What are portfolio transactions?
Portfolio transactions are buys and sells by a resident of a country in equities or debt securities with a non-resident. Portfolio transactions are made with the objective of realizing income and capital gains, rather than for the purpose of having a significant voice in the management of a company as is the case with direct investment. As well, securities classified to portfolio investment are generally marketable. That is, they can be bought or sold on financial markets after they have been issued.