CFA Practice Question

There are 86 practice questions for this study session.

CFA Practice Question

In case of spin-offs:

A. Shares of the new company are given to shareholders of the parent company.
B. Shares of the new company are sold as a public offering.
C. Shares of the new company are bought by borrowing or issuing junk bonds.
Correct Answer: A

A spin-off is a new company created out of the assets and operations of an existing company and the shares in the new company are distributed to the parent company's stockholders.

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