Which statement about equity carve-outs is true?
A)They are overpriced issues.
B)They are sold by private placements.
C)No prospectus is required.
D)They are a special type of IPO.

Question

Quizplus · Accepted Answer

Equity carve-outs are a special type of IPO where a parent company sells a portion of its subsidiary's shares to the public, while retaining majority ownership of the subsidiary. A prospectus is required for equity carve-outs, and they are not necessarily overpriced issues or sold only by private placement.

Which Statement About Equity Carve-Outs Is True