What Is The Purpose Of 'Holding' Companies...?

Question

I keep seeing a lot of companies with the phrase 'holdings' in their title. What is the purpose of these companies?

Answer 1

If a holding company goes bust, gets sued, gets prosecuted, the parent company can't be liable for it. So many companies set up separate holding companies to manage highly risky investments or assets Hx

Answer 2

Holding Companies are actually formed to own the stock of a subsidiary organization. The "shell" of the holding company itself may not actually be worth anything from its operations, but its value is based on the operations of the actual operating entity. Debt is often held at the holding company level and the capital is then "lent" or "injected" into the subsidiary which then pays back the holding company. It is a way to maintain control and management of another organization.