Distribution period

Distribution period

The few days between the Board of Directors' declaration of a stock dividend (declaration date) and the date of record, or the date an individual must own shares to be entitled to a dividend.

Distribution Period

The time between the declaration date and the record date. The declaration date is the day on which the board of directors announces the amount of a dividend that will be distributed to common stockholders, while the record date is the day by which one much own stock in that company to be entitled to the dividend. Depending on the size of the dividend and the desirability of the stock, there may or may not be a rush to buy a stock during the distribution period.