cash in lieu (CIL)

Definition

Payments made to investors who received fractional shares as a consequence of stock splits, corporate mergers and reorganizations. For instance, as a result of a merger, an investor is entitled to receive 17.25 shares. Since the company only issues whole shares, cash payment is made for the .25 share.

Use cash in lieu (CIL) in a sentence

Due to mergers and corporate reorganization shares have to be divided differently among the shareholders. When this happens there may be partial shares issued, but since you can't actually issue a partial share, the shareholder is issued cash in lieu (CIL) of the partial share.

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