holding company


holding company


business : a company whose main business is owning more than half of another company's stock

Full Definition of HOLDING COMPANY

:  a company whose primary business is holding a controlling interest in the securities of other companies — compare investment company

First Known Use of HOLDING COMPANY


holding company

noun    (Concise Encyclopedia)

Corporation that owns enough voting stock in one or more other companies to exercise control over them. A holding company provides a means of concentrating control of several companies with a minimum of investment; other means of gaining control, such as mergers or consolidations, are more complicated legally and more expensive. A holding company can reap the benefits of a subsidiary's goodwill and reputation while limiting its liability to the proportion of the subsidiary's stock that it owns. The parent company in a conglomerate corporation is usually a holding company.


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