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