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The legal definition of "affiliate" applies to business and retail relationships. Affiliates are organizations, individual persons, or business concerns that are controlled by a third party or each other.
Simply put, affiliate programs, also called associate programs, are arrangements in which an online merchant Web site pays affiliate Web sites a commission to send them traffic. These affiliate Web sites post links to the merchant site and are paid according to a particular agreement.
In the case of corporate, securities and capital markets, the Securities and Exchange Commission (SEC) puts forth this definition of an affiliate: an affiliate is "a person or entity directly or indirectly controlling, being controlled by, or under common control with" another person or entity.
Business affiliation refers to a relationship between two companies, where one has the power to control the other. That is achieved by having a stake in the ownership of a company, in the form of stock. It should be noted that business affiliation implies owning less than 50% of the voting stock.