I, for one, wonder if this operation would have been undertaken if current management had a significant ownership interest in their company and they were forced to treat all shareholders equally. (longtermvalue.wordpress.com)
In exchange for the investment, the shareholders receive ownership interests in the company. (lawtrades.com)
I was just using a bit of mental shorthand to imply that when management has a large ownership interest in the company (here I stretched the definition of to become high % of insider ownership) they usually have a large amount of their wealth tied to the outcome at that company. (longtermvalue.wordpress.com)