Record Date

Record Date - The record date is a time set aside for when corporate records are closed to establish the owner of record in regards to stocks which takes approximately five-business days for securities and, one business day for the mutual funds. The records must prove who contained ownership in a stock or, stocks in order for legal, tender payment rendered soundly. The general rule of thumb is that the record date is the last day of the month but for dividend purposes a participant must have owned shares of stock upon a decided previous date, also referred to as a cutoff date.