Cross-holdings

Cross-holdings

The holding by one corporation of shares in another firm. One needs to allow for cross-holdings when aggregating capitalizations of firms. Ignoring cross-holdings leads to double-counting.

Cross Holding

The situation in which one publicly-traded company owns stock in another publicly-traded company. This situation can lead to double-counting of securities, especially when the two corporations are listed on the same index. Thus, one needs to account for cross holdings when aggregating the capitalizations of firms. If two firms cross hold each other, it is difficult to displace the management in one without the consent of the other corporation.
References in periodicals archive ?
Mitsubishi Motors is part of the Mitsubishi Group, one of Japan's most rigid and powerful 'keiretsu' industrial groups that are connected through cross-holdings of shares, mutual appointment of directors, financing and intra-group transactions.
partly because market sentiment was dampened by the continued unwinding of corporate cross-holdings," said Toshihiko Matsuno, a senior equity official at Yamatane Securities Co.
With detailed information on each carrier's major investors and its affiliates, New International Carriers pieces together the complicated web of carrier cross-holdings and alliances driving the international telecom explosion.
95 just after the afternoon session started, but "unwinding of corporate cross-holdings ahead of March-end book closings prevented the key market gauge from rising further," said Tsuyoshi Segawa, head of equity dealing at New Japan Securities Co.
As previously announced, Rayrock is committed to eliminating its multiple voting common shares and the rationalization of the cross-holdings between Rayrock and BlackRock.
In many cases, the issuer floats EBs backed by shares in a company with which it has cross-holdings.
said he expects the upper side for Tokyo stock prices to be capped for the time being by selling stemming from the unwinding of cross-holdings of shares ahead of the March book-closing.
With concern about Japan's financial system increasing sales of banks stocks, cross-holdings involving them accounted for 48.
We would like to simplify and remove the entire cross-holdings and the web around and make it simple, clean and straightforward .
Touching on another key issue, Jaitley said there is a need for a debate on the issue of cross-holdings in the media.
The two companies are ending a pact signed in 2005 that saw the financial institutions own cross-holdings of each other's' shares.
He said these guidelines cover detailed procedures for registration of rating agencies, eligibility norms, terms and conditions of registration, cross-holdings, methodology for audience measurement, a complaint redressal mechanism, sale and use of ratings, audit, disclosure, reporting requirements and action on non-compliance of guidelines.