The acquisition of more than 10 percent of the outstanding shares in a company in another country is

Question

Quizplus · Accepted Answer

When a company acquires more than 10 percent of the outstanding shares in another country, it is considered foreign direct investment (FDI) rather than portfolio investment. FDI refers to the acquisition of assets and control of operations in a foreign country, whereas portfolio investment involves simply buying stocks or bonds without seeking control. Therefore, option A is the best choice.

The Acquisition of More Than 10 Percent of the Outstanding