Cross-share holdings

Cross-share holdings

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

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 ?
The new Citizen connection was announced about two months after Citizen reported a cross-share holdings deal with builder, Waida Mfg.
Large Japanese companies have developed their own form of outsourcing, binding in long-term vendors with cross-share holdings and decades of trust.
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.