All you need to know about Record Date

Record Date

The record date is one of the foremost important dates within the stock exchange area. The corporate listed company will consider the record date for the dividend to credit bonuses to its shareholders. Let’s discuss all you need to know about Record Date.

The record date is the date set by a board of corporation/listed companies.

The record date is the date on which investors must own shares on their names to get the benefit when they announced a bonus issue/dividend.

What is record date?

Few important takeaway points about record date:

  • A company use record date and set as a deadline to identify the eligible shareholders to offer dividend/share bonus/Share split/rights issue/corporate gains.
  • The record date will usually be the day following the ex-dividend/ex-bonus date, which is that the trading date on (and after) which the dividend isn’t owed to a replacement buyer of the stock.
  • To be eligible for the dividend/bonus shares, you want to buy the stock a minimum of two business days (T+2 days) before the record date.

Example:

Consider,

Record date = 30th March,

Ex-dividend date = 29th March

  • One should buy the stock before the ex-dividend date to be eligible to receive the dividend.
  • If anybody purchases the stock after the dividend date, they will not receive a dividend.

I hope this clear and you got to know what is record date.

Read: What is the dividend?

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