Definition of Scrip

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TeachMeFinance.com - explain Scrip




historic definition...

Scrip -- Usually the term is applied to a certificate for a fraction of a share of stock and usually, also, scrip is convertible into shares when presented in amounts equal to the face value of a full share. It has no voting or dividend rights until converted into full shares of stock, although sometimes interest is paid on it. Scrip was also the name given to United States paper currency of denominations less than $1 which is no longer issued ; such money was commonly called shinplasters. In Great Britain it is the practise to issue scrip to represent instalments paid on subscriptions for stock ; when all instalments are paid the scrip is exchanged for stock certificates.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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