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    Shares and control

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    What if the percentage is less than 40%? Could a company still exercise significant control? Why or why not?

    Note: The percentages meaning the situation where a large company would purchase substantial stock of another to have some control over it.

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    Solution Preview

    This really depends on whether they own voting shares and how many voting shares other companies own. For example, if no other company owns more than 40% of the shares (i.e. two other companies own 20% ...

    Solution Summary

    Owning 40% and exercising control in a company is examined.