Strictly speaking, a term "holding company" may become utilized to describe any company that owns the majority of shares in another company. Normally, though, the term signifies a company which doesn't create goods or even services itself, however, like, whose sole purpose is with shares of more corporations (or even with more corporations straight-out). Holding corporations allow a reduction of risk for the owners & could allow the ownership and control of a total of different corporations.

Berkshire Hathaway is one of the big publicly traded holding corporations; it owns many insurance underwriter, maker, retail merchant, & more corporations. A second big holding company of note is UAL Corporation, a publicly traded holding company whose sole purpose is to totally have United Airlines.

For instance the company meant to become the pure holding company identifies itself per se by adding "Holdings" or even "(Holdings)" to its title. This was spoofed by Terry Pratchett and Neil Gaiman in their book Good Omens with the fancied company Holdings (Holdings) Incorporated.