Which of the following is not true of an equity carve-out?
A) Creates cash infusion for the parent
B) Change in equity ownership of the unit involved in the carve-out
C) New shares issued to the public
D) Taxable if proceeds returned to shareholders through a dividend or stock buyback
E) Parent ceases to exist

Question

Quizplus · Accepted Answer

The parent company does not cease to exist in an equity carve-out. It is simply selling a portion of its equity in a sub-unit to the public.

Which of the Following Is Not True of an Equity