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To be fair, stock splitting does not result in another entity being spawned (e.g., Apple didn't split into say, Apple and Apple "Cash" like Bitcoin and Bitcoin
by smaili 9y ago
To be fair, stock splitting does not result in another entity being spawned (e.g., Apple didn't split into say, Apple and Apple "Cash" like Bitcoin and Bitcoin Cash). So in that sense, it is a bit different.
- planteen 9y agoCompanies spin-off like you are describing too. Except the market there is rational, as in, the market cap of the two split companies is equal to the previous market cap of the unsplit company. Look, for example, at Hewlett-Packard over the last 20 years: they spun off Agilent, which itself later spun off Verigy and Keysight, and the HP computer business is split into many parts now: HP, HPE, and DXC. https://en.wikipedia.org/wiki/Corporate_spin-off https://en.wikipedia.org/wiki/Corporate_spin-off