Direct Investment In foreign direct investment (FDD, sometimes referred to simply as direct investment, the investor takes a controlling interest in a foreign company. When, for example, US. investors bought the Liverpool Football Club, it became a U.S. FDI in the United Kingdom. Control need not be a 100 percent or even a 50 percent interest if a foreign investor holds a minority stake and the remaining ownership is widely dispersed, no other owner may effectively counter the investor's decisions. When two or more companies share ownership of an FDI, the operation is a joint venture. (There are also non-equity joint ventures a noncontrolling financial interest in Portfolio investment portfolio investment is another entity. It usually takes one of two forms: stock in a company or loans to a company or country) in the form of bonds, bills, or notes purchased by the investor, They're important for most companies with extensive international operations, which routinely move funds from country to country for short-term financial gain