An equity investment is deemed to exist where the investor has acquired an equity instrument,which can be defined as any contract that evidences a residual interest in the assets of an entity after deducting all its liabilities.

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This statement is true. An equity investment refers to the acquisition of an equity instrument, which represents a residual interest in the assets of an entity after deducting all its liabilities. Equity instruments include common shares, preferred shares, and other ownership securities.

An Equity Investment Is Deemed to Exist Where the Investor