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Questions on Holding Companies, specifically AMR Eagle Holdings Corporation

Questions on Holding Companies, specifically AMR Eagle Holdings Corporation

I was reading on wikipedia about holding companies. I was surprised on a few things about holding companies.

  1. AMR Eagle Holdings Corporation owns all of American Airlines. How is this ownership different than if American Airlines were NOT owned by a holding company?

  1. What benefits does it have if ABC Corporation were a part of a holding company VS if it were not part of a holding company?

  2. What are the differences in a mutual fund and a holding company?

So why couldn't the founders of Google be a holding company that owns only one stock (that of Google itself)?

AMR Corporation (NYSE: AMR) is a commercial aviation business and airline holding company based in Fort Worth, Texas, United States.[1] Formed in 1982, as part of American Airlines's reorganization, its name derives from American Airlines's ticker symbol on the New York Stock Exchange. In addition to American Airlines, AMR owns TWA Airlines LLC, (formerly Trans World Airlines) and regional airlines American Eagle Airlines, successor to Simmons Airlines, and Executive Airlines by way of AMR Eagle Holdings Corporation. Regional Airlines flown in conjunction with American Airlines marketing brand, known as AmericanConnection, are independent of AMR Corporation's divisions and subsidiaries, but do operate in conjunction with them in order to provide seamless connections to AMRs two principal airline holdings. AMR's and AA's Chairperson, President, and CEO is Gerard Arpey.[2]

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2.7182818284590...
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2.7182818284590...

Thats just with the publicly listed corps. Those that arent listed are generally owned by far fewer.

Because it makes no sense to do it that way.

You dont have to do the IPO if you dont want it publicly listed etc.

In fact almost all started that way.

Its the IPO that makes those like Gates and Brin sinking rich tho, which might just be why they go that route.

Reply to
Rod Speed
2.7182818284590... wrote

Its essentially a mechanism for the owership of more than one company.

The reason for having more than one company is to allow the liabilitys etc of the separate companys to be kept separate, so you can sell off one company and keep the other assets etc conveniently.

Its more what the benefit of separate companys is.

They are completely different in the sense that mutual funds never hold more than a small part of the corps they own shares in. Holding companys usually own a much bigger percentage of the corps they own and dont own anything like as bits of various corps either.

And the ownership of mutual funds is very different to the ownership of holding companys.

That does happen at times but there isnt necessarily much point in going that route with just one company.

Reply to
Rod Speed

Reply to
Diogenes

That varys with the jurisdiction.

less than 51%. The other 49% of each would

That isnt the main reason for the use of holding companys.

Reply to
Rod Speed

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