Subsidiary

A company whose voting stock is more than 50% controlled by another company, usually referred to as the parent company.

As long as the parent company has more than 50% of the voting stock in the subsidiary, it has control. In the case of a foreign subsidiary, the company under which the subsidiary is incorporated must adhere to the laws of the country in which the subsidiary operates, although the parent company still carries the foreign subsidiary's financials on its books (consolidated financial statements).


Investment dictionary. . 2012.

Synonyms:

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  • subsidiary — sub·sid·i·ary /səb si dē ˌer ē, si də rē/ n pl ar·ies: a company having the majority of its stock owned by another company compare affiliate ◇ The parent company of a subsidiary generally has the same policy making powers as any majority owner… …   Law dictionary

  • Subsidiary — Sub*sid i*a*ry, a. [L. subsidiarius: cf. F. subsidiaire. See {Subsidy}.] 1. Furnishing aid; assisting; auxiliary; helping; tributary; especially, aiding in an inferior position or capacity; as, a subsidiary stream. [1913 Webster] Chief ruler and… …   The Collaborative International Dictionary of English

  • subsidiary — [səb sid′ē er΄ē, səb sid′ē ər ē] adj. [L subsidiarius < subsidium: see SUBSIDY] 1. giving aid, support, service, etc.; serving to supplement; auxiliary 2. being in a secondary or subordinate relationship 3. of, constituting, or maintained by a …   English World dictionary

  • subsidiary — ► ADJECTIVE 1) less important than but related or supplementary to. 2) (of a company) controlled by a holding or parent company. ► NOUN (pl. subsidiaries) ▪ a subsidiary company. ORIGIN Latin subsidiarius, from subsidium assistance …   English terms dictionary

  • Subsidiary — Sub*sid i*a*ry, n.; pl. {Subsidiaries}. One who, or that which, contributes aid or additional supplies; an assistant; an auxiliary. Hammond. [1913 Webster] …   The Collaborative International Dictionary of English

  • subsidiary — (adj.) 1540s, from M.Fr. subsidiaire, from L. subsidiarius serving to assist or supplement, from subsidium help, aid (see SUBSIDY (Cf. subsidy)) …   Etymology dictionary

  • subsidiary — *auxiliary, contributory, subservient, ancillary, adjuvant, accessory …   New Dictionary of Synonyms

  • subsidiary — [adj] secondary, helpful accessory, adjuvant, aiding, ancillary, appurtenant, assistant, assisting, auxiliary, backup, branch, collateral, contributory, cooperative, lesser, minor, serviceable, subject, subordinate, subservient, supplemental,… …   New thesaurus

  • subsidiary — A separate corporation that is owned by another corporation. American Banker Glossary 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.… …   Financial and business terms

  • Subsidiary — A foreign based affiliate that is a separately incorporated entity under the host country s law. The New York Times Financial Glossary * * * ▪ I. subsidiary sub‧sid‧i‧a‧ry 1 [səbˈsɪdiəri ǁ dieri] noun subsidiaries PLURALFORM [countable] a company …   Financial and business terms

  • Subsidiary — A subsidiary, in business matters, is an entity that is controlled by a bigger and more powerful entity. The controlled entity is called a company, corporation, or limited liability company, and the controlling entity is called its parent (or the …   Wikipedia


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