What are the holding companies?

What are the holding companies?rnHolding company are those companies which hold the shares (shares here mean the controlling stake in the company i.e >50% in general and normal circumstances) of other companies. They are created specifically for the purpose of holding investments, creating layers of holding which may be feasible for tax saving purposes. Will the Investments held within be sold?rnGenerally, the investments are held with a view to never sell them, so chances of its realization are very less. Are these holding companies valuable?rnYes, extremely. Many a time the investment held by these companies are valued even more than the market cap of the holding companies. Are these stocks feasible for long term investment?rnGenerally holding companies are considered as dead investments since the investments are subject to realization if any over a very very long period. So chances are the holding company even with an immense value can fail to deliver any meaningful return over very long periods. rnIn order to educate users with new company ideas, we are introducing our newest category for the stocks that should be explored to understand the value of hidden investments.