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Definition
A holding company (or parent) is a company whose main purpose is to own shares in other companies — its subsidiaries — rather than to trade in its own right. Together they form a group.
In plain terms
It's the company at the top of the tree. The trading happens in the subsidiaries below; the holding company owns them and can move value and funding around the group.
Why it matters for your company
Groups use holding structures to isolate risk, hold property separately from trading, and arrange finance efficiently. Borrowing within a group has its own quirks — see group company borrowing.
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