The sale of stock in a wholly owned subsidiary via an initial public offering is referred to as a(n):
A) split-up.
B) equity carve-out.
C) countertender offer.
D) white knight transaction.
E) lockup transaction.

Question

Quizplus · Accepted Answer

Selling a portion of the equity in a subsidiary to the public while still retaining control is called an equity carve-out. This differs from a split-up, which involves dividing the assets and operations of a company into two or more separate businesses, and differs from other options mentioned in the question.

The Sale of Stock in a Wholly Owned Subsidiary Via