One of our readers reached out to me recently with a really interesting and important question. I took some time to answer the question personally but I’d really like to make sure everyone can be on the same page. In my experience, if one person has a question, ten people had the same question and didn’t ask it yet.
The reader asked: How can Diamond sponsor a NYSCRA event when they were bought by Veritext? Great question. Basically I would break it down like this: When you create a corporation, the state grants that corporation, or the corporation’s founder(s), stock or some form of ownership. When a company buys another company, it becomes a holding company or parent corporation. The company being bought is generally referred to as a subsidiary corporation.
So the subsidiary company still exists as its own company and is free to make its own choices as to what to support. The holding company technically has power over it, but doesn’t have to interfere with its day-to-day operations. The two companies both exist, at least until the holding company dissolves legally or the subsidiary company dissolves legally.
Notably, I have read that Veritext itself is owned by a private equity firm. That’s more or less a company that invests in companies and tries to flip them for profit or sell them out on an IPO, taking the stock from private to public ownership, and hopefully for them getting a payday on their investment and exiting.
I do not know if Diamond made the decision to sponsor the event independently or if Veritext gave them permission, but regardless, we’re always happy to see corporations put some time or money into stenography. As harsh as our opinions can be here on Stenonymous, we do acknowledge the value that corporations have and their place in industry. Many of them may yet show themselves to be huge allies, and hopefully every time they do readers will come out and say hey, you need to acknowledge XYZ. At the same time, we will not hold back from calling agencies out when they’re working against stenographers.
Thank you readers! You help me write with every question or correspondence. On that note, if you have information or documentation related to steno news, feel free to write me at ChristopherDay227@gmail.com.
NCRA just made a really awesome announcement, so look out for that article Monday!