Holding company
company whose primary business is holding controlling shares of subsidiary companies / From Wikipedia, the free encyclopedia
A Holding company is a company, which has the purpose of owning stock (or shares) of other companies. In most cases, such companies do not sell products or services, they manage the companies they (partly) own.[1] Probably one of the best known holding companies was the "Standard Oil of New Jersey", founded in 1889, which is called ExxonMobil today. In general, there are three forms:[2]
- the holding company owns stock/shares of other companies; activities are limited to managing the companies.
- in addition to the above, the companies have a common management, which take the strategic decisions.
- in addition to item 1, the management influences the distribution of capital to its daughter companies. The holding is mainly used for managing financial resources.