The term "spin-off" refers to a new company that is formed from an existing, larger corporation. This can occur when a division or subsidiary of the parent company is separated and becomes its own independent entity. The reason for this separation could be due to strategic reasons such as focusing on core businesses, unlocking value in certain assets, or simply to provide liquidity to shareholders by distributing shares in the new company. Spin-offs can also occur when a company wants to divest itself of an unwanted asset or division that is not part of its main operations. In such cases, the parent company creates a separate entity and then distributes its ownership interest to its own shareholders, effectively "spinning off" the new company.