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Cross ownership is a method of reinforcing business relationships by owning stock in the companies with which a given company does business. Heavy cross ownership is referred to as circular ownership. In the US, "cross ownership" also refers to a type of investment in different mass-media properties in one market. ==Cross ownership of stock== Some countries where cross ownership of shares is a major part of the business culture are: * Japan * Germany Positives of cross ownership: * Closely ties each business to the economic destiny of its business partners * Promotes a slow rate of economic change Cross ownership of shares is criticized for: * Stagnating the economy * Wasting capital that could be used to improve productivity * Expanding economic downturns by preventing reallocation of capital A major factor in perpetuating cross ownership of shares is a high capital gains tax rate. A company has less incentive to sell cross owned shares if taxes are high because of the immediate reduction in the value of the assets. For example, a company owns $1000 of stock in another company that was originally purchased for $200. If the capital gains tax rate is 50% (like Germany) and the company sells the stock, the company has $600 which is 40 percent less than before it sold the stock. Long term cross ownership of shares combined with a high capital tax rate greatly increases periods of asset deflation both in time and in severity. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「cross ownership」の詳細全文を読む スポンサード リンク
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