What does record date and ex-date means?

 What does record date and ex- date means?

  1. Record date: The record date is when the company checks its records to identify the eligible shareholders for a corporate action such as entitlement of rights shares, bonus shares, stock splits, dividends,etc.
  2. Ex-Date: The date on which a stock starts trading without the benefit of corporate action, i.e., ex-benefit, is known as the ex-date.

  RELATED FACTS: -

  • Nowadays, the ex-date and the record date for all the corporate actions are on the same day since all the instruments are moved to the T+1 settlement cycle. 
  • A stock will trade with the benefits of the corporate action or cum-benefit (i.e., cum-rights, cum-dividend, etc.) until the ex-date or the record date