Holding company, Finance Basics

Holding Company

Such holds more than a half of the equity share capital of other company or is a member and or controls a big percentage of Directors of the Board of one or more of another companies that in this case are identified subsidiaries for that a holding company.

A holding company may be viewed like a "financial institution" in the means here it requires shareholders capital to obtain controlling interests in another companies via acquiring up to 51% of the other company's shares or even more. Whether such a holding company holds 51% of the shares of other company, it means which is the majority shareholder and such has substantial influence on the operations of its subsidiary. Approximately it will be like a sole owner of that a company with virtue of such share holding.

 

Posted Date: 1/29/2013 2:34:14 AM | Location : United States







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