Definitions
In plain terms
Afterward, the holder may own both the parent and the separated company, so return analysis must account for both pieces.
Technical
The event requires parent and child identities, entitlement ratio, dates, when-issued and regular-way states, valuation source, fractions, tax context, and index methodology.
Scope
The parent price drop alone is not the holder's total economic loss when child value was distributed.
Examples
- A governed calculation records spin-off with its exact basis, effective time, source, and units.
Common misconceptions
- Spin-Off does not have one universal treatment without the applicable methodology, event terms, and data context.
Concept relationships
Broader concepts
Related
Where this concept is used
Evidence and governance
- Corporate Actions and Events Guide FTSE Russell, London Stock Exchange Group · first party methodology
Supports: preferred label, short definition, technical definition
Limits: Rules are specific to applicable FTSE Russell indices and can contain market, eligibility, tax, and timing exceptions.
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: variant distinction
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-owner-approved
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- published