Which Statement About Equity Carve-Outs Is True

question 19

Multiple Choice

Which statement about equity carve-outs is true?

• A)They are overpriced issues.
• B)They are sold by private placements.
• C)No prospectus is required.
• D)They are a special type of IPO.

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Definitions:

Net Assets

The total assets of a company minus its total liabilities, reflecting the company's financial position at a specific point in time.

Acquisition

Taking over another corporation by buying out its equity or assets.

Fair Value

The approximate value for which an asset or liability might be exchanged in an equitable deal between consenting parties, excluding scenarios of compelled or liquidation sales.

Subsidiary Consolidated

A process where the financial statements of a subsidiary are integrated with those of its parent company for reporting purposes, treating the two entities as a single economic entity.