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 corporate acquisitions, 'equity stakes' refer to the portions of a company purchased by another company or investor. A corporate strategist might say, 'Acquiring majority equity stakes in strategic partners allows us to expand our market presence and operational capabilities.'

Practice Scenarios

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.

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.