This question already has an answer here:

Given two companies, total assets of $100 million each.

  • Company 'A' owns \$50M of company 'B'.

  • Company 'B' owns \$50M of company 'A'.

If you look at the value of both companies do you get \$200M or \$100M in value?

Is there any effect of this in the stock market where there is lots of circular ownership?


marked as duplicate by Giskard, Herr K., Maarten Punt, Theoretical Economist, Kitsune Cavalry Sep 15 '18 at 23:08

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  • $\begingroup$ Does the \$100 million of assets include the stock in the other company? $\endgroup$ – Brythan Sep 10 '18 at 6:46