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Cross Holding is a method of _____:
  • a)
      Privatisation
  • b)
       Globalisation
  • c)
    Disinvestment
  • d)
    Liberalisation
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Cross Holding is a method of _____:a)Privatisationb)Globalisationc)Dis...
Cross Holding is a method of Disinvestment.

Explanation:
Cross Holding refers to the situation where two or more companies hold shares in each other's capital. In other words, it is a situation where two or more companies have invested in each other's equity capital. This is also known as reciprocal shareholding or mutual holding.

Cross Holding is a method of Disinvestment because it involves the sale or transfer of shares held by one company in another company. When a company sells its shares to another company, it is effectively disinvesting from the company. This can be done for various reasons such as raising funds, reducing debt, restructuring the company, or focusing on core business activities.

Cross Holding can also lead to conflicts of interest and create a situation where the interests of one company are aligned with the interests of the other company. This can be detrimental to the overall interests of the shareholders of both companies.

In some cases, Cross Holding can also lead to a situation where one company gains control over the other company, either directly or indirectly. This can happen when one company acquires a significant stake in the other company or when two companies enter into a joint venture.

Therefore, Cross Holding is a method of Disinvestment and it can have both positive and negative effects on the companies involved.
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Cross Holding is a method of _____:a)Privatisationb)Globalisationc)Dis...
Correct answer is option 'C'
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