A U.S.citizen buys a newly issued share of stock in England,paying for his order with a check,which the British company deposits in its own U.S.bank account in New York.How is this transaction accounted for in the balance of payments?

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This transaction involves a U.S. citizen purchasing a foreign asset (newly issued stock in England), therefore it is categorized as a financial account transaction. Additionally, since the U.S. citizen is paying for their purchase with a check from a U.S. bank account, the funds are ultimately leaving the U.S. and going to the British company's U.S. bank account in New York, which constitutes a U.S. asset export.

A USCitizen Buys a Newly Issued Share of Stock in England,paying