Holding company: Difference between revisions
A '''holding company''' is a [[company (law)|company]] that owns other companies' [[Shares outstanding|outstanding stock]]. A holding company usually does not produce goods or services itself (with no eponymous consumer-facing brand at most times); rather, its purpose is to own shares of other companies to form a [[corporate group]]. Holding companies allow the reduction of [[risk]] for the owners and can allow the ownership and control of a number of different companies.
Holding companies are also created to hold assets such as IP and trade secrets that are protected from the operation company. This creates a smaller risk when it comes to litigation.