When the purchase of voting stock in a corporation becomes _____________,the United States government considers such investment by a foreign entity as direct investment

Question

Quizplus · Accepted Answer

The United States government considers the purchase of voting stock in a corporation by a foreign entity as direct investment when it becomes more than 10%. This threshold is used to distinguish between direct investment, which implies a degree of control or significant influence over the management of the corporation, and portfolio investment, which is purely for financial return without any control.

When the Purchase of Voting Stock in a Corporation Becomes