Investor Glossary-declaration dateInvestor Glossary-declaration dateInvestor Glossary-declaration dateInvestor Glossary-declaration dateInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Declaration Date

The HTML to link to this page
 

The declaration date is one of three key dates associated with company dividends. It is on the declaration date that the firm incurs a legal obligation to pay dividends. For example, on November 1 (the declaration date) the company declares a quarterly dividend of $2 on its 500,000 outstanding shares, to be paid November 30 (the payment date) to shareholders of record on November 15 (the record date). On the declaration date, the company debits retained earnings $1,000,000 and credits dividends payable $1,000,000. On the record date, the obligations incurred on the declaration date have not changed, and no entry is made. On the payment date, the company credits cash for $1,000,000 and debits dividends payable $1,000,000, eliminating the liability incurred on the declaration date. Note that the declaration date is also called the announcement date.



Rate this declaration date definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 1031 exchange, 1035 exchange, EBITDA, retained earnings, covered put, option premium, limit order, margin rate, phantom income, deferred tax, APR, labor relations, current ratio, LIBOR, FTSE, command economy, stock split, 144a, ex-dividend, in escrow, reverse mortgage, quality assurance, Key Rate Duration, implied volatility, per diem, risk management, inflation, dividends payable, stock market close, minority interest, diluted share, annual return, ex-dividend date, VIX, average price per share, open position, 401a, wholly-owned subsidiary, balance sheet, deferred revenue, irrevocable trust, FICO score, cancelled check, class C shares, Zero Cost Collar, real GDP, required rate of return, liquidity ratio, debt service coverage


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use