an equity stake

USAGE SUMMARY

The phrase "an equity stake" is correct and usable in written English.
It is typically used in financial or business contexts to refer to ownership in a company or asset, usually expressed as a percentage of the total equity. Example: "Investors are often interested in acquiring an equity stake in startups to benefit from their potential growth."

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

58 human-written examples

Waste Management now holds an equity stake in InEnTec.

The New York Times - Science

I have an equity stake and am part owner.

The New York Times

The executive says he was promised an equity stake in the venture.

The Economist

Mr. Sheen will also have an equity stake in the project.

The New York Times

The sale of an equity stake converts that value into ready money.

The New York Times

M.I.T. also takes an equity stake in companies developed on campus.

The New Yorker

The scientists had an equity stake of 10% and stock options, both extraordinary at the time.

The Economist

In some cases, G.M. expects to take an equity stake in the companies.

The New York Times

Investors who take an equity stake in a hotel project aim for returns of 20 percent.

The New York Times

Jim Carrey took an equity stake in "Yes Man" in exchange for surrendering his upfront pay.

The New York Times

Mr Forster says GM is prepared to sell an equity stake in Opel of 25-50%.

The Economist

Expert writing Tips

Best practice

When discussing company investments or ownership, use "an equity stake" to precisely indicate a financial investment that confers partial ownership.

Common error

Avoid using "an equity stake" when you actually mean debt financing. Equity implies ownership, while debt implies a loan that must be repaid.

Linguistic Context

The phrase "an equity stake" functions as a noun phrase, typically serving as the object of a verb or the complement of a preposition. It denotes a specific form of ownership in a company or asset, as shown in Ludwig's examples, which reflect diverse business contexts.

Expression frequency: Very common

Frequent in

News & Media

65%

Formal & Business

20%

Science

10%

Less common in

Encyclopedias

2%

Wiki

1%

Reference

2%

Ludwig's WRAP-UP

In summary, the phrase "an equity stake" is a common and grammatically correct term used to describe a financial investment that confers partial ownership in a company or asset. Ludwig's analysis and real-world examples confirm its frequent use in professional settings, particularly in business, finance, and news reporting. It's important to use this phrase accurately, distinguishing it from debt financing and other forms of investment that do not convey ownership. Related phrases include "ownership interest" and "shareholding position". As Ludwig AI highlights, this phrase is well-established and consistently used across diverse sources.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

a partial ownership

Clearly indicates that the ownership is not complete or total.

an ownership interest

Highlights the aspect of ownership rather than just a financial investment.

a minority stake

Specifies that the stake is less than 50%, without control over the company.

a shareholding position

Emphasizes the holding of shares, suggesting a more passive investment role.

a stockholding

Similar to shareholding, indicating possession of stock in a company.

a vested interest

Suggests a personal or professional reason for wanting the company to succeed.

a financial participation

Focuses on the financial involvement and benefit derived from the investment.

a capital investment

Highlights the financial investment aspect, rather than the ownership aspect.

a controlling interest

Implies a significant stake that allows influence over company decisions.

a piece of the action

An informal way of referring to a share or stake in a venture.

FAQs

What does "an equity stake" mean in business?

In a business context, "an equity stake" refers to a percentage of ownership in a company. It's typically acquired through investment, entitling the holder to a portion of the company's profits and assets.

How is "an equity stake" different from a loan?

Unlike a loan, which is debt that must be repaid, "an equity stake" represents ownership. The investor becomes a part-owner and shares in the company's risks and rewards, without the guarantee of repayment.

What are some alternatives to saying "an equity stake"?

You can use alternatives like "ownership interest", "shareholding position", or "partial ownership" depending on the context.

Why would a company offer "an equity stake" to investors?

Companies offer "an equity stake" to investors to raise capital without incurring debt. It allows them to fund growth, expansion, or new projects while sharing the potential profits with the investors.