Maxwell, a German citizen, just purchased 100 shares of stock in Ford Motor Company, an American company. This purchase is an example of:

Question

Quizplus · Accepted Answer

This purchase by Maxwell is an example of foreign portfolio investment, as he has invested in a portfolio of stocks in an American company, rather than directly investing in the company itself (foreign direct investment). It is also not a form of foreign public investment or contractual globalisation.

Maxwell, a German Citizen, Just Purchased 100 Shares of Stock