Capitalization Issue
Money from a company's reserves is converted into issued capital, which is then distributed to shareholders in place of a cash dividend. This is also known as a Scrip Issue.
When a company offers shares to the public, it sends an Allotment Letter to the successful applicants; if it makes a rights issue, it sends a Provisional Allotment Letter to its shareholders, or in the case of a capitalization issue, ...
Such new contributions would be qualified to commence in January. Also, the marginal impact of such purchases would be greater on smaller capitalization issues as opposed to larger capitalization stocks.
 See also: Exchange, Short, Contract, CD, Bonds
  
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