Spin-Off
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A spin-off is a corporate action that occurs when a company distributes part of its assets to form a new publicly traded company. When a spin-off occurs, stockholders of the parent company receive shares of the new company in the form of a stock dividend.
GainsKeeper monitors all mandatory corporate actions to U.S. equities, and automatically adjusts each of your investments accordingly. In many cases a corporate action, such as a spin-off, will result in a new position or a change to the cost basis of a security.