Holding company

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If a holding company does not have any business operations then how is it able to service its debt obligations?

In: Economics

2 Answers

Anonymous 0 Comments

The holding company typically gets money through distributions (e.g. dividends) from the businesses it owns.

Anonymous 0 Comments

Holding companies are essentially just investors in the company that typically either have majority shares or full ownership of the businesses it holds. They’re able to collect dividends the same way any other investor would