scrip issue
Definition
Fully paid-up new common stock (ordinary shares) issued free to existing stockholders (shareholders) in proportion to their current stock/shareholdings. A bookkeeping transaction (because no cash changes hands), it capitalizes a part of reserves (retained earnings) to bring (1) share capital more in line with the assets employed; and (2) a high share price back to a more manageable amount, thus enhancing its marketability. Although the number of shares held by each shareholder increases, the value of the total shareholding remains the same as before the scrip issue. Also called bonus issue, bonus shares, or capitalization issue. See also rights issue.
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scrip issue is in the Accounting & Auditing, Banking, Commerce & Finance, Investing and Securities & Futures Trading subjects.
scrip issue appears in the definitions of the following terms: capitalization issue, rights issue, ex, ex cap, bonus issue, bonus shares and ex all
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