holding company

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Holding company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its Board of Directors.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Holding Company

A company that owns enough stock in another company to control its operations. That is, the holding company can appoint the board of directors, set policies, and generally operate as the sole owner of another company, even if it does not actually own 100% of the stock. Some holding companies do not have operations of their own; that is, they exist simply to own and control other companies. In the United States, if a holding company owns at least 80% of the stock in another company, dividends paid to that holding company are not taxed. See also: Double Taxation.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

holding company

A type of parent company that exists primarily to exercise control over other firms. The control is exercised through ownership of a majority of the controlled firm's shares. Earnings of the holding company are derived from earnings of the controlled firms, which pay dividends on the shares. Compare subsidiary. See also operating unit.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Holding company.

By acquiring enough voting stock in another company, a holding company, also called a parent company, can exert control over the way the target company is run without actually owning it outright.

The advantages of this approach, provided that the holding company owns at least 80% of the voting shares, are that it receives tax-free dividends if the subsidiary prospers and can write off some of the operating losses if the subsidiary falters.

Because of its shareholder status, however, the holding company is insulated to some extent from the target company's liabilities.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

holding company

a JOINT-STOCK COMPANY that controls another company or companies. Ownership may be complete (100%) or partial (ownership of 50%+ of the voting shares in the company). Such ownership confers powers to control the policies of SUBSIDIARY COMPANIES.The holding company will report the accounting results of these subsidiary companies as part of the accounting results for the group of companies. In addition, the holding company may own between 20% and 50% of the voting shares of an ASSOCIATED COMPANY, which will continue to produce its own annual accounts and retain a degree of independence, though subject to the influence of the holding company.

Holding companies are most frequently used as a means of achieving diversified or conglomerate growth, with the firm operating separate companies in different lines of production activity, but with each company subject to varying degrees of centralized control by the parent company. See CONSOLIDATED ACCOUNTS, HFORM. DIVERSIFICATION.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

holding company

a company that controls another company or companies. Ownership may be complete (100%) or partial (ownership of 51%+ of the voting shares in the company). Such ownership confers powers to control the policies of subsidiary companies. The holding company will report the accounting results of these subsidiary companies as part of the accounting results for the group of companies.

Holding companies are most frequently used as a means of achieving diversified or conglomerate growth, with the firm operating separate companies in different lines of production activity but with each company subject to varying degrees of centralized control by the ‘parent company’. See DIVERSIFICATION.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

holding company

A company that owns or controls another company.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
(e) The subcontractor can recover the Division III GST paid on the importation of the parent corporation's products as an ITC under subsection 169(2) of the ETA.
* The attestation firm is considered too closely related to Parent Corporation for independence to exist.
parent corporation $ 100 $ 100 Interest expense to unrelated party 75 75 Interest income 100 100 Adjusted taxable income 130 170 Analysis Net interest expense $ 75 $ 75 Less: 50% of adjusted taxable income -65 -85 Excess interest expense $ 10 Excess limitation $ 10 In Example 1, the $100 of ERPlE will be "disallowed" to the extent of the corporation's excess interest expense, or $10.
This appears to be the most appropriate revenue recognition point for the parent corporation. A liquid asset has not been received until this point.
28 February 2013 -- Crossroads Bank parent corporation FFW Corp.
Example 2: P is a parent corporation with a 100% owned U.S.
For example, assume a foreign parent corporation owns 100 foreign subsidiaries, only 1 of which owns a U.S.
Marathon Banking Corporation is the US subsidiary of Piraeus Bank SA (ATH: TPEIR) and the parent corporation of Marathon National Bank of New York, a federally chartered commercial bank that is headquartered in Astoria, New York with USD902m in assets, USD783m in deposits, and 13 full-service branches in the New York metropolitan area.
Parent corporation of PacTrust Bank, First PacTrust Bancorp Inc (NASDAQ:BANC) stated on Wednesday that its 2012 annual shareholders' meeting will be held on 21 May 2012 at 09:00 PDT at the Irvine Marriott, 18000 Von Karman Avenue, Irvine, California.
The Court of Appeal affirmed (35) that, although the proceeds were distributed to its parent corporation, gain from the sale of wholly owned subsidiary stock was apportionable business income under the functional test, because the sold subsidiary was part of the taxpayer's unitary business.

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