Types of Holding Companies
Holding companies come in various types, and their classification often depends on the nature of a company’s business operations. They are,
1. Pure Holding Companies: A pure holding company does not engage in any other business activities. Its sole purpose is to possess other companies. Unlike some, it doesn’t explore multiple ways to possess other companies; it’s all about ownership.
2. Mixed Holding Companies: Mixed holding companies, also known as holding-operating companies, not only control other businesses but also actively engage in additional operations. When these companies participate in other businesses alongside their subsidiaries, they take on the label of conglomerates.
3. Immediate Holding Companies: Immediate holding companies are held by another holding company. However, despite being under the control of a higher entity, this type of holding company retains its voting stock.
4. Intermediate Holding Companies: They play dual roles as both holding companies and subsidiaries. One interesting aspect is that these companies enjoy an added layer of privacy and are exempt from the obligation to publish their financial records.
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