A _____ occurs when the subsidiary's stock is sold for cash, assets, or in settlement of a debt.

Question

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A sell-off occurs when the subsidiary's stock is sold for cash, assets, or in settlement of a debt. A spin-off is when the parent company creates a new, independent company by distributing shares of the parent company's stock to its own shareholders. A split-off is similar to a spin-off, except that the parent company offers to exchange shares of the subsidiary's stock for shares of the parent company's stock. A split-up is when the parent company divides itself into smaller, independent companies.

A _____ Occurs When the Subsidiary's Stock Is Sold for Cash