A spin-off is the process of a company dividing, resulting in shareholders receiving additional shares of the new subsidiary. In most cases, the value of the parent company's shares decreases by an amount equal to the value of the new shares received, thus maintaining the overall value of the portfolio.*

For example: As a result of the AT&T spin-off, a subsidiary company WBD is created, and former AT&T shareholders receive WBD shares (approximately 0.25 WBD shares for each AT&T share).

Thus, a holder of 100 AT&T shares will receive an additional 25 WBD shares and will own shares in both companies.

*For convenience and speed of calculations, instead of new shares (which are not yet available in Libertex), Clients receive the cash equivalent of the value of the new shares.