When an investor owns less than 20 percent of the investee company,the investor may still be able to exert influence over the investee company if the other stock is

Question

Quizplus · Accepted Answer

When the stock is widely distributed across a large number of individual investors, the investor with less than 20% ownership may still exert influence due to the dispersed nature of the remaining shares, potentially making their stake more significant.

When an Investor Owns Less Than 20 Percent of the Investee