Acquisition

Acquisition refers to the act of one company purchasing more than 50% shares of another
company by the virtue of which the purchaser company can influence management decisions
of the acquired company and exercise its voting rights, wherever necessary.
Parent company
A parent company is a company that owns more than 50 percent of the stock of another
company, thereby, exerting its influence on its management. The business operations of the
parent company and the company under its control need not be the same.
Subsidiary company
A subsidiary company is a company that is controlled or influenced by another company
through the act of ownership of more than half of its shares. The company owning up is
called a parent company if it has some other business operations and is called a holding
company if its only objective is to own other companies as subsidiaries.
Common stock:

Common stock refers to the ownership shares of shareholders in a corporation presenting them an
opportunity to exercise their voting rights and receive dividends. At the same time, the common
stockholders enjoy a low level of liquidation preference as all the secured and unsecured creditors
followed by preferred stockholders are paid first, in case the corporation folds up.

Par value:

A par value is the face value of a stock referring to its per unit share price
stated by the company; though the stock’s market value may be different.
Legally, it is an assurance that individual units of a stock cannot be traded
below their par value.

Paid in capital

Paid-in capital or contributed capital refers to the exchange price of the stock
that the investors have to pay directly to the issuing company upon purchase.
The price exchanged would comprise both the par value of the stock and any
additional amount, in the form of cash or other assets, paid by the investors
to purchase the stock above its par value.