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. Dividend

    1. A distribution of a portion of a company's earnings, decided ...
  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 ...
Related Articles
  1. Investing Basics

    Understanding Stock Splits

    We explain what they are, the thinking behind them as well as their results.
  2. Investing

    If one of your stocks splits, doesn't that make it a better investment? If one of your stocks splits ...

    Unfortunately, no. To understand why this is the case, let's review the mechanics of a stock split.Basically, companies choose to split their shares so they can lower the trading price of their ...
  3. Investing

    I hold stock certificates in a company that just had a stock split. What happens now?

    The short answer is that a stock split will have little effect on the holder of stock certificates. In most cases when an investor purchases shares in a company, they are never actually held ...
  4. Chart Advisor

    How To Invest In Corporate Spin-offs

    In many cases, a spin-off is a win-win for the companies involved. But how can traders cash in on the corporate gerrymandering?
  5. Bonds & Fixed Income

    Cashing In On Corporate Restructuring

    Companies use M&As and spinoffs to boost profits - learn how you can do the same.
  6. Investing News

    6 Unlikely Rivals That Should Merge

    If these companies are looking for growth and cost-cutting, the best bet might be to look to their main competitors.
  7. Investing News

    The Appeal Of Company Spinoffs

    Companies are increasingly turning to spinoffs for a variety of reasons, including improving performance.
  8. Personal Finance

    Apple To Acquire Canada, Spin Off Quebec

    This deal will see a sleeker and faster running country. But don't worry, Apple won't make any changes to Tim Hortons or hockey.
  9. Personal Finance

    Media Mashup: Who Owns Whom?

    You'd be surprised by how many publications fall under the umbrella of one company. Discover the big media companies and what they control.
  10. Bonds & Fixed Income

    What Are Corporate Actions?

    Be a savvy investor - learn how corporate actions affect you as a shareholder.

You May Also Like

Hot Definitions
  1. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  2. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  3. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  4. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  5. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  6. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
Trading Center