Economics · Foreign Portfolio Investment (FPI)
Which of the following statement is NOT true regarding Foreign Portfolio Investment (FPI)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1FPI aims at acquiring direct management control and ownership of the issuing firm.✓
- 2It is a passive holding of financial assets to earn capital gains or dividends.
- 3The investor does not hold a controlling equity stake in the foreign business entity.
- 4It involves investment in foreign financial instruments such as stocks and bonds.
Correct answer
FPI aims at acquiring direct management control and ownership of the issuing firm.
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