Why would a company own stock in another company? Shouldn’t they IDK, build a factory or something or pay some dividends with any extra money instead. Unless they are an investment bank I suppose?
Many reasons. Vertical or horizontal integration, Tax benefits, limited liability for owners.
I’d think if the stock holdings are too great and in place for too long it might violate the charter and mission.
I’m talking about public companies. People didn’t invest in a company just to have them go invest somewhere else. (Unless the charter is for an investment bank… Are there public companies that are also investment banks?)
I probably just don’t understand business.
**I believe that you are very good at math, business it in essence purpose supported by math. I think you would do very well with your own company.
I’d think if the stock holdings are too great and in place for too long it might violate the charter and mission.
Not really because both of those are set by the company in question unless there are specific government regulations for that industry.
I’m talking about public companies. People didn’t invest in a company just to have them go invest somewhere else.
Sometimes they do. An example in Australia is Woolworths, our largest supermarket, they also own Kmart (a clothing store) BigW (a general store), BWS (an alcohol store), plus have a lot of land holdings for those stores.
