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Meaning & use

ownership stake

noun·Advancedbusinessfinance

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UK/ˈəʊnəʃɪp steɪk/
US/ˈoʊnərʃɪp steɪk/

Meanings

  1. nouncountablebusinessfinance

    the share of a company or asset that a person or group owns.

    Grammar: Countable: you can have an ownership stake, buy one, or increase one.

    Patterns

    • an ownership stake in something
    • a 30% ownership stake
    • buy/sell an ownership stake
    • increase your ownership stake

    She bought a 15% ownership stake in the startup last year.

    The family still holds an ownership stake in the hotel chain.

    Foreign investors were allowed to take an ownership stake in local banks.

  2. nouncountablebusiness

    the right to a part of something and a say in how it is run.

    Grammar: Often used with 'in' to name the company or project involved.

    Patterns

    • have an ownership stake in something
    • give up an ownership stake
    • a majority/minority ownership stake

    Workers were offered an ownership stake in the cooperative.

    He gave up his ownership stake when the company was sold.

    A minority ownership stake does not usually give you control of the board.

Word forms

pluralownership stakes

Common combinations

a majority ownership stake
The fund now holds a majority ownership stake in the airline.
a minority ownership stake
She kept a minority ownership stake after the merger.
take an ownership stake in
The bank agreed to take an ownership stake in the project.
increase your ownership stake
He increased his ownership stake to 40%.
sell your ownership stake
They plan to sell their ownership stake next year.

Synonyms and how they differ

shareholding
Very close in meaning, but it usually refers to the shares themselves and is more common in British business writing.
equity
A broader finance term for the value of ownership; an ownership stake is the specific portion someone holds.
stake
Shorter and more informal; you often need context to show that it means ownership rather than a bet.

Word family

owner noun
the person who owns something
ownership noun
the state of owning something
own verb
to have something as your property

Commonly confused: ownership stake or controlling interest? ownership stake or stock option?

ownership stake vs controlling interest

A controlling interest means enough shares to control decisions, while an ownership stake can be any size, even very small.

ownership stake vs stock option

A stock option is the right to buy shares later, not ownership you already hold.

Practice

The investment group bought a 25% ______ in the software company.

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