In recent decades, Americans have increased their purchase of stocks of foreign-based companies. The Americans who have bought these stocks were engaged in
A)foreign portfolio investment.
B)indirect domestic investment.
C)foreign direct investment.
D)foreign indirect investment.

Question

Quizplus · Accepted Answer

When Americans purchase stocks of foreign-based companies, they are engaging in foreign portfolio investment. This involves holding financial assets from a foreign country, such as stocks or bonds, but does not entail direct control over the companies in which they invest.

In Recent Decades, Americans Have Increased Their Purchase of Stocks