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Definition of 'Holding Company'
A parent corporation that owns enough voting stock in another corporation to control its board of directors (and, therefore, controls its policies and management).
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Investopedia explains 'Holding Company'
A holding company must own at least 80% of voting stock to get tax consolidation benefits, such as tax-free dividends.
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Tax loopholes are shrinking, but there are still plenty of viable prospects. Get the big picture.
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