What is a cash dividend? Define and describe the process of declaring and paying a cash dividend. In your description, define the following terms: the declaration date, the ex-dividend date, the record date, and the payment date

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Answer: Cash dividends are the payment of cash to the stockholders of a corporation and are authorized by the corporation's board of directors. The declaration date of a cash dividend is the date on which the board publicly announces the next dividend to be paid to shareholders who are the owners of record on a specific (or record) date. Careful record keeping of the ownership of shares is of particular importance for the payment of dividends. The ex-dividend date establishes the recipient of the dividend; it is two days before the record date. If you buy before the ex-date, you get any declared dividend. If you buy on or after the ex-date, the seller gets any declared dividend. On this day the stock begins trading without the next announced dividend. Thus, the stock price falls by approximately the value of the declared dividend. On the record date, a list of owners of record is established. The actual payment date is the day when the cash dividend is paid out.