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To: Stitch who wrote (1644)	5/19/1998 9:15:00 PM
From: Tom	Read Replies (1) \| Respond to of 2951

Stitch: Technically, yes. But not all. I can't be specific at the moment, but guidelines certainly do include securities in foreign direct investment. Though, if I recall correctly, the invested amount must be substantial (i.e. there's a cutoff). FDI, as recorded in the nation's current account, also involves a number of determinants. My purchases are not showing-up in anyone's FDI numbers, yet. So, I guess a truer response to Mike's question on the US$3 billion FDI would have been, "Doubtful." When someone desires direct investment, they're usually not considering the equities market. At least not in the traditional sense. Three (3) reasons for prefering direct investment: 1) To circumvent an overvalued equities market. 2) To gain a larger participation in a sector of the economy which the securities markets either do not support, or do not support to the extent of the investor's desired involvement. 3) To satisfy the desire for a guaranteed/contracted return on invested capital.