Question

The purchase of shares and bonds of Indian companies by Foreign Institutional Investors is called ?

• A. FDI
• B. Portfolio Investment
• C. NRI Investment
• D. Foreign Indirect Investment

Answer 1

Answer:

D. Foreign Indirect Investment

Foreign direct investments are when investors purchase a physical asset such as a plant, factory, or machinery in a foreign country. In contrast, foreign indirect investments are when investors buy stakes in foreign companies that trade on their respective stock exchanges.