What is the classification for equity investments with ownership between 20% and 50%?

The correct classification for equity investments with ownership between 20% and 50% is significant influence. This classification arises because owning between 20% and 50% of a company's voting stock typically allows the investor to exert significant influence over the company's operating and financial policies, even though it does not provide full control.

Under generally accepted accounting principles (GAAP), this level of ownership indicates that the investor can impact decisions, participate in decisions regarding dividends, and potentially influence management, which is why it is categorized as significant influence. This often leads to the use of the equity method for accounting these investments, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's earnings or losses.

In contrast, classifications such as passive interest, full control, and controlling interest do not accurately describe the implications of owning a stake within this percentage range. "Passive interest" typically refers to ownership stakes below 20%, while "full control" and "controlling interest" refer to ownership exceeding 50%, where the investor has the power to dictate policies and make decisions for the company.