Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,898,959,742 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Spin-Off
(redirected from Spun off)

   Also found in: Dictionary/thesaurus, Medical, Financial, Encyclopedia, Wikipedia 0.01 sec.

The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders.

When a spin-off occurs, the shareholders of the parent corporation are not required to surrender any of their parent corporation stock in exchange for the subsidiary's stock.

In the event that the distribution of stock to the parent corporation's shareholders amounts to a dividend, the distribution can be taxed pursuant to provisions of Income Tax statutes.



Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Legal browser?   Full browser?
 
We measure this variable as a dummy equal to one if the parent and subsidiary are in different industries (measured by the two-digit SIC code), and as zero if the parent and subsidiary to be spun off are in the same industry.
corporations have spun off foreign subsidiaries (Fortune Brands' spin-off of Gallaher is a notable exception), realigning multinational corporate structures has many benefits.
owned by the Company will be spun off to the Company's shareholders, pro rata, in the nature of a stock dividend distribution.
 
 
 
Legal Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.