Shares of Fiat Chrysler Automobiles (NYSE:FCAU) were down about 36% as of 11 a.m. ET on Monday, Jan. 4.

So what's happening?

Before the market opened on Monday morning, FCA announced that the spinoff of its 90% stake in Ferrari (NYSE:RACE) had been completed as of Jan. 3.

Existing FCA shareholders will receive one share of Ferrari for every 10 FCA shares they hold. FCA closed at $13.99 on Thursday, and Ferrari closed at $48. Given that, we'd expect FCA's share price to drop by 1/10th of Ferrari's share price, or $4.80, as soon as the separation was official.

That's pretty much what happened.

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Shares Of Fiat Chrysler Automobiles (FCA) DROPPED 35% Yesterday — Here's Why You SHOULDN'T Care...

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