Holding Company: Company whose primary business is holding controlling shares of subsidiary companies
A Holding company is a company, which has the purpose of owning stock (or shares) of other companies.
In most cases, such companies do not sell products or services, they manage the companies they (partly) own. Probably one of the best known holding companies was the "Standard Oil of New Jersey", founded in 1889, which is called ExxonMobil today. In general, there are three forms:
- the holding company owns stock/shares of other companies; activities are limited to managing the companies.
- in addition to the above, the companies have a common management, which take the strategic decisions.
- in addition to item 1, the management influences the distribution of capital to its daughter companies. The holding is mainly used for managing financial resources.
References
This article uses material from the Wikipedia Simple English article Holding company, which is released under the Creative Commons Attribution-ShareAlike 3.0 license ("CC BY-SA 3.0"); additional terms may apply (view authors). Content is available under CC BY-SA 4.0 unless otherwise noted. Images, videos and audio are available under their respective licenses.
®Wikipedia is a registered trademark of the Wiki Foundation, Inc. Wiki Simple English (DUHOCTRUNGQUOC.VN) is an independent company and has no affiliation with Wiki Foundation.