| a corporation or other business enterprise that owns controlling interests in one or more subsidiary companies (distinguished from holding company ). |
| parent company n. A company that controls or owns another company or companies. |
Parent Company
A company that controls other companies by owning an influential amount of voting stock.
Investopedia Commentary
Companies can become parent companies by many different means. The two most common ways are through (1) acquisitions of smaller companies and (2) the spin-off or creation of subsidiaries.
Related Links
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See also: Callable Common Stock, Carve-Out, Spin-off, Subsidiary
parent company