$5.$ Equity carve$-$outs

Corporations often restructure their capital and assets to improve the flow of capital and information and to add value to shareholder wealth. Restructuring often takes place through equity carve$-$outs, partial public offerings, and tracking stocks.

Consider the following statement about equity carve$-$outs:

The underwriting commission involved in an equity carve$-$out is more than the commissions involved in equity offerings by the parent firm.

Based on your understanding of equity carve$-$outs, is the statement above an advantage of equity carve$-$outs?

Yes

No