A split-up involves the creation of a new class of stock for each of the parent’s operating subsidiaries, paying current shareholders a dividend of each new class of stock, and then dissolving the remaining corporate shell.
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In a spin-off, the board of directors is the same as the board of directors of the parent firm.
In a spin-off, the proportional ownership of shares in the new legal subsidiary is the same as the stockholders’ proportional ownership of shares in the parent firm.
A spin-off is a transaction in which a parent creates a new legal subsidiary and distributes shares it owns in the subsidiary to its current shareholders as a stock dividend.
A spin-off is a transaction involving a separate legal entity whose shares are sold to the parent firm’s shareholders.