When a firm spins off a unit, it creates new shares of stock representing the unit and distributes them to its existing shareholders.

Name: When a firm spins off a unit, it creates new shares of stock representing the unit and distributes them to its existing shareholders.
Brand: Quizplus
Rating: 4.8 (30 reviews)

Question

Quizplus · Accepted Answer

When a firm spins off a unit, it indeed creates new shares of stock for that unit and distributes them to its existing shareholders, allowing the shareholders to directly own a portion of the newly independent entity.

When a Firm Spins Off a Unit, It Creates New