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A conglomerate and a holding company are both types of corporations that own stakes in other companies, but they differ in their structure and operations.
A holding company is a business entity—usually a corporation or limited liability company (LLC)—that doesn't manufacture anything, sell any products or services, or conduct any other business operations. Its primary purpose is to own shares of other companies to form a corporate group. However, it maintains only oversight capacities and does not actively participate in the day-to-day operations of its subsidiaries1.
On the other hand, a conglomerate is a type of holding company that owns a controlling stake in a number of smaller companies, which may operate in unrelated business areas. The key characteristic of a conglomerate is that it is a large corporation composed of a number of different companies with diverse business interests2. Unlike a pure holding company, a conglomerate may also engage in its own operations and business activities2.
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