Scrip

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Scrip

A temporary document that represents a portion of a share of stock, often issued after a stock split or spin-off.

Scrip

1. A private sector substitute for currency. Historically, scrip was used in logging and mining communities dominated by a single company, and employees had to buy goods from the company store. Presently, it is more closely associated with gift certificates, gift cards, and re-loadable debit cards. Militaries also occasionally pay soldiers in scrip when they are on deployment. In Australia, buyout offers including stock in place of or in addition to cash are known as scrip bids. See also: Money.

2. An IOU from a publicly-traded company that is short on cash. Such a company pays dividends in scrip until it resolves its liquidity problems.

scrip

A certificate that can be exchanged for a fractional share of stock. Scrip is distributed as the result of a spinoff, a stock dividend, or a stock split in which the stockholder would be entitled to a fractional share of stock. For example, the owner of a single share would receive scrip for one-half a share in the event the issuer declared a three-for-two stock split.

Scrip.

Scrip is a certificate or receipt that represents something of value but has no intrinsic value. What's essential is that the issuer and the recipient must agree on the value that the scrip represents.

For example, in the past, after a corporate stock split or spin-off, a company might issue scrip representing a fractional share of stock for each share you owned. On or before a specific date, you could combine the certificates and convert the value they represented into full shares.

But most companies today make a cash payment for fractional shares based on the closing price of the stock on a specific date.

References in periodicals archive ?
2013-29, which allows taxpayers to defer income from the sale of gift cards or gift certificates redeemable by an unrelated entity until the cards or certificates are redeemed for goods and services by that entity.
In order to reduce controversy, the IRS and Treasury have concluded that a taxpayer that sells gift cards redeemable through other entities in an eligible gift card sale should be treated in the same manner as a taxpayer that sells gift cards redeemable only by that entity.
CashStar cofounder and CEO David Stone explains, "By leveraging our patent pending offer management platform, Dippin' Dots can now deliver personalized incentives and coupons in conjunction with their gift cards or as standalone incentives to drive sales.
In November it was disclosed that computer systems used by RBS WorldPay--a subsidiary of the Royal Bank of Scotland, which is a leading processor of prepaid and gift cards including some sold by CUs--were hacked.
Marks & Spencer Implements Gift Cards with Postilion
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com is a full-service solution from Smart Transaction Systems that allows small businesses to sell gift cards online without the overhead of launching and managing an e-commerce site.
Customers can purchase the cards in person at a participating restaurant, online, via fax or e-mail, or by telephone through the taxpayer's gift card sales department.
People usually receive a $50 gift card for their birthdays.
The accounting for gift card sales presents an emerging reporting dilemma for retailers.
and West Hollywood, is promoting its gift card program by giving a $100 bonus gift card for every $500 in gift cards purchased.
Antler Scrambler Maze - A reindeer-shaped gift card that comes with a magnet stylus to help users navigate the antler maze.