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A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. [1] A holding company usually does not produce goods or services itself. Its purpose is to own stock of other companies to form a corporate group .
Examples of bank holding companies include JPMorgan Chase & Co., U.S. Bancorp and Citicorp. A bank holding company is a corporate entity that owns a controlling interest in one or more banks.
A corporate group is composed of companies. The general rule is that a company is a separate legal entity from its shareholders, that is the shareholder's liability for the subsidiary's debts is limited to the value of the shares, [3] and the shareholders cannot be required to perform the company's obligations.
A subsidiary, subsidiary company, or daughter company [1] [2] [3] is a company completely or partially owned or controlled by another company, called the parent company or holding company, which has legal and financial control over the subsidiary company.
In the United States, some of the examples are The Walt Disney Company, Warner Bros. Discovery and The Trump Organization (see below). In Canada, one of the examples is Hudson's Bay Company. Another such conglomerate is J.D. Irving, Limited, which controls a large portion of the economic activities as well as media in the Province of New Brunswick.
In Europe, investments into associate companies are called fixed financial assets. Associate value in the enterprise value equation is the reciprocate of minority interest. Under the UK Companies Act 2006, two companies are "associated" if one company is a subsidiary of the other or both are subsidiaries of the same body corporate. [1]
Such companies customarily use the term "banc" to define themselves—denoting that while being associated with a bank or holding company, they do not offer bank services. [3] A prominent example is the bank holding company Bank of America Corporation, whose bank subsidiary, Bank of America, N.A., offers bank services and products, while such ...
holding company; subsidiary company; sole proprietorship; charitable incorporated organisation (UK) reciprocal inter-insurance exchange; However, the regulations governing particular types of entities, even those described as roughly equivalent, differ from jurisdiction to jurisdiction.