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Holding Company



A holding company is a company which owns controlling shares in another company or companies (assuming all of these companies are corporations), or a corporation organized to own and control other corporations. This control usually comes through owning a controlling interest (more than 50 percent) of the stock of the other companies, which are considered subsidiary companies.

Also Known As: Parent Company
Berkshire Hathaway is a good example of a holding company. This company, owned by Warren Buffett, owns GEICO, See's Candies, Dairy Queen, and Benjamin Moore paints, along with other companies.

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