TeachMeFinance.com - explain Books close
Books close -- Relates to transfer books for stocks .
On an advertised day prior to the payment of a dividend on
a stock the transfer books close and the stockholders then of
record receive the dividend. On and after the day the books
close the stock sells ex-dividend or without the dividend.
The transfer books also are closed on an advertised day
prior to an election or other stockholders' meeting and only
stockholders then of record can vote at that election or meeting.
A contract in a stock falling due during the regular closing
of the transfer books of the company is settled at maturity by
the delivery of a certificate and power of attorney; on a contract
which is at the option of the buyer or of the seller notice
for settlement may be given as if the books were open. In case
the books are closed for a dividend the party entitled to it receives
a due bill for it.
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