Ace the Canadian Securities Course 2026 - Rock the CSC Practice Exam!

The dividend record date is a crucial date in the dividend distribution process. It is defined as the cut-off date established by a company in order to determine which shareholders are eligible to receive a dividend payment. Shareholders who are on the company's books as of the record date will be entitled to receive the declared dividend.

Therefore, the correct answer indicates that this is the specific date when the company identifies the shareholders who are eligible to receive the dividend based on their ownership of shares. Being on the record on this date ensures that those shareholders will receive the dividend when it is subsequently paid out.

The other choices do not accurately reflect the definition or timing of the record date. For instance, the payment of dividends occurs after the record date, and options related to specific timeframes in relation to the ex-dividend date or cum dividend are also misleading in the context of the record date's purpose and timing.