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declaration date

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Financial Dictionary

Declaration Date

1. The date on which the next dividend payment is announced by the directors of a company. This statement includes the dividend's size, ex-dividend date and payment date. It is also referred to as the "announcement date".

2. The last day on which the holder of an option must indicate whether they will exercise the option. Also known as the "expiration date".

Investopedia Commentary

1. Once it is authorized, it is known as a declared dividend and becomes the company's legal liability to pay it.

2. The declaration date of all listed stock options in the U.S. is on the third Friday of the listed month. If there is a holiday on the Friday then the declaration date falls on the third Thursday.

Related Links

Declaration, Ex-dividend And Record Date Defined
Options Basics Tutorial

See also: Board of Directors, Book Closure, Cum Dividend, Dividend, Equalizing Dividend, Ex-Date, Ex-Dividend, Holder of Record, Option, Record Date

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Financial Dictionary

declaration date

The date on which a firm's directors meet and announce the date and amount of the next dividend. Following the declaration, dividends become a legal liability of the firm. See also ex-dividend date, interest dates, record date.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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