What is a record date?

The record date or it’s also known as the date of record is the time what the company sets and on the next day it will pay out the dividends to it’s shareholders. For an investor to be eligible for the dividends then he has to have it in it’s possession three days before the record date. The investor who buys the shares after they are called ex-dividends because they won’t receive the check from the company. For example if a company sets the record date to the 1st of October then each investor who has in his possession stocks dating back at least three days prior to the record date will receive dividends by check from the company.