Business / Taxes / Holding Company: By acquiring enough voting stock in another company, a holding company, also called a parent company, can exert control over the way the target company is run without actually owning it outright. The advantages of this approach, provided that the holding company owns at least 80% of the voting shares, are that it receives tax-free dividends if the subsidiary prospers and can write off some of the operating losses if the subsidiary falters. Yet it is insulated to some extent from the target company’s liabilities because of its shareholder status.
Company Noun Synonyms: companionship, society, fellowship, attendance, presence, associates, friends, companions, comrades
Business / Finance / Public Utility Holding Company Act Of 1935: Legislation intended to eliminate many holding company abuses by reorganizing the financial structures of holding companies in the gas and electric utility industries and regulating their debt and div MORE
Business / Construction / Mortgage company : A company that borrows money from a bank, lends it to consumers to buy homes, then sells the loans to investors. MORE