Monday, October 27, 2014

Explain the split off?

Explain the split off?
Definition:
A type of corporate reorganization whereby the stock of a subsidiary is exchanged for shares in a parent company.

Brief Explanation:
This is a somewhat rare situation. For example, Viacom announced a split off of its interest in Blockbuster in 2004 whereby Viacom offered its shareholders stock in Blockbuster in exchange for an appropriate amount of Viacom stock.

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