1. A written document that acknowledges a debt.

2. A temporary document representing a fraction of a share resulting from a split or spin-off. Scrips may be applied to the purchase of full shares.

3. Currency issued by a private corporation


1. Historically, companies short of cash have paid scrip dividends instead of cash dividends.

3. An example would be frequent flier miles.

  1. Dividend

    A distribution of a portion of a company's earnings, decided ...
  2. Stock Split

    A corporate action in which a company divides its existing shares ...
  3. Split Adjusted

    A modification made to a security's price that takes into consideration ...
  4. Holder Of Record

    The name of the person who is the registered owner of a security ...
  5. Spinoff

    The creation of an independent company through the sale or distribution ...
  6. Secondary Business

    A part of a corporation that is not part of the corporation's ...
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  1. If one of your stocks splits, doesn't that make it a better investment? If one of ...

    Unfortunately, no. To understand why this is the case, let's review the mechanics of a stock split. Basically, companies ... Read Full Answer >>
  2. I hold stock certificates in a company that just had a stock split. What happens ...

    The short answer is that a stock split will have little effect on the holder of stock certificates. In most cases when an ... Read Full Answer >>
  3. How can a company execute a tax-free spin-off?

    The two commonly used methods for doing a tax-free spinoff are either to distribute shares of the spinoff company to existing ... Read Full Answer >>
  4. What happens to the company stock if a subsidiary gets spun off?

    When a subsidiary gets spun off, the company's stock tends to drop. However, the investor in the stock does not lose any ... Read Full Answer >>
  5. What are some common cash-debt strategies that occur during a spinoff?

    Cash-debt strategies that are commonly used to in a spinoff to enable the parent company to monetize the spinoff are debt/equity ... Read Full Answer >>
  6. What are the tax implications for both the company and investors in a divestiture ...

    In finance, divestiture is defined as a reduction of a company's assets as a result of asset closures or the selling of business ... Read Full Answer >>

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