Chronological errors
Chronological errors are simply mistakes in the order of dates entered in security records.
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To correct these errors, always ensure that dates are entered in the right sequence, following a logical timeline.
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A logical chronological order for date fields in managing securities follows the natural progression of events in the security’s lifecycle, typically:
Board Approval Date: The date the board officially approved the security issuance.
Grant/Issue Date: This marks the date when the security was originally granted or issued.
Rule 144 Date: If applicable, this date tells you when a security becomes eligible for resale under SEC Rule 144
Original Acquisition Date: For securities that change hands, this date tells you when the security was originally acquired, especially important for transferred or repurchased securities.
Vesting Start Date: The beginning of the gradual transfer of ownership to the holder, following specified vesting terms.
ISO Disqualification Date: Important if the security follows Incentive Stock Option (ISO) rules, the date it no longer qualifies due to specific actions.
Cancellation Date: This date shows when a security was canceled or terminated.
Termination Date: The date when the security's holder is terminated, often associated with post-termination exercise rights.
Expiration Date: Some securities have expiration dates when they become invalid or unexercisable.