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owning the shares of stocks from other companies

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Q: What is the best description of a holding company?
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What does the holding company do?

A holding company holds vast amounts of equity in different financial infrastructures. The holding company provides their client with choices in different smart investments.


Can a subsidiary own shares in its holding company?

If a subsidiary own shares in holding company that would be considered as treasury.


Why does a company become a subsidiary company and a holding company?

A company will be called a subsidiary/holding(sebtion-4 of companies act,1956)- if a company holding a company of another i.e it may be of (i).where the other company controls the composition of its board of directors,or (ii)where the company hold more than 50 percent of paidup capital,or (iii) The company is subsidiary of the subsidiary. IS CALLED THE SUBSIDIARY COMPANY .The other than subsidiary is called holding i.e which controls the other company due to the conditions stated above


What is non operating holding company?

A non Operative Finantial holding company only invest money in other companies .They do not take part in day to day operation .Holding CompaniesThe primary function of a holding company is to invest in other companies, commonly known as subsidiaries. Holding companies are usually not involved in day-to-day operations of the operating company, but lend initial or ongoing financial support via cash reserves or stock sales, and may assist in restructuring the operational model to ensure profits. Holding companies are normally structured as corporations to protect assets, absorb financial losses and limit liability. Operating CompaniesOperating companies are owned by the holding company, but are responsible for all day-to-day operations of the company. When a holding company creates or purchases an operating company, they are sometimes allowed to conduct business as usual -- especially if they are profitable. Net profits after expenses are then handed over to the holding company.


What is a company that does not produce any products or services?

A Holding Company does not produce any product or service.

Related questions

What best description of a holding company?

a holding company is a company who holds more than 50 percent of the share capital of another company and has the right to appoint a director and have majority in voting rights or A+ answer owning the shares from other companies


What description of a holding company?

a holding company is a company who holds more than 50 percent of the share capital of another company and has the right to appoint a director and have majority in voting rights or A+ answer owning the shares from other companies


What is the difference between a holding company and a personal holding company?

difference between holding company and personal holding company and the corporation ltd.


Who is downstream holding inc?

A downstream holding company is a holding company established by a mutual insurance company. The mutual insurance company has 100% ownership of the holding company. [Source: Answers.com]


Example of Company description?

http://www.business-plans-guide.com/company-description-example.htmlRefer to the article above for detailed example of a company description.


What is the population of Garney Holding Company?

Garney Holding Company's population is 650.


When was Garney Holding Company created?

Garney Holding Company was created in 1961.


What is Garney Holding Company's population?

The population of Garney Holding Company is 2,008.


When did W Holding Company end?

W Holding Company ended in 2010.


When was Transport Holding Company created?

Transport Holding Company was created in 1963.


When was Discovery Holding Company created?

Discovery Holding Company was created in 2005.


What is the population of Discovery Holding Company?

Discovery Holding Company's population is 3,800.