SCRIPPAGE Meaning and
Definition
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Scrippage refers to the act or process of scripping, which involves the cancellation or destruction of a security or financial instrument. The term is commonly used in the context of stocks, bonds, or other investments.
In the financial world, scripping typically occurs when a security becomes invalid, obsolete, or no longer necessary. This can happen due to various reasons such as mergers, acquisitions, stock splits, bankruptcies, or other corporate actions. When scrippage is carried out, the physical or digital certificates representing the security are rendered worthless.
The process of scripping usually involves the company issuing a notification or announcement to inform shareholders or investors about the impending invalidation of the security. This serves as a notice to holders to return their stock certificates or relevant documents to the company or a designated authority for cancellation.
Scrippage is an essential process to maintain the accuracy and integrity of financial records and ensure no further trading or transactions occur with the invalidated securities. It helps prevent fraud, unauthorized trading, or confusion in the market, as these cancelled securities are no longer valid for buying, selling, or transferring ownership.
Overall, scrippage refers to the act of nullifying a security, typically through the cancellation or destruction of its physical or digital certificates to maintain the reliability and transparency of financial markets.
Common Misspellings for SCRIPPAGE
- acrippage
- zcrippage
- xcrippage
- dcrippage
- ecrippage
- wcrippage
- sxrippage
- svrippage
- sfrippage
- sdrippage
- sceippage
- scdippage
- scfippage
- sctippage
- sc5ippage
- sc4ippage
- scruppage
- scrjppage
- scrkppage
- scroppage
Etymology of SCRIPPAGE
The word "scrippage" does not have an established etymology as it is a relatively new term in English. It seems to be a derivative form of the word "scrip", which originally referred to a small bag or pouch used to carry money or provisions. Over time, "scrip" gained different meanings, including stock certificates or vouchers. It is possible that "scrippage" was formed by adding the suffix "-age" to "scrip", creating a noun form to denote the act of carrying or handling scrip, or possibly referring to the total amount of scrip. However, without further evidence or historical usage, the exact origin and development of "scrippage" cannot be determined definitively.
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