Series 7: 12.7.6 Spin-Offs And Split-Offs

Taken from our Series 7 Top-off Online Guide

12.7.6 Spin-Offs and Split-Offs

A spin-off occurs when a subsidiary or division of a parent corporation becomes an independent company and its shares are distributed to the shareholders of the parent corporation on a pro rata basis. In a spin-off, the parent corporation does not receive cash since the shares of the spun-off company serv

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