Split-Off

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Dictionary Says

Definition of 'Split-Off'

A type of corporate reorganization whereby the stock of a subsidiary is exchanged for shares in a parent company.
Investopedia Says

Investopedia explains 'Split-Off'

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.

Related Definitions

  • Carve-out

    1. Sometimes known as a partial spinoff, a carve out occurs when a parent company sells a minority (usually 20% or less) stake in a subsidiary for an IPO or rights offering. 2. Where an ...
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  • Spinoff

    The creation of an independent company through the sale or distribution of new shares of an existing business/division of a parent company. A spinoff is a type of divestiture.
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  • Split-Up

    A corporate action in which a single company splits into two or more separately run companies. Shares of the original company are exchanged for shares in the new companies, with the ...
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    • Split Adjusted

      A modification made to a security's price that takes into consideration the effect of a split on the total number of shares or units outstanding, in order to compare the security's ...
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