The purchase of less than 10 percent of the shares of ownership in a foreign company is referred to as a

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The purchase of less than 10 percent of the shares of ownership in a foreign company is referred to as a portfolio investment. This type of investment does not involve direct control or management of the company, and the investor typically seeks to generate returns through dividends, stock appreciation, or currency exchange rate changes. Foreign direct investment (B) typically involves the acquisition of a controlling interest (10 percent or more) in a foreign company and the establishment of a long-term relationship, while foreign indirect investment (C) may refer to investment in foreign securities such as bonds or mutual funds. Negligible investment (D) is not a commonly used term in the context of foreign investment.

The Purchase of Less Than 10 Percent of the Shares