Corporate Actions

What is the difference between book-closure and record-date?

Let’s answer this question with some definitions:

Ex-Date: It is a trading date on (and after) which no corporate action is owed to a new buyer of the stock.

Record Date: The record date is usually a day following the ex-date. The record date is the cut-off date established by a company in order to determine which shareholders are eligible for any corporate action distribution.

Book Closure: The time period in which a company will not handle adjustments to the register or requests to transfer shares. The book closure date is often used to identify the cut-off date that determines which investors of record will be eligible for any corporate action.

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