Question

An example of portfolio invest is __________.

Select all that apply:

• a Japanese car manufacturer building a production plant in the United States

• a Chinese investor buys US treasury bonds

• a an investor in the United States buying stocks in a German corporation

• a Mexican company selling products to the United States

Answer 1

Portfolio investment can be defined as an ownership of a stock, bond, or other financial asset and it is owned for earning the return in future over a period of time in any country. It mean there is a passive control rather than direct control in the company. In case of portfolio investment bond and stocks of foreign countries are purchased by domestic country people.

Hence an example of portfolio invest is a an investor in the United States buying stocks in a German corporation.

Hence option third is the correct answer.