Wholly Owned Subsidiary

Wholly Owned Subsidiary

A company whose common stock is 100% owned by another company, called the parent company. A company can become a wholly owned subsidiary through acquisition by the parent company or spin off from the parent company. In contrast, a regular subsidiary is 51 to 99% owned by the parent company. One situation in which a parent company might find it helpful to establish a subsidiary company is if it wants to operate in a foreign market. This arrangement is common among high-tech companies who want to retain complete control and ownership of their technology.

Wholly owned subsidiaries allow the parent company to retain the greatest amount of control, but also leave the parent with all the costs and risks of full ownership. When a lesser number of costs and risks are desirable, or when it is not possible to obtain complete or majority control, the parent company might introduce an affiliate, associate or associate company in which it would own a minority stake.


Investment dictionary. . 2012.

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Look at other dictionaries:

  • wholly-owned subsidiary — ➔ subsidiary1 * * * wholly owned subsidiary UK US noun [C] FINANCE ► a company whose shares are all owned by another company: »Under terms of the merger agreement, Learning Co. will become a wholly owned subsidiary of Broderbund. → See also… …   Financial and business terms

  • wholly-owned subsidiary — wholly owned subsidiaries N COUNT A wholly owned subsidiary is a company whose shares are all owned by another company. [BUSINESS] The Locomotive Construction Company Ltd is a wholly owned subsidiary of the Trust …   English dictionary

  • wholly owned subsidiary — A subsidiary undertaking that is owned 100% by a holding company (i.e. there is no minority interest) …   Accounting dictionary

  • wholly owned subsidiary — A subsidiary undertaking that is owned 100% by a holding company (i. e. there is no minority interest) …   Big dictionary of business and management

  • wholly owned subsidiary — A subsidiary whose parent company owns virtually 100% of its common stock. Bloomberg Financial Dictionary …   Financial and business terms

  • wholly-owned subsidiary — /ˌhəυlli əυnd səb sɪdjəri/ noun a subsidiary which belongs completely to the parent company …   Dictionary of banking and finance

  • wholly-owned — whollˈy owned adjective Describing a company all of whose shares are owned by another company • • • Main Entry: ↑whole * * * ˌwholly ˈowned 7 [wholly owned] adjective (business …   Useful english dictionary

  • partly-owned subsidiary — ➔ subsidiary1 * * * partly owned subsidiary UK US noun [C] FINANCE ► a company of which some of the shares are owned by a larger company: »It is a partly owned subsidiary of the largest telecommunications company in Canada. → Compare WHOLLY OWNED …   Financial and business terms

  • wholly-owned — adj. Wholly owned is used with these nouns: ↑subsidiary …   Collocations dictionary

  • 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

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