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definition of a holding company?

I need the best definition of what a Holding Company is to a business

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  • 1 decade ago
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    A company that controls other companies through stock ownership but that usually does not engage directly in their productive operations.

    They provide the money, while the other company provides the services. It helps to limit liaiblity. If Company A owns all of the assets of a business structure, and Company B operates the business, and Company B gets sued, Company B doesn't have any assets to go after and Company A is still safe. (and most likely opens a new company to operate the business)

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