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Joint Venture - Definition
Below, you'll find a definition of this investing term...

Definition: When two or more individuals or corporations cooperate in a business venture and agree to split the profits and management.

TeenAnalyst Advice: Joint venture are usually undergone by companies that want to work together but not have to merge.

Joint ventures are separate entities created by the companies (or individuals) and are taxed as partnerships.  This means that the profits are "passed-through" to the original companies, and they will then pay taxes on them.

 

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