| Book
Closure |
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When
a company announces a dividend or bonus to investors, only members
listed in the company's registration on the cutoff date would be entitled
to receive the corporate benefits.
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Shares
continuously change hands during transactions. Therefore, it becomes
difficult to identify the real owner of those shares, when the company
announces dividends, rights, or bonus. If a company announces book
closure today then anyone who owns the stock today will be entitled
to the dividend. |
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Dictionary
