Match Each of the Following Items with the Appropriate Description

question 43

Short Answer

Match each of the following items with the appropriate description, indicating whether the item increases or decreases the parent's basis in the stock of a subsidiary.
a.Increases stock basis
b.Decreases stock basis
c.No effect on stock basis
-Increase in the excess loss account

---

Definitions:

Stock Exchange Bid

Corporate takeover bid communicated to the shareholders through a stock exchange.

Outstanding

Refers to the number of shares that are currently owned by investors, including restricted shares owned by the company's officers and insiders as well as those held by the public.

Successful Takeover

is an event where a company or entity successfully acquires control over another company, usually by purchasing a majority of its stock shares.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, thus having a financial stake in its success.