In a(n) __________, the parent of a multiple-subsidiary firm issues, via an IPO, equity shares for a particular subsidiary, though the parent usually keeps majority ownership of the shares, and thus control of the subsidiary.
A)asset sale
B)spin-off
C)equity carve-out
D)targeted stock issuance

Question

Quizplus · Accepted Answer

An equity carve-out occurs when a parent company sells a minority interest of a subsidiary to external investors through an initial public offering (IPO), but retains majority control.

In A(n) __________, the Parent of a Multiple-Subsidiary Firm Issues