Holding company. Same as securities company ; a company which owns the securities of other
companies and depends for its income upon the interest and dividends yielded by these
securities. It usually issues bonds as well as stock itself. Its bonds are collateral trust bonds, being
secured by the bonds or stocks of other companies that it owns. A holding company is not
necessarily a controlling company — it is not necessary that it should possess a majority of the
stocks of the companies whose securities constitute or are included in its assets.