Holding company: Difference between revisions

Undid revision 939833002 by 31.217.23.94 (talk)
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{{for|the band|Big Brother and the Holding Company}}
{{short description|Company that owns other Ok guys I leave2 companies' outstanding stock}}
{{Globalize|article|USA|2name=the United States|date=April 2016}}
{{Merge to |Consolidation (business)|date=January 2019}}
{{Business administration}}
 
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]]. However, in many jurisdiction of the world, holding companies are usually termed as parent companies who besides holding stock in other companies can conduct trade and other business activities itself. Holding companies allow the reduction of [[risk]] for the ownreductionersowners 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.