Direct investment refers to investors investing monetary funds directly into investment projects to form physical assets or purchase investments in existing enterprises. Through direct investment, investors can own all or a certain amount of enterprise assets and operations. ownership, directly conduct or participate in the operation and management of investments.
Direct investment includes investment in various tangible assets such as cash, factories, machinery and equipment, transportation, communications, land or land use rights, and investment in intangible assets such as patents, trademarks, and consulting services.
Indirect investment refers to an investment in which investors use their capital to purchase various securities such as corporate bonds, financial bonds or company stocks in order to expect to obtain a certain amount of income. Since its investment form is mainly the purchase of various securities Various securities are therefore also called securities investments.
Extended information:
The difference between the two:
Direct investment is the unity of fund owners and fund users, and is the combination of asset ownership and asset management rights. Unified movements, generally productive undertakings, create physical assets.
Indirect investment is the decomposition of fund owners and fund users, and the separation of asset ownership and asset management rights. Investors have no direct ownership and control over corporate assets and their operations. Simply to obtain capital gains or preserve its value.
Reference: Baidu Encyclopedia-Indirect Investment