Parent Stock means shares of common stock, $.01 par value, of Parent and any securities for which such stock may be exchanged or into which it may be converted. Sample 1 Sample 2 Sample 3 Based on 8 documents Parent Stock means the common stock, par value $.01 per share, of PARENT.
What is parent stock?
Parent Stock means shares of common stock, $.01 par value, of Parent and any securities for which such stock may be exchanged or into which it may be converted.
How is the amount of cash delivered in lieu of Parent shares?
In such case, the amount of cash delivered in lieu of the Parent Shares shall be determined by multiplying the number of Parent Shares that would have been issued by the Parent Stock Price.
What happens to Parent shares in the event of a merger?
Notwithstanding any other provision of this Agreement, each recipient of Parent Shares pursuant to the Merger who would otherwise have been entitled to receive a fraction of a Parent Shares (after taking into account all Parent Shares to be issued to such holder pursuant to the Merger) shall in lieu thereof receive in cash.
Should I invest in a parent company or a subsidiary?
Aggressive investors with a high tolerance for risk are often drawn to the subsidiary. As a smaller company, the subsidiary has more potential for growth. However, compared to the more established parent company, the subsidiary's stock price is more volatile and subject to market whims.
What are parent shares?
Parent Shares means the shares of common stock, par value $1.00 per share, of Parent.
What is meant by shares of stock?
The term stock is used to express equity ownership in a business. A stock represents a piece of ownership in a corporation. On the other hand, a share of stock is a unit of ownership in the business. The number of shares determines how big of a piece of ownership in a business you have.
What happens to stock after spin-off?
When a spinoff's shares start trading on a stock exchange, the value of the parent company's stock may drop by the value of the new company's stock. This is due to the fact that the parent company stock no longer reflects the value of the unit that was spun off.
Do you lose shares in a spin-off?
Since the spinner will now be a smaller company, it makes sense that the share price will drop. However, the "spinnee" company will have its own value. Investors in a company that undergoes a spin-off do not lose any value in the transaction.
What are the 4 types of shares?
What are the different types of shares in a limited company?Ordinary shares.Non-voting shares.Preference shares.Redeemable shares.
What are the 4 types of stocks?
Here are four types of stocks that every savvy investor should own for a balanced hand.Growth stocks. These are the shares you buy for capital growth, rather than dividends. ... Dividend aka yield stocks. ... New issues. ... Defensive stocks. ... Strategy or Stock Picking?
Do spin offs create value?
Spinning off a business can create value and accelerate growth at a company and the spun-off entity, delivering solid, long-term returns for stakeholders.
Who owns a spin-off company?
A corporation creates a spinoff by distributing 100% of its ownership interest in that business unit as a stock dividend to existing shareholders. It can also offer its existing shareholders a discount to exchange their shares in the parent company for shares of the spinoff.
What is the difference between spin-off and split off?
A spin-off distributes shares of the new subsidiary to existing shareholders. A split-off offers shares in the new subsidiary to shareholders but they have to choose between the subsidiary and the parent company.
What is the purpose of splitting stock?
Companies typically engage in a stock split so that investors can more easily buy and sell shares, otherwise known as increasing the company's liquidity. Stock splits divide a company's shares into more shares, which in turn lowers a share's price and increases the number of shares available.
Are split offs tax free?
The taxable status of a spinoff is governed by Internal Revenue Code (IRC) Section 355. The majority of spinoffs are tax-free, meeting the Section 355 requirements for tax exemption because the parent company and its shareholders do not recognize taxable capital gains.
What happens to stock when a company splits into two companies?
A split-up is a financial term describing a corporate action in which a single company splits into two or more independent, separately-run companies. Upon the completion of such events, shares of the original company may be exchanged for shares in one of the new entities at the discretion of shareholders.
Examples of Parent Stock in a sentence
If a replacement certificate or instrument evidencing any Parent Stock is requested due to a mutilation thereof, the Parent may require delivery of such mutilated certificate or instrument as a condition precedent to any issuance of a replacement.
More Definitions of Parent Stock
Parent Stock or “ Parent Shares ” means the ordinary shares of $0.0001 par value of Parent.
