Related-Party Transaction

You own a 40% interest in a company that offers kale-juice enimas. You also own a 90% interest in a kale farm. Not surprisingly, you push your enema firm to buy its kale exclusively from your farm.

That situation epitomizes a related-party transaction. It's a situation where two already-connected parties make a deal. It comes up often when the same ownership group has interests in several different related ventures.