Recent Examples of holding company from the Web
The lead plaintiff, City of Monroe Employees' Retirement System, has held company stock since January 2014.
The Trump Organization is the holding company for President Donald Trump’s financial interests.
Rose, 58, meets Hathaway’s criteria that his successor should be young enough to run the diversified holding company for many years to come.
Corporate filings show that BRS was owned for years by two layers of holding companies that recorded their addresses as Sinarmas offices and whose top personnel and shareholders included Sinarmas executives.
Assuming that the laws currently on the books aren’t being used or can’t be used to hold companies accountable, what potential laws could?
Emílio Odebrecht, Marcelo’s father and the company’s chairman, has reinforced this message, last week announcing his own imminent resignation and vowing to prevent any relative from returning as chief executive of the holding company.
Compared with regulation aimed at holding companies responsible for spreading false information, the advertising bill ought to be fairly painless for tech companies to accept.
Swift's team has been regularly filing trademark applications for lyrics and other slogans under her holding company, TAS Rights Management LLC, striking down infringers in the process.
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First Known Use of holding company
Financial Definition of HOLDING COMPANY
What It Is
A holding company owns controlling interest in another company or owns enough stock to control the company's management and operations. Different legal jurisdictions have different rules about what technically constitutes a holding company.
How It Works
Let's say Company ABC is raising capital and agrees to sell 55% of its shares to Company XYZ in return for $1 billion in cash and debt. Company XYZ and Company ABC remain separate entities and have separate management teams, but because Company XYZ owns 55% of Company ABC's shares, it can vote however it likes and essentially override the wishes of the rest of the shareholders. Accordingly, it has tremendous control over who is elected to the board and who the board employs to run the company, as well as whether and how the company raises more capital or changes operational direction.
Why It Matters
Holding companies often consist of a parent and several subsidiaries. In some cases, holding companies are attempting to monopolize a particular market. They do this via horizontal integration, whereby the holding company purchases a number of competitors, or via vertical integration, whereby the holding company purchases businesses in each stage of a product's lifecycle (that is, it buys suppliers, distributors, wholesalers and retailers of the product).
In most cases, each subsidiary of a holding company operates independently of the holding company's other businesses (although the managers of the subsidiaries work for the managers at the holding company).
One advantage of holding companies is that they are typically very diversified businesses (although some stick to one or two industries). This diversification and the efficiencies brought about by shared or reduced costs often make holding companies less risky businesses than those operating in a single market or niche.
However, holding companies face the real challenge of becoming so big that they are difficult to manage efficiently. They also often fail to realize the anticipated cost savings with each acquisition. This can lead to a lack of focus, which exacerbates the managerial problem and reduces shareholder returns. This in turn is why holding companies often "spin off" subsidiaries into stand-alone entities.
HOLDING COMPANY Defined for English Language Learners
Definition of holding company for English Language Learners
business : a company whose main business is owning more than half of another company's stock
Learn More about holding company
Britannica.com: Encyclopedia article about holding company
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