1 min to read
Shareholder's Rights to Dividends
Explaing the Record and Ex Dividend Date
Record Date
The record date is the day when the company checks to see who the owners of its stock are for the purpose of distributions
You must own the stock two business days before this date to receive corporate distributions. This includes dividends, stock splits, or rights. The record date is based off of when settlement occurs not when the order is placed.
Regular way settlement takes two business days.
Ex Date / Ex Dividend
The regular way ex date is one business day before the record date. This is the day when the price of the stock is reduced by the dividend amount. Anyone who purchases stock on or after this day is not entitled to distributions.
In order to recieve a distribution you must have owned the stock one business day prior to the ex date.
