Portfolio investment is the purchase of sufficient stock in a firm to obtain significant management control.

Answer the following statement true (T) or false (F)


False

Portfolio investment is the purchase of stocks and bonds to obtain a return on the funds invested. Direct investment is the purchase of sufficient stock in a firm to obtain significant management control.

Business

You might also like to view...

Which of the following statements is false regarding reporting on sustainability activities and outcomes?

a. Investor interest, socially responsible investment funds, and the Dow Jones Sustainability Index have increased demand for these sustainability disclosures. b. Specific sustainability disclosures that companies make vary little from company to company. c. Many corporate websites now include sustainability reports, and the placement on those websites is usually quite prominent. d. Regarding sustainability, companies determine what to report and how to report it by using various available guidelines, the most prominent of which is the Global Reporting Initiative (GRI) G3 Reporting Framework.

Business

Which of the following is NOT considered a small group?

a. Four students preparing for a class presentation b. Four professionals preparing to speak as part of a conference c. Four professionals preparing to pitch a business proposal d. Four friends preparing to go to a movie

Business

What are some risks of cryptocurrencies?

What will be an ideal response?

Business

Which of the following statements is CORRECT?

A. All else equal, secured debt is more risky than unsecured debt. B. The expected return on a corporate bond must be greater than its promised return if the probability of default is greater than zero. C. All else equal, senior debt has more default risk than subordinated debt. D. A company's bond rating is affected by its financial ratios but not by provisions in its indenture. E. Under Chapter 7 of the Bankruptcy Act, the assets of a firm that declares bankruptcy must be liquidated, and the sale proceeds must be used to pay off claims against it according to the priority of the claims as spelled out in the Act.

Business