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A company that controls subsidiaries through its ownership of voting stock, as well as runs its own business.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
parent companysee HOLDING COMPANY.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson