Syndicate Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Syndicate, written in plain English, along with examples of how it is used.
What is Syndicate?
It is a joint venture by a group of people with common interest in order to achieve certain goals and target. It can be anything from an association of business people or association of criminals or a group of common people who have certain aims, which after they fulfill it, they can cease to exist as a syndicate or joint venture. It is specifically appropriate for business and media community.
History and Meaning of Syndicate
The term "Syndicate" originated from Greek word, syndikos, which meant "caretaker of government funds". Over time, the term evolved to refer to a group of individuals who work together to achieve a common goal. A syndicate can be formed by business people, criminals, or ordinary people who share similar goals.
In the business world, a syndicate is commonly formed to undertake a particular venture that requires a large investment amount, such as buying a large company or acquiring a valuable asset. A syndicate provides a mechanism for sharing the risks and benefits of such a venture among the participants.
Examples of Syndicate
- A group of business tycoons forming a syndicate to acquire a large corporation.
- A group of investors pooling their funds to invest in a high-risk venture, such as a start-up company.
- A group of criminals forming a syndicate to engage in illegal activities, such as drug trafficking or organized crime.
- A group of friends forming a syndicate to participate in a lottery, with the agreement that they will split the winnings equally if one of them wins.
Legal Terms Similar to Syndicate
- Partnership: A legal entity where two or more individuals carry out business activities together and share profits and losses as per an agreed upon agreement.
- Joint venture: A contractual agreement between two or more parties to carry out a specific business project or venture.
- Consortium: A group of individuals or organizations that work together to achieve a common goal.