split-off

split-off
When a corporation sets up and funds a new corporation and gives the shares of this new corporation to the old corporation's stockholders in exchange for some of their shares in the old company, this new company is a "split-off" and the process is a split-off.
A type of reorganization whereby, for example, A Corporation transfers assets to B Corporation in exchange for enough B stock to represent control. A Corporation then distributes the B stock to its shareholders in exchange for some of their A stock.
See also spin-off

Black's law dictionary. . 1990.

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  • split–off — / split ˌȯf, ˌäf/ n: a transfer of corporate assets to a subsidiary involving the surrender of a part of the stock owned by the corporation s shareholders in exchange for controlling stock of the subsidiary: a D reorganization involving a… …   Law dictionary

  • split-off — /split awf , of /, n. 1. the act of separating or splitting away from something else. 2. something that has split or has been split from something else. 3. Com. a process of reorganizing a corporate structure whereby the capital stock of a… …   Universalium

  • split-off — The process whereby a parent corporation organizes a subsidiary corporation to which it transfers part of its assets in exchange for all of the subsidiary s capital stock, which is subsequently transferred to the shareholders of the parent… …   Law dictionary

  • split off — index break (separate) Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

  • Split-Off — A type of corporate reorganization whereby the stock of a subsidiary is exchanged for shares in a parent company. This is a somewhat rare situation. For example, Viacom announced a split off of its interest in Blockbuster in 2004 whereby Viacom… …   Investment dictionary

  • split off — verb To break apart, on ones own rather than as part of the group …   Wiktionary

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  • split–up — / split ˌəp/ n: a transfer by a corporation of all its assets in complete liquidation to two or more subsidiaries that involves the surrender of all stock by the shareholders in exchange for new stock in the transferee corporations: a D… …   Law dictionary

  • Split — Split, n. 1. A crack, rent, or longitudinal fissure. [1913 Webster] 2. A breach or separation, as in a political party; a division. [Colloq.] [1913 Webster] 3. A piece that is split off, or made thin, by splitting; a splinter; a fragment. [1913… …   The Collaborative International Dictionary of English

  • split-up — /split up /, n. 1. a splitting or separating into two or more parts. 2. a separation or dissociation of two groups or people. 3. Com. a process of reorganizing a corporate structure whereby all the capital stock and assets are exchanged for those …   Universalium

  • split — split1 W3S2 [splıt] v past tense and past participle split present participle splitting ▬▬▬▬▬▬▬ 1¦(disagree)¦ 2¦(separate into parts)¦ 3¦(break or tear)¦ 4¦(share)¦ 5¦(injure)¦ 6¦(end relationship)¦ 7¦(leave)¦ …   Dictionary of contemporary English

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