What is a record date?
A record date is the date when the company identifies the shareholders to pay the upcoming dividend. The shares owners will receive a dividend on the date of record. As soon as the date occurs, the stock price generally decreases by the amount of dividends. This is known as "business ex -dend". The reason why stocks trade ex-business are that if the shares are sold after a record date, a seller who has been a shareholder at a record date will receive a dividend.
Ex-Datend date is the first day of the ex -dend period. The Ex-Dendend period is the period from the date of the record to the date when the dividend is actually paid. The stock trades ex -dend throughout the ex -dend.
on 1. August the company could announce a dividend to be paid on 1 September. In this case, the record date is 15 August. All shareholders of the record on August 15 will receive a dividend. The stock will trade ex -dend from August 16 to September.
With regard to mutual funds, the record date is used to determine each owner and the number of shares that own at that date, in order to pay the distribution to shareholders. Distribution of mutual funds is usually paid annually or half -year, although securities in the funds will apply dividends at different times throughout the year. The shareholders of the record on the day of the record will receive distribution on the day of distribution.
The record date of securities supported by the asset is the date when the owners are identified so that the planned payment can be divided. The owners will receive a payment date for this date. Securities supported by asset are debt tools that are supported by specific assets such as receivables or repayment contracts. Since the accounts are collected or repayment payments are carried out, payments are distributed to owners of securities in accordance with security conditions.
whenever securities are purchased or sold, before zand the meaning of the transaction is settled. The stock with shares or general bonds will straighten three days of business days after sale. US government bonds and mutual funds usually settle the day after the date of trade. It is important to keep in mind because the store must be resolved before a record date for the buyer to receive a dividend or distribution.