Question

What is the transfer of all or a portion of a subsidiary's stock or other assets to the stockholders of its parent company on a pro rata basis called?

Answer 1

This is called a SPINOFF. Spinoff is a situation where in a portion or all subsidiary stocks or assets is being transferred to the stockholders of the parent company is being given in a pro-rated basis. In spinoff, it also shows a creation of a new company from sale of stocks of the parent company.