direct investment

direct investment definition - business

direct investment

  1. Purchase of equity by a lender. For example, a bank takes an ownership position in a company.
  2. Purchase of securities directly from the issuer. Investing through dividend reinvestment plans (DRIPS) is generally considered direct investment, even though investment bankers administer most of these plans. See also direct stock purchase plan.
  3. See foreign direct investment.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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