A stub is the stock representing the remaining equity in a

corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...

left over after a major cash or security distribution from a

buyout In finance, a buyout is an investment transaction by which the ownership equity of a company, or a majority share of the stock of the company is acquired. The acquiror thereby "buys out" the present equity holders of the target company. A buyout ...

, a spin-out, a

demerger A demerger is a form of corporate restructuring in which the entity's business operations are segregated into one or more components. It is the converse of a merger or acquisition. A demerger can take place through a spin-off by distributed or t ...

or some other form of

restructuring Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Other reasons ...

removes most of the company's operations from the parent corporation. A stub may retain the name of the original corporation, or in some cases may take another name as part of the restructuring.S Definitions: Campbell R. Harvey's Hypertextual Finance Glossary

References

Corporate finance Restructuring Stock market Equity securities {{stockexchange-stub