Holding Company
A holding company is a parent entity that owns a stake in one or more companies, focusing on holding financial securities—usually equity—rather than producing goods or services itself. Its subsidiaries handle operational activities, while the holding company manages investments and oversight. For instance, Bajaj Holdings & Investment Ltd. acts as a holding company, The Co. holds stake in both Bajaj Auto Ltd. and Bajaj Finserv Ltd.
Related Terms
Returns Direct
Direct mutual fund plans generally offer higher returns than regular plans, even though both invest...
Equity Share Capital
Equity share capital refers to the total amount of money raised by a company through...
Contingent Liabilities
A contingent liability is a potential obligation that may arise depending on the outcome of...
Long Strangle
A long strangle is an options strategy where a trader buys a call option and...
Iron Condor
An Iron Condor options strategy allows traders to profit in a sideways market that exhibits...
Free Float Market Capitalization
Free-float market capitalization (FFM) is a valuation method that calculates a company's market value using...
