If a Parent Company Has Two Wholly Owned Subsidiaries, How

question 178

Short Answer

If a parent company has two wholly owned subsidiaries, how many legal and economic entities are there from the viewpoint of the shareholders of the parent company?

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Definitions:

Stock Split

Issue by a corporation of a given number of shares in exchange for shares currently held by stockholders. A split increases the number of shares outstanding. A reverse split decreases the number outstanding.

Divisor

A number by which another number is to be divided.

Dow Jones Industrial Average

A stock market index that measures the stock performance of 30 large, publicly-owned companies trading on stock exchanges in the United States.

Stocks Traded

Refers to the buying and selling of stock shares on financial markets.