Scrip

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DEFINITION of 'Scrip'

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

INVESTOPEDIA EXPLAINS 'Scrip'

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

3. An example would be frequent flier miles.

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  4. What are some of the more common reasons divestiture occurs?

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  5. How do spinoffs differ from initial public offerings (IPOs)?

    A spinoff is when a public parent company organizes a subsidiary and distributes shares to current stockholders for the new ... Read Full Answer >>
  6. How do spinoffs impact investors in the both the parent and subsidiary companies?

    A spinoff is when a company takes a portion of its operations and breaks it off into a separate entity. In a spinoff, shares ... Read Full Answer >>
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