Take an example HSBC or JPMorgan? What is a holding company? What they offer and how do their services look like?
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A holding company is a company that specializes in owning other companies. They don’t manufacture anything and they Don’t sell products, they own and manage other smaller companies. If they’re managing them why don’t they just merge those smaller companies into themselves? Well by keeping them separate it allows those companies to continue to be small, competitive, self sufficient units and the holding company can sell the entire company as one piece if they so desire.
A good holding company will have a lot of economists, managers and market analysts so they can recognize good companies and manage them well.
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