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The difference between a spin-off and a split-off is that in a spin-off: A. shares in the new firm are distributed on a pro-rata basis to existing shareholders, but are sold via a public offering in a split-off. B. the parent’s existing shareholders receive shares in the new firm on a pro-rata basis, whereas they must surrender their shares in the parent to obtain shares of the new firm in a split-off. C. the parent’s existing shareholders must surrender their shares in the parent to obtain shares of the new firm, whereas they receive shares in the new firm on a pro-rata basis in a split-off. |