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A Holding Company or Parent Company is a one that owns enough voting stock in another firm to control its operations by influencing or electing its board of directors. The term “Holding Company ” can more or less be used to describe any company that owns the majority of shares in another company. In other words, you could say it is the “boss” company.
The Holding Company may not necessarily produce goods or services itself but instead only own shares in other companies, or even outrightly own other companies. As such, it controls how the companies that it controls operate and make the decisions that affect the direction of the companies.
