The purchase by an individual or firm of stock or bonds issued in another country is called
A)foreign exchange arbitrage.
B)foreign direct investment.
C)foreign portfolio investment.
D)global stock exchange.

Question

Quizplus · Accepted Answer

Foreign portfolio investment refers to the purchase of stocks or bonds in another country by an individual or a firm. Foreign exchange arbitrage refers to the practice of buying and selling currencies with the aim of making profits from discrepancies in exchange rates. Foreign direct investment involves the acquisition of a controlling interest in a foreign company or the establishment of a new business venture in a foreign country. Global stock exchange is not a term that specifically refers to the purchase of stocks or bonds in another country, but rather a hypothetical concept of a unified global stock market.

The Purchase by an Individual or Firm of Stock or Bonds