USA HISTORY

Detailed explanation-1: -Company scrip was a credit against the accrued wages of employees. In United States mining or logging camps where everything was owned and operated by a single company, scrip provided the workers with credit when their wages had been depleted.

Detailed explanation-2: -A scrip is a certificate which shows that an investor owns part of a share or stock. [business] The cash or scrip would be offered as part of a pro rata return of capital to shareholders.

Detailed explanation-3: -Scrip was privately issued currency, usually in the form of metal tokens, redeemable only at the company store. Miners could “draw scrip” from the company in the form of tokens, essentially receiving credit against future wages. Companies ordered the brass or nickel tokens by the thousands.

Detailed explanation-4: -When companies issue SCRIP dividends, it means they are giving investors the option to receive additional shares instead of a cash dividend. SCRIP dividends are exempt from stamp duty and dealing charges and means the company can keep cash within the business.

Detailed explanation-5: -For example, a shareholder owns 1000 shares, and the company paid one share against 50 shares owned by a shareholder. Here the investor will get 20 shares as a scrip dividend.