Direct investment is the unity of capital owners and capital users, and the unified movement of asset ownership and asset management rights. Generally, it is a production undertaking, which will form physical assets; Indirect investment is the decomposition of capital owners and capital users, and it is the separation movement of asset ownership and asset management rights. Investors have no direct ownership and control over enterprise assets and their operations, and their purpose is only to obtain their capital gains or preserve their value.

Indirect investment refers to the investment that investors use their capital to buy corporate bonds, financial bonds, company stocks, etc. , and all kinds of securities in order to expect to get a certain income. Because its investment form is mainly to buy all kinds of securities, it is also called securities investment. Compared with direct investment, investors who invest indirectly only have the right to get certain income on a regular basis, but have no right to interfere with the specific application and management decision of this part of investment by investors; The capital of indirect investment is flexible, and can be transferred or resold at any time, and other assets can be replaced to seek greater benefits; It can reduce the risk of investment loss caused by changes in the political and economic situation; It can also be used as a bargaining chip for the central bank to buy or sell when it adopts open market business to balance currency tightness.

Direct investment refers to the investors' direct investment in monetary funds into investment projects, forming physical assets or purchasing the investment of existing enterprises. Through direct investment, investors can own all or a certain number of enterprise assets and enterprise ownership, and directly carry out or participate in the management of investment. Direct investment includes investment in various tangible assets such as cash, factory buildings, machinery and equipment, vehicles, communications, land or land use rights, as well as investment in intangible assets such as patents, trademarks and consulting services. Its main forms are: (1) investors set up wholly-owned enterprises, set up stores directly and operate independently; (2) cooperate with local enterprises to establish joint ventures or cooperative enterprises, obtain various rights to directly operate enterprises, and send personnel to manage or participate in management; (3) investors participate in capital, not in operation, and can send personnel to serve as consultants or guidance when necessary; (4) Investors buy a certain number of shares of existing enterprises in the stock market, and obtain all or a considerable part of the management rights through equity, so as to achieve the purpose of buying out the enterprises.

To put it simply, for example, buying funds, stocks and bonds, it is important to obtain a certain investment income. Generally, you don't participate in the company's operation, but invest directly. For example, you participate in the company's business cooperation or purchase the company's assets, obtain the right to operate, and directly conduct or participate in investment management. For example, Microsoft's acquisition of Nokia is direct investment.

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