RE:RE:RE:Discussion on potential SPIN OFFSnowdrift wrote: kingscorpion wrote: kingscorpion wrote: Let's talk about what happens to your shares when 1 division is span out and let's say you have for ex 50000 shares What do you think happens to your shares
When a division is spanout You as a share holder automatically become share holder of the new entity You will have shares on both side of the company . Ok who is Google ing now LOL
Hi King,
I've never owned a company before, that spun out a division. In your example, when you say we would automatically become a shareholder of the new entity, would we then also own 50,000 shares of the new entity? Or would the CEO specify that for each 10 shares of PYR, ex., we would get 1 share of the new entity?
Snowdrift
If you owned say 50000 shares in the parent company When a division gets span off It will depend on its market cap to parent companies market cap So if it is 1/5 of the parent company then you will have 10000 shares in the spin off company.