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Scrip Issues vs Scrip Dividends

I

Ireland990

Member
Hi,

I was wondering if someone could help me with what the difference between Scrip Issues and Scrip Dividends are when the dividend cannot be taken in cash form....

I'm struggling to see what the difference is.

Thanks in advance!
 
For scrip dividends either:
1) all shareholders are given the extra shares as dividend with no choice
2) shareholders can choose between a scrip dividend or a cash dividend

For a scrip issue:
Shareholders are given more free shares in the ratio to the number they own.

So a scrip dividend in case 2) is certainly different to a scrip issue, as 2) is an option.

And although the description in case 1) is different to a scrip issue, you are right the final outcome is much the same - all shareholders get free shares.
 
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