What does it mean to hold?

Holding group refers to a company that controls a company by holding a certain number of shares. Holding groups are divided into pure holding companies and mixed holding companies according to holding methods. Pure holding companies do not directly engage in production and operation business, but only carry out capital operation by holding shares of other companies. Hybrid holding companies not only carry out capital operation through holding, but also engage in some production and operation businesses.

Holding group not only has financial control over subsidiaries, but also has operational control, and has the right to decide the appointment of important personnel and the determination of major policies, and even directly send people to operate and manage them. Also known as parent-subsidiary system.

A company that owns shares of other companies and can actually control its business activities is called a parent company, sometimes called a head office; All or part of the assets are owned by the parent company, but companies that are economically and legally independent of the parent company are called subsidiaries. With the extension of controlling rights, Sun Company came into being.

Extended data:

Holding means holding a certain number of shares to control the company's business. A company that controls a company by holding a certain number of shares. Holding companies are divided into pure holding companies and mixed holding companies according to their holding methods.

Relative holding means that in the total paid-in capital of an enterprise, although the proportion of paid-in capital (share capital) owned by the investor of an economic sector does not exceed 50%, according to the agreement, he has the actual control right of the enterprise (agreement holding); Or the proportion of investors that is relatively greater than any other economic component (relative holding).

References:

Baidu encyclopedia holding company