Portfolio investment is the net balance of capital that flows in and out of the United States,but does not reach the 10 percent ownership threshold of direct investment.

Question

Quizplus · Accepted Answer

This is correct as per the definition of portfolio investment, which includes investments made in securities (e.g. stocks, bonds) and other financial assets, but not significant enough to result in control or management of the investment.

Portfolio Investment Is the Net Balance of Capital That Flows