A holding company is a company or firm that owns other companies' outstanding stock. The term usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies. In the United States, 80% or more of stock, in voting and value, must be owned before tax consolidation benefits such as tax-free dividends can be claimed.
Sometimes a company intended to be a pure holding company identifies itself as such by adding "Holdings" or "(Holdings)" to its name, as in Sears Holdings Corporation.
Read more about Holding Company: United States, Parent Company
Famous quotes containing the words holding and/or company:
“Our star was brighter perhaps when it had water in it.
Now there is no question even of that, but only
Of holding on to the hard earth so as not to get thrown off,
With an occasional dream, a vision ...”
—John Ashbery (b. 1927)
“There is no such thing as “the Queen’s English.” The property has gone into the hands of a joint stock company and we own the bulk of the shares!”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)