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?

Choose the correct answer

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.

In the equity market, what term describes a company … — Basic of Economics | PakQuizHub