Difference between direct and portfolio investment
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Foreign direct investment (FDI) involves establishing a direct business interest in a foreign country, such as buying or establishing a manufacturing business, while foreign portfolio investment (FPI) refers to investing in financial assets such as stocks or bonds in a foreign country.
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Foreign portfolio investment is the purchase of securities of foreign countries, such as stocks and bonds, on an exchange. ... Direct investment is seen as a long-term investment in the country's economy, while portfolio investment can be viewed as a short-term move to make money.
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