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 to form a corporate group. 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]
That is, if Company A owns
80% or more of the stock of Company B, Company A will not pay taxes on dividends paid by
Company B to its stockholders, as the payment of dividends from B to A is essentially Company
A switching cash from one of its pockets to another. Any other shareholders of Company B will
pay the usual taxes on dividends, as they are legitimate and ordinary dividends to these
stockholders.
1 United States
o 1.1 Banking
o 1.2 Utilities
o 1.3 Broadcasting
o 1.4 Personal holding company
2 Parent company
3 See also
4 External links
5 Notes
United States
Banking
Further information: bank holding company
After the global financial crisis of 2008, many traditional U.S. investment banks converted to
holding companies. According to the Federal Financial Institutions Examination Council's
(FFIEC) website, JPMorgan Chase & Co.., Bank of America Corp., Citigroup Inc., Wells Fargo
& Co., and Goldman Sachs Groups, Inc. were the five largest bank holdings companies in the
finance sector, as of 31 December 2013, based on total assets.
[2]

Utilities
The Public Utility Holding Company Act of 1935 caused many energy companies to divest their
subsidiary businesses. Between 1938 and 1958 the number of holding companies declined from
216 to 18.
[3]
An energy law passed in 2005 removed the 1935 requirements, and has led to
mergers and holding company formation among power marketing and power brokering
companies.
[4]