HVCC HOLDINGS, Inc. shall be designated as a Pure Holding Company. HVCC HOLDINGS, Inc. was formed to hold a percentage stock of  of companies that HONOR VALOR COURAGE CORPORATION holds a equity interest in. The balance of the stock remains in the ownership of Honor Valor Courage Corporation a Delaware C Corporation. 

A holding company is described as pure if it was formed for the sole purpose of owning stock in other companies. Essentially, the company does not participate in any other business other than controlling one or more firms.

There are two main ways through which corporations can become holding companies. One is by acquiring enough voting stock or shares in the other company; hence, giving it the power to control its activities. The second way is by creating a new corporation from the ground up, and then retaining all or part of the new corporation’s shares.

Although owning more than 50% of the voting stock of another firm guarantees greater control, a parent company can control the decision-making process even if it owns only 10% of its stock.

The relationship between the mother company and that of the corporations they control is called a parent-subsidiary relationship. In such a case, the mother company is known as the parent company while the organization being acquired is called a subsidiary. If the parent company controls all the voting stock of the other firm, that organization is called a wholly-owned subsidiary of the parent company.