TeachMeFinance.com - explain Securities company
Securities company -- Same as holding company ; a company
which owns the securities of other companies and depends for its income upon the^ interest and dividends yielded by these
securities. It usually issues bonds as well as stock itself.
Its bonds are collateral trust bonds, being secured by bonds
or stocks of other companies owned by it. A securities company
is not necessarily a controlling company it is not necessary
that it should possess a majority of the stocks of the companies
whose securities constitute or are included in its assets.
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