Talk:Portfolio investment

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Portfolio investment and the BOP system.
I was under the impression that portfolio investment in the balance of payments system came under the finaicial account not the capital account as stated in the article. my reasoning for this is that the capital account is for capital investment, ie factories, machinery etc, and as portfolio investment is less than the 10% required to satisfy capital investment then it should be classed in the BOP under the financial account as it is passive and has minimal direct benefit to the economy and is usually short term and speculative where as direct investment is more permanant.this is the difference between direct and portfolio investment.


 * In the old days, financial account was called capital account. Nowadays, capital and financial accounts are divided. Thus, you are right the PI would fall under FA. However, old macro books still use the old terminology. --PBES (talk) 04:16, 25 November 2008 (UTC)

Balance of payments
What are portfolio investments? AphiweBekebeke (talk) 10:35, 9 October 2019 (UTC)