December 10, 2018

Holding Company

Source:wiktionary.com

A parent corporation that owns enough voting stock in another corporation to control its board of directors (and, therefore, controls its policies and management).
A holding company must own at least 80% of voting stock to get tax consolidation benefits, such as tax-free dividends.

A good example is Warren Buffett's Berkshire Hathaway (NYSE: BRK.A), which owns GEICO, See's Candies, Executive Jet, Dairy Queen, The Pampered Chef, Benjamin Moore paints etc

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