A holding company (Swedish: holdingbolag), sometimes called an investment company, owns shares in other companies and can have significant influence over them. The holding company is often the parent company of one or more subsidiaries and together with them forms a corporate group.
A holding structure is used, among other things, to pool profits, plan dividends and facilitate future sales of subsidiaries. Each company in the structure has its own share ledger, in which the holding company is listed as shareholder in the subsidiaries. A combined overview makes the group's ownership picture clear.
A parent company is a company that owns and controls one or more subsidiaries.
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A subsidiary is a company controlled by another company, the parent company.
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A corporate group is a group of companies where a parent company owns one or more subsidiaries.
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A dividend is when a limited company distributes part of its profit to its shareholders.
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