Significant influence

Significant influence

The holding of a large portion of the equity of a corporation, usually at least 20%, which gives the holder a significant amount of control over the corporation. This degree of holding must be recorded in a firm's financial statements.

Significant Influence

The state of holding a substantial minority stake in a publicly-traded company such that one does not have outright control but is still a major player in the company's decisions. Usually, an investor is considered to have significant influence if he/she has at least a 20% holding in the company. One has significant influence because the number of voting shares gives one virtual veto power over company decisions, particularly when other stockholders are closely divided. These investors must be listed on the company's financial statements.