Definition of JV

junior varsity

Keep scrolling for more

More Definitions for JV

Financial Definition of JV

What It Is

A joint venture (JV) is a project or enterprise in which multiple companies or individuals invest. Participants usually share equally in the project's direction and profits.

How It Works

If two or more parties think they can mutually benefit from an entrepreneurial opportunity, they may enter into a joint venture (JV). In a JV, all interested parties take a stake in the project by contributing capital (sometimes known as putting "skin in the game").

For example, suppose Company ABC and Company XYZ agree that Project P will be profitable. Project P requires an initial investment of $10,000. The companies agree to create a JV, and each pledgs $5,000 in funding (50% each). If Project P generates $1,000 in earnings in year 1, each company gets $500.

Why It Matters

Joint venture participants collaborate in the project's planning, execution and management. Participants also share in the profits the project generates according to how much capital they invested. It's important to note that participants in a JV are also responsible for any project losses. Earnings from a JV are generally taxed similar to a partnership.

Source: Investing Answers

Comments on JV

What made you want to look up JV? Please tell us where you read or heard it (including the quote, if possible).


marked by turns or indirection

Get Word of the Day daily email!

Test Your Vocabulary

Summer 2019 Words of the Day Quiz

  • a-bowl-of-peach-sorbet-with-cut-peaches-next-to-it
  • Which is a synonym of desideratum?
How Strong Is Your Vocabulary?

Test your vocabulary with our 10-question quiz!


Test Your Knowledge - and learn some interesting things along the way.

Love words? Need even more definitions?

Subscribe to America's largest dictionary and get thousands more definitions and advanced search—ad free!