Which of the following would be a Canadian foreign portfolio investment?
A) CAE, a Canadian company, builds a new factory near Rome, Italy.
B) A Canadian citizen buys shares of stock in companies located in Latvia.
C) A Dutch hotel chain opens a new hotel in Canada.
D) A citizen of Singapore buys a bond issued by a Canadian corporation.

Question

Quizplus · Accepted Answer

Foreign portfolio investment involves purchasing financial assets, such as stocks or bonds, in a foreign country. In this case, a Canadian citizen buying shares of stock in companies located in Latvia represents a Canadian foreign portfolio investment. Choices A and C are examples of foreign direct investment, and choice D represents a foreign individual investing in Canada, not a Canadian investing abroad.

Which of the Following Would Be a Canadian Foreign Portfolio