Effective Date

Business, Legal & Accounting Glossary

  1. Home
  2. Glossary
  3. Define: Effective Date

Definition: Effective Date

Effective Date
Cite Term
Sources

What is the dictionary definition of Effective Date?

Dictionary Definition

  1. The date on which an agreement, such as a contract or insurance policy, takes effect.
  2. The date on which a registration of a new security filed with the SEC becomes effective, usually 20 days after the filing of the registration.
  3. In an interest rate swap, the date the swap begins to accrue interest.

Examples of Effective Date in a sentence

Sherry double-checked the effective date on her contract and sighed, knowing that today started a long six weeks working with her least favorite clients.

Jake got into a car accident on March 20, 2015. He quickly realized he didn’t have car rental as part of his auto insurance policy. As a result, he went online to his car insurance’s website and added car rental coverage to his policy on March 21, 2015. After adding the coverage, he calls the insurance company immediately after to report the car accident and to request a rental car. The insurance agent explains to Jake that they cannot provide him with a rental car because the accident took place before the car rental effective date which is March 21, 2015.

When applying for a new credit card, it is imperative to know the effective date that balances begin to accrue interest so that you can pay in a timely fashion and not get hit with unnecessary interest charges.

Related Phrases

dated date
value dating
pre-syndicate bid
flat cancellation
cooling-off period
quiet period

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/effective-date/
Modern Language Association (MLA):
Effective Date. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 18, 2024 https://payrollheaven.com/define/effective-date/.
Chicago Manual of Style (CMS):
Effective Date. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/effective-date/ (accessed: April 18, 2024).
American Psychological Association (APA):
Effective Date. PayrollHeaven.com. Retrieved April 18, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/effective-date/

Definition Sources

Definitions for Effective Date are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 30th October, 2021 | 0 Views.