vested interest

noun
Updated on: 14 Nov 2017

Definition of vested interest

1 :an interest (such as a title to an estate) carrying a legal right of present or future enjoyment; specifically :a right vested in an employee under a pension plan
2 :a special concern or stake in maintaining or influencing a condition, arrangement, or action especially for selfish ends
3 :one having a vested interest in something; specifically :a group enjoying benefits from an existing economic or political privilege

Examples of vested interest in a Sentence

  1. She has a vested interest in seeing the business sold, as she'll make a profit from the sale.

Recent Examples of vested interest from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'vested interest.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of vested interest

1818


Financial Definition of VESTED INTEREST

vested interest

What It Is

A vested interest is a right of ownership which is not dependent on something else.

How It Works

When a possession, ownership interest or the use of tangible property is present and unencumbered by any conditions, it is known as a vested interest.  The clear and unencumbered interest is not reliant or contingent on anything other conditions or events.  For example, a vested interest can mean stock or options that are transferred and available to the recipient.  A vested interest in real estate means the owner of the property.  A vested interest in a pension plan, for example, may mean that the employee is qualified to take the benefits of the pension plan, including the contributions by the employer.

Why It Matters

A vested interest in tangible property represents an important asset on a company's or personal balance sheet.  Understanding the conditions of a potential borrower's vestment (i.e. establishing a vested interest) in a particular asset is an important part of the due diligence process for a creditor.


VESTED INTEREST Defined for English Language Learners

vested interest

noun

Definition of vested interest for English Language Learners

  • : a personal or private reason for wanting something to be done or to happen


Law Dictionary

vested interest

legal Definition of vested interest

see interest 1

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