International debt security purchases and sales are defined as portfolio investments for financial account purposes because by definition debt securities do not provide the buyer with ownership or control.

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Debt securities represent a form of lending and do not imply any ownership or control over the issuer's assets or operations. Therefore, purchases and sales of international debt securities are classified as portfolio investments in the balance of payments, which refers to transactions that involve the purchase or sale of stocks, bonds, and other financial assets for investment purposes, rather than for controlling or managing businesses.

International Debt Security Purchases and Sales Are Defined as Portfolio