Many international subsidiaries obtain financial capital by issuing equity that is purchased solely by the parent and as a rule is not publicly traded.

Question

Quizplus · Accepted Answer

International subsidiaries often obtain financial capital through internal funding provided by the parent company. This funding may come in the form of equity, which is not publicly traded, and is only purchased by the parent company. This allows the parent company to maintain control over the subsidiary and keep its financial information private.

Many International Subsidiaries Obtain Financial Capital by Issuing Equity That