How does a Holding Company Work?

Answer

A holding company is a company set up for the purpose of holding another company's stock. This is done to help minimize the risk to the true owners and to allow control of more companies. An example would be 'Sears Holding Company' - you might have guessed that they are the company that holds all the Sear's stock. To find more information click here: http://en.wikipedia.org/wiki/Holding_company
Q&A Related to "How does a Holding Company Work?"
A holding company is a firm that buys other businesses, makes them profitable and then sells them to another owner. A holding company does not transact business itself, but only exists
http://answers.ask.com/Business/Finance/what_is_a_...
A real estate holding company that owns property and sells or leases it for profit. These companies are sometimes formed by business owners that do not wish to pay taxes on real estate
http://answers.ask.com/Business/Other/what_is_a_re...
A holding company is a company set up for the purpose of holding another company's stock. This is done to help minimize the risk to the true owners and to allow control of more companies
http://answers.ask.com/Business/Finance/how_does_a...
1. Collect your startup costs. Starting a holding company can require a lot of initial investment, since you'll be buying up shares in your target companies. 2. Study the history
http://www.ehow.com/how_7242362_establish-holding-...
About -  Privacy -  AskEraser  -   -  Careers -  Ask Blog -  iPhone -  Android -  Help -  Feedback © 2013 Ask.com