A Spin-Off Is a Form of Divestiture in Which an Operating

question 72

True/False

A spin-off is a form of divestiture in which an operating unit becomes an independent company by issuing shares in it, on a pro rata basis to the parent company's shareholders.

Understand the difference in unionization processes and their implications between public and private sectors.

Know the typical duration and legal binding nature of collective bargaining agreements in the U.S.

Grasp the concepts and effects of decentralized versus centralized bargaining structures.

Recognize the roles and procedures in the collective bargaining process, including the appointment of bargaining committees and the exchange of proposals.

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Definitions:

Market Price

The amount at which an asset is bought or sold in the market.

Shares Outstanding

The total number of a company's shares of stock that are owned by shareholders, including those held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the total market value remains the same.

Market Price

The rate currently set for the trade of assets or services in the marketplace.