direct investment

Buying company control

Direct investment is money put into a business or asset with the intention of gaining control or significant influence, rather than simply holding shares for financial returns.

The term usually appears in international contexts: foreign direct investment refers to companies building factories, acquiring subsidiaries, or establishing operations in other countries.

Distinguished from portfolio investment, which involves passive ownership of stocks or bonds.

Related

joint ventures · boots on the ground · multinational corporations · capital · host country · trade agreements · venture capital · fund · mergers and acquisitions · hostile takeover · contract · economic integration · handshake · political instability · signature · tax regulations · international markets · cash

Opposites
investor control and involvement

direct investmentminority stake

Ownership below fifty percent

silent partnership · absentee ownership

investment structure

direct investmentinvestment trust

Company owning pooled securities

capital flow direction

direct investmentdivestment

Disposal of assets

disinvestment · capital flight · selling off

Family

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Familiarity
Top 500,000
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Used worldwide · Timeless · Abstract · Rated G