The equity method is an accounting technique used to report investments in equity securities, such as stocks, where the investor has significant influence but not control over the investee. Under the equity method, the investor recognizes its share of the investee's net assets and earnings in its financial statements, typically as a single line item in the income statement. The equity method requires periodic adjustments to reflect changes in the investee's financial position and performance. It is commonly used for long-term investments in joint ventures, associates, or subsidiaries, where the investor holds between 20% and 50% of the investee's voting shares. The equity method provides investors with a more accurate representation of their economic interest and influence in the investee's operations compared to other accounting methods.