What does a Spin-Off mean?
A Spin-Off is the process where a company splits up, resulting in shareholders receiving additional shares of the new subsidiary created.
How does it affect your shares?
💡Usually, the value of the parent company’s shares decreases by an amount roughly equal to the value of the new shares you receive. This way, the total value of your portfolio stays balanced.
Practical example
📊As a result of AT&T’s spin-off, a new subsidiary called WBD was created. AT&T’s existing shareholders received WBD shares — about 0.25 WBD shares for every AT&T share they owned.
So, if you had 100 AT&T shares, you would get 25 additional WBD shares. You’d now own shares in both companies.
How does this work in Libertex?
💰To make calculations easier and faster, instead of receiving the new shares (which might not yet be available on Libertex), you’ll receive the cash equivalent of the value of those new shares.