Holding Company

A holding company is a form of corporate ownership structure or conglomerate. It involves a parent corporation, limited liability company (LLC), or limited partnership (LP) that owns enough equity and voting stock in another company that it can control that company’s policies and oversee its management decisions. Although a holding company owns the assets of other companies, it often maintains only oversight capacities and therefore does not actively participate in running a business’s day-to-day operations of these subsidiaries.