A holding company is a company that owns part, all, or a majority of other companies' outstanding stock. Generally a company is a form of Business organization. The precise definition varies Software for Fixed assets management and Stock control developed in 2004. It usually refers to a company which does not produce goods or services itself, rather its only purpose is owning shares of other companies. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies. Risk is a Concept that denotes the precise probability of specific eventualities In the U. S. , 80% or more of voting stock must be owned before tax consolidation benefits such as tax-free dividends can be claimed. Dividends are payments made by a Corporation to its Shareholder members
Sometimes a company intended to be a pure holding company identifies itself as such by adding "Holdings" or "(Holdings)" to its name, as in Sears Holdings. Sears Holdings Corporation ( is the sixth largest retailer in the United States, behind Wal-Mart, The Home Depot, Costco, Target
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United States
In the United States, Berkshire Hathaway is one of the largest publicly-traded holding companies; it owns numerous insurance companies, manufacturing businesses, retailers, and other companies. The United States of America —commonly referred to as the Berkshire Hathaway ( for supervoting shares and for nonvoting shares is a conglomerate Holding company headquartered in Omaha, Nebraska Two other large notable holding companies are UAL Corporation and AMR Corporation, publicly traded holding companies whose primary purposes are to wholly own United Airlines and American Airlines, respectively. UAL Corporation ( is an Airline Holding company, incorporated in Delaware with headquarters in Chicago Illinois. AMR Corporation ( is a commercial aviation business and Airline Holding company based in Fort Worth Texas. United Air Lines Inc, trading as United Airlines ( is a major airline of the United States. American Airlines Inc (AA is a US -based airline and the world's Largest airline in total passenger miles transported and passenger fleet size
Broadcasting
In U. S. broadcasting, many major media conglomerates have purchased smaller broadcasters outright, but have not changed the broadcast licenses to reflect this, resulting in stations that are (for example) still licensed to Jacor and Citicasters, effectively making them holding companies for their owner Clear Channel Communications. For the band see Broadcast (band Broadcasting is the distribution of audio and/or Video signals which transmit A media conglomerate describes companies that own large numbers of companies in various Mass media such as Television, Radio, Publishing, A broadcast license is a specific type of spectrum licence that grants the Licensee the privilege to use a portion of the Radio frequency spectrum Jacor Communications Inc was a media corporation which owned a large number of Radio stations in the United States. The Taft Broadcasting Company, also known as Taft Television and Radio Company Incorporated, was a media conglomerate based in Cincinnati Ohio. Clear Channel Communications is a media conglomerate company based in the United States. This is sometimes also done on a per-market basis; for example in Atlanta both WNNX and later WWWQ are licensed to "WNNX LiCo, Inc. A media market, broadcast market, media region, designated market area, DMA or simply market is a region where the Population WNNX (1005 FM, "Rock 1005" is an Atlanta Radio station that is owned and operated by Cumulus Media. WWWQ (997 FM, "Q100" is an Atlanta Radio station that plays a diverse range of Top 40 music including rock, pop " (LiCo meaning "license company"), both owned by Susquehanna Radio (which was later sold to Cumulus Media). The Susquehanna Radio Corporation was a Media corporation which operated from 1941 to 2006 that was headquartered in York Pennsylvania. Cumulus Media Inc (also known as Cumulus Broadcasting) is a large owner of Radio stations in markets in the United States. In determining caps to prevent excessive concentration of media ownership, all of these are attributed to the parent company, as are leased stations, as a matter of broadcast regulation. Concentration of media ownership (also known as media consolidation) is a commonly used term that refers to the majority of the media outlets being owned by a small number of In US and Canadian Broadcasting, a local marketing agreement (or local management agreement, or LMA) is an Agreement Broadcast law is the field of Law which pertains to Broadcasting.
Personal holding company
In the United States, a personal holding company is defined in section 542 of the Internal Revenue Code. The Internal Revenue Code (or IRC; more formally the Internal Revenue Code of 1986 as amended) is the main body of domestic statutory Tax law A corporation is a personal holding company if both of the following requirements are met:
- Personal Holding Company Income Test. At least 60% of the corporation's adjusted ordinary gross income for the tax year is from dividends, interest, rent, and royalties.
- Stock Ownership Requirement. At any time during the last half of the tax year, more than 50% in value of the corporation's outstanding stock is owned, directly or indirectly, by five or fewer individuals.
Parent company
A parent company is a holding company that owns enough voting stock in another firm (subsidiary) to control management and operations by influencing or electing its board of directors. Software for Fixed assets management and Stock control developed in 2004. A subsidiary, in business matters is an entity that is controlled by a bigger and more powerful entity A parent company could simply be a company that wholly owns another company.
See also
- Bank holding company
- Conglomerate (company)
- Investment company
- Patent holding company
- Shell corporation
References
A bank holding company is a company with significant ownership of one or more Banks United States A bank holding company, under the A conglomerate is a large Company that consists of seemingly unrelated Business sections See also Collective investment scheme An investment company is a company whose main business is holding securities of other companies purely for Investment Patent holding companies are companies set up to administer consolidate and license Patents or otherwise enforce patent rights such as through litigation A shell Corporation is defined in Barron's Finance & Investment Handbook as "a company that is incorporated but has no significant assets or operationsDictionary
holding company
-noun
- A company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors
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