Equity Stake

An equity stake represents ownership in a company. When you hold an equity stake, you're essentially a partial owner, which entitles you to a share of the company's profits and possibly voting rights on major decisions. The size of your stake depends on the percentage of the company's shares you own. This ownership interest can increase in value if the company performs well, offering the potential for financial gains. Equity stakes are common in investments like stocks or ownership arrangements in startups, aligning your interests with the company's success.