1. FAQs
  2. Corporate Actions

Spinoff

Spinoffs are corporate manoeuvres where a company separates a part of its business.

How does it affect my account?

Shareholders in the parent company continue to hold this company but also receive shares in the new entity.

Tax Implications:

The cost basis of the parent company is reduced by the value of the spinoff and the cost basis for the spinoff stocks is set at their market value on the day of the event.