Loosely defined, a holding company is a corporation, company or partnership whose sole function is to own assets and whose sole source of revenue are these asset’s profits.
The assets can be anything with abstract value: the full ownership or controlling stock in one or many companies, real estate, securities, patents, copyrights or any other intellectual property.
Holding companies can serve as both investment vehicles and tools for corporations to consolidate their power over diverse portfolios. Many of the largest and best-known companies in the world are structured as or owned at some level by holding companies.
