In a spin-off, the proportional ownership of shares in the new legal subsidiary is the same as the stockholders' proportional ownership of shares in the parent firm.
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Q30: Equity carve-outs are similar to divestitures and
Q31: When a parent creates a tracking stock
Q32: The divesting firm is required to recognize
Q33: Tracking stocks are often created to give
Q34: Spin-offs are generally immediately taxable to shareholders.
Q36: In general, a voluntary bust-up or liquidation
Q37: A split-up involves the creation of a
Q38: Both a divestiture and a spin-off generally
Q39: In a spin-off, the board of directors
Q40: When a firm is unable to pay
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