Holding Company

Definitions

1. A parent company created primarily to own shares or assets in other companies rather than to operate the underlying business directly. Holding-company structures are used for tax planning, risk separation, and control.

   In plain English: A parent company set up mainly to own other companies or assets.

   Example: "The founders reorganized under a holding company before expanding into multiple business lines."

Related Terms

• Burn Rate
• Cap Table
• Compound Growth
• Cost Center
• Dead Cat Bounce
• Equity
• Escrow
• Intellectual Property
• Management Buyout
• MBO