holding company


holding company
a company that controls other companies through stock ownership but that usually does not engage directly in their productive operations (distinguished from parent company).
[1905-10]

* * *

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.

* * *

      a corporation that owns enough voting stock in one or more other companies to exercise control over them. A corporation that exists solely for this purpose is called a pure holding company, while one that also engages in a business of its own is called a holding-operating company. A holding company typically owns a majority of stock in a subsidiary, but if ownership of the remaining shares is widely diffused, even minority ownership may suffice to give the holding company control. A holding company provides a means of concentrating control of several companies with a minimum amount of investment. The use of a holding company is legally simpler and less expensive than other means of gaining control of another company, such as merger or consolidation. A holding company is able to reap the benefits of a subsidiary's goodwill and reputation, yet its liability is limited to the proportion of the subsidiary's stock that it owns. These and other factors make holding companies an effective form of organization on both national and international levels. The parent company in a conglomerate corporation is usually a holding company.

* * *


Universalium. 2010.

Look at other dictionaries:

  • holding company — see company Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. holding company …   Law dictionary

  • holding company — holding companies N COUNT A holding company is a company that has enough shares in one or more other companies to be able to control the other companies. [BUSINESS] ...a Montreal based holding company with interests in telecommunications, gas and …   English dictionary

  • holding company — n. (Finance) A company that controls other independently incorporated companies by ownership of most or all of their stock, but does not directly control the daily operations of those companies. [PJC] …   The Collaborative International Dictionary of English

  • holding company — holding ,company noun count a company that owns the majority of the SHARES in another company …   Usage of the words and phrases in modern English

  • Holding Company — Holding Company, auch Holder genannt, eine in den Vereinigten Staaten von Amerika ausgebildete eigenartige Form der Handelsgesellschaft, deren Zweck darin besteht, eine Interessengemeinschaft zwischen mehreren in Wettbewerb stehenden… …   Enzyklopädie des Eisenbahnwesens

  • holding company — holding .company n a company that completely or partly owns other companies, as well as doing business itself …   Dictionary of contemporary English

  • holding company — ☆ holding company n. a corporation organized to hold bonds or stocks of other corporations, which it usually controls …   English World dictionary

  • Holding company — A holding company is a company that owns part, all, or a majority of other companies outstanding stock. It usually refers to a company which does not produce goods or services itself, rather its only purpose is owning shares of other companies.… …   Wikipedia

  • holding company — A company that usually confines its activities to owning stock in, and supervising management of, other companies. A holding company usually owns a controlling interest in the companies whose stock it holds. In order for a corporation to gain the …   Black's law dictionary

  • holding company — A company that usually confines its activities to owning stock in, and supervising management of, other companies. A holding company usually owns a controlling interest in the companies whose stock it holds. In order for a corporation to gain the …   Black's law dictionary


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.