as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
why do many british companies offer a scrip dividend option in lieu of cash?
user
there are quite a few reasons that a company may choose to pay dividends rather than hold cash [increasing the share value].   of couse there are equally other set of reasons why a company may not want to give dividends and hold on to cash. related question here please explain the relationship between dividend amount, stock price, and option value?
assistant