An Investment Holding Company is a type of business that primarily exists to own and manage investments in other companies. Instead of producing goods or services, it focuses on acquiring shares or assets of various businesses to generate income and capital appreciation. This structure allows for diversification and risk management by spreading investments across different sectors. These companies often provide strategic guidance and support to their subsidiaries, helping them grow and succeed. Examples of well-known investment holding companies include Berkshire Hathaway and BlackRock. They play a crucial role in the financial markets by facilitating investment opportunities and fostering economic growth.