What Is A Holding Company And Why You Need To Know About It
Do you ever wonder if a company could exist without selling anything whatsoever but still make money? You might have thought it wasn’t possible because a business has to drive sales to make a profit. Have you heard of holding companies? A holding company doesn’t partake in the selling of products or services; so, how does it make money? Find out in this article what a holding company is. What does a holding company do? Holding Companies are usually either a corporation or limited liability company that isn’t involved in any form of buying and selling (i e service or products). This drives the question, what is a holding company about , and how does it make its money? A holding company is an entity that holds ownership of assets or stocks in other businesses that are directly involved in buying and selling. The holding company owns controlling stock in different companies, which means they can participate in its decision-making. The other companie...