2 types of parent corporations

There are two (2) types of parent corporations: holding companies and investment companies.

A parent company is a company that owns enough voting stock in another firm to control management and operation by influencing or electing its board of directors. The second company is deemed a subsidiary of the parent company. In short, a parent company has control and power (direct or indirect) to elect another company's board of directors, thereby having the authority to manage the latter's policies and direction.

SOURCE: Parent company. From Wikipedia, the free encyclopedia. https://en.wikipedia.org/wiki/Parent_company.

Holding company is a parent company which has no other business aside from the holding of the shares of its subsidiaries which is under its control. A holding company is a company that owns other companies' outstanding stock. A holding company usually does not produce goods or services itself; rather, its purpose is to own shares of other companies to form a corporate group.

SOURCE: Holding company. From Wikipedia, the free encyclopedia. https://en.wikipedia.org/wiki/Holding_company

Investment company is a parent company which holds shares in other corporations not for the purpose of controlling them but merely to invest therein.

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