A minority interest in a foreign venture from which income is .derived in the form of dividends. In contrast with direct investment, a portfolio investment position does not convey significant control over the management or operations of the foreign firm.
This is investment which goes into the financial sector in the form of treasury bonds and notes, stocks, money market placements, and bank deposits. Portfolio investment involves neither control of operations nor ownership of physical assets. Portfolios may include equity, but portfolio investors usually do not get involved in operations. Portfolio investment is typically of a more speculative nature, responding quickly to higher returns offered elsewhere as well as to higher risks in the host economy.
an investment in stock, bonds mandatorily convertible into stock and other securities registered in the National Registry of Securities
Investment in stocks and bonds. Such investments can be quickly withdrawn from foreign investments.
Stock and bond purchases that, unlike direct investment, do not create a lasting interest in or effective management control over an enterprise. See foreign direct investment.
In general, any foreign investment that is not direct investment is considered portfolio investment.
refers to the purchase of foreign stocks, bonds or other securities. In contrast to FDI, foreign portfolio investors have no controlling interest in the investment, which is typically a short-term one. The relative ease with which portfolio investment can enter and exit countries has been a major contributing factor to the increasing volatility and instability of the global financial system.
Investment by investors who are not interested in taking an active part in the management of a company.... more on Portfolio investment
Any foreign investment which is not a foreign direct investment. Foreign portfolio investments include assets such as voting securities (stocks) in a foreign company (provided these remain below 10% of the total value of the company’s shares), foreign bonds, provision of trade finance, government lending, etc. Français: Investissement de portefeuille Español: Inversión de cartera
Purchasing a non-controlling interest in a foreign entity with the purposes of earning income from divedends.
In investment, the collective term for all the securities held by one person or institution.
Portfolio investment represents passive holdings of securities such as foreign stocks, bonds, or other financial assets, none of which entails active management or control of the securities' issuer by the investor; where such control exists, it is known as foreign direct investment.
