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Simple English definitions for legal terms
diversified holding company
Read a random definition: safe-haven law
A quick definition of diversified holding company:
A diversified holding company is a big company that owns many different smaller companies that do different things. It's like a boss that controls lots of workers who do different jobs. The holding company doesn't do the work itself, but it supervises and owns the other companies.A more thorough explanation:
A diversified holding company is a type of holding company that controls several unrelated companies or businesses.
- Berkshire Hathaway is a diversified holding company that owns subsidiaries in various industries such as insurance, retail, and energy.
- Alphabet Inc. is a diversified holding company that owns subsidiaries such as Google, YouTube, and Waymo.
These examples illustrate how a diversified holding company owns and controls multiple companies in different industries. This allows the holding company to spread its investments and reduce risk by not relying on a single industry or business.