Long-term investment in another company, e.g. through the acquisition of shares (an equity interest). Unlike investing in fixed-interest securities, primarily to benefit from the expected return and/or possible capital gains, permanent holdings aim to exert an influence on the management of the company in which the equity interest is held or to achieve similar objectives. Depending on the circumstances, permanent holdings may have the object of securing a certain share of a company's equity (minority or majority holding). Article 25 of the Swiss Banking Law Ordinance requires that permanent holdings of the Swiss banks be stated separately from other assets carried in the balance sheet. Article 25c stipulates that supplementary notes must be prepared giving details of permanent holdings.
- Part of Speech: noun
- Industry/Domain: Banking
- Category: Investment banking
- Company: UBS
Creator
- Stefan K
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