Which of the following is an example of Canadian foreign portfolio investment?
A) Crystal,a Canadian citizen,buys bonds issued by a corporation in Turkey.
B) Randall,a Canadian citizen,opens a cheesecake factory in Italy.
C) Abigail,a Canadian citizen,buys software produced by Microsoft Corporation,a U.S.company.
D) Fernando,a Spanish citizen,buys shares of stock in Research In Motion,a Canadian company.

Question

Quizplus · Accepted Answer

Foreign portfolio investment refers to the purchase of foreign financial assets such as stocks and bonds by an individual or a firm. In this case, Crystal, a Canadian citizen, buys bonds issued by a corporation in Turkey, which qualifies as Canadian foreign portfolio investment. Option B is an example of foreign direct investment. Option C is an example of a Canadian buying a product from a foreign company, but it does not qualify as foreign portfolio investment. Option D is an example of a foreign investor buying shares of a Canadian company, which is not Canadian foreign portfolio investment.

Which of the Following Is an Example of Canadian Foreign