Corporate pyramid structure

The pyramid structure in corporate finance refers to a speculative capital structure created with the help of one or a series of holding companies.

Usually, the main purpose of this arrangement is to enable the company organizer to control a company with little or no capital investment, and also to obtain most of the surplus and continuous growth. operating value.

This tool is often used by dominant shareholders to "liquidate" speculative profits from their holdings while maintaining a controlling stake. With such capital, these successful capitalists often work to extend their control to other operating enterprises.