equity-stakes

Vocabulary Word

Definition

'Equity stakes' means you own a part of a company. Like owning shares in a corporation, giving you a stake or an interest in the company.

Examples in Different Contexts

In angel investing, 'equity stakes' are the ownership percentages that angel investors receive in startups in exchange for their early-stage investments. An angel investor might note, 'I typically look for equity stakes that reflect the risk and potential return of my investment in the startup.'

Practice Scenarios

Startup

Scenario:

Our team is doing fantastic work. Maybe we should think about offering them more than just salary, to motivate them further.

Response:

That’s a great idea! Offering equity stakes as part of the compensation could incentivize them to commit long-term.

Business

Scenario:

Our largest competitor just acquired a major equity stake in a promising start-up. We should consider this in our next strategic planning session.

Response:

Indeed, we should examine how this competitor's new equity stakes might impact our market position.