Due Bill Period

AAA

DEFINITION of 'Due Bill Period'

In the context of corporate actions (such as dividends, issuance of rights and warrants, splits, etc.), the period during which remittances to investors are due - once stockholders of record are checked on the record date.

INVESTOPEDIA EXPLAINS 'Due Bill Period'

For example, suppose that a stock is going to issue a regular quarterly dividend. The record date is the date at which the list of stockholders of record is prepared - anyone who is on record as owning the stock as of that date will receive the dividend. The ex-date, which usually occurs two days earlier, is the date at which the shares trade on the open market without the right to the dividend (i.e. the time at which a buyer cannot settle his purchase in time to be a holder of record for the dividend).

The period beginning at the record date and usually ending two days later (four days after the earlier ex-date) is when the identities of the holders of record are known and payment is due to them - this is the due bill period.

RELATED TERMS
  1. Execution

    The completion of a buy or sell order for a security. The execution ...
  2. Trade Date

    The month, day and year that an order is executed in the market. ...
  3. Ex-Date

    The date on or after which a security is traded without a previously ...
  4. Fail

    In common trading terms, if a seller does not deliver securities ...
  5. Record Date

    The date established by an issuer of a security for the purpose ...
  6. Holder Of Record

    The name of the person who is the registered owner of a security ...
RELATED FAQS
  1. Do I own a stock as of the trade date or the settlement date?

    When it comes to buying shares, there are two key dates involved in the transaction. The first date is the trade date, which ... Read Full Answer >>
  2. What is a direct rights offering?

    A direct rights offering is an offer made by a company, directly to existing shareholders, granting them rights to purchase ... Read Full Answer >>
  3. Why would a company choose to pay a stock dividend instead of a cash dividend?

    For stock investors seeking instant gratification as a reward for having placed their funds in profitable companies, it would ... Read Full Answer >>
  4. Does the S&P 500 index include dividends?

    The S&P 500 index includes dividends. As of March 2015, the dividend yield for the S&P 500 was 1.91%. This is below ... Read Full Answer >>
  5. How does the bottom line affect shareholder returns?

    The bottom line directly relates to how much a company is able to pay out in dividends to shareholders over a specified time ... Read Full Answer >>
  6. What causes dividends per share to increase?

    There are two primary causes for increases in a company’s dividend per share payout. The first is simply an increase in the ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Dissecting Declarations, Ex-Dividends And Record Dates

    Understanding the dates of the dividend payout process can be tricky. We clear up the confusion.
  2. Investing Basics

    Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  3. Charts & Patterns

    Are These the Top Dividend Stocks of 2015?

    These dividend-paying companies offer a lot more than just dividends.
  4. Stock Analysis

    How Realty Income Became A Top Dividend Stock?

    Real-estate investment trusts have gained in popularity over the years as income investors look for reliable stream of cash from their portfolios.
  5. Trading Strategies

    American Express: Headwinds and Tailwinds

    Any investors considering a position in American Express need to know these important facts.
  6. Investing

    Using the Dividend Discount Model

    The dividend discount model is a way of applying net present value analysis to estimate the future dividends a stock will pay. Those dividends are then discounted back to their present value. ...
  7. Markets

    Due Diligence On Dividends

    Understanding dividends and how they work will help you become a more informed and successful investor.
  8. Active Trading Fundamentals

    Finding Value In A Sideways Market

    When the market is non-directional, your profit potential need not go sideways too.
  9. Markets

    The 5 Types Of Earnings Per Share

    A look at the five varieties of EPS and what each represents can help an investor determine whether a company is a good value, or not.
  10. Personal Finance

    When Warranties Aren't Worth It

    Before you fork over the extra cash for the extended warranty, find out what kind of return you can expect.

You May Also Like

Hot Definitions
  1. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  2. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  3. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
  4. Unsystematic Risk

    Company or industry specific risk that is inherent in each investment. The amount of unsystematic risk can be reduced through ...
  5. Security Market Line - SML

    A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky ...
  6. Tangible Net Worth

    A measure of the physical worth of a company, which does not include any value derived from intangible assets such as copyrights, ...
Trading Center