A spin-off is a transaction involving a separate legal entity whose shares are sold to the parent firm's shareholders.

Name: A spin-off is a transaction involving a separate legal entity whose shares are sold to the parent firm's shareholders.
Brand: Quizplus
Rating: 4.9 (29 reviews)

Question

Quizplus · Accepted Answer

A spin-off involves a parent company distributing shares of a subsidiary or division to its shareholders, creating a separate, independent company, not selling shares to the parent firm's shareholders.

A Spin-Off Is a Transaction Involving a Separate Legal Entity