What's the difference between a holding company and a listed company?

Holding company refers to a company that controls a company by holding a certain number of shares. Holding companies are divided into pure holding companies and mixed holding companies according to their holding methods. Pure holding companies do not directly engage in production and operation business, but only carry out capital operation by holding shares of other companies. Hybrid holding companies not only carry out capital operation through holding, but also engage in some production and operation businesses. It is the company that controls the rights of another company, and it is he who has the final say.

A listed company refers to a joint stock limited company whose shares are listed and traded on the stock exchange with the approval of the securities administration department authorized by the State Council or the State Council. The so-called unlisted company refers to a joint stock limited company whose shares are not listed and traded on the stock exchange. A listed company is a joint stock limited company, which must meet certain conditions besides being approved to be listed and traded on the stock exchange. A listed company can also be the holding company of another company, and an unlisted company can also be the holding company of a listed company.

There is no necessary connection between holding companies and listed companies. A listed company can also be the holding company of another company, and an unlisted company can also be the holding company of a listed company. Listing has both advantages and disadvantages.

Benefits:

1, get the funds.

When the company boss sells a part of the company to the public, it is equivalent to asking the public to take risks with him. For example, if he holds 100%, he will lose 100, and if he holds 50%, he will only lose 50%.

3. Increase the liquidity of shareholders' assets.

4. There is no need to take a bank loan to escape the control of the bank.

5. Improve the transparency of the company and increase public confidence in the company.

6. Improve the company's popularity.

7. If some shares are transferred to the manager, the agency problem between the manager and the shareholders of the company can be improved.

Disadvantages:

1, listing costs money.

2. While enhancing transparency, many secrets are exposed.

3. Inform shareholders of the company's information at regular intervals after listing.

4. It may be maliciously controlled.

When listing, if the stock price is set too low, it will be a loss for the company. In fact, this is a common practice, and almost all companies will set their share prices lower when they go public.