What Is an SPV (Special Purpose Vehicle) Anyway?
In this video I try to explain in very simple way, what exactly is SPV. Generally, If the SPV fails, the parent company is unaffected. If the mother parent goes bankrupt, the SPV is protected.
A SPV, often known as a special purpose entity (SPE), is a subsidiary established by a parent company to mitigate financial risk. Its legal status as a separate company guarantees that it will be able to meet its obligations even if the parent firm fails. Because of this, a special purpose vehicle is frequently referred to as a bankruptcy-remote entity.
What is Special Purpose Vehicle (SPV) Company?
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