Quick Stock help ASAP

[WarriorPL]

Can someone tell me what a Spinoff Share is?

 

[rjl296]

no

 

[out_at_sea]

Can someone tell me what a Spinoff Share is?

spinoff is a stock dividend, except the dividend is issued in a new or different company and not in the original (parent) company.

 

[HG Pennypacker]

It's when a company breaks out a particular unit or division of it's company to trade on it's own. If you own stock in the parent company, they will usually give you a certain amount "spinoff shares" based on the number of shares you own in the parent.

An example was AT&T spinning off Lucent.

 

[WarriorPL]

I bought a certain ammount of shares in a company and i sold them all, i recently got a statement saying that i still have Spinoff Shares in that company. But there is no market value or unit price on that stock. Is it anything to be worried about? Should i sell them?

 

[HG Pennypacker]

I bought a certain ammount of shares in a company and i sold them all, i recently got a statement saying that i still have Spinoff Shares in that company. But there is no market value or unit price on that stock. Is it anything to be worried about? Should i sell them?

Do you have the stock symbol?

 

[WarriorPL]

Yes i can PM it to you if youd like. The company itself has a stock value, but the spinoffs don't. I mean if its a 0 now.... i can't lose anything, but i can gain if the branch grows.

 

[HG Pennypacker]

Yes i can PM it to you if youd like. The company itself has a stock value, but the spinoffs don't. I mean if its a 0 now.... i can't lose anything, but i can gain if the branch grows.

The only thing I can think of is that they spun it off and then decided to hold off on the IPO due to market conditions. Normally there would be some value attached to the stock. Have you done research to see if there was prior history on the spinoff?