The date on which the board of directors passes a resolution authorizing payment of a dividend to the shareholders is the ________ date.

Question

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The date on which the board of directors passes a resolution authorizing payment of a dividend to the shareholders is known as the declaration date. This is when the company declares that a dividend will be paid and announces the amount of the dividend. The other dates mentioned in the question are also important in the dividend process, but they occur at different stages. The ex-dividend date is the first day that a stock trades without the dividend, the record date is the date on which shareholders must be on the company's records to receive the dividend, and the payment date is when the dividend is actually paid out to shareholders.

The Date on Which the Board of Directors Passes a Resolution