If a public company issues stock in its own subsidiary, these shares do not have to be registered by the SEC in order to be publicly traded as the parent company's shares are already registered.

Question

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Shares issued by a subsidiary must be registered with the SEC to be publicly traded, even if the parent company's shares are already registered. Each issuance of securities to the public requires its own registration process to ensure transparency and protect investors.

If a Public Company Issues Stock in Its Own Subsidiary