In the context of equities What is called a firm with two divisions that may split into two companies and issue original shareholders two shares for every old share they have ?
Correct answer: D. Butterfly
- A. Spreadsheet
- B. Splinter
- C. Family growth
- D. Butterfly
Explanation
A butterfly is a corporate restructuring in which a company separates divisions into distinct companies, with existing shareholders receiving shares in the resulting entities. The other choices are not standard equity terms for this arrangement.
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