Question

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. A. no significant influence B. ​held-to-maturity C. significant influence D. controlling interest

Answer 1

A. no significant influence

Step-by-step explanation:

Equity securities are investment in stock that is held by an individual. It determines control over the company's operational activity.

When a person has less than 20% ownership of equity securities it is considered no significant influence and the holdings are classified as investment.

Significant influence is when an individual owns more than 20% of equity securities. They have voting rights and some control of operational decisions of the company.

Controlling influence bis when ownership is above 50%. The owner holds majority shares of the company