A joint venture is a business arrangement where two or more parties combine resources to run a specific enterprise. Each contributes capital or assets, shares risks and returns, and typically retains separate ownership while jointly managing the venture’s strategy and operations.

A stake reduction occurs when a company or investor lowers its percentage ownership in another business. This can happen by selling shares to existing partners, new investors, or in public markets, thereby changing control, influence, and future profit participation.

A demerger is a corporate action where a company separates a division or business unit into an independent entity. Shares in the new company may be distributed to existing shareholders, enabling clearer strategic focus, standalone management, and potentially separate stock exchange listings.

Valuation is the process of estimating a company’s worth using methods like discounted cash flow, comparable company analysis, or precedent transactions. It informs investment decisions, stake sales, mergers, and financing by indicating enterprise value or equity value at a given time.

A sovereign wealth fund is a state-owned investment fund that deploys national reserves across assets like equities, private equity, real estate, and infrastructure. Its goals typically include long-term capital growth, diversification of national income, and stabilizing public finances.