is a date set by a company, fund, or other issuer to determine which holders of its security are eligible to participate in a specific corporate action, such as receiving a dividend, taking part in a rights issue, or voting at a meeting. The issuer’s transfer agent or registrar maintains a register of record holders as of the close of business on the record date. Those listed as holders on that date are entitled to the stated benefit.

The record date is closely linked to the ex-dividend date and the payment date. In many markets with standard settlement cycles, the ex-dividend date falls a few business days before the record date; investors who purchase the security before the ex-dividend date are entitled to the upcoming dividend, while purchases on or after the ex-dividend date are not. The actual dividend payment occurs on the payment date, which may be days or weeks after the record date.

Record dates apply to various actions, including cash dividends, stock dividends, rights offerings, and annual or special meetings requiring shareholder votes. Different jurisdictions may have different timelines and rules, and some markets use slightly different terminology or sequencing.

Investors should verify record dates through official issuer announcements, exchange notices, or their brokerage platforms, as errors in ownership records or processing can affect eligibility for the corporate action.