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What does a holding company hold? If stocks, then when you invest in a subsidiary of it, are you technically investing in the holding? ?
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- ?Lv 75 months agoFavorite Answer
The point of it is to store money and then lease the money to a huge mess of smaller subsidiaries and if they go bust, creditors can't petition the holding company because they only did business with the subsidiary. The holding company is a separate entity.
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