Scrip dividend: Difference between revisions

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(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...")
 
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{{a|eqderiv|}}[[Scrip dividend]]s 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.  
{{a|eqderiv|}}[[Scrip dividend]]s give investors the option to receive additional (usually freshly issued) shares instead of a [[cash]] {{eqderivprov|dividend}}. They are exempt from [[stamp duty]] and dealing charges and are cheaper for the issuer, since it can hang onto the cash within its business.  


Scrip dividends are taxed in the same way as cash dividends
holders can sell [[scrip dividend]]s in the market and there is a fungame to be had playing the implied [[optionality]] between the scrip and cash after the dividend has been declared but before it is paid.
 
[[Scrip dividend]]s are taxed in the same way as cash dividends.


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*{{eqderivprov|Dividend}}
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*{{eqderivprov|Dividend Payment Date}}