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holding company
(redirected from Holding companies)

   Also found in: Dictionary/thesaurus, Legal, Financial, Wikipedia, Hutchinson 0.01 sec.
holding company: see corporation corporation, in law, organization enjoying legal personality for the purpose of carrying on certain activities. Most corporations are businesses for profit; they are usually organized by three or more subscribers who raise capital for the corporate activities by
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holding company

Corporation that owns enough voting stock in one or more other companies to exercise control over them. A holding company provides a means of concentrating control of several companies with a minimum of investment; other means of gaining control, such as mergers or consolidations, are more complicated legally and more expensive. A holding company can reap the benefits of a subsidiary's goodwill and reputation while limiting its liability to the proportion of the subsidiary's stock that it owns. The parent company in a conglomerate corporation is usually a holding company.



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Language was inserted in the early versions of the correcting legislation expanding the IRA-related provisions to depository holding companies by amending Secs.
The select number of property/casualty insurers that have shed their mutual status to form mutual holding companies say it's a decision they don't regret.
 
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