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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?
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.
