Holding company ar those corporations that hold the shares (shares here mean the dominant stake within the company >50% normally and traditional circumstances) of alternative corporations. they’re created specifically for the aim of holding investments, making layers of holding which can be possible for tax saving functions.
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generally the investments area unit control with a read to ne’er sell them, thus possibilities of its realisation area unit terribly less. Yes, extremely. many times the investment control by these firms area unit valued even over the market cap of the holding firms.
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holding firms area unit thought of as dead investments since the investments area unit subject to realisation if any over terribly terribly long amount. thus likelihood is the company even with associate large worth will fail to deliver any purposeful come over terribly long periods.
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