Wednesday, November 29, 2006

Holding ,Partnership,Monopoly,BlueChip Companies

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Holding ,Partnership,Monopoly,Blue Chip Companies :

Holding company : A holding company or parent company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.
Strictly speaking, the term "holding company" might be used to describe any company that owns a majority of shares in another company. However this may only apply if that corporation's only reason for existence is to hold stock in other companies. Usually, though, the term signifies a company which does not produce goods or services itself, but, rather, whose only purpose is owning shares of other companies (or owning other companies outright). Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies

Monopoly
: A monopoly (from the Latin word monopolium - Greek language monos, one + polein, to sell) is defined as a persistent market situation where there is only one provider of a product or service.
Monopolies are characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods.
Monopoly should be distinguished from monopsony, in which there is only one buyer of the product or service; it should also, strictly, be distinguished from the (similar) phenomenon of a cartel. In a monopoly a single firm is the sole provider of a product or service; in a cartel a centralized institution is set up to partially coordinate the actions of several independent providers

Partnership : A partnership is a type of business entity in which partners share with each other the profits or losses of the business undertaking in which all have invested.
In most countries, a partnership is a nominate contract between individuals who, in a spirit of
cooperation, agree to carry on an enterprise, contribute to it, by combining property, knowledge or activities and to share its profit. Partners may have a partnership agreement, or declaration of partnership and in some jurisdictions such agreements may be registered and available for public inspection. In many countries, a partnership is also considered to be a legal entity, although different legal systems reach different conclusions on this point.
Partnerships are often favored over corporations for taxation purposes, as a partnership structure may eliminate the dividend tax levied upon profits realized by the owners of a corporation.
The most basic form of partnership is a general partnership, in which all partners manage the business and are personally liable for its debts.
Two other forms which have developed in most countries are the
limited partnership (LP), in which certain "limited partners" relinquish their ability to manage the business in exchange for limited liability for the partnership's debts, and
the limited liability partnership (LLP), in which all partners have some degree of limited liability.

Blue chip companies : A blue chip stock is the stock of a well-established company having stable
earnings and no extensive liabilities. Most blue chip stocks pay regular dividends, even when business is faring worse than usual. They are valued by investors seeking relative safety and stability, though prices per share are usually high. Typically, such stocks are perceived to offer reliable returns, low yield, and low risk. Many blue chips are components of popular indices, such as the Dow Jones Industrial Average and the S&P 500.
Alternately, blue chip stocks are sometimes defined as companies whose stocks have large market capitalization values (for example, over $1 billion.)

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