holdingcompany



A holding company is a firm that buys up stocks and bonds of smaller companies. This can cause the company to create a monoply. An example of a holding company would be the Northern Securities Company. Northern Securities brought a modest decline in railroad rates because they became a monoply. In 1904, the Supreme Court dissolved the company for violation of the Sherman Act.

Information Provided By: America: Pathways to the Present (pg. 394) Picture Provided By: http://www.kyfg.com/annualreport/2005/integration/img/integ_chart01.gif