corporation owning enough voting stock in another company to control its policies and management. Advantages of holding companies include: (1) the ability to control sizable operations with fractional ownership; (2) the isolation and diversification of risks through subsidiaries; and (3) the fact that approval of stock purchases by the stockholders of the acquired company is not required. Disadvantages of holding companies include: (1) partial multiple taxation when less than 80% of a subsidiary is owned; (2) the ease of enforced dissolution by the U.S. Department of Justice; and (3) the risks of negative leverage effects in excessive pyramiding.