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Law dictionary
Scrip dividend

Scrip dividend

noun

A dividend paid in shares instead of cash.

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For example

Some investors prefer dividends paid in scrip instead of cash.

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Other useful terms:

Ex dividend

Without dividend. If a share is sold ex dividend, the seller will receive the dividend declared just before it was sold.

Cum dividend

With dividend. If a share is sold cum dividend, the buyer will receive the dividend that was declared just before the share was bought.

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