In a Group That Has a Multiple Subsidiary Structure, the Direct

question 46

Multiple Choice

In a group that has a multiple subsidiary structure, the direct non-controlling interest is entitled to:

• A) a proportionate share of post-acquisition equity only.
• B) a proportionate share of pre-acquisition equity only.
• C) a proportionate share of both pre-acquisition and post-acquisition equity.
• D) no share of post-acquisition equity.

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Definitions:

Insider Trading

The buying or selling of a publicly-traded company's stock by someone who has non-public, material information about that stock.

Securities and Exchange Commission

A federal agency responsible for regulating the securities industry, enforcing federal securities laws, and overseeing the stock and options exchanges in the United States.

Prospectus

A document that companies issue to potential investors, detailing the financial performance and risks involved in an investment offering.

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.