Minority Stake

A minority stake refers to owning less than 50% of a company's shares. This means that the stakeholder does not have control over the company’s decisions but has a financial interest in its performance. Often, minority stakeholders may influence company direction through voting rights or strategic partnerships. They might invest in a company expecting it to grow, potentially increasing the value of their investment. However, since they lack majority control, their ability to dictate company policies or changes is limited, relying instead on collaboration with majority shareholders.