Scrip dividend: Difference between revisions
Amwelladmin (talk | contribs) (Created page with "{{a|eqderiv|}}Scrip dividends give investors the option to receive additional (usually freshly issued) shares instead of a cash dividend. They are exempt from stamp...") |
(No difference)
|
Revision as of 11:01, 18 September 2019
Equity Derivatives Anatomy™
|
Scrip dividends give investors the option to receive additional (usually freshly issued) shares instead of a cash dividend. They are exempt from stamp duty and dealing charges and are cheaper for the issuer - meaning it can hang onto the cash within its business. Investors can sell the scrip dividend in the market.
Scrip dividends are taxed in the same way as cash dividends