The public sale of common stock in a subsidiary in which the parent company usually retains majority…
An equity carve-out is a corporate restructuring transaction in which a parent company sells a minority stake (common stock) of a subsidiary to the public through an initial…
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The public sale of common stock in a subsidiary in which the parent company usually retains majority control is called :
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Correct answer D
An equity carve-out is a corporate restructuring transaction in which a parent company sells a minority stake (common stock) of a subsidiary to the public through an initial public offering while retaining majority ownership and control. Unlike a spin-off, an equity carve-out generates new cash inflows for the parent/subsidiary.
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UGC NET Management