In the two cases mentioned above, the state taking equity is proposed for different reasons, and they carry very different risks. There are at least three rationales for the recent trend of nation-states taking equity in private companies, and more than one might be true for a given instance. The third is public wealth creation, where the state invests in private companies through instruments such as sovereign wealth funds that pay dividends to the state and citizens. State equity also creates multiple conflicting priorities. These do not make state equity a good idea, but they may make it a viable one where it is absolutely necessary.