What is the definition of private direct investment?

Imagine you have an uncle who owns a hotdog cart business. He is planning to add one more cart on a busy street and will need additional cash from someone else to be able to do this. You decide to give him the money he needs, either as a loan, or buying into his business. This is an example of private direct investment.

On the other hand, one way to invest in a publicly held company is to buy its shares of stock from the stock market.

That's when a person just puts money into something. it's easier to define it by what it's not: it's not public, like a stock that anyone can buy, and it's not in a fund or spread out over a bunch of places. It's like if someone spends 500000 on a franchise or something, that is a private direct investment. Since it's private, no sec filings but obviously taxes still need to be paid.

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