Equity security holdings between 20 and 50 percent indicates that the investor has a controlling interest over the investee.

Question

Quizplus · Accepted Answer

An equity security holding between 20 and 50 percent generally indicates a significant influence over the investee, but not necessarily a controlling interest. A controlling interest typically requires at least 50 percent of the equity securities or the ability to control the board of directors or management of the investee.

Equity Security Holdings Between 20 and 50 Percent Indicates That