Record Date.
In plain English
The record date is the specific day a company looks at its official books to see who is registered as a shareholder. Everyone on that list as of the record date receives the declared dividend. The company's board sets this date when it announces the dividend. Because of how settlement and the ex-dividend date work together, you need to buy shares before the ex-dividend date to be on the books in time for the record date.
01Why it matters
The record date is the official checkpoint that decides whether you get paid. Understanding it explains why brokers and companies care so much about exactly when you bought, not just whether you own the stock today.
02The math, step by step
A company sets a record date of June 13 for a dividend. Anyone listed as a shareholder of record on June 13 gets the payment. Because trades settle the next business day, the ex-dividend date is set so that buyers who purchase too late will not appear on the June 13 books and will miss the dividend.
03What this is NOT
The record date is when the company snapshots its ownership list. The ex-dividend date is the earlier trading cutoff that decides whether your trade settles in time to be on that snapshot. You act by the ex-date; the company checks on the record date.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
Educational tool. Answers come only from ClearMoneySchool's published glossary and are not advice. Why we never give advice