Split-Up

Split-Up
A corporate action in which a single company splits into two or more separately run companies. Shares of the original company are exchanged for shares in the new companies, with the exact distribution of shares depending on each situation. This is an effective way to break up a company into several independent companies. After a split-up, the original company ceases to exist.

A company can split up for many reasons, but it typically happens for strategic reasons or because the government mandates it. Some companies have a broad range of business lines, often completely unrelated. This can make it difficult for a single management team to maximize the profitability of each line. It can be much more beneficial to shareholders to split up the company into several independent companies, so that each line can be managed individually to maximize profits. The government can also force the splitting up of a company, usually due to concerns over monopolistic practices. In this situation, it is mandatory that each segment of a company that is split up be completely independent from the others, effectively ending the monopoly.


Investment dictionary. . 2012.

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  • Split — Split …   Deutsch Wikipedia

  • split — 1 vb split, split·ting: to divide into parts or portions: as a: to divide into factions, parties, or groups b: to mark (a ballot) or cast or register (a vote) so as to vote for candidates of different parties c: to divide (stock) by issuing a… …   Law dictionary

  • SPLIT — (also Spliet; It. Spalato; in Jewish sources אישפלטרא), Adriatic port in Croatia. A Jewish community with a cemetery existed in nearby Salona (now Solin) in the third century C.E. When Salona was destroyed by the Avars in 641, the Jews seem to… …   Encyclopedia of Judaism

  • split — (v.) 1580s, from M.Du. splitten, from P.Gmc. *spl(e)it (Cf. Dan., Fris. splitte, O.Fris. splita, Ger. spleißen to split ), from PIE * (s)plei to split, splice (see FLINT (Cf. flint)). Meaning leave, depart first recorded 1954, U.S. slang. Of… …   Etymology dictionary

  • Split — (spl[i^]t), v. t. [imp. & p. p. {Split} ({Splitted}, R.); p. pr. & vb. n. {Splitting}.] [Probably of Scand. or Low German origin; cf. Dan. splitte, LG. splitten, OD. splitten, spletten, D. splijten, G. spleissen, MHG. spl[=i]zen. Cf. {Splice},… …   The Collaborative International Dictionary of English

  • Split — (spl[i^]t), v. t. [imp. & p. p. {Split} ({Splitted}, R.); p. pr. & vb. n. {Splitting}.] [Probably of Scand. or Low German origin; cf. Dan. splitte, LG. splitten, OD. splitten, spletten, D. splijten, G. spleissen, MHG. spl[=i]zen. Cf. {Splice},… …   The Collaborative International Dictionary of English

  • Split — Split, n. 1. A crack, rent, or longitudinal fissure. [1913 Webster] 2. A breach or separation, as in a political party; a division. [Colloq.] [1913 Webster] 3. A piece that is split off, or made thin, by splitting; a splinter; a fragment. [1913… …   The Collaborative International Dictionary of English

  • Split — Split, a. 1. Divided; cleft. [1913 Webster] 2. (Bot.) Divided deeply; cleft. [1913 Webster] 3. (Exchanges) (a) Divided so as to be done or executed part at one time or price and part at another time or price; said of an order, sale, etc. (b) Of… …   The Collaborative International Dictionary of English

  • Split — /split/, n. a seaport in S Croatia, on the Adriatic: Roman ruins. 180,571. Italian, Spalato. * * * ancient Spalatum Seaport (pop., 2001: 188,694), Dalmatia, Croatia. The Romans established the colony of Salonae nearby in 78 BC, and the emperor… …   Universalium

  • split — ► VERB (splitting; past and past part. split) 1) break forcibly into parts. 2) divide into parts or groups. 3) (often split up) end a marriage or other relationship. 4) (be splitting) informal (of one s head) suffering great pain from a he …   English terms dictionary

  • split — [split] vt. split, splitting [MDu splitten, akin to MHG splīzen < IE base * (s)plei , to split, crack > FLINT] 1. to separate, cut, or divide into two or more parts; cause to separate along the grain or length; break into layers 2. to break …   English World dictionary

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