holding companyholding company
(plural holding companies)
- (business) A company whose main purpose is to own shares of other companies as opposed to producing goods and services.
holding company - Investment & Finance Definition
A corporation that owns a sufficient amount of another company’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 subsidiary’s voting stock in order to gain tax benefits such as tax-free dividends from the company that it holds.