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- Basic of Economicseconomics-mcqs › basic-of-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
In the equity market, what term describes a company with two segments that might separate into two distinct entities, granting existing shareholders two new shares for each share they previously owned?
Multiple choice question for Basic of Economics. Select an option, then review the explanation below.
Explanation
A 'Butterfly' refers to a company structured with two divisions that may divide into separate companies, issuing two shares to current shareholders for every original share held. The other options do not describe this specific corporate action.
More Basic of Economics MCQs
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- 1.Which of the following best describes deflation?
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- 3.Which of the following represents a legitimate form of currency?
- 4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
- 5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?