The date of record is the date all other payment dates are set.
A listed company is a public company that lists its shares on a national exchange like the NASDAQ or the American Stock Exchange. Companies must meet certain criteria to be listed with the national exchange houses, such as have a certain asset size or a certain market capitalization. Most exchanges also charge a fee to be listed. Listed companies may also pay dividends to shareholders. Dividends are usually paid on a quarterly basis and must be declared by the company board of directors before they can be paid out.
Instructions
1. Ratify a declaration date. The board of directors must declare a dividend be paid before a date of record can be set. The board of directors must decide on a payment amount as well.
2. Set a day of record. The date of record is the date in which the books are pulled to determine who the shareholders are. It is the date all other dates are based on.
3. Determine an ex-dividend date. The ex-dividend date is usually set two dates before the date of record. You can set the date with the National Associate of Securities Dealers, known as NASD. If the owner of the stock purchases the stock on or after the ex-dividend date, the seller gets the dividend.
4. Announce a payment date. This is the date the actual dividend is paid on and is usually set approximately 30 days after the date of record. Most companies issue a company statement announcing the date of payment and post it to the company website. Others will send an announcement to all holders of the dividend before the ex-dividend date.
