What Is an Affiliate?

Affiliate is used primarily to describe a business relationship between wherein one company owns less than a majority stake in the other company’s stock. Affiliations can also describe a type of relationship in which at least two different companies are subsidiaries of the same larger parent company.

The term affiliate is also used in the retail sector. In this case, one company becomes affiliated with another in order to sell its products or services, earning a commission for doing so.

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