Equity securities,in which the investor owns less than 20% ownership in the voting stock of the investee,can be either trading investments or available-for-sale investments.

Question

Quizplus · Accepted Answer

This statement is true. Equity securities where the investor owns less than 20% ownership in the voting stock can be classified as trading investments or available-for-sale investments based on how they are intended to be held and whether they are actively traded.

Equity Securities,in Which the Investor Owns Less Than 20% Ownership