What is the transfer of all or a portion of a subsidiary's stock or other assets to the stockholders of its parent company on a

Question

Feliz [49]

3 years ago

9

What is the transfer of all or a portion of a subsidiary's stock or other assets to the stockholders of its parent company on a

pro rata basis called?

Business

1 answer:

Vsevolod [243] · Answer 1 · 2021-11-14T12:55:03+03:00

<span>This is called a SPINOFF. Spinoff is a situation where in a portion or all subsidiary stocks or assets is being transferred to the stockholders of the parent company is being given in a pro-rated basis. In spinoff, it also shows a creation of a new company from sale of stocks of the parent company.</span>