Role of Investments Quick Check

Question

1 of 51 of 5 Items
Question
Which of the following is an example of foreign portfolio investment?(1 point)
Responses

A business owner in the United Kingdom purchases a United States business.
A business owner in the United Kingdom purchases a United States business.

An investor in the United Kingdom purchases stock issued by a United Kingdom corporation.
An investor in the United Kingdom purchases stock issued by a United Kingdom corporation.

An investor in the United Kingdom purchases stock issued by a United States corporation.
An investor in the United Kingdom purchases stock issued by a United States corporation.

A business owner in the United Kingdom purchases a United Kingdom business.
A business owner in the United Kingdom purchases a United Kingdom business.
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Answer 1

The correct example of foreign portfolio investment is:

An investor in the United Kingdom purchases stock issued by a United States corporation.

Foreign portfolio investment generally refers to investments in financial assets (like stocks and bonds) in another country, rather than direct investments in physical businesses or property.