Portfolio investments represent transactions involving long-term financial assets (such as stocks and bonds) between countries that do not affect the transfer of control.

Question

Quizplus · Accepted Answer

Portfolio investments do not involve the transfer of control, as opposed to foreign direct investments. They are typically made to generate a financial return but do not imply an active management or decision-making role in the invested company.

Portfolio Investments Represent Transactions Involving Long-Term Financial Assets (Such as Stocks