Corporate Actions
Bonus, mergers, stock splits and more
A spin-off occurs when a company separates a part of its business to form a new, independent company. Shareholders of the original company receive shares in the new entity, allowing them to own stock in both companies.
🔹Example:
📅 In 2015, eBay spun off its payment processing division, PayPal, into a separate company.
As a result, eBay shareholders received shares in PayPal, and both companies operated independently thereafter.
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