# What are stub financials?

## What are stub financials?

In finance, a stub is a security that is created as a result of a corporate restructuring such as a spin-off, bankruptcy, or recapitalization in which a portion of a company’s equity is separated from the parent company’s stock. Stub stocks may also be created by converting a distressed company’s bonds into equity.

How do you calculate stub period?

We need to record what happens between the closing date and next fiscal year end, so we create a “stub period” to record financial results during this time. We calculate income statement items for the stub period by multiplying the percentage of the current fiscal year remaining by the full fiscal year results.

What is a stub period in a DCF?

• You use a stub period when you’re valuing a company before or after the end of its fiscal year and there are 1 or more quarters in between the current date and the end of the fiscal year. • For example, it’s currently September 30th and the company’s fiscal year ends on December 31st.

### What is a stub period adjustment?

Stub Period Adjustment Amount means the product of (i) the number of days during the period beginning on (but excluding) the last day through which Pre-Closing Adjusted Cash Flow is calculated and ending on (and including) the day immediately preceding the Closing Date, times (ii) Daily EBITDA Amount.

What is a stub accrual?

Stub period accrual income is calculated by a formula that looks back to the allocation of income/loss from the partnership’s previous fiscal period and then prorates that amount based on the number of days in the corporation’s stub period.

What is stub period interest?

Stub Interest Period means the period commencing on the Closing Date and ending on (but not including) the first calendar day of the first month following the Closing Date (or if such day is not a Business Day, the next Business Day thereafter).

#### What is a stub period in accounting?

Also known as the interim period. This is the portion of the current fiscal year that has occurred or is reportable so far. For example, if a company is filing a Form 10-Q for its second fiscal quarter ended June 30, the stub period would be six months or the first half of the company’s fiscal year.

What is a stub period tax return?

Stub Period Returns means all Tax Returns of any Transferred Entity for a Pre-Cut-off Tax Period, an Interim Tax Period or a Straddle Period that have not been filed on or before the Closing Date.

What is stub period in M&A?

## What is a stub position?

From Wikipedia, the free encyclopedia. A stub is the stock representing the remaining equity in a corporation left over after a major cash or security distribution from a buyout, a spin-out, a demerger or some other form of restructuring removes most of the company’s operations from the parent corporation.

How do I determine my fiscal year?

The fiscal year is expressed by stating the year-end date. A fiscal year-end is usually the end of any quarter, such as March 31, June 30, September 30, or December 31.

When should you end your fiscal year?

A company’s fiscal year is its financial year; it is any 12-month period that the company uses for accounting purposes. The fiscal year is expressed by stating the year-end date. A fiscal year-end is usually the end of any quarter, such as March 31, June 30, September 30, or December 31.