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Words in Business News
By Jon Fernquest

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[Thai Economics Library | Archives (for history)]
May 21, 2007

Stake, Stakeholder

a stake in x (noun) -

i. Percentage of a business that a person owns
ii. Losing or gaining depending on whether x fails or succeeds
iii. Amount of money to be won or lost in a gamble

stake x on y (verb) - use x for y and risk losing x if y fails (gamble x on y)

stakeholder in x (noun) - a person who has a stake in x

[Note: Owners are the most obvious stakeholders in a business. Recently, other participants in businesses such as employees, creditors, customers, or society at large have become more important in corporate governance. In reaction to this private equity often delists businesses from stock exchanges with public information requirements. This takes the business out of the public eye, reduces the number of stakeholders and, for better or worse, makes business decision making a lot easier. Read this recent Bangkok Post article on private equity in the world hotel industry.]

high stakes
low stakes
a controlling stake
a significant stake
a financial stake
an equity stake
a minority stake
have a stake in

at stake
play for stakes
increase the stakes

buy a stake in
sell a stake


Example sentences:

* Tycoons always play for high stakes.

* In this upcoming business deal his reputation is at stake.

* No foreign investor was allowed to acquire more than a 14% stake in a bank.

* By arresting the opposition parties top leader, the government and the army have raised the stakes in the ongoing political conflict.

* The political stakes of the upcoming election will be the highest they've been in years.

* He has staked his political future on a victory in the coming election.

* "You know too well what is at stake to refuse the difficult fate that we must endure."

* He's selling his 30% stake in the hotel for a pittance.

* Last year Microsoft took a stake in the small startup which sent its share price soaring.

* The large conglomerate is seeking a majority stake in the company.

* There is a lot at stake in the upcoming court decision on the fate of the two political parties.

* Given the money at stake of course they are taking a long time to make their decision.

* With so much at stake, it's not surprising that both sides are dumping money into big PR campaigns.

* There is no compelling economic interest at stake that should compel the country to enter the conflict.


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