scrip dividend

scrip dividend
the issue of a certificate entitling the holder to acquire shares in a company; frequently used in connection with bonus issues, such scrip has in some instances been issued as a stock dividend instead of cash.

Collins dictionary of law. . 2001.


scrip dividend
A dividend which shareholders have the option to receive in the form of additional shares instead of cash. The main benefit for a company is that it retains cash for use in the business. Scrip dividends are not treated as distributions by the company and therefore do not give rise to shadow ACT.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.


scrip dividend

Webster's New World Law Dictionary. . 2000.

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Look at other dictionaries:

  • scrip dividend — An issue of shares to an investor in lieu of a cash dividend ( dividends). The value of the shares will be designed to equal the value of the cash dividend foregone. This may be useful for investors who wish to increase their investment in the… …   Financial and business terms

  • scrip dividend — A dividend on corporate stock consisting of a scrip or certificate entitling stockholders who receive it to the privileges and rights specified therein, sometimes a right to distribution of accumulated earnings at a later date, at other times a… …   Ballentine's law dictionary

  • scrip dividend — Dividend paid in the form of scrip (temporary certificate) which represents the company s promise to pay a cash dividend. Occurs when earnings are sufficient but issuer wishes to conserve cash holdings …   Euroclear glossary

  • scrip dividend — noun Etymology: scrip (II) : a dividend payable in promissory notes instead of cash * * * a dividend issued in the form of a note entitling the holder to a cash payment at a specified later date. [1880 85] …   Useful english dictionary

  • scrip dividend — a dividend issued in the form of a note entitling the holder to a cash payment at a specified later date. [1880 85] * * * …   Universalium

  • enhanced scrip dividend — A dividend that is in the form of shares rather than cash. To encourage shareholders to take the scrip dividend the value of the shares is usually greater than the cash dividend. Financial Services Glossary * * *    A dividend to shareholders in… …   Financial and business terms

  • dividend — div·i·dend / di və ˌdend/ n 1: the part of corporate net earnings distributed usu. periodically (as quarterly) to stockholders in the form of cash, additional shares, or property either as a set amount per share or a percentage of par value… …   Law dictionary

  • dividend — a distribution of the profits of a company among its members or shareholders. Glossary of Business Terms A portion of a company s profit paid to common shareholders and preferred shareholders. A stock selling for $20 a share with an annual… …   Financial and business terms

  • dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… …   Black's law dictionary

  • dividend — The distribution of current or accumulated earnings to the shareholders of a corporation pro rata based on the number of shares owned. Dividends are usually issued in cash. However, they may be issued in the form of stock or property. The… …   Black's law dictionary

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