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train

06/08/22 12:46 PM

#40606 RE: lishious #40604

I have the same question. Two separate cos formed. Then, do I get shs in the other co? Also, what’s the ratio. EG. If I have 100 shs, do I get 100 shs in the other co?

charlie (this will require more than one martini to figure it out)
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westener

06/08/22 4:30 PM

#40622 RE: lishious #40604

There is no iron clad rule concerning the number of shares, but its common to receive one share of the spin off for every share you hold in the original.

The share price of the original holding will drop to the extent of the opening share price of the spin off, but you're not really losing anything, the sum of the two share prices should still total about the same as the original, at least at the opening.

If it makes you more comfortable you could sell your new spinoff shares and invest that cash in more of the other.

I've done very well with spin offs.