Investor Glossary-majority ownershipInvestor Glossary-majority ownershipInvestor Glossary-majority ownershipInvestor Glossary-majority ownershipInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Majority Ownership

The HTML to link to this page
 

Majority ownership is ownership of 50% or more of another company's shares, or sufficient holdings that gives one company control of another company's activities. When a (parent) company has majority ownership of a (subsidiary) company, the subsidiary must be consolidated on the parent company's financial statements. In other words, if there is majority ownership of a subsidiary, the parent company and the subsidiary are treated as one company for reporting purposes. Under the accounting rule SFAS 94, there are only two exceptions to the consolidation requirement for majority ownership. First, if control of the subsidiary is expected to be only temporary, the consolidation rule for majority ownership does not apply. Second, if the parent company has majority ownership but does not control the subsidiary's operations, the majority ownership rule does not apply. An example of the second exception would be when a company has majority ownership of a foreign subsidiary but cannot repatriate its earnings.



Rate this majority ownership definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: quality assurance, minority interest, command economy, Zero Cost Collar, APR, annual return, Key Rate Duration, average price per share, ex-dividend date, phantom income, risk management, in escrow, EBITDA, diluted share, option premium, cancelled check, covered put, required rate of return, labor relations, VIX, balance sheet, current ratio, LIBOR, real GDP, 401a, debt service coverage, 1031 exchange, margin rate, 144a, liquidity ratio, class C shares, wholly-owned subsidiary, deferred tax, irrevocable trust, 1035 exchange, stock market close, deferred revenue, implied volatility, reverse mortgage, retained earnings, dividends payable, inflation, stock split, open position, limit order, ex-dividend, FICO score, FTSE, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use