The purchase of more than ten percent of the shares of a foreign company is known as a(n)

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The purchase of more than ten percent of the shares of a foreign company is known as foreign direct investment (FDI). This involves a long-term relationship between the investor and the company, with the investor having a significant level of control and influence over the operations of the company. Portfolio investment, on the other hand, involves the purchase of less than ten percent of the shares of a foreign company and does not involve a significant level of control or influence. The International Monetary Fund (IMF) and World Bank do not make direct investments in foreign companies.

The Purchase of More Than Ten Percent of the Shares