18. a. Briefly describe what an equity carveout is, and what is the typical stock price reaction for parent firms announcing a carveout (positive, negative, or neutral), according to the empirical finance literature.

b. Two potential explanations for the observed stock price reaction around equity carveout announcements are the Efficiency, and the Information explanation. Describe these two explanations, and mention how empirical researchers have tried to distinguish between them.

for both parts can you go into detail about understanding the concepts and referencing external content ( and recommend sources I should look into to get a better concept) again for both can there be examples of calculations and graphs to explain the concepts.