Difference between revisions of "Spin-off"
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
:[[Spin-off]]. Occurs when a holding company distributes the stock of one of the operating companies to its shareholders, thus passing control from the holding company to the shareholders directly. | :[[Spin-off]]. Occurs when a holding company distributes the stock of one of the operating companies to its shareholders, thus passing control from the holding company to the shareholders directly. | ||
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | :[[Spin-off]]. A divestiture in which the stock of a subsidiary is given to the parent company’s stockholders. | ||
==Related concepts== | ==Related concepts== | ||
Latest revision as of 02:30, 2 November 2019
Spin-off is a situation that occurs when a holding company distributes the stock of one of the operating companies to its shareholders, thus passing control from the holding company to the shareholders directly.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Spin-off. Occurs when a holding company distributes the stock of one of the operating companies to its shareholders, thus passing control from the holding company to the shareholders directly.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Spin-off. A divestiture in which the stock of a subsidiary is given to the parent company’s stockholders.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
