About
S S HOLDINGS
What does holdings mean in business?
Overview
In business, "holdings" can refer to either the assets owned by an investor, such as stocks and bonds, or a holding company, which is a parent company that owns a controlling stake in other companies, known as subsidiaries. An investment portfolio's holdings are the specific investments that comprise it, while a holding company's purpose is to own and manage the assets of its subsidiaries, not to engage in day-to-day operations
Investment holdings
- Definition:The individual assets within an investment portfolio, which can include stocks, bonds, mutual funds, and other securities.
- Function:
- Holdings are acquired and sold to achieve investment goals, diversify risk, and manage returns.
- Example:If an investor owns shares in Apple, a Vanguard mutual fund, and a government bond, these are all considered their holdings.
Holding company
- Definition:A business that exists to own and manage a controlling interest in other companies (subsidiaries) through their stock ownership.
- Function:A holding company oversees the strategic direction of its subsidiaries and manages assets, but does not typically produce goods or services itself.
- Example:A large corporation might have a holding company that owns several smaller companies specializing in different areas, such as a technology subsidiary, a manufacturing subsidiary, and a real estate subsidiary.
