If a Parent Corporation Makes a § 338 Election, the Subsidiary

question 17

True/False

If a parent corporation makes a § 338 election, the subsidiary corporation must be liquidated.

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Definitions:

Outstanding Shares

The cumulative count of a corporation's shares that have been distributed and are presently held by investors.

Spread

The difference between two values or rates, commonly used in financial contexts to describe the gap between bid and ask prices or the yield differences between bonds.

Secondary Equity Offering

A process where a company issues additional shares to the public after the initial public offering (IPO) to raise more capital.

Rights Offering

A method by which companies raise capital, by giving existing shareholders the right to buy new shares at a discount before they are offered to the public.