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Originally posted by soup sandwich
Can anyone explain to me why companies often will acquire 19.9% of another business's shares? What happens when the 20% threshhold is crossed?
Please type very slowly when you answer as I recieved only a C+ in Business Law.
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Someone who actually knows something can elaborate, but I believe that 20% ownership can trigger certain legal obligations in some countries as it is regarded as a "controlling" interest. In the U.S. 10% ownership leads to various SEC filing requirements.
