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    Financial Management Theory and Practice Study Set 4
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    Exam 18: Public and Private Financing: Initial Offerings, Seasoned Offerings, and Investment Banks
  5. Question
    The Term "Equity Carve-Out" Refers to the Situation Where a Firm's
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The Term "Equity Carve-Out" Refers to the Situation Where a Firm's

Question 2

Question 2

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The term "equity carve-out" refers to the situation where a firm's managers give themselves the right to purchase new stock at a price far below the going market price.Since this dilutes the value of the public stockholders, it "carves out" some of their value.

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