Which of the following is an example of foreign portfolio investment?(1 point)

Question

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

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

Answer 1

An example of foreign portfolio investment is:

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

Foreign portfolio investment refers to investments in financial assets, such as stocks and bonds, in a foreign country. In this case, the investor in the UK is buying stock from a US company, which qualifies as foreign portfolio investment.