- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 4. Overview of Equity Securities
- Subject 4. Investing in Non-Domestic Equity Securities
CFA Practice Question
All of the following are forms of indirect international investments except ______.
B. purchasing foreign mutual funds
C. hiring a firm that will manage your international portfolio
D. purchasing foreign stock in the U.S. market
A. purchasing shares of a multinational corporation
B. purchasing foreign mutual funds
C. hiring a firm that will manage your international portfolio
D. purchasing foreign stock in the U.S. market
Correct Answer: D
You can also purchase stock of a foreign company directly by purchasing it on the foreign market. You may have more tax complications this way, however.
User Contributed Comments 3
| User | Comment |
|---|---|
| John1965 | D is a form of direct investment, not IN-direct. |
| lortola | what about A? |
| jingie | I'm assuming the MNC is based domestically. |