Listen to a Business English Dialogue About Date of record
Matthew: Gabrielle, do you know what the “date of record” means in finance?
Gabrielle: No, what is it?
Matthew: The date of record is the cutoff date set by a company to determine which shareholders are eligible to receive dividends or participate in corporate actions like voting at shareholder meetings.
Gabrielle: How is the date of record different from the ex-dividend date?
Matthew: The ex-dividend date is the date on or after which a stock trades without the dividend included in the price, while the date of record is the date by which an investor must own shares to be entitled to the dividend.
Gabrielle: Are there any specific rules or regulations regarding the date of record?
Matthew: Yes, the date of record is typically established according to the rules and regulations of the stock exchange where the company is listed, and it’s important for investors to be aware of this date to ensure they qualify for dividends or voting rights.
Gabrielle: How do investors use the date of record in their investment decisions?
Matthew: Investors use the date of record to plan their investment strategies, such as buying shares before the cutoff date to qualify for dividends or ensuring they have voting rights at shareholder meetings.
Gabrielle: Can the date of record impact a company’s stock price?
Matthew: It’s possible, as investors may buy or sell shares in anticipation of the date of record, especially if they’re seeking to capture dividends or exercise voting rights, which can influence supply and demand dynamics in the market.
Gabrielle: How do companies determine the date of record?
Matthew: Companies typically establish the date of record based on factors like their dividend payment schedule, corporate governance practices, and regulatory requirements to ensure fairness and transparency for shareholders.
Gabrielle: Thanks for explaining, Matthew. The date of record seems like an important consideration for investors when managing their portfolios.