The sale of equity in a wholly owned subsidiary via an initial public offering is referred to as a(n):
A)split-up.
B)equity carve-out.
C)countertender offer.
D)white knight transaction.
E)lockup transaction.

Question

Quizplus · Accepted Answer

The sale of equity in a wholly owned subsidiary via an initial public offering is referred to as an equity carve-out. This allows the parent company to retain majority control while also raising capital for the subsidiary.

The Sale of Equity in a Wholly Owned Subsidiary Via