The purchase by an individual or firm of stock or bonds issued in another country is called
A)foreign exchange arbitrage.
B)foreign direct investment.
C)foreign portfolio investment.
D)global stock exchange.
E)international capital formation.

Question

Quizplus · Accepted Answer

Foreign portfolio investment involves the purchase of stocks or bonds issued by foreign companies, whereas foreign direct investment involves the creation or acquisition of a foreign subsidiary. Foreign exchange arbitrage involves profiting from differences in exchange rates, and the other options are not relevant to this scenario.

The Purchase by an Individual or Firm of Stock or Bonds