date on which HOLDERS OF RECORD in a company's stock ledger are entitled to receive DIVIDENDS or STOCK RIGHTS. Stock usually trades EX-DIVIDEND or EX-RIGHTS beginning the fourth business day before the date of record. It is different from the DECLARATION OF DATE; that is, the date that the board of directors announces its intention to pay a dividend. Once this is done, the company has created a LIABILITY; it owes the dividend to the stockholders of record. For example, on July 5, the board of directors of XYZ Corporation declared a 25 cent cash dividend on its common stock payable on August 15 to stockholders of record on July 17. This creates a liability by the company to stockholders of record. The common stockholders on the company's list on July 17 will receive the 25 cent dividend on August 15.