Question of the Week

All of the following statements are true with respect to the various ways that equity investments may be classified except:

a) Indexing is a form of a passive investment strategy.
b) From a U.S. investor point of view, international investing implies purchasing stocks domiciled all over the world, including the U.S.
c) Sector investing should be deemed as a complementary strategy to a well established portfolio.
d) Purchasing only stocks that exhibit a low P/E ratio is a form of "style" investing. 

Answer:

The correct answer is: b)

Global investing is the proper definition for investing in stocks from all over the world. International investing generally involves investing in securities domiciled outside of the investor's home country.