Talk:Holding company

Older unsigned draft?/comment (pre-June 2014)

Dr Francesco Cravero talk about Holding Company :

For the band, see Big Brother and the Holding Company.

A holding company is a company or firm that owns other companies' outstanding stock. The term usually refers to a company that does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies. In the United States, 80% or more of stock, in voting and value, must be owned before tax consolidation benefits such as tax-free dividends can be claimed.[1]

Sometimes a company intended to be a pure holding company identifies itself as such by adding "Holdings" or "(Holdings)" to its name.

Contents

   1 United States
       1.1 Broadcasting
       1.2 Personal holding company
   2 Parent company
   3 See also
   4 External links
   5 Notes

United States Broadcasting Further information: Media conglomerate

In US broadcasting, many major media conglomerates have purchased smaller broadcasters outright, but have not changed the broadcast licenses to reflect this, resulting in stations that are (for example) still licensed to Jacor and Citicasters, effectively making them such as subsidiary companies of their owner Clear Channel Communications. This is sometimes done on a per-market basis; for example in Atlanta both WNNX and later WWWQ are licensed to "WNNX LiCo, Inc." (LiCo meaning "license company"), both owned by Susquehanna Radio (which was later sold to Cumulus Media). In determining caps to prevent excessive concentration of media ownership, all of these are attributed to the parent company, as are leased stations, as a matter of broadcast regulation. Personal holding company

In the United States, a personal holding company is defined in section 542 of the Internal Revenue Code. A corporation is a personal holding company if both of the following requirements are met:[2]

   Gross income test: At least 60% of the corporation's adjusted ordinary gross income is from dividends, interest, rent, and royalties.
   Stock ownership test: More than 50% in value of the corporation's outstanding stock is owned by five or fewer individuals.

Parent company Main article: Parent company

A parent company is a company that owns enough voting stock in another firm (subsidiary) to control management and operations by influencing or electing its board of directors. A parent company could simply be a company that wholly owns another company. This would be known as a "wholly owned subsidiary". See also

   Bank holding company
   Conglomerate
   Dubai World
   Investment company
   Airline holding companies
   List of holding companies
   Patent holding company
   Public Utility Holding Company Act of 1935
   Samuel Insull
   Shell corporation
   Social Holding Company

External links

   Emergence of Electrical Utilities in America, Smithsonian Institute, National Museum of American History
   UK Holding Companies
   KPMG article – Hong Kong as a Holding Company location
   Incorporate a holding company in Hong Kong