Record Date for Dividend Meaning

Whenever a company which is listed in the stock market gives dividend then the first question which comes in the mind of the shareholder is when is the record date of dividend because it matters the most as far as investors are concerned. So what is the meaning of record date well given below is the answer for it –

It can be defined as the date on which the shareholders who have shares are entitled to get the dividend and hence if a person sells his or her shares before the record day then he or she is not entitled for the dividend. It can be better understood with the help of an examples, suppose if the record date for dividend is 12th march 2013 then all the shareholders who have shares of the company on 12th march 2013 are entitled to get money.

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