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Q-2: In a Spin-off. A brand new company is created from an existing division of a public company and shares are sold through an Initial
Q-2: In a Spin-off.
- A brand new company is created from an existing division of a public company and shares are sold through an Initial Public Offering.
- A separate public company is created and shares are distributed to the parent companys shareholders.
- A separate public company is created and shares are sold through a public offering
- A wholly owned division of a public
Q-3: In a Sponsored Spin-off
- The sponsor collects a commission
- The sponsor receives shares of the parent company
- The sponsor usually gets a discount on the price of the shares
- The sponsor usually gets 51% of the shares
Q-4: Tracking Stocks are
- Stocks that are tied to the performance of a specific subunit of a parent company.
- Stocks that are tied to the performance of an industry index related the parent company.
- Stocks that are tied to the performance of a general market index.
- All of the above
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