What is a holding company?

[Fidelia]

I have seen some companies called Holding Companies. In fact, my bank just said that it has metamorphosed into a holding company. What is a Holding Company? What are the things that make up a Holding Company?

 

[King Belieal]

A Holding Company is a big company that owns a majority stake in many other subsidiary companies. They maintain control of these companies through their stake.