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Stake


A stake in an entity is partial ownership or a position that entitles its holder to gain when the entity achieves good results. In a specific context, a stake is the amount of stock (or equity holdings) an investor owns/ holds in an entity, representing the percentage of the stock or holdings to the overall number of stocks or amount of equity (on a proportional basis).

A stake may extend to denote an amount of money a person (or an entity) stands to lose when efforts or a venture/ undertaking fails to achieve desired results or doesn’t perform as per set plans. In this context, it may also imply the risk of loss (of money invested or endeavors, etc.)

In short, stake has many meanings, depending on context, including money invested in a business or an ownership share or control (as a percentage, e.g., 51% stake) in a business or non-business, etc., or money risked for a certain purpose.



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Accounting is the language of business, everywhere, worldwide. It is the means by which virtually every business communicates information about its operations, irrespective of size, scale, objectives, ...
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