Quick Definition

A holding company is a type of business entity that owns enough voting stock in other companies to control their policies and management without being directly involved in their day-to-day operations.

Examples

• 1Berkshire Hathaway Inc. owns shares in various companies like Apple, Coca-Cola, and American Express, influencing their operations while not managing them directly.
• 2Alphabet Inc., the parent company of Google, acts as a holding company with stakes in various tech and investment companies.
• 3Virgin Group operates as a holding company with interests in sectors ranging from entertainment to space travel, overseeing the strategy of its subsidiaries without direct management.

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