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Yes, a subsidiary can raise funds for its parent company through an Initial Public Offering (IPO), but this typically occurs when the subsidiary goes public and sells shares to investors. The funds raised from the IPO can be used by the subsidiary for its own operations, growth, or to pay dividends to the parent company. However, the specific structure and agreements would determine how the funds are allocated and whether they directly benefit the parent company.

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1mo ago

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Related Questions

The situation where a parent company sells a subsidiary to another form or in a public offering is called?

The situation where a parent company sells a subsidiary to another firm or through a public offering is called a divestiture. This process allows the parent company to raise capital, streamline operations, or refocus its core business. Divestitures can take various forms, including outright sales, spin-offs, or equity carve-outs.


What accurately describe an initial public offering?

An initial public offering, or IPO, is when a company goes public and they offer their stock for sale. The very first day it comes out is the initial public offering.


What describes an initial public offerings?

An initial public offering, or IPO, is when a company goes public and they offer their stock for sale. The very first day it comes out is the initial public offering.


Who can invest in initial public offering?

Anyone


What does an initial public offering when a company does what?

Begin selling stock to the public.


What is the full form of IPO?

Initial public offering


What is full form of ipo?

Initial Public Offering


What describes an initial public offering (IPO)?

The first sale of stock to the public


The purpose of an initial public offering is to do what?

For raising the capital from the public directlyRaise money -apex


What terms describes a company's first sale of stock to the public?

Initial public offering


What accurately describes an initial public offering IPO?

The first sale of stock to the public


What terms describes a companys first sale of stock of the public?

Initial public offering