Scrip

(redirected from land scrip)
Also found in: Dictionary, Thesaurus, Medical, Encyclopedia.
Related to land scrip: Land warrant

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 ?
However, Gray proffered the following opinion: "It is possibly arguable that the restriction of the right to locate land scrip to persons born in the Province of Alberta may be in contravention of the Transfer of Natural Resources Agreement, but I doubt if such an argument would be given effect to.
it is scarcely necessary to point out that the legal holder or grantee of a half-breed land scrip is in a less favourable position to a considerable degree with administration of the resources resting with the respective Prairie Provinces then he was during the time the lands were controlled by the Dominion.
McKinnon received an inquiry about scrip from William Aylwin of Edmonton, who held two land scrip notes issued in Manitoba.
Stewart, "The Land Scrip Issues of Canada--Part I" (1979) 15 Canadian Paper Money J.