What Is Antedate?
An antedate means a date entered on a legal contract or check that is much earlier than the actual date of occurrence. It is also known as "backdate."
Understanding Antedate
Antedate is a term that is commonly used to indicate predated or preceding a given event, occurrence, or period in time.
Important Antedates
Since an antedate refers to any date that precedes a particular event, it can be a category for several important dates associated with different forms of investment. Investing in stock on the trading day before the date of ex-dividend may be called antedate.
The word ex-dividend means without a dividend. An investor can own/buy shares by the end of the trading day, i.e. much before the ex-dividend date to receive the dividend of the company.
There may be other antedates in the options or futures market. Since the options and futures allow an investor to obtain rights up to or on the expiry date, any pre-expiry date may be considered antedate.
In an American contract, the owner of the right may exercise the option on any antedate before expiry. The issuer of a futures contract is obligated to conduct the deal in the futures market.
Since many investors choose to sell contracts, the day before expiry may also be regarded as a significant antedate in both options and futures.
Antedated Examples
Antedating documents and legal contracts are yet another area in financial transactions. There are cases where antedating can be an integral part of the procedural specifications leading up to the final implementation. Antedating may be illegal in other situations and should be performed with caution.
