A stock purchase in a foreign company that entailed substantial control over that foreign company would be designated a

Question

Quizplus · Accepted Answer

A purchase of a substantial stake in a foreign company that grants the investor significant control over its operations is considered a direct investment. This is because the investor is actively involved in the management of the foreign company, rather than simply holding a passive investment in its stock (which would be a portfolio investment). Remittances and unilateral transfers are unrelated to this scenario.

A Stock Purchase in a Foreign Company That Entailed Substantial