Subsidiary


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Related to Subsidiary: subsidiary ledger, Wholly owned subsidiary, Subsidiary legislation

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 ?
The purpose of this requirement was to prevent a section 20 subsidiary from being able to leverage itself more than, and gain a competitive advantage over, its independent competitors by trading on the reputation of its affiliated bank.
381, a Swiss parent corporation owned all of the stock of both its Netherlands Antilles subsidiary and its U.
as tracked in Dialog Information Service's Disclosure Database, are reported as having at least one subsidiary.
Because no common links existed, the individual subsidiary spokes were not sufficiently linked together by the contribution and dependency rim to create a single, integrated wheel of unity.
Under the current system, the effect of section 1503(e) is limited to recomputing the basis of the subsidiary whose stock is sold.
The subsidiary must be structured so the REIT owns less than 10% of the subsidiary's voting stock, either through nonvoting common stock or a combination of nonvoting preferred stock and debt.
First, the independent listing creates a dedicated public capital structure to support next round financing necessary to continue growing the subsidiary and developing its emerging technologies.
A group member recognizes a loss on a disposition of subsidiary-member stock that is duplicative of the subsidiary member's inside loss, the subsidiary remains a group member and the group subsequently recognizes the subsidiary member's inside loss.
This proposition can most easily be accepted in the case of dividends because such income can be directly traced to the earnings of the subsidiary and, unlike interest, the parent is not required to furnish consideration in addition to its capital contribution.
In letter ruling 9133004, a technical advice, the finance subsidiary obtained funds from the foreign parent via a capital contribution and from proceeds derived from the sale of debentures.