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.{C}{C}

BREAKING DOWN '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. Loose Credit

    Loose credit is the practice of making credit easy to come by, ...
  2. Conglomerate Merger

    A merger between firms that are involved in totally unrelated ...
  3. Denomination

    A denomination is the stated or face value of financial instruments ...
  4. Buy, Strip And Flip

    A buy, strip and flip occurs when a private equity firm buys ...
  5. Merger Deficit

    An accounting term used to describe the situation when the total ...
  6. Sovereign Bond

    A sovereign bond is a debt security issued by a national government ...
Related Articles
  1. Investing

    Understanding Japanese Keiretsu

    The structure of major companies in Japan is steeped in tradition and relationships.
  2. Insights

    Conglomerates: Cash Cows or Corporate Chaos?

    Huge companies may not be as infallible as previously assumed. Find out why bigger isn't always better.
  3. Insights

    Conglomerates: Risky Proposition?

    Investing in a corporate giant may not be as safe as you think.
  4. Investing

    Before Verizon, AOL Tried for Google, FB Deals

    AOL had reached out to Google and Facebook about a deal before agreeing to be sold to Verizon.
  5. Small Business

    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
  6. Insights

    Silicon Valley’s Highest Paying Companies (FB, TWTR)

    Home to startups transformed into global tech forces, Silicon Valley offers six-figure median total compensation salaries in the ever-changing tech sector.
  7. Investing

    The Biggest Companies in Silicon Valley (AAPL, GOOGL)

    Understand what types of companies are the most successful in Silicon Valley. Learn about the top six largest Silicon Valley companies by market cap.
  8. Investing

    The Top 3 ETFs to Track the TOPIX for 2016 (JPXN, EWJ)

    FInd the best ETFs that investors can use to obtain exposure to Japanese equities by tracking one of the major Japanese equity market indexes in 2016.
  9. Investing

    Private Equity Deals Leading M&A Wave in Japan

    Sumo Wrestlers: Private equity firms are now heavyweight dealmakers in Japan
  10. Managing Wealth

    Put Option Basics

    Put option allow investors to hedge an investment they own or speculate in an investment they don't own. Find out more about this type of option and how it can work in an investor's favor.
RELATED FAQS
  1. Can anyone own common stock in a company?

    Understand who can purchase common stock as well as the key characteristics that differentiate common stock from preferred ... Read Answer >>
Hot Definitions
  1. Working Capital

    Working capital, also known as net working capital is a measure of a company's liquidity and operational efficiency.
  2. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  3. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  4. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  5. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  6. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
Trading Center