Ads
related to: how a holding company works in business
Search results
Results From The WOW.Com Content Network
A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. [1] A holding company usually does not produce goods or services itself. Its purpose is to own stock of other companies to form a corporate group .
How does a bank holding company work? When a bank holding company owns a subsidiary bank, it handles management of the bank, which in turn provides financial products and services to consumers and ...
Chinese groups exhibit similar features. Horizontal business groups are also referred to as "associative business groups". A vertical business group is a group of companies controlled, but not entirely owned, by a single investor. Vertical groups are often organized as pyramids of companies controlled by the main investor through a holding company.
According to s.1159 of the Act, a company is a "subsidiary" of another company, its "holding company", if that other company: holds a majority of the voting rights in it, or; is a member of it and has the right to appoint or remove a majority of its board of directors, or
American Business Corporations Until 1860, with Special Reference to Massachusetts (1954) DuBois, A. B. The English Business Company after the Bubble Act (1938) Formoy, RR, The Historical Foundations of Company Law (Sweet and Maxwell 1923) 21; Freedman, Charles. Joint-stock Enterprise in France: From Privileged Company to Modern Corporation (1979)
A bank holding company is a company that controls one or more banks, but does not necessarily engage in banking itself. [1] The compound bancorp ( banc / bank + corp[oration] ) or bancorporation is often used to refer to such companies as well, particularly in the United States.
Under the United States Bank Holding Company Act, financial and bank holding companies are regulated by the US Federal Reserve. [1] Companies whose elections to be treated as financial holding companies are effective include:
For example, a company owns $1000 of stock in another company that was originally purchased for $200. If the capital gains tax rate is 25% (as in Germany), the $800 profit ($1000 - $200) would result in a tax liability of $200 ($800 × 0.25). After paying the tax, the company would retain a net gain of $600 ($800 profit - $200 tax).