• Book closure is a time period where companies do not handle adjustments to their register or any requests to transfer shares.
• Book closure is also used as a cut-off date to determine which investors will receive a dividend payment for that dividend period.
• Investors pay close attention to the book closure date as it determines when they should sell their shares or how long they need to hold onto them to receive a dividend.
• The stock of publicly-traded companies changes hands daily as investors buy and sell shares. Because of this, when a company declares it will pay a dividend or issue bonus or split stock, it must have a specific date set on which it will close its shareholder record book and commit to sending the dividend to all investors holding shares as of that date.