split-off
- A procedure where a part of a company's assets are transferred to a subsidiary, with the corporation's shareholders giving up a portion of their stock in exchange for the majority stock in the subsidiary. It's a form of D reorganization where a section of the company's stock is exchanged for the subsidiary's stock
- The owner decided to undertake a split-off, allowing them to exchange some of their company's stock for the ownership of a newly created subsidiary.
- In a split-off scenario, shareholders must surrender a part of their current stock in exchange for shares in the subsidiary company.
- Through a split-off, a parent corporation can transform a portion of their assets into a separate subsidiary without completely losing control.
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