Spin-off is the term used to describe the creation of a new company from an existing company. When it occurs, shares of the newly created spin-off company can be distributed to the shareholders of the older company, or sold directly on the stock market. For example, TripAdvisor, the website and app where people rant about how awful their hotel stay was, was a spin-off from Expedia, a place where people can book hotel rooms. Still unclear? Think about a TV series, such as Fear the Walking Dead. It takes place in the same world as the Walking Dead series, but the characters are different. They want to show us something different (same world, different product). Fear the Walking Dead is a spin-off of The Walking Dead.
Related Terms
If a company was an apple pie, a stock would be a slice of the pie. In short, a stock is a slice of a company. Everyone who owns a piece of a company has the right to share a portion of the profits of the company. Read more
The stock market encompasses all the people, companies and institutions buying and selling slices of publicly-owned companies and other securities. Read more
Exchange Traded Fund definition
Exchange traded funds (ETFs) are a pool of investments sold as a single product. Remember those cheesy christmas basket, filled with the standard jam jars and hot chocolate mix, your parents might have received? Read more
About The Author: Edouard
Edouard est analyste financier chez Hardbacon. Il est responsable de la conception de listes de titres que nos utilisateurs peuvent trouver dans la section "explorer" de l'application.
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