What is scripcropping?

Answer 1

Scripcropping is a financial practice where a company issues "scrip," or certificates, to shareholders as a form of dividend payment instead of cash. These scrip certificates can often be redeemed for cash or new shares at a later date. This method allows companies to conserve cash while still providing returns to their investors. Scripcropping can be beneficial in times of financial strain but may also signal that a company is struggling to maintain liquidity.