Portfolio Investment

Summary of Portfolio Investment

A minority interest in a foreign venture from which income is derived in the form of dividends; normally such an interest does not convey any significant control over the management or operations of the foreign firm.

(Main Author: William J. Miller)

Portfolio Investment and International Trade Economy

In relation to international trade economy, Christopher Mark (1993) provided the following definition of Portfolio Investment: A minority interest in a foreign venture from which income is .derived in the form of dividends. In contrast with direct investment, a portfolio investment position does not convey significant control over the management or operations of the foreign firm.

Portfolio Investment in International Trade

Meaning of Portfolio Investment, according to the Dictionary of International Trade (Global Negotiator): In general, any foreign exchange that is not direct investment is considered portfolio investment. Foreign portfolio investment includes the purchase of voting securities (stocks) at less than a 10 percent level, bonds, trade finance, and governments lending or borrowing, excluding transactions in official reserves.