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what is the difference between holding company and parent
company
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Answer / rajeev d
A parent company is "the original flagship" which has given
rise to other businesses. If they retain more than 51%
shares then it is a parent company AND a holding company.
A holding company is one which holds 51% share. But it may
not be the parent company i.e. it may have got the shares
through acquisition.
| Is This Answer Correct ? | 4 Yes | 1 No |
Answer / harsha
if the company is interested to go into new venture and it
starts a new company giving part of its shares to new
company.this is known as spin-off.example A company running
a shoe business which share capital is rs10000.it decides
to open a shoe polish business know as B company and gives
rs 4000 shares out of rs10000 to B company and maintains
6000 for its self.here A company is parent company and B
company is child company.
holding company is company which holds atleast 51% of
shares of other company.
| Is This Answer Correct ? | 6 Yes | 4 No |
Answer / giridhar babu
Holding Company - If a company holds substantial interest
in other company, then former company called as holding
company; Usually the interest is @51%.
Parent Company - If an existing company forms a new company
in which existing company holds maximum equity, the it can
be called as parent company.
In both the cases, holding interest is material to
understand Holding and Parent situation.
Once this holding and subsidiary concept emerged in India
after booming up Software Industry, the gap between Holding
and Parent has been minimized.
| Is This Answer Correct ? | 2 Yes | 5 No |
Answer / genpact
A company who is buying more than 51 % share from another
company is called holding company.
A company who is selling 51% shares to another company is
Called parent company.
| Is This Answer Correct ? | 22 Yes | 31 No |
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