Cross Holding is a method of _______a)Privitizationb)Globalizationc)Disinvestmentd)LiberalizationCorrect answer is option 'C'. Can you explain this answer?

Question

Answer

Cross holding is a situation in which a publicly traded corporation owns stock in another publicly traded company. ... Cross holding can lead to double counting, whereby the equity of each company is counted twice when determining value.

Answer

In the case of cross holdings, the government would simply sell part of its shares of one PSU to one or more PSUs...

Answer

Cross Holding is a method of Disinvestment.

Explanation:
Cross Holding refers to a situation where two or more companies hold shares in each other, creating a mutual ownership relationship. In other words, it is a scenario where a company holds shares in another company, and that company also holds shares in the first company.

This method of investment is often used as a means of disinvestment. Disinvestment refers to the process of selling off assets or reducing investments in a particular company or industry. It is usually done by the government or private investors to divest their interests in a company or sector.

Cross Holding can be seen as a way to gradually reduce or completely divest from a particular company or industry. By holding shares in another company, the investor can gradually sell off their holdings in the first company while still maintaining some level of ownership and control through the shares held in the second company.

This method of disinvestment can be beneficial for various reasons:

1. Diversification: By holding shares in multiple companies, investors can diversify their investment portfolio and reduce risk. They are not fully dependent on the performance of a single company.

2. Liquidity: Cross Holding provides a means to gradually liquidate investments. Investors can sell shares in one company while still maintaining some level of ownership in another company.

3. Control: By holding shares in another company, investors can exert some level of control or influence over the company's operations and decision-making process.

4. Strategic Partnerships: Cross Holding can also be used as a strategic tool to establish partnerships and collaborations between companies. It enables them to share resources, expertise, and market access.

Overall, Cross Holding is a method of disinvestment that allows investors to gradually reduce their holdings in a particular company while maintaining some level of ownership and control through shares held in another company.

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Franchising is one of the method of ________.

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