Advanced English Dialogue for Business – Record date

Listen to a Business English Dialogue About Record date

Caroline: Hi Ava, do you know what a record date is in finance?

Ava: Hi Caroline! Yes, the record date is the date set by a company to determine which shareholders are eligible to receive dividends or vote at a shareholder meeting.

Caroline: That’s correct. It’s an important date because shareholders must own the stock by the record date to qualify for these benefits.

Ava: Exactly. Shareholders who buy the stock after the record date won’t be eligible for dividends or voting rights until the next record date.

Caroline: Right. So, investors need to pay attention to the record date if they want to participate in company decisions or receive dividends.

Ava: Yes, and companies typically announce the record date along with other important information about dividends or shareholder meetings.

Caroline: That’s true. It’s usually mentioned in the company’s dividend declaration or in the notice for the shareholder meeting.

Ava: Absolutely. By knowing the record date, investors can plan their stock purchases or sales accordingly to maximize their benefits.

Caroline: Right. And for companies, the record date helps ensure that only current shareholders receive the benefits of ownership.

Ava: Yes, it’s a way for companies to maintain accurate records of their shareholders and manage their distributions effectively.

Caroline: Exactly. So, the record date plays a crucial role in determining shareholder entitlements and maintaining transparency in corporate governance.

Ava: Definitely. It’s an important aspect of the stock market that both investors and companies need to understand to make informed decisions.