scrip issue

scrip issue
See bonus issue. Dresdner Kleinwort Wasserstein financial glossary
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(Also bonus issue / capitalisation issue) Euroclear Clearing and Settlement glossary
Security holders are awarded additional assets free of payment from the issuer in proportion to their holding. A bonus issue is typically represented by shares, rights or warrants. Nominal value does not change. Holders may be offered choice of form. Euroclear Clearing and Settlement glossary
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See capitalisation issue Exchange Handbook Glossary
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A free issue of extra shares to shareholders by a company. This is often done when the share price has risen so high that they become too expensive to buy for the smaller investors. This is also known as a 'bonus' or 'capitalisation' issue.
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The issue by a company of new shares which do not require any payment to be made by the shareholder. This has the effect of making the company's shares more marketable because of the increased number available and the lower market price. A Scrip Issue is London Stock Exchange Glossary

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scrip issue scrip issue ➔ issue2

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   A free issue of shares to shareholders when a company transfers money from its reserves to its permanent capital. Changing reserves into permanent capital, or into new shares as part of the long-term funding of the business, makes the reserves more obviously and more accountably part of the shareholders' equity. The new shares are distributed to the existing holders in proportion to their existing holdings. Also known as a capitalization issue.
   ► See also Capitalization Issue.

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scrip issue UK US noun [C] STOCK MARKET
► FREE ISSUE(Cf. ↑free issue)

Financial and business terms. 2012.

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Look at other dictionaries:

  • scrip issue — noun A bonus issue (qv) • • • Main Entry: ↑scrip …   Useful english dictionary

  • scrip issue — See bonus issue. Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010 …   Law dictionary

  • Scrip issue — A scrip issue is a form of secondary issue. In the United Kingdom, public limited companies, those listed on the London Stock Exchange, have a number of ways to create new shares. A scrip issue is the process of creating new shares which are… …   Wikipedia

  • scrip issue — bonus issue; = capitalization issue; = free issue The issue of new share certificates to existing shareholders to reflect the accumulation of profits in the reserves of a company s balance sheet. It is thus a process for converting money from the …   Accounting dictionary

  • scrip issue — bonus issue; capitalization issue; free issue The issue of new share certificates to existing shareholders to reflect the accumulation of profits in the reserves of a company s balance sheet. The shareholders do not pay for the new shares and… …   Big dictionary of business and management

  • scrip issue — (Also bonus issue / capitalisation issue) Security holders are awarded additional assets free of payment from the issuer in proportion to their holding. A bonus issue is typically represented by shares, rights or warrants. Nominal value does not… …   Euroclear glossary

  • scrip issue — / skrɪp ˌɪʃu:/ noun an issue of shares whereby a company transfers money from reserves to share capital and issues free extra shares to the shareholders (the value of the company remains the same, and the total market value of shareholders’… …   Dictionary of banking and finance

  • scrip issue — /ˈskrɪp ˌɪʃu/ (say skrip .ishooh) noun → bonus issue …  

  • Scrip — issued by the Capitol Hill Baby Sitting Co op, worth ½ hour of babysitting time. Scrip is an American term for any substitute for currency which is not legal tender and is often a form of credit. Scrips were created as company payment of… …   Wikipedia

  • Issue — A particular financial asset. The New York Times Financial Glossary * * * ▪ I. issue is‧sue 1 [ˈɪʆuː, ˈɪsjuː ǁ ˈɪʆuː] verb [transitive] 1. to officially give something such as a document to someone who needs or wants it: issue somebody with… …   Financial and business terms

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