Holding Company

A holding company is a type of business that primarily exists to own shares in other companies. Instead of producing goods or services itself, it controls other businesses by holding significant stakes in them. This allows the holding company to influence management and strategic decisions without directly running those companies. Holding companies can help manage risks, leverage resources, and create efficiencies in operations. They often serve as a means for diversification, allowing investors to spread out their investments across different industries or sectors while minimizing risks.