Words of the Week – skin in the game

skin in the game
image: Shearn-408 posted on flickr.com by Ben Shearn

A term coined by renowned investor Warren Buffett referring to a situation in which high-ranking insiders use their own money to buy stock in the company they are running.

Investopedia Says: The idea behind creating this situation is to ensure that corporations are managed by like-minded individuals who share a stake in the company. Executives can talk all they want, but the best vote of confidence is putting one’s own money on the line just like outside investors!

Thanks to answers.com for this one…

Author: Grayson Leverenz

Grayson Leverenz founded MBA in the USA® to help international students build networks, find jobs, and have fun in the USA. Hundreds of global professionals have benefited from Grayson’s intercultural workshops, and she has worked with people from Brazil, China, India, South Africa, South Korea, the UK, and the USA to build effective virtual teams and craft brilliant careers.

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