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 ?
In addition, Scrip Asia 100 showcases a collection of articles on the increasingly vibrant innovative R&D being conducted around the region, with pharma companies often employing regional heads based in Asia to oversee and understand the local markets.
Under the Focus Product Scheme, there is a provision that to promote investment in upgradation of technology of specified sectors, additional Duty Credit Scrips shall be given to Status Holders at one percent of the FOB value of past exports.
As part of our research, it's been easy to see that when scrip have been successful (throughout the United States) that was because a strong infrastructure was developed to help run the currency production.
The historical record indicates that the federal government issued scrip by exercising its jurisdiction over "Indians and lands reserved for the Indians" pursuant to section 91(24) of the British North America Act, 1867.
At last year's AGM, shareholders requested that the board should consider another scrip dividend, which we have now granted.
But even though Chief Papaschase and the others accepted scrip to feed themselves and supposedly extinguished their claims to treaty status, many of their descendents still looked, felt, and identified themselves as Cree Indians, had many close relatives on reserves close by who didn't appear to be any more Indian than themselves, and tried to put the band back together.
At least 28 states are expected to lose SCRIP money as a result, but only Alaska and Rhode Island face crisis situations with SCRIP, he said.
Tickets are $30 per person and include dinner and scrip to play craps, blackjack and roulette.
About 80 elderly Hong Kong residents staged a protest march Tuesday urging the Japanese government to honor the military scrip that they were forced to convert their local currency into during World War II.
3 billion cash and scrip purchase of a stake in Germany's dominant pay television operator at the beginning of December.