special-purpose vehicle

special-purpose vehicle definition - finance
A subsidiary or an affiliated business that conducts a specific activity that is crucial to the parentÂ’s business. The SPV is designed to protect the parent corporation from the accounting, tax, or regulatory consequences of the SPVÂ’s activities. Often, SPVs are used for financial transactions, such as keeping debt or risky business ventures away from the parent company. Also called a special-purpose entity.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.