noun a company whose primary business is holding a controlling interest in other companies
A holding company is a type of firm that owns other companies' outstanding stock. This allows the holding company to control the management and policies of those companies.
Holding companies are commonly used in business structures to separate the ownership of assets from the operation of the business.
Holding companies can have specific legal implications in terms of liability and taxation.
Investors may use holding companies to invest in multiple companies without having to directly manage each individual investment.
Holding companies are often involved in mergers and acquisitions as a way to consolidate ownership of multiple companies.
In the business world, a holding company may be mentioned in articles discussing mergers and acquisitions, corporate structures, and financial investments.
Psychologists may encounter holding companies when working with clients who are involved in complex financial arrangements or inheritances that involve holdings in various companies.
Accountants may work with holding companies to manage their financial records, tax obligations, and financial reporting requirements.
Lawyers may be involved in setting up holding companies, drafting agreements related to their operations, and providing legal advice on matters concerning corporate governance and compliance.
Investment bankers may work with holding companies on fundraising activities, strategic investments, and corporate restructuring initiatives.