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2
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1answer
44 views

What are the advantages of spinning off a company?

A big story is the news this week is that Ebay is planning to spin-off PayPal into their own company. What are the advantages of such a move? On one side, I see this as only weakening Ebay, as it ...
5
votes
3answers
1k views

In the event of a corporate spin-off, how can I calculate the correct cost basis for each company's shares?

Consider this example: Siemens is going to have a spin-off (next Monday). If I owned, say, 10,000 shares of Siemens bought at an average price of 80 euros, my cost would be 800,000 euros. In the ...
3
votes
1answer
215 views

What happened to buyers of ABT right before the split?

Abbott Labs (ABT) split into two companies (ABT and ABBV) at the start of the new year. Shareholders of ABT on Dec. 12 received one share of ABBV for each share of ABT they owned on that date. As I ...