Scrip Bid
In Australia, the term "scrip bid" is used to describe a takeover offer where shares are offered partly or wholly in place of cash. By receiving shares instead of cash the realisation of the capital asset can be delayed to take better advantage of capital loss offsets. Additionally, tax payers are only taxed on half the capital gains tax if they hold the asset for more than 12 months.
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Famous quotes containing the words scrip and/or bid:
“We could not help being struck by the seeming, though innocent, indifference of Nature to these men’s necessities, while elsewhere she was equally serving others. Like a true benefactress, the secret of her service is unchangeableness. Thus is the busiest merchant, though within sight of his Lowell, put to pilgrim’s shifts, and soon comes to staff and scrip and scallop-shell.”
—Henry David Thoreau (1817–1862)
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Amid the cloudy wrack,
For Peg and Meg and Paris’ love
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Are gone away, and some that stay
Have changed their silk for sack.”
—William Butler Yeats (1865–1939)