A _________ occurs when the subsidiary's shares are distributed to the combinor's shareholders in exchange for shares of the parent's stock.

Question

Quizplus · Accepted Answer

A split-off occurs when the subsidiary's shares are distributed to the combinor's shareholders in exchange for shares of the parent's stock. A spin-off, on the other hand, occurs when the subsidiary becomes an independent entity and its shares are distributed to the parent company's shareholders. A split-up refers to the separation of a company's business segments or assets, and a sell-off is the sale of a subsidiary or business unit to a third party.

A _________ Occurs When the Subsidiary's Shares Are Distributed to the Combinor's