Family Travel Plans is the sole shareholder in its subsidiary,Traveler's Insurance Co.Family Travel Plans has decided to divest itself of its insurance operations and does so by distributing the shares in the subsidiary to the shareholders of Family Travel Plans.This distribution of shares is called a(n):
A)lockup transaction.
B)bear hug.
C)equity carve-out.
D)spin-off.
E)split-up.

Question

Quizplus · Accepted Answer

The distribution of shares in the subsidiary to the shareholders of the parent company is called a spin-off.

Family Travel Plans Is the Sole Shareholder in Its Subsidiary,Traveler's