DEFINITIONS

Business Day
A day on which the stock exchanges
and the banks, agencies & depositories for securities in New York State are open for business. Any day on which the stock exchanges are open but the banks are closed is not counted as a business day for the purpose of calculating dividend ex-dates.

Conditional Dividend/Distribution A dividend or distribution conditional upon an event or circumstance that has not yet happened at the time of declaration.

Declaration Date                           The date a dividend is declared by the company.  The amount of the dividend is also declared except in some cases of a conditional dividend.

Deferred Ex-Dividend Date
An ex-dividend date that occurs one business day
after the payment date. 

Distribution
The payment of cash or securities that are not part of a company's earnings.                                 

Dividend
A payment of earnings to shareholders.

Due Bill
A statement of money owed.

Ex-Dividend/Distribution Date     The first day on which a stock trades without the right to receive the dividend/distribution.

Normal Dividend/Distribution
A dividend/distribution amounting to less than 25% of a company's stock price.

Owner of record
The
registered owner of a security on the Record Date.

Payment Date                               The day the dividend payment is
made.

Record Date                                 The day a buyer of a stock must be the registered owner (owner of record) to receive a dividend.

Special Dividend                           A dividend that is not regularly scheduled.

T+2 Settlement Rule
The requirement that securities transactions be settled in two business days.  (Before September, 2017, securities transactions were settled in three business days. Before June 7, 1995, securities transactions were settled in five business days.)