What are foreign institutional investors?  Give their benefits, limitations, and suggestions as well.

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Ashley Kannan | Middle School Teacher | (Level 3) Distinguished Educator

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Foreign institutional investors are money sources from outside sources.  These sources originate from foreign nations, or nations that are not of industry's native nation.  These investment streams are outside the financial market of a business.  The advantages are evident.  Foreign capital can result in an infusion of wealth or cash to a particular business, increasing its viability and sustenance.  This can be especially meaningful if the nation of the business is enduring economic challenges.  At the same time, there can be some significant disadvantages if a company becomes dependent on foreign investment of capital.  This might result in the business being at the whim of foreign investors and having to negotiate some if its autonomy and decision making capacity in the name of capital preservation.

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