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what is the difference between holding company and parent
company
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Answer Posted / 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.
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