The Record Date, also known as the "books close" or "book closure" date, is the date on which a company determines which shareholders are eligible to receive a dividend or other distribution. The record date is important because it determines who has the right to receive the distribution, based on the ownership of the company's shares as of that date.For example, let's say that a company announces that it will be paying a dividend on its common stock. The company sets the record date for the dividend as June 1st. If an investor owns shares of the company's stock as of June 1st, they are eligible to receive the dividend. If an investor buys the stock on June 2nd or later, they will not be eligible to receive the dividend, even if it is paid after they have purchased the stock.The record date is also important for voting rights. Shareholders who are on the company's record date are entitled to vote at the company's annual shareholder meeting or on other matters requiring shareholder approval.It's worth noting that the record date is not the same as the ex-dividend date, which is the date on which a stock begins trading without the right to receive the dividend. The ex-dividend date is typically set one business day before the record date.
