direct investment

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Related to Direct Investments: FDI, Foreign Direct Investments

Direct investment

The purchase of a controlling interest in a company or at least enough interest to have enough influence to direct the course of the company.

Direct Investment

The act or practice of buying stock in a publicly-traded company without using a broker as an intermediary. Perhaps the most common means of direct investment is dividend reinvestment, which is the act of using one's dividends to buy more shares in the same company. Some companies also offer plans called direct purchase plans, which allow investors to bypass their broker. However, direct purchase plans are rather illiquid (it is difficult to sell one's shares without a broker), and are therefore bought for long-term investing.

Direct investment.

You can make a direct investment in a company's stock through dividend reinvestment plans (DRIPs) and direct purchase plans (DPPs).

If a company in which you own stock offers a DRIP, you have the opportunity to reinvest cash dividends and capital gains distributions in more stock automatically each time they are paid.

In the case of DPPs, also known as direct stock purchase plans (DSPs), companies can sell their stock directly to investors without using a brokerage firm as intermediary.

Direct investment also refers to long-term investments in limited partnerships that invest in real estate, leased equipment, and energy exploration and development. In this type of investment, you become part owner of the hard assets of the enterprise.

You realize income from your investment by receiving a portion of the business's profits, for example, from rents, contractual leasing payments, or oil sales. In some cases you realize capital gains at the end of the investment term, if the business sells its assets.

These DPPs are largely nontraded and have no formal secondary markets. This means you will often have to hold the investment for terms of eight years or more, with no guarantee that any of the income or capital gains will materialize.

Many people make direct investments because there can be significant tax benefits, such as tax deferral and tax abatement, depending on the investment.

direct investment

see INVESTMENT.

direct investment

any expenditure on physical ASSETS such as plant, machinery and stocks. See INVESTMENT.
References in periodicals archive ?
The central bank defines foreign direct investments as actual inflows from overseas, which could be in the form of equity capital, reinvestment of earnings or borrowings between affiliates.
Bank of Mongolia reported that as of the third quarter of 2017, foreign direct investment to Mongolia was USD 702 million, among which USD 285 million from Canada and USD 155 million from Luxembourg.
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us/congress/bills/114/hr616), which means that it is quite likely that regional centers will not remain in the EB-5 visa program after September 2015, leaving Direct Investment Businesses as the only choice for EB-5 visa investors.
One of the most exciting aspects of the Direct Investment Law is the "One-Stop Shop".
Significant increase in foreign direct investments, on the contrary, is observed from Belarus - $56.
In Q1, 2014, foreign direct investment in Bulgaria stood at EUR 218.
1) According to preliminary data, foreign direct investment in the United States in 2013 is estimated at $147 billion, a drop of 11% from the amount invested in 2012.
7 billion were attracted as foreign direct investment, respectively.
Economy Minister Zafer Caglayan said that 882-million-USD foreign direct investment flowed into Turkey in May 2011, stating that the figure was 303 million U.
The Central Bank noted that while foreign direct investment in Estonia decreased by nearly a third in comparison with the previous quarter, Estonian direct investment abroad remained more or less on the same level.
Preliminary figures published by the Central Bank of Iceland on Wednesday (19 July) show a 161% increase in Icelandic direct investments abroad in 2005.

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