Keiretsu

AAA

DEFINITION of 'Keiretsu'

A Japanese term describing a loose conglomeration of firms sharing one or more common denominators. The companies don't necessarily need to own equity in each other.

INVESTOPEDIA EXPLAINS 'Keiretsu'

This term has been in the news every now and then, especially when they talk about Silicon Valley. One example would be the close relationship between AOL and Sun Micro. The two firms don't have ownership in each other, but they work closely on various projects.
RELATED TERMS
  1. Chaebol Structure

    A business conglomerate structure that originated in South Korea ...
  2. Strategic Alliance

    An arrangement between two companies that have decided to share ...
  3. Kaizen

    A philosophy that sees improvement in productivity as a gradual ...
  4. Joint Venture - JV

    A business arrangement in which two or more parties agree to ...
  5. Partnership

    A business organization in which two or more individuals manage ...
  6. Silicon Valley

    A part of the San Francisco Bay Area that is known for the many ...
RELATED FAQS
  1. What is the difference between a green field and a brown field investment?

    Green-field and brown-field investments are two different types of foreign direct investment, or FDI. Green-field investments ... Read Full Answer >>
  2. Why is the 1982 AT&T breakup considered one of the most successful spinoffs in history?

    AT&T had a history reaching back to 1885 and, as a government-supported monopoly, was a highly profitable company. Colloquially ... Read Full Answer >>
  3. Why is Frank Quattrone credited with contributing to the growth of the dotcom bubble?

    Frank Quattrone was one of the most powerful figures during the dotcom bubble. He was one of the first investment bankers ... Read Full Answer >>
  4. What are the differences between affiliate, associate and subsidiary companies?

    All three of these terms refer to the degree of ownership that a parent company holds in another company. In most cases, ... Read Full Answer >>
  5. Are domestic and foreign subsidiaries included on a company's financial statements?

    A subsidiary is a company that is controlled by another 'parent' company. The subsidiary acts and operates like its own entity ... Read Full Answer >>
  6. How do businesses decide whether to do FDI via green field investments or acquisitions?

    When businesses decide to expand their operations to another country, one of the more important dilemmas they can face is ... Read Full Answer >>
Related Articles
  1. Bonds & Fixed Income

    Dragons, Samurai Warriors And Sushi On Wall Street

    From samurai to sushi, there's no denying the East Asian influence on investing terminology.
  2. Insurance

    Understanding Japanese Keiretsu

    The structure of major companies in Japan is steeped in tradition and relationships.
  3. Investing Basics

    Understanding Related-Party Transactions

    In business, a related-party transaction refers to a transaction where parties on both sides have a common interest or relationship.
  4. Professionals

    Top 5 Coding Camps To Launch Your Career

    If you have been following the NASDAQ over the past few years then you know that the technology sector has been on fire. This is great news for anyone looking to land a job at a technology company. ...
  5. Economics

    What are Deliverables?

    Deliverables is a project management term describing an object or function that must be provided or completed by a certain due date.
  6. Economics

    What Happens in a Carve-Out?

    A carve-out happens when a corporation isolates part of its business and shares those profits with a third party.
  7. Investing News

    Apple’s New Business: Bonds

    Apple and Oracle are using their massive cash piles to buy up corporate debt. With bond markets looking increasingly rickety, what effect could this have?
  8. Markets

    Indian Tech Startups Eye The Future With Visual Recognition

    Using visual recognition technology, Indian tech companies are hoping to help online merchants close more sales from consumers who are on mobile devices.
  9. Entrepreneurship

    Why Is Silicon Valley A Startup Heaven?

    Silicon Valley persists as a primary destination for tech startups. Investopedia explores why it is beneficial to start a tech business in Silicon Valley
  10. Investing Basics

    What is a Minority Interest?

    A minority interest is an ownership or equity interest of less than 50% of an enterprise.

You May Also Like

Hot Definitions
  1. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  2. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  3. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  4. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
  5. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  6. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!