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


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.


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 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 ?
For tax purposes, gift card and gift certificate sales are viewed as advance payments for goods and services.
Members of an affiliated group using a gift card subsidiary to sell gift cards that may be redeemed for goods and services provided by the gift card subsidiary or by other members of the group;
However, the virtual gift card can be personalized with different images and text and is delivered via an e-mail with a link to activate the gift.
At least one major issuer, American Express, acknowledged having sold some gift cards this holiday season that had been compromised and used somewhere along the firm's gift card distribution chain before they reached the consumer.
Following a successful pilot in the companyeIUs Irish stores, the Marks & Spencer gift card program was launched in all UK stores in November 2007.
With an m-gift card, the surprised and grateful teen will be able to redeem his or her gift card instantly by presenting the text message to the cashier at the mall store the gift card is issued for.
The gift card liability entry is made because the taxpayer records and holds the liabilities for sales of gift cards for all the entities instead of each entity's maintaining its own liability for outstanding gift cards.
Gift cards used to have a bit of a stigma attached to them, but Hall says those days are over.
Gift cards offer buyers and gift recipients a variety of product choices but restrict those choices to a single or limited number of retail service providers.
The company's gift card portfolio includes regional and national retail branded gift cards as well as gift cards from online retailers.