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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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My nominees, if elected, are committed to spinning off Nabisco.
Ownership changes could include spinning off the unit to shareholders or selling a stake to the public in a share offering, Roby said.
45 per common share) related to the cost of spinning off its corn refining operations.