Trust (business)

A trust (full name in English: trust company ) is a contractually agreed merger of several companies. Target may be that a market or a production monopoly is formed so as to eliminate competition and thereby fix prices. Most of the legal and economic independence is given up by the companies that is then up to the managing trustees of the holding company, but not participate in the profits of the holding company.

The difference between cartel and trust is that a trust is a summary of several companies into one, while a cartel is a close partnership between two or more. Trusts have similar objectives as corporations, but these can pursue efficient, since the subordinate enterprises have become completely dependent ( " set are ").

Conceptual history

The concept of trust as a corporate form came at the end of the 19th century and set in the United States. The stages of this development were:

Formation

A trust can arise in two ways: