Subsidiary


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Subsidiary

A wholly or partially owned company that is part of a large corporation. A foreign subsidiary is a separately incorporated entity under the host country's law. A subsidiary's financial results are carried on the parent company's books.

Subsidiary

A company that is publicly-traded but has more than half its stock owned by another company, known as the parent company. As long as the parent company owns more than half the stock, it maintains control of the subsidiary, though its other stock is still traded. Some subsidiaries belong to the same industry as the parent company, while others do not, and are part of a diversification effort on the part of the parent company. See also: Wholly owned subsidiary.

subsidiary

A company controlled or owned by another company. For example, the trucking company Overnite Transportation is a wholly owned subsidiary of Union Pacific Corporation. If a subsidiary is wholly owned, all its stock is held by the parent company. Compare holding company, parent company.
References in periodicals archive ?
While this presumption eliminates the administrative burden of tracing the BIGs recognized after the subsidiary joins the group, it may result in a larger disallowed loss than would occur under tracing.
WHILE CREATING A SUBSIDIARY will clearly help to achieve corporate aims, companies and their advisers must structure the deal so it does not run afoul of federal tax, employment and benefit regulations.
4) The Board or the appropriate Reserve Bank has approved the bank to acquire the interest in or control the financial subsidiary under section 208.
Chambersburg, Pennsylvania, announced that its subsidiary, TB Wood's, Inc.
The proposals also call for a new 100 percent excise tax to ensure: arm's length pricing for services provided to the REIT's tenants (to ensure that tenants are not paying the REIT higher rent in exchange for a discount on services that would be taxable income to the service subsidiary); and arm's length allocations for shared expenses between the REIT and its taxable Subsidiary.
1032-3(b)(2) governs a subsidiary's employees' exercise of a parent's NQSOs; the parent is deemed to have contributed to its subsidiary the excess of (1) the total fair market value of the parent stock issued to the subsidiary's employees, over (2) the total payments made by the subsidiary's employees on each exercise.
This potential for loss and bank capital depletion is another reason for urging that the new activities be conducted in a holding company affiliate rather than in a banking subsidiary.
Suppose the subsidiary has a sales contract with a customer, and in order for it to satisfy the contract, the parent must supply the goods.
The transaction completed yesterday with Paragon Financial is the second transaction in recent months to effectively publicly list one of NewMarket's subsidiary operations.
This article summarizes some of the more significant recent subchapter C and consolidated return developments, including the American Jobs Creation Act, proposed regulations on reorganization continuity requirements, guidance on subsidiary stock losses and various other significant rulings.
The Board notes that the bank holding companies and their subsidiary banks are currently well capitalized and are expected to remain so after consummation of the proposal.
In two instances, the GAO found that Federal Reserve examiners and bank holding companies' internal auditors did not review either the firewalls that restricted credit extensions to the underwriting subsidiary and its clients and customers or the firewalls that prohibited intercompany transactions and transfers of assets between the subsidiary and affiliated insured banks.