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*a holding company is a company that owns other companies’ ‘outstanding stock’*
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(the term usually refers to a ‘company’ that does not produce ‘goods’ or ‘services’ itself)
(rather, its ‘purpose’ is to own ‘shares’ of other ‘companies’ to form a ‘corporate group’)
(‘holding companies’ allow the ‘reduction’ of ‘risk’ for the ‘owners’ and can allow the ‘ownership’ and ‘control’ of a number of different ‘companies’)
(in the ‘united states’, 80% or more of ‘stock’ (in ‘voting’ and ‘value’) must be ‘owned’ before ‘tax consolidation benefits’ such as ‘tax-free dividends’ can be ‘claimed’)
(that is, if ‘company A’ owns ‘80%’ or more of the ‘stock’ of ‘company B’, ‘company A’ will not pay ‘taxes’ on ‘dividends’ paid by ‘company B’ to its ‘stockholders’, as the ‘payment’ of ‘dividends” from ‘B’ to ‘A’ is essentially ‘company A’ transferring ‘cash’ from one ‘company’ to the other)
(any other shareholders of ‘company B’ will pay the usual ‘taxes’ on ‘dividends’, as they are ‘legitimate’ and ‘ordinary’ dividends to these ‘shareholders’)
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(sometimes a ‘company’ intended to be a ‘pure holding company’ identifies itself as such by adding “holding” or “holdings” to its name)
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*👨🔬🕵️♀️🙇♀️*SKETCHES*🙇♂️👩🔬🕵️♂️*
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💕💝💖💓🖤💙🖤💙🖤💙🖤❤️💚💛🧡❣️💞💔💘❣️🧡💛💚❤️🖤💜🖤💙🖤💙🖤💗💖💝💘
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*🌈✨ *TABLE OF CONTENTS* ✨🌷*
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🔥🔥🔥🔥🔥🔥🔥*we won the war* 🔥🔥🔥🔥🔥🔥🔥