Direct investment

Direct investment,

Definition of Direct investment:

  1. Defined by the International Monetary Fund (IMF) as Investment that is made to acquire a lasting interest in an enterprise operating in an economy other than that of the investor, the investors purpose being to have an effective voice in the management of the enterprise. In practice, this translates to an equity holding of 10 percent or more in the foreign firm.

  2. The purpose of foreign direct investment (FDI) is to gain an equity interest sufficient to provide control of a company. In some instances, it involves a company in one country opening its own business operations in another country, while in other cases it involves acquiring control of existing assets of a business already operating in the foreign country. A direct investment can involve gaining a majority interest in a company or a minority interest large enough to provide the investor with effective control of the company.

  3. Direct investment, more commonly referred to as foreign direct investment (FDI), refers to an investment in a foreign business enterprise designed to acquire a controlling interest in this enterprise. The direct investment provides capital funding in exchange for an equity interest without the purchase of regular shares of a company's stock.

How to use Direct investment in a sentence?

  1. You need to try and figure out if the direct investment of your time and resources will end up paying off.
  2. I realized that we were making a direct investment and that it was sort of a gamble, but it was a necessary one.
  3. The investor made a direct investment into the company that he had much admiration for and wanted to help succeed in becoming a profitable business.

Meaning of Direct investment & Direct investment Definition

Direct Investment,

Direct Investment:

  • Direct Investment definition is: Foreign direct investment is often called foreign direct investment (FDI). FDI means investing in a foreign trading company in order to gain a majority in the company. Direct investment provides equity financing in exchange for shares of a company without buying ordinary stock.

    • The purpose of FDI or FDI is to acquire a majority stake in the company.
    • Direct investment provides equity financing in exchange for interest in the company, without buying joint stock.
    • Direct investment can consist of a company in one country starting a business in another.
    • Direct investment can also include acquiring assets from a company that already operates abroad.
    • There are three general types of direct investments: vertical, horizontal or aggregate investments.

  • Direct Investment means: Description is often used to refer to a significant investment in a company's stock.

  • Direct Investment means, Acquisition of shares in companies or joint ventures

Literal Meanings of Direct Investment


Meanings of Direct:
  1. With or without someone in between.

  2. Government management or business control.

  3. Pointing (something) in a certain direction or to a particular person.

  4. Give (someone) government orders or government instructions.

  5. Move or relocate the shortest route from one place to another without changing direction or stopping.

  6. There are no factors or intermediaries.

  7. Straight to the point (a person or their behavior).

  8. At an infinite level.

Sentences of Direct
  1. Buy and save now

  2. The economic elite manages the affairs of the state

  3. Directing hot air to the passengers to go back through the hot air ducts

  4. The judge ordered him to serve the community.

  5. There are no direct flights on this day

  6. Complications are a direct result of the spread of bacteria.

  7. He is very straightforward and honest

Synonyms of Direct

call on, point blank, immediate, no-nonsense, plain-spoken, straight, bluff, charge, point, outspoken, candid, undiplomatic, aim, straight to the point, require, govern, unswerving, without an intermediary, matter-of-fact, directly, tell, undeviating, face to face, open, honest, first-hand


Meanings of Investment:
  1. The act or process of investing money for material gain or results.

  2. Siege of a place by enemy forces to encircle or stop it.

Sentences of Investment
  1. Discussion on private investment in road construction

Synonyms of Investment

speculation, investing