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 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.
A) True
B) False

Download: Chapter 20 Module 8 Test