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Record date

The date on which the company checks its shareholder register; whoever is on it receives the dividend or gets to vote.

The record date is the company's snapshot. It applies to dividends, to voting-rights at the annual-meeting, to a rights-issue entitlement, and to who receives shares in a spin-off. The transfer-agent works from this list.

Because most investors hold in street-name, the registered holder is usually cede-and-co, and your broker allocates the entitlement to you from its own books.

Example: a company sets a record date of 20 March for a 12 May annual-meeting. Someone who buys on 1 May owns the stock at the meeting but cannot vote, because the register was closed six weeks earlier.

Related: ex-dividend-date, payment-date

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