Portfolio Investment
/ˈpɔːrtfəˌlioʊ ɪnˈvɛstmənt/
Definitions
- (n.) An investment made by purchasing securities such as stocks and bonds held collectively, often across various assets, for financial return rather than direct control.
The multinational company focused on portfolio investment to diversify its financial assets globally.
- (n.) The legal classification of foreign investment involving passive ownership of securities, distinguishing it from foreign direct investment with active management.
Under international law, portfolio investment is treated differently than foreign direct investment for regulatory purposes.
Forms
- portfolio investment
Related terms
See also
Commentary
Portfolio investment typically carries passive intent, which affects regulatory and tax treatment compared to direct investment.
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.