Parent Company

Parent company

A company that controls subsidiaries through its ownership of voting stock, as well as runs its own business.

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parent company

A company that controls or owns another company or other companies. For example, Union Pacific Corporation is the parent company of the trucking firm Overnite Transportation Company. Compare subsidiary. See also holding company.

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Parent Company

A company that owns enough stock in another country to strongly influence or control outright the latter's operations, especially the election of its board of directors. Parent companies sometimes have operations of their own, and sometimes have no other business except to own and manage subsidiaries. These are known as holding companies. Some parent companies own subsidiaries in a single industry, while others are diversified. Parent companies become parent companies either by buying smaller companies, or by spinning off some of its operations into a separate company. See also: Mergers & Acquisitions.