A Legal Body Created To Hold Stock In Many Companies (Answer)

A legal body created to hold stock in many companies…

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A legal body created to hold stock in many companies

Question:

What is the legal body created to hold stock in a company?

Answer:

Trust

A legal body created to hold stock in many companies, sometimes even in the same industry, is called a trust.

Trust

A trust is a legal entity that can be established to hold title to property or assets for the benefit of a third-party beneficiary.

Trusts are established by the settlor who is an individual or entity transferring assets or property to the trustees.

The trustees will hold on to the assets for the beneficiaries of the trust and will manage the trust based on the rules established by the trust.

Holding Company

Another legal body that can be created to hold stock in many companies is a holding company.

A holding company is a business entity like a corporation or a limited liability company established to hold stocks in other companies.

The holding company will not operate a business of any kind, produce goods, or sell anything to anyone.

Rather, the holding company will “hold” stocks or securities of other companies.

Takeaways 

Let’s look at a summary of our findings.

A legal body created to hold stock in many companies:

  • Question: What legal body can be created to hold securities in other companies?
  • Answer: Trust
Guarantee company 
Holding company
Industrial growth 
Investment company 
Joint stock company
LLC vs Corporation 
Monopoly 
Subsidiary rights
Wholly owned subsidiary
Author
What are stocks
What is a corporation 
What is a holding company
What is a trust
Author

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