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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.

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The New York Stock Exchange, or NYSE, has advised HPT that HPT shares will begin to trade "ex-dividend" for the TA spin off distribution after the distribution occurs.
The spin off will signify a new beginning for each of the companies.
As we finalize our preparations to spin off Sara Lee Branded Apparel, it is important that we formalize the management organization that will lead the new company," said Brenda C.
The spin off transaction is subject to a number of conditions including, but not limited to, the preparation, review and approval of an offering document containing financial statements and other related disclosures; satisfactory third-party consents; and regulatory and shareholder approval, depending on the form of the distribution.
The Simpsons is the top spin off of choice among those ages 18-24, as 59% rated the show their favorite, followed by Frasier at 15%.