Portfolio investment refers to:
A) changes in Canadian holdings of noncontrolling equity in foreign companies
B) changes in Canadian holdings of controlling equity in foreign companies
C) changes in foreign holdings of controlling equity in Canadian companies
D) changes in foreign holdings of controlling stock in Canadian companies

Question

Quizplus · Accepted Answer

Portfolio investment refers to investments where the investor does not have a controlling ownership in the company. Therefore, changes in Canadian holdings of noncontrolling equity in foreign companies (Option A) is the best choice. Options B, C, and D refer to investments where the investor has controlling ownership, which falls under the category of foreign direct investment.

Portfolio Investment Refers To