are spinoffs good for investors 
they can be generally both company shares and spinoff shares tend to outperform the market in the first couple of years following a spinoff after some initial dips and volatility in addition as a small company the spinoff has great potential for growth along with a focused enthusiastic management this can attract investors which can boost share price however spinoff shares can be volatile due to the company being new and lacking financial performance history the bottom linea spinoff also known as a spinout or starburst creates a new company out of an existing company it s a type of divestiture and is only done if a parent company expects that the new company will be worth more on its own and the parent company can offer added value without it bear in mind that the share price of a spinoff can be volatile as the market adjusts to the new company 