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

Question

Responses

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

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

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

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 refers to investments in financial assets from another country, such as stocks or bonds, without seeking to have direct control over the businesses.