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
- 3 Value Stocks You Should Consider
- GoPro Investors Can?t Ignore These 3 Key Problems
- 5 Things HCA Holdings, Inc. Management Wants You to Know
- 3 Things Baxter International Inc.'s Management Wants You to Know
- Is Microsoft's Windows Phone Bound to Be a Flop?
- Top 10 Theme Parks: Disney Dominates and Is About to Get Even Better