Posted On: 11/20/2014 10:42:30 PM
Post# of 56323
Re: beachlover12 #43904
I looked into this, and it starts to delve into the legal / finance expert realm to me...so someone please correct if inaccurate.
But as I was able to follow, there are a bunch of requirements that need to be met. Many of them have to do with legally performing the spinoff anyway. But if all of these requirements are met, the spun off shares are not restricted. If a some type of requirement is not met, the share will be restricted until it is submitted / received.
But if you are thinking a standard IPO wait time will apply to us, I don't think so. We invested in the original entity. I don't even think if you get those new additional shares of the new ticker, and sell right away - you won't face short term capital gains if you held the previous parent company stock for more than a year.
But as I was able to follow, there are a bunch of requirements that need to be met. Many of them have to do with legally performing the spinoff anyway. But if all of these requirements are met, the spun off shares are not restricted. If a some type of requirement is not met, the share will be restricted until it is submitted / received.
But if you are thinking a standard IPO wait time will apply to us, I don't think so. We invested in the original entity. I don't even think if you get those new additional shares of the new ticker, and sell right away - you won't face short term capital gains if you held the previous parent company stock for more than a year.
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