The Holding Company

A holding company is an organization that primarily owns shares or controlling interests in other companies, called subsidiaries. Its main purpose is to manage and oversee these subsidiaries rather than produce goods or services itself. By controlling multiple businesses, the holding company can coordinate strategies, reduce risks, and optimize investments across the group. It often helps in structuring corporate ownership, providing financial support, and facilitating mergers or acquisitions. Essentially, it acts as a parent entity that manages and controls its subsidiaries, guiding their overall direction while allowing them to operate independently.