scrips

Scrip is a term with several distinct meanings in finance, law, and commerce. In finance, a scrip is a certificate that represents ownership, entitlement to shares, or a right issued by a company. It is also used to describe scrip dividends, where shareholders receive additional certificates rather than cash, effectively expanding the number of shares outstanding while providing an alternative form of distribution.

In monetary and economic history, scrip refers to a substitute for money. Local or temporary currencies, IOUs, or vouchers called scrip were issued to facilitate trade when official coin or banknotes were scarce. Historical scrips were common in mining towns, frontier economies, wartime economies, and during periods of currency shortage; they could be redeemable for goods, cash, or future credit, depending on the issuer and regulations.

In everyday language, scrip can denote a prescription for medicine in some regions. A doctor’s order for medication may be called a scrip or script in certain varieties of English, though prescription is standard in many places. The plural form scrips can be used to refer to multiple such prescriptions informally.

The term also appears in related contexts, such as corporate actions where scrip issues affect capital structure, or in discussions of liquidity and tax implications for holders of scrip certificates. Across its meanings, scrips raise considerations about liquidity, redemption terms, and regulatory treatment.