Scrip

AAA

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.

RELATED TERMS
  1. Stock Split

    A corporate action in which a company divides its existing shares ...
  2. Holder Of Record

    The name of the person who is the registered owner of a security ...
  3. Dividend

    1. A distribution of a portion of a company's earnings, decided ...
  4. Spinoff

    The creation of an independent company through the sale or distribution ...
  5. Split Adjusted

    A modification made to a security's price that takes into consideration ...
  6. Secondary Business

    A part of a corporation that is not part of the corporation's ...
Related Articles
  1. Understanding Stock Splits
    Investing Basics

    Understanding Stock Splits

  2. I hold stock certificates in a company ...
    Investing

    I hold stock certificates in a company ...

  3. If one of your stocks splits, doesn't ...
    Investing

    If one of your stocks splits, doesn't ...

  4. Cashing In On Corporate Restructuring
    Bonds & Fixed Income

    Cashing In On Corporate Restructuring

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center