Direct Investment
/dɪˈrɛkt ɪnˈvɛstmənt/
Definitions
- (n.) An investment made by a person or entity based in one country into business interests located in another country, involving ownership or controlling interest.
The multinational corporation's direct investment in the foreign factory increased its market presence abroad.
- (n.) The acquisition of a substantial ownership stake in a foreign company, allowing influence over its management and operations.
Direct investment often requires acquiring at least 10% of shares to exercise control or significant influence.
Forms
- direct investment
- direct investments
Related terms
See also
Commentary
Direct investment typically implies a long-term interest and control, distinguishing it from portfolio investment which does not confer management influence.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.