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Equity stake

Equity stake

An equity stake is a stake in a company in the form of company shares. The person who has a stake in a company is the “stake holder”, “shareholder” or “stock holder”, depending on the type of company. This person has a right to vote (a voice) and a right to profit-sharing. Legal consequences are associated with the level of holdership.

There are “open” and “silent” partnerships. Silent partnerships are not shown in annual financial statements or the commercial register. The silent partner’s liability is limited to his/her stake in the company.