Affiliate

Barron's Finance & Investment Dictionary:

Affiliate

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In general: two companies are affiliated when one owns less than a majority of the voting stock of the other, or when both are subsidiaries of a third company. A subsidiary is a company of which more than 50% of the voting shares are owned by another corporation, termed the Parent Company. A subsidiary is always, by definition, an affiliate, but subsidiary is the preferred term when majority control exists.
In everyday use, affiliate is the correct word for intercompany relationships, however indirect, where the parent-subsidiary relationship does not apply.

Banking Act of 1933: any organization that a bank owns or controls by stock holdings, or which the bank’s shareholders own, or whose officers are also directors of the bank.

Internal Revenue Service: for purposes of consolidated tax returns an affiliated group is composed of companies whose parent or other inclusive corporation owns at least 80% of voting stock.

Interstate Commerce Commission, Account 706: 1. Controlled by the accounting company alone or with others under a joint agreement.

2. Controlling the accounting company alone or with others under a joint agreement.

Investment Company Act: company in which there is any direct or indirect ownership of 5% or more of the outstanding voting securities.

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affiliate

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Home > Library > Business & Finance > Marketing Dictionary

1.independently owned radio or television station that has a contractual agreement with a network to devote a portion of its broadcast time to programs originated by that network. The network offers the programming in exchange for commercial time, which can then be sold to a national advertiser. With a string of affiliates strategically positioned throughout the country, a network can offer advertisers wider viewing audiences and thus attract national corporations with large advertising budgets.

2.company that partners with other companies for marketing purposes. On the Internet, an affiliate creates a link from its web site to an affiliate's site. The originating web site earns a commission on any sales made via those links. Affiliate marketing works best for mass appeal products. Amazon.com has thousands of affiliate sites to sell books. Affiliate relationships are also a common component of loyalty programs. For example, a supermarket frequent-buyer program might offer hotel discounts or fast-food meal upgrades.

Investopedia Financial Dictionary:

Affiliate

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Home > Library > Business & Finance > Investment Dictionary

A type of inter-company relationship in which one of the companies owns less than a majority of the other company's stock, or a type of inter-company relationship in which at least two different companies are subsidiaries of a larger company.

Investopedia Says:
For example, let's say BIG Corp. owns 40% of MID Corp.'s common stock and 75% of TINY Corp. In this case, MID Corp. and BIG Corp. have an affiliate relationship, and TINY Corp. is BIG Corp.'s subsidiary.

However, note that for the purposes of filing consolidated tax returns, IRS regulations state that a parent company must possess at least 80% of a company's voting stock in order to be considered affiliated.

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