Equity securities in which the investor owns less than 20% ownership in the voting stock of the investee generally can be classified as ________ equity investments.

Question

Quizplus · Accepted Answer

Equity securities where the investor owns less than 20% of the voting stock are generally classified as having "no significant influence" over the investee. Significant influence is typically presumed if the investor owns 20% or more of the voting stock.

Equity Securities in Which the Investor Owns Less Than 20