Spinoff

[SPIN-awf]

What is the definition of Spinoff?

A corporate action where a company transfers all or a portion of its subsidiary's stock or other assets to the stockholders of the parent company on a pro rata basis.

Using Spinoff in an Example

A notable example of a spinoff occurred when a large conglomerate decided to spin off its underperforming electronics division into a separate company, allowing it to focus on its core businesses. The shareholders of the parent company received shares in the new entity proportionate to their existing holdings.

Using Spinoff in a sentence

The board of directors is considering a spinoff of the automotive sector to streamline operations and maximize shareholder value.

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