Meaning & use
a holding company
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Meaning
nouncountablebusiness
A company that owns enough shares in other companies to control them, but does not make goods or services itself.
Grammar: Countable; use 'a' or 'the' and a plural 'holding companies'. Often followed by 'for' or 'that owns': a holding company for several brands.
Patterns
- a holding company for something
- a holding company that owns something
- set up a holding company
The family set up a holding company to manage its hotels and restaurants.
A holding company owns the shares but leaves daily operations to its subsidiaries.
Investors bought stock in the holding company rather than in each separate business.
Word forms
| plural | holding companies |
|---|
Common combinations
- set up a holding company
- They set up a holding company in Delaware to simplify taxes.
- a holding company for
- The firm acts as a holding company for three smaller publishers.
- parent holding company
- The parent holding company reports all profits together.
- a holding company structure
- A holding company structure can protect assets from lawsuits.
Synonyms and how they differ
- parent company
- Similar, but a parent company may also run operations itself, while a holding company mainly owns shares.
- conglomerate
- A conglomerate is a large group of different businesses; a holding company is the legal owner at the top.
Word family
- hold verb
- To own or possess something, such as shares.
- holding noun
- The shares or property that someone owns.
- subsidiary noun
- A company that is owned or controlled by a larger one.
Commonly confused: a holding company or holding?
a holding company vs holding
A 'holding' is what you own; a 'holding company' is the business that owns it.
Practice
Which sentence uses 'a holding company' correctly?
Choose one answer.
A holding company owns other businesses, so 'owns five hotels' fits. The other verbs describe making or staying, which are not what a holding company does.
Make it your own
Write a sentence using “a holding company”, then check it and compare it with the examples above.