RECORD DATE Meaning and
Definition
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Record date refers to a specific date set by a corporation or organization to determine the shareholders or holders of record who are entitled to receive certain benefits or participate in certain actions. This date plays a crucial role in determining who has the right to participate in corporate actions, such as receiving dividends, voting on corporate matters, or receiving rights offerings.
The record date is usually established in advance and listed in the company's books. It is established by the company's board of directors or governing body and is generally set a few weeks or months prior to the actual event that requires identification of the shareholders of record. Shareholders recorded on this date are considered the rightful or beneficial owners and are entitled to the benefits or actions associated with the event.
For example, in the context of dividend payments, the record date is set by the corporation to determine which shareholders are eligible to receive the dividend. Only shareholders recorded on the record date will receive the dividend payment, regardless of whether they sell their shares after the record date.
In summary, the record date is a specific date set by a corporation or organization to identify the shareholders who are eligible to partake in certain benefits or actions. It ensures that shareholders holding shares on the designated date are entitled to receive dividends or vote in shareholder meetings, safeguarding their rights and preventing transfer of benefits to unauthorized individuals.
Common Misspellings for RECORD DATE
- eecord date
- decord date
- fecord date
- tecord date
- 5ecord date
- 4ecord date
- rwcord date
- rscord date
- rdcord date
- rrcord date
- r4cord date
- r3cord date
- rexord date
- revord date
- reford date
- redord date
- recird date
- reckrd date
- reclrd date
- recprd date
Etymology of RECORD DATE
The word "record" comes from the Old French word "recorder" meaning "to remember". It ultimately derives from the Latin word "recordari", which means "to call to mind" or "to remember".
The word "date" comes from the Latin word "datum", which means "given" or "that which is given". It was used in medieval Latin as a term for a specific day or point in time.
When combined, the term "record date" refers to the date on which an event or transaction is officially recorded or documented. In finance and corporate settings, it typically represents the date on which an individual must own shares in order to be eligible for certain benefits, such as dividends or voting rights.
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