http://www.investorwords.com/3587/parent_company.html
Parent company
DefinitionA company that owns
enough voting stock in another firm to control management and operations by influencing or
electing its board of directors. also called holding company.
e.g. A company holds 100% shares of B company.
B holds 75% shares of C company and 50% shares of D co. (which also holds 75% of E co.).
In this case, A is a parent company, B is a subsidiary co. of A.
In C & D level, B is their parent co. (direct holding company), A is their ultimate holding company (coz A indirectly holds
their shares).
In E level, D is its holding company, but B is not (which holds 37.5% shares of E. E is an associate company of B)
50% >associate co. >20%
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