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Legal Definitions - financial interest

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Definition of financial interest

Definition: Financial interest refers to any advantage or profit of a financial nature that a person desires. It can also refer to a legal share or right in property.

Examples:

  • A person who invests in a company's stock has a financial interest in the company's success.
  • A landlord has a financial interest in collecting rent from their tenants.
  • A beneficiary of a trust has a financial interest in the assets held in the trust.

These examples illustrate how a person can have a financial interest in various situations. In each case, the person stands to gain financially from the outcome of the situation.

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Simple Definition

A financial interest is when someone wants to make money or gain some kind of financial benefit. It can be a legal claim to something, like owning part of a company or property, or it can be a right to receive money from something like a trust. There are different types of financial interests, like a controlling interest where someone owns more than half of a company and can make important decisions, or a contingent interest where someone can only get money if a certain condition is met.

The difference between ordinary and extraordinary is practice.

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