The United States has the largest securities market in the world, with a value of over $55 trillion. Foreign entities represent a substantial portion of U.S. market activity—cross-border investors hold approximately 20 percent of all U.S. securities across major asset types, including approximately 17 percent of all equity securities traded on U.S. stock markets.

Foreign portfolio holdings of U.S. securities reached $26.9 trillion as of June 30, 2023, representing a $2 trillion increase from June 2022. During the same period, equity holdings overall increased by $1.5 trillion. [See Foreign Portfolio Holdings of U.S. Securities as of June 30, 2023, Department of the Treasury.]

The distinction between types of investing activity by foreign entities is significant. Foreign investment is classified as "direct investment" when it involves "the ownership or control, directly or indirectly, by one person or a group of affiliated persons, of 10 percent or more of the voting stock" of a company. [Id.]