What is a holding company?

[Fidelia]

I have seen some companies called Holding Companies. In fact, my bank just said that it has metamorphosed into a holding company. What is a Holding Company? What are the things that make up a Holding Company?

 

[King Belieal]

A Holding Company is a big company that owns a majority stake in many other subsidiary companies. They maintain control of these companies through their stake.

 

[Suba]

Holding company is a parent company that does not produce and sell goods/services directly but this parent company holds the majority of shares of several companies not directly involved in the management of each company, so the holding company functions as a planner and controller.