What is Spin-Off split off and split-up?
In a split-off, the parent company gives the shareholders an option to either maintain the shares they already have or trade them for shares of the divesting company. A split-up takes place when a parent company splits up into two or more independent companies.
What is an example of a spin-off?
Spin-offs occur when the equity owners of the parent company receive equity stakes in the newly spun off company. For example, when Agilent Technologies was spun off from Hewlett-Packard in 1999, the stock holders of HP received Agilent stock.
What is it called when a company splits?
A split-up is a financial term describing a corporate action in which a single company splits into two or more independent, separately-run companies. Upon the completion of such events, shares of the original company may be exchanged for shares in one of the new entities at the discretion of shareholders.
What does spinning off a company mean?
spinoff
A spinoff is when a company takes a portion of its operations and breaks it off into a separate entity. In a spinoff, shares of the new company are distributed tax-free to shareholders of the parent company. It is common for the stock price of the parent company to take an immediate dip.
What do you mean by split off?
phrasal verb. If people split off from a group, they stop being part of the group and become separated from it.
Why do companies go for split off?
Split-offs are motivated by the desire to create greater value for shareholders through the shedding of assets and offering of a new, separate company.
What is a split off?
A split-off is a corporate reorganization method in which a parent company divests a business unit using specific structured terms. In a split-off, the parent company offers shareholders the option to keep their current shares or exchange them for shares of the divesting company.
What’s another word for spin-off?
What is another word for spin-off?
| by-product | derivate |
|---|---|
| offshoot | outgrowth |
| adjunct | branch |
| descendant | division |
| offspring | sequel |
What is a spin-off transaction?
Spin-Off Transaction means, any transaction in which assets of the Company are transferred or sold to a company or corporate entity in which the Shareholders hold equal stakes, pro-rata to their ownership of the Company.
Is a spin out the same as a spin-off?
Understanding Spin Outs A spinout allows the division being spun off to raise its own capital through issuing equity shares in the new company or debt in the form of bonds to fund the company’s growth.
What does spin off mean in shows?
In media, a spin-off (or spinoff) is a radio program, television program, film, video game or any narrative work, derived from already existing works that focus on more details and different aspects from the original work (e.g. particular topics, characters or events).
What is a spin-off movie?