Holding company 

A holding company is a type of company that owns the stock or other securities of other companies. 

The holding company does not typically operate the businesses of the companies it owns, but rather it uses the ownership of those companies to control their operations and make strategic decisions.

Holding companies are often used as a way to consolidate ownership of multiple companies in a particular industry or market, and to manage their risk by spreading investments across different companies.

Holding companies can be used for a variety of purposes, including:

To consolidate control of a particular industry or market: 

A holding company can acquire a controlling stake in multiple companies operating in a specific industry or market, effectively consolidating control over that industry or market.

To manage risk: 

A holding company can diversify its holdings across multiple companies and industries, reducing the risk that any one company or industry will have a significant impact on the holding company's overall performance.

To facilitate strategic investments: 

A holding company can acquire stakes in companies that complement its existing portfolio of companies, allowing it to expand into new markets or products.

To minimize taxes: 

Holding companies can be used to hold assets and minimize taxes, particularly by holding assets in lower-tax jurisdictions.

More:

• Holding companies can take many forms, and can be organized as a corporation, limited partnership, or limited liability company, among other forms. 
• They can be publicly traded or privately held, and they can be controlled by individuals, families, or institutions.
• It is also worth noting that holding companies can also have subsidiaries, companies that are fully or partially owned by the holding company. 
• Subsidiary companies are separate legal entities from the holding company and have their own management, employees and assets.