A holding company owns the securities of another firm. It usually maintains voting control of the company, as well.
The holding company may be a conglomerate with subsidiary companies in a variety of industries. The subsidiaries may be wholely owned, or may be public companies with the holding company owning only a portion of the shares.
Compare: operating company
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- Closed-End Funds: Investing Essentials
- OceanFirst Financial Corporation: A Community Bank Gem Cheaper Than Wells Fargo
- The Great Engine Wars: A Trend Towards Single Suppliers
- Darden Restaurants' CEO Swap Won't Quench Investor Thirst for Blood
- Starbucks Takes Warren Buffett's Advice to Heart
- Realty Income Corp's Business Model Explained in 6 Easy Steps