A _____ occurs when the subsidiary's stock is distributed to the combinor's shareholders as a dividend.

Question

Quizplus · Accepted Answer

A spin-off occurs when the subsidiary's stock is distributed to the combinor's shareholders as a dividend, allowing them to own shares in the subsidiary as a separate entity. This strategy can help unlock the value of the subsidiary and allow it to operate independently, while also providing benefits to the parent company and its shareholders. Split-off and split-up are similar concepts but involve different methods of separating the subsidiary from the parent company. Sell-off is not applicable in this scenario as it involves selling the subsidiary to a third party rather than distributing its stock to the parent company's shareholders.

A _____ Occurs When the Subsidiary's Stock Is Distributed to the Combinor's