<p>Yes given that <strong>ownership of 10 percent or more</strong> of the ordinary shares of voting stock is the criterion for determining the existence of a direct investment relationship. This threshold of 10 percent establishes a controlling interest, per guidelines established by the Organisation of Economic Co-operation and Development (OECD).</p>

<p>According to the <a href="https://stats.oecd.org/glossary/detail.asp?ID=2092" rel="nofollow noreferrer">OECD</a> Portfolio investment is the category of international investment that covers investment in equity and debt securities, excluding any such instruments that are classified as direct investment or reserve assets.</p>

CC BY-SA 4.0
2019-08-17T07:29:02.450Z
2019-08-17T07:29:02.450Z
emeryville
<p>The following is the definition from World Bank:</p>

<p><a href="https://i.sstatic.net/Z7hZk.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/Z7hZk.png" alt="enter image description here"></a></p>

<p>Does it imply that apart from FDI, portfolio equity includes net inflows from equity securities including shares, stocks, depository receipts and direct purchases in local stock markets by foreign investors? </p>

<international-economics>
Interpretation of the World Bank's definition of Portfolio equity inflows
user508281
# Interpretation of the World Bank's definition of Portfolio equity inflows

(Asked by: username_0 on 2019-08-17)

The following is the definition from World Bank:

[![enter image description here](https://i.sstatic.net/Z7hZk.png)](https://i.sstatic.net/Z7hZk.png)

Does it imply that apart from FDI, portfolio equity includes net inflows from equity securities including shares, stocks, depository receipts and direct purchases in local stock markets by foreign investors?

**Tags:** international-economics


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## 1 answers

### Answer by username_1 on 2019-08-17. Score: 0 | Accepted answer

Yes given that **ownership of 10 percent or more** of the ordinary shares of voting stock is the criterion for determining the existence of a direct investment relationship. This threshold of 10 percent establishes a controlling interest, per guidelines established by the Organisation of Economic Co-operation and Development (OECD).

According to the [OECD](https://stats.oecd.org/glossary/detail.asp?ID=2092) Portfolio investment is the category of international investment that covers investment in equity and debt securities, excluding any such instruments that are classified as direct investment or reserve assets.


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