Sean Rouse owns shares of common stock in Stowaway Transportation Company.The company is getting ready to pay a dividend.Sean knows he must be registered on the corporation's books on the _______ date in order to receive the dividend.

Question

Quizplus · Accepted Answer

The record date is the date on which a company reviews its books and identifies shareholders who are eligible to receive the dividend payment. Shareholders must be registered on the corporation's books on or before the record date in order to receive the dividend. The ex-dividend date is the date on which the shares begin trading without the upcoming dividend, the payment date is the date on which the dividend is actually paid out, the declaration date is the date on which the board of directors declares the dividend, and the stockholders' meeting may include discussions of dividends but is not directly related to the dividend payment process.

Sean Rouse Owns Shares of Common Stock in Stowaway Transportation