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Q: Can a susidiary of a company acquire shares from its holding company?
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Can a subsidiary own shares in its holding company?

If a subsidiary own shares in holding company that would be considered as treasury.


Right share issue vs bonus share issue?

Right issue-An offer by company to the existing shareholders to acquire some more shares proportionally to the original shares they are holding, usually at relative cheap price while Bonus share issue is giving an offer to the existing shareholders to acquire more shares in proportional to their existing shareholdings without paying. Shukuru stanslaus


How are holding companies beneficial?

A holding company owns outstanding shares of other companies. This allows capital to be invested on a large scale, and the holding company can benefit by earning tax-free dividends on their shares if they own more than 80 percent of the company's stock.


What is the best description of a holding company?

owning the shares of stocks from other companies


What is the difference between a subsidiary company n a holding company?

A subsidiary is an 'off-shoot' or 'child' of an existing company, either partly or fully owned by the 'mother' company doing mostly similar or complementary businesses, e.g., a travel services subsidiary of a big bank (the bank's executives travel so much it makes sense to have a self-owned company serve its needs). A holding company holds the shares of stock, or shares of ownership of other companies, usually but not always controlling shares (enough shares to exert control of the companies). If you own shares of stocks in a holding company, you are essentially owning a part of many different companies and are trusting the holding company's management to handle the proportions for you. A subsidiary is the down result of a business idea. A holding company is the up result of a business idea.


What is the difference between a limited and a PVT limited company?

In PVT ltd Company shares are holding are limited to the family members only while in LTd company shares are held by the general Public also


What description of a holding company?

a holding company is a company who holds more than 50 percent of the share capital of another company and has the right to appoint a director and have majority in voting rights or A+ answer owning the shares from other companies


Difference between right shares and bonus shares?

RIGHT SHARESto increases company's capital they issue right shares. exiting shareholder have prior right to buy this shares so it's called 'right shares'. issue of right shares increases company's capital.BONUS SHARESmany company not distribute dividends each year and this profit is added in reserves after some year company's capital is less than company's size so company capitalized it's reserves by issuing bonus shares. bonus shares decres shares price. this shares is given to the exisiting shareholer in propoastion of holding the shares.


What best description of a holding company?

a holding company is a company who holds more than 50 percent of the share capital of another company and has the right to appoint a director and have majority in voting rights or A+ answer owning the shares from other companies


Can a owner of a company who lost ownership because of restructuring of share structure and who is employed under the new company holding shares be considered as a member of the company?

Usually, if you own shares, even if only one, you are an owner. Member is not usually the word used. But it may be different in some countries. Distinguish between a majority holding (which gives enough votes to control the company) and everyone else.


What are stocks?

In simple language, stocks are shares in the ownership of a companies. Stocks represents a claim on the company's assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing.


What is bonus in stock market?

A bonus share is nothing but free shares of the company in which you already hold shares that are given to you by the company for being a share holder of the company. Lets say you hold 100 shares of XYZ company and the company declares a 1:1 bonus (that is you get 1 share for every 1 share of that company you hold) So once the bonus is declared, you would be holding 200 shares instead of 100. you had bought only 100 the extra hundred is the bonus.