Which of the following is an example of foreign portfolio investment?
A) Toyota builds a new plant in the north of England.
B) EDF of France buys shares in Scottish & Southern Energy of the UK.
C) Deutsche Bank of Germany buys some new software from a UK supplier.
D) JCB builds a new plant near Manchester.
E) None of these answers.

Question

Quizplus · Accepted Answer

Foreign portfolio investment refers to the purchase of securities, such as stocks or bonds, issued in another country. Option B shows EDF of France buying shares in Scottish & Southern Energy of the UK, which is an example of foreign portfolio investment. The other options involve direct investment in physical assets or the purchase of software, which do not qualify as foreign portfolio investment.

Which of the Following Is an Example of Foreign Portfolio