cross holding

(redirected from Cross Share Holdings)

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

cross holding

The holding of securities in one another by two or more corporations. For example, firm A owns equity in firm B at the same time that firm B holds equity in firm A.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.