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Parent Company

A parent company is a company that owns enough voting stock in another firm to control management and operation by doing and influencing or electing its board of directors. In the case of multinational companies the parent company can be in a different geography and there can be more “layers” of parent companies, in which case we refer to an Ultimate Parent company (e.g. an EMEA division can ben parent of all the European based subsidiaries, but the global HQ and ultimate parent might be in USA).