Getty Images
READ MORE ABOUT:
Green Investing: Getting Techie
Screening
Investors use "positive" and "negative" screens to target their wealth towards the type of investments they want and away from the type of investments they don't want. A "positive screen" deliberately invests in enterprises that the investor wants their capital put toward, such as enterprises working in the clean tech or organic food industries. A "negative screen" deliberately eliminates enterprises that an investor doesn’t want capital put toward, such as alcohol or tobacco companies.
Shareholder vs. Stakeholder
A shareholder, also known as a stockholder, is a partial owner of a company though stock. Stock entitles its owner to a share of the profits of the company, and sometimes a right to have say in the direction and leadership of the company, with each shareholder typically having influence in proportion to the amount of the stock they own. Stakeholders, on the other hand, include anyone who has an interest in and is directly affected by the outcome of a company, including shareholders, management, suppliers, employees, and the community.
Socially Responsible Investing (SRI)
An investment strategy whereby your goal is to maximize profit and social good at the same time, otherwise called double-bottom line opportunities. Socially Responsible Investing has been in practice since the 1700's, when the concept was developed by Quakers looking to do well by doing good. SRI strategies typically avoid businesses involved in alcohol, tobacco, gambling, and weapons and other military industries.
Venture Capitalism (VC)
Venture Capitalists provide early stage funding to start-up businesses trying to get off the ground. Since the early stages of a business are so uncertain, Venture Capitalists takes on greater risk in these early stage investments, but the ventures that succeed are profitable enough to make it worth the investment. Social Venture Capitalism is modelled on this concept of early stage risky investments, but returns are social or environmental in nature, in additional to fiscal.
For a definition of other financial terms please we recommend Investopedia.com, which has an expansive list of resources, definitions, and information about investor education.
-
- {}
