An affiliated company refers to a business entity wherein one company owns less than a majority of the voting stock of the other, or both entities are subsidiaries of a third company. In banking, it involves organizations that a bank owns or controls through stock holdings, or where the bank's shareholders and officers hold significant control or interlocking directorships.
A principal stockholder is an individual or entity that owns a significant percentage of a company's shares, typically 10% or more, according to the Securities and Exchange Commission (SEC) rules.
A form of reorganization where one corporation acquires at least 80% of another corporation's stock in exchange solely for all or part of its own (or its parent's) voting stock, transforming the acquired corporation into a subsidiary.
A subsidiary company is a firm that is fully or partially owned and controlled by another company, known as the parent company or holding company. The parent company owns more than 50% of the subsidiary's voting stock, giving it control over the subsidiary's operations and strategic direction.
Voting stock refers to shares in a corporation that entitle the shareholder to participate in voting on matters such as electing the board of directors, mergers, acquisitions, and other significant corporate policies.
