In case of carve-outs:
A) Shares of the new company are given to the shareholders of the parent company
B) Shares of the new company are sold in a public offering
C) Shares of the new company are bought by borrowing or issuing junk bonds
D) None of the above

Question

Quizplus · Accepted Answer

In a carve-out, shares of the new company are sold in a public offering, allowing the parent company to raise capital while still retaining control over the new entity.

In Case of Carve-Outs