In a(n) ____ common stock in a division or subsidiary is distributed to shareholders of the parent company on a pro rata basis.
A) spin-off
B) reverse LBO
C) equity carve-out
D) tender offer

Question

Quizplus · Accepted Answer

In a spin-off, a company creates a new independent company by distributing shares of the new company to its existing shareholders on a pro rata basis, effectively creating a separate entity that operates independently of the parent company.

In A(n) ____ Common Stock in a Division or Subsidiary