Series 79: Spin-Offs

Taken from our Series 79 Top-off Online Guide

Spin-Offs

A spin-off is a specific category of divestiture. In a spin-off, a subsidiary or division of the parent corporation becomes an independent company, and its shares are distributed to the shareholders of the parent corporation on a pro rata basis. The parent corporation does not receive cash, since the shares of the spun-off company serve as compensation to the shareholders.

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