Question

In recent decades, Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in a. indirect domestic investment. b. foreign portfolio investment. c. foreign direct investment. d. foreign indirect investment.

Answer 1

B) Foreign portfolio investment.

Foreign Portfolio Investment (FPI) – what is it?

A foreign portfolio investment (FPI) entails the acquisition of overseas financial assets by the investor. Foreign securities are typically traded on formal, established securities exchanges or through over-the-counter market transactions. As a method of portfolio diversification, investing abroad is getting more and more popular. FPIs frequently consist of passively held securities and alternative foreign financial assets held by foreign investors.

What aspects of overseas portfolio investment are there?

• Chances for economic growth.
• Sovereign danger.
• Rate of interest.
• Rates of tax.
• Change in value.

Learn more about Foreign Portfolio Investment (FPI) with the help of the given link:

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