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 ?
"With this, we've gotten some very positive comments not only about our gift certificates, but about our store.
In addition, holders of gift certificates and various other tickets can exchange them for cash at discount ticket shops.
The directive may allow taxpayers deferring advance payments from gift card or gift certificate sales to anticipate the questions that may be posed by an examining agent and to prepare for the potential requests.
KANSAS CITY CROWN CENTER * Crown Center Gift Certificate
WINN ARCHERY EQUIPMENT CO.--Free Flight release gift certificate.
* gift certificate to a restaurant with takeout and delivery service, a dry cleaner with pickup service, or a pharmacy or grocery store that delivers;
It is Giannine Bellisario's 14th birthday, and she has received a gift certificate for the Rasmussem Gaming Center.
There are three ways to send a Gifts from the Homefront gift certificate to a member of the armed forces.
The EAR might be paid with a modest cash bonus, a gift certificate, a nominal increase in hourly wages, or anything else that seems to be a reasonable incentive.
Case-Greening gave Knutsen a "thank-you" balloon and a gift certificate for a steak dinner.
I started with a gift certificate. "We just moved here, and my brother, Bob Berman, gave me a gift certificate for a tree," said Joan Burwell, who with her husband Dudley had just completed the move to Jackson from Indianola.