passive stake

Definition

noun
a shareholding where the shareholder takes no active part in running the company

Use passive stake in a sentence

You may want to try and take on a passive stake if you are not fully prepared to get deeply invested

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He had passive stake and he did nothing with the company really and had no active part in what happened with it.

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After my brother's startup company appeared to become successful, he surprised us all by granting us a small passive stake in the company so we could profit when it went public.

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passive market-making pass-through