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holding company

/ˌhoʊldɪŋ ˈkʌmp(ə)ni/
/ˈhʌʊldɪŋ ˈkʌmpəni/
IPA guide

Other forms: holding companies

A holding company is a corporation that doesn't produce or sell anything, but makes its money from owning shares of other businesses.

Holding companies, which are sometimes called "parent companies," control the assets of other companies, known as subsidiaries. Though they hold financial control of these businesses (and make a lot of money from them), they generally don't make any day-to-day decisions in running them. Most well-known companies, from Dairy Queen to Apple, are at least partly owned by holding companies.

Definitions of holding company
  1. noun
    a company with controlling shares in other companies
    see moresee less
    types:
    bank holding company
    a holding company owning or controlling one or more banks
    multibank holding company
    a bank holding company owning several banks
    type of:
    company
    an institution created to conduct business
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