What are holding companies?
Holding company are those companies which hold the shares (shares here mean the controlling stake in the company i.e >50% in general and normal circumstances)
of other companies. They are created specifically for the purpose of
holding investments, creating layers of holding which may be feasible
for tax saving purposes.
Will the Investments held within be sold?Generally the investments are held with a view to never sell them, so chances of its realisation are very less.
Are these holding companies valuable?Yes, extremely. Many a times the investment held by these companies are valued even more than the market cap of the holding companies.
Are these stocks feasible for long term investment?Generally holding companies are considered as dead investments since the investments are subject to realisation if any over very very long period. So chances are the holding company even with an immense value can fail to deliver any meaningful return over very long periods.
Will the Investments held within be sold?Generally the investments are held with a view to never sell them, so chances of its realisation are very less.
Are these holding companies valuable?Yes, extremely. Many a times the investment held by these companies are valued even more than the market cap of the holding companies.
Are these stocks feasible for long term investment?Generally holding companies are considered as dead investments since the investments are subject to realisation if any over very very long period. So chances are the holding company even with an immense value can fail to deliver any meaningful return over very long periods.
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