In a(n)____, stock in a subsidiary or a newly incorporated division is distributed to shareholders of the parent company.
A)spin-off
B)reverse LBO
C)equity carve-out
D)tender offer

Question

Quizplus · Accepted Answer

In a spin-off, a company creates a new, independent company by distributing shares of the new company to its existing shareholders, effectively creating a separate entity that was once a part of the parent company.

In A(n)____, Stock in a Subsidiary or a Newly Incorporated