In an equity carve-out, the parent of a multiple-subsidiary firm issues equity claims against a particular subsidiary via a
A)private placement.
B)pro-rata distribution to the parent's current stockholders.
C)public offering.
D)unit distribution.

Question

Quizplus · Accepted Answer

In an equity carve-out, the parent company issues equity claims against a particular subsidiary through a public offering, allowing the subsidiary to access capital markets directly while the parent company retains control over the subsidiary.

In an Equity Carve-Out, the Parent of a Multiple-Subsidiary Firm