direct investment



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 investor's 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.

Use direct investment in a sentence

  • You need to try and figure out if the direct investment of your time and resources will end up paying off.

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  • 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.

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  • I realized that we were making a direct investment and that it was sort of a gamble, but it was a necessary one.

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