Direct Investment

AAA

DEFINITION of 'Direct Investment'

1. The purchase or acquisition of a controlling interest in a foreign business by means other than the outright purchase of shares.


2. In domestic finance, the purchase or acquisition of a controlling interest or a smaller interest that would still permit active control of the company.

INVESTOPEDIA EXPLAINS 'Direct Investment'

The purpose of a direct investment is to gain enough control of a company to exercise control over future decisions. This can be accomplished by gaining a majority interest or a significant minority interest. Direct investments can involve management participation, joint-venture or the sharing of technology and skills.

RELATED TERMS
  1. Majority Shareholder

    A person or entity that owns more than 50% of a company's outstanding ...
  2. Board Of Directors - B Of D

    A group of individuals that are elected as, or elected to act ...
  3. Minority Interest

    1. A significant but non-controlling ownership of less than 5 ...
  4. Control Stock

    1. Equity shares owned by major shareholders of a publicly traded ...
  5. Controlling Interest

    When one shareholder or a group acting in kind holds a high enough ...
  6. Asset Valuation Review (AVR)

    A process that establishes an estimate of the value of a failed ...
Related Articles
  1. Investing

    Investing In Brazil 101

    Brazil is well positioned for future growth, and luckily for investors, it also has a very liberal investing climate.
  2. Entrepreneurship

    Top 6 Factors That Drive Investment In China

    FDI in China surpassed $100 billion in 2010, certain key factors drive foreign direct investment.
  3. Investing

    Is a Canadian resident allowed to participate in a direct stock purchase plan from a U.S. company such ...

    There is no law that prevents Canadians from participating in direct stock purchase plans offered by U.S. companies. There are also no laws preventing Canadians from participating in dividend ...
  4. Stock Analysis

    Breaking Down the Halliburton Baker Hughes Deal

    Halliburton is using a downturn to get bigger and stronger in the long term, and the company is getting Baker Hughes at a reasonable price as a result.
  5. Brokers

    Key Differences Between M&A Advisors And Business Brokers

    For a buy, sale or partnership for one's business, one needs brokers and advisors to proceed ahead. Here are the key differences between business brokers and M&A advisors.
  6. Trading Strategies

    Selecting Mergers & Acquisitions Advisories For Small Businesses

    Mergers and acquisitions advisories aren't just for big players. Many advisory firms cater to small and medium businesses.
  7. Investing

    M&A Advisory Business Boutiques: How The Small Shops Are Capturing Large M&A Deals

    M&A advisory boutiques are becoming a big business, giving large investment banks a run for their money.
  8. Chart Advisor

    This ETF Offers Easy Access To Big Pharma

    Pharma investing isn't for everyone, but sector-specific ETFs, such as the iShares Dow Jones U.S. Pharmaceuticals ETF, have started to change the game.
  9. Investing

    The Top Reasons Why M&A Deals Fail

    A significant number of M&A transactions result in failure. Here are the top reasons, with examples, of why it happens.
  10. Investing Basics

    What Merger And Acquisition Firms Do

    The merger or acquisition process can be intimidating. This is why merger and acquisition firms step in to facilitate the process.

You May Also Like

Hot Definitions
  1. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  3. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  4. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  5. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  6. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
Trading Center