Which of the following is not a component of current account:

Purchase of stock of a foreign company in London

Current account records all those transactions between residents of the country and rest of the world which do not result in change in the assets or liabilities of the residents of the country or its government. It is basically the record of trade in goods and services and transfer payments. The components of current account are:

1. Export and import of goods and services
2. Receipts and payments of unilateral transfers
3. Income from investment and work

In the above question, purchase of stock of a foreign company in London will be a part of capital account. As, capital account of BOP records all the transactions between the residents of the country and the rest of the world which cause a change in assets and liabilities of the residents of the country or its government. By purchasing stock of a foriegn company in London will lead to increase in the assets of the country.