Holding's Company / Private Trading?

M

marshen0110

So I am writing a paper for a college class, and it is about if you were going to start a business, what would it be and how would you do it? And personally i am just interested in this type of stuff. It will be a couple of questions, so please do not hammer me to bad for not knowing...
Say i want to start a holding company XYZ Inc., and this company will hold my business ventures, in different sectors like, a restaurant company ( Restaurant Inc.) that holds many restaurants in it. A website development company and maybe a real estate company (real Inc.) that holds different apartment complexes. But I also want this Holding company to produce profits from Actively trading its revenue it earns from its subsidiaries. And even actively manage and trade its subsidiaries extra cash. It will be making long term investments and short term investments ( Like day trading ). And also this company will be eventually wanting to use its own trading platform to trade through and manage its positions instead of a brokerage trading platform. So would the holding company need to form another company like (trade capital LLC. ) to perform these functions, or could the holding company just set up its own trade room and perform the functions itself? and would either of the holding company or the ( trade capital llc ) need to get a B/D License to trade off its own trading platform and to manage it Subs investments? And if the holding company trades on its own , how does that work as far as liquidity, does the trading platform connect to the exchanges and a bank account at the same time?

Thank you so much..
 
Go find yourself a good lawyer and a good accountant.

A forum full of anonymous people you don't know, whose qualifications and experience you don't know, is not the place to ask the sort of complex question you are asking.

For example, you have not even made a single mention of jurisdiction. Just one of many critical factors that affect the nature and correctness of any advice given.
 
My homework was not this broad, it was basically just what type of business you would start and why.. I personally just wanted to know the rest because i am curious. And thought someone here would be able to give me some insight
 
BK does exactly that.
Basically though your holding company just opens an account with a brokerage and trades. The reality is much more complex than that if you're talking about billions in revenue being invested etc
 
coolraz said:
BK does exactly that.
Basically though your holding company just opens an account with a brokerage and trades. The reality is much more complex than that if you're talking about billions in revenue being invested etc
More...
But what if you wanted to use your own trading platform. Would you want to hook into a broker api or direct access with the markets.
 
marshen0110 said:
But what if you wanted to use your own trading platform. Would you want to hook into a broker api or direct access with the markets.
More...

if you build your own platform you could get an account with a clearing house that is a member of the exchange you want to trade on and submit trades to them. You shouldnt have to get a B/D license if you don't have any customers. Or you can use a broker API like IB has. Just depends on what you are trading and what size. Even BK uses a broker.
 
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