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Cross-Share Holdings

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Cross-share holdings
Often used in risk arbitrage. Corporations' or governments' equity share ownership in another corporation's shares.

Cross-Share Holdings
The value or number of shares in a publicly-traded company owned by another corporation or a government. If a company's cross-share holdings form a majority of the shares outstanding, it becomes the parent company and the company that is owned becomes a subsidiary.


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Even after adjusting for certain accounting differences (primarily with respect to depreciation allowances) and the prevalence of cross-share holdings among Japanese corporations, Japanese PE ratios were still twice the ratios of other major equity markets.
 
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