Legal Definitions - declaration date

Definition: The date when corporate directors declare a dividend.

Example: If a company's board of directors declares a dividend on May 1st, then May 1st is the declaration date.

Explanation: The declaration date is the day when a company's board of directors announces that they will be paying a dividend to their shareholders. This date is important because it determines which shareholders will receive the dividend. If a shareholder owns the stock on the declaration date, they will be eligible to receive the dividend. If they buy the stock after the declaration date, they will not receive the dividend.