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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A split-up is a type of corporate restructuring in which a company divides into two or more separate companies. In a split-up, the parent company distributes the stock of its subsidiaries to its shareholders, and then dissolves.

A Split-Up Involves the Creation of a New Class of Stock