Browse Definitions :
Definition

holding company

Contributor(s): Ivy Wigmore

A holding company is a business that exists for the purpose of owning other companies and typically does not produce goods or offer services other than through its subsidiaries.

Holding companies are one type of parent company. However, a parent company often has its own purpose and may produce products and services under its own name. A parent company often acquires subsidiaries as investments or expansions into new areas of business. In other cases, the purchase is intended to help the with particular areas of the company's existing business.

Here's an example to explain parent companies vs. holding companies:

Google acquired Nest Labs, a home automation company, in January 2015. At that time, Google became a parent company to Nest, its subsidiary. Because Google had many other business ventures operating under its own name, it was not a holding company.

However, Google reorganized later in 2015 and created Alphabet, Inc. to serve as a holding company which owns Google and Nest as subsidiaries.

 

This was last updated in November 2015

Continue Reading About holding company

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance as a service (CaaS)

    Compliance as a Service (CaaS) is a cloud service service level agreement (SLA) that specified how a managed service provider (...

  • data protection impact assessment (DPIA)

    A data protection impact assessment (DPIA) is a process designed to help organizations determine how data processing systems, ...

SearchSecurity

  • Port Scan

    A port scan is a series of messages sent by someone attempting to break into a computer to learn which computer network services ...

  • DMZ (networking)

    In computer networks, a DMZ (demilitarized zone), also sometimes known as a perimeter network or a screened subnetwork, is a ...

  • quantum supremacy

    Quantum supremacy is the experimental demonstration of a quantum computer's dominance and advantage over classic computers by ...

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

SearchStorage

Close