Portfolio investments are purchases of foreign financial assets (stock, bonds and certificates of deposit) for a purpose other that control. An example of a portfolio investment is the purchase of 1000 shares of Sony’s common stock by a Danish pension fund. With this investment the pension fund is trying to raise the rate of return on its assts portfolio rather that to control Sony’s decision making for same reason many investor in recent years have bought shares of mutual funds that specialize in foreign stocks and bonds.
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