Meaning & use

a holding company

noun·Advancedbusiness

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UK/ə ˈhəʊldɪŋ ˌkʌmpəni/
US/ə ˈhoʊldɪŋ ˌkʌmpəni/

Meaning

  1. 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

pluralholding 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.

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