Scrip dividend

A scrip dividend is an issue of shares to an investor in lieu of a cash dividend. 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 a company without incurring the costs of buying shares in the market.

 

reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u

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