<P> A parent company is a company that owns enough voting stock in another firm (subsidiary) to control management and operations by influencing or electing its board of directors . A parent company could simply be a company that wholly owns another company, which is then known as a "wholly owned subsidiary". </P> <P> When an existing company establishes a new company and keeps majority shares with itself, and invites other companies to buy minority shares, it is called a parent company . </P>

What type of entity is a holding company