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. Ex-Date

    The date on or after which a security is traded without a previously ...
  3. Trade Date

    The month, day and year that an order is executed in the market. ...
  4. Fail

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

    The name of the person who is the registered owner of a security ...
  6. Record Date

    The date established by an issuer of a security for the purpose ...
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 dividend yield is typical for companies in the industrial sector?

    The average dividend yield of the industrial goods sector is approximately 1.71%. The industrial goods sector is a group ... Read Full Answer >>
  3. Which REITs pay the highest dividends?

    A real estate investment trust (REIT) is a financial security that trades like a stock on major market exchanges. However, ... Read Full Answer >>
  4. For what types of investments is the payout ratio the most relevant?

    The payout ratio is most relevant for investments that pay out dividends to shareholders. The payout ratio indicates the ... Read Full Answer >>
  5. What is the difference between share purchase rights and options?

    There is a big difference between share purchase rights and options. With share purchase rights, the holder may or may not ... Read Full Answer >>
  6. What is the average annual dividend yield of companies in the electronics sector?

    The chemicals industry is part of the basic materials sector which, as of 2015, is the highest dividend-paying sector on ... 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. Investing

    Where Dividend Investors Are Seeking Income

    Dividend investors are turning to sectors such as health care, technology and financial services where the earnings seem strong and the Fed seems distant.
  4. Charts & Patterns

    Are These the Top Dividend Stocks of 2015?

    These dividend-paying companies offer a lot more than just dividends.
  5. 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.
  6. Trading Strategies

    American Express: Headwinds and Tailwinds

    Any investors considering a position in American Express need to know these important facts.
  7. 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. ...
  8. Markets

    Due Diligence On Dividends

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

    Finding Value In A Sideways Market

    When the market is non-directional, your profit potential need not go sideways too.
  10. 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.

You May Also Like

Hot Definitions
  1. Fracking

    A slang term for hydraulic fracturing. Fracking refers to the procedure of creating fractures in rocks and rock formations ...
  2. Mixed Economic System

    An economic system that features characteristics of both capitalism and socialism.
  3. Net Worth

    The amount by which assets exceed liabilities. Net worth is a concept applicable to individuals and businesses as a key measure ...
  4. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  5. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  6. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
Trading Center