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holding company definition - finance
A corporation that owns a sufficient amount of another companyÂ’s stock to influence its board of directors and control its management and policies. A holding company may own companies in its industry or in non-related industries. The holding company must own 80 percent or more of the subsidiaryÂ’s voting stock in order to gain tax benefits such as tax-free dividends from the company that it holds.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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