When a spinoff happens, investors in the parent company automatically become investors in the subsidiary through the tax-free distribution of new shares. New investors can purchase shares of one or both companies.

Read more: How do spinoffs impact investors in the both the parent and subsidiary companies? | Investopedia http://www.investopedia.com/ask/answers/03241...z4v3p0WgfY
Follow us: Investopedia on Facebook