as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
what's the benefit of buying shares in a wholly owned subsidiary if you own parent company stock?
user
the parent company is likely to own other assets, which can be badly performing. spinoffs are typically the better performers. there are also other factors, for example certain big funds cannot invest in sectors like tobacco or defense and for conglomerates it makes sense to spin those assets off to attract a wider investor audience.
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