Spin-Off
A corporate action where a company separates a business unit into a new, independent public company whose shares go to existing shareholders.
What it is
A spin-off is when a parent company carves out a division or subsidiary and distributes shares of that new standalone company to its existing shareholders, usually pro rata. After the spin-off you own stock in two separate companies instead of one. The parent receives no cash; ownership is simply split between the two entities.
Why it matters
Spin-offs aim to unlock value by letting each business be valued and managed on its own, and they can surface a hidden, faster-growing unit. The pitfall is post-spin volatility and index-driven selling, plus the need to reallocate your original cost basis between the parent and the new company for tax purposes.
How it's calculated
It is a distribution governed by a fixed ratio, such as one spun-off share for every three parent shares held, not a computed metric. Your original cost basis is split between the two companies in proportion to their relative values at separation.
How Quintarthai uses it
Both the parent and the spun-off company get their own deep-analysis pages with full Financials and Ratios once trading begins; look them up in the app.