Direct investment

Posted in Finance, Accounting and Economics Terms, Total Reads: 853

Definition: Direct investment

To gain control over a company, major stake is bought by a second party through means other than outright purchase of shares. This is termed as direct investment. Direct investment can be done via management participation, joint-venture or the sharing of technology and skills.

Foreign direct investment(FDI) refers to transaction between two countries, where one of them wants to invest in the other country.

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