Podcast
Questions and Answers
What is the significance of the record date in shareholder distributions?
What is the significance of the record date in shareholder distributions?
- It is used to assess the company’s overall market value
- It affects the stock price directly
- It determines which shareholders receive dividends or other distributions (correct)
- It is a guideline for future stock issuance
Flashcards
Record Date
Record Date
The date a company uses to determine shareholders eligible for dividends or distributions.
Shareholder Eligibility
Shareholder Eligibility
Ownership status of shareholders on the record date.
Dividend
Dividend
A payment to shareholders from a company's profits.
Distribution
Distribution
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Company's Board
Company's Board
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Study Notes
Record Date Definition
- Record date is the company's established cut-off date
- It determines which shareholders are entitled to a dividend or distribution.
Importance of Record Date
- Establishes shareholder eligibility for dividends/distributions.
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Description
This quiz explores the concept of record date, a crucial cut-off date set by companies to determine shareholder eligibility for dividends or distributions. Understanding this term is essential for investors to know when they can expect payouts from their investments.