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Definition

subsidiary

A subsidiary is a business that is wholly or partially owned by another business, sometimes called the parent company or holding company. The parent company owns sufficient voting stock in the subsidiary -- as a rule, at least 50% -- to give it control over the subsidiary's operations and management. In a wholly-owned subsidiary, the parent company owns 100% of the stock. 

A parent company with subsidiaries is one type of conglomerate, which is a company that comprises multiple different businesses.  

This was last updated in March 2013
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