Capitalization Issue

Capitalization Issue
A capitalization issue, also known as a scrip issue, involves a company issuing new shares to existing shareholders, usually to bolster additional funds or to distribute reserves.
Free Issue
A free issue, also known as a scrip issue, is a process wherein a company issues additional shares to its existing shareholders without any extra cost, based on the number of shares that shareholders already own.
Scrip Issue
A scrip issue, also known as a bonus issue, capitalization issue, or free issue, involves the issuance of new shares to existing shareholders to reflect accumulated profits in the reserves of a company. This process converts company reserves into issued capital without requiring shareholders to pay for the new shares.

Accounting Terms Lexicon

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