A firm can distribute shares of a subsidiary in a transaction referred to as a:

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A spin-off is a transaction where a company distributes shares of a subsidiary to its shareholders, creating a separate standalone company. This differs from a merger, acquisition or cash disbursement where there is typically a transfer of ownership or funds involved. A seasoned equity offering is a type of public offering where a company issues new shares to raise capital, which is also different from a spin-off.

A Firm Can Distribute Shares of a Subsidiary in a Transaction