On the date of record of dividends, the company:

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On the date of record of dividends, the company determines who owns the shares of stock as of that date. This is important because the shareholders who own the stock on this specific date are eligible to receive the dividend payment. The company may record the dividend payable amount on this date, but the actual payment is typically disbursed at a later date, such as the payment date. The company does not issue new shares of stock on the date of record of dividends.

On the Date of Record of Dividends, the Company