What is book closure date?
- 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.
Did you find it helpful?
Sorry we couldn't be helpful. Help us improve this article with your feedback.