Complex sentence: A holding company is a company or firm that owns other companies' outstanding stock.the term usually refers to a company that does not produce goods or services itself; rather, its purpose is to own shares of other companies to form a corporate group.
Split into simpler sentences: A holding company is a company or firm that owns other companies' outstanding stock. The term usually refers to a company that does not produce goods or services itself; rather, its purpose is to own shares of other companies to form a corporate group.