Socially responsible investing Flashcards
What is socially responsible or sustainable, or ethical investing?
any investment strategy which seeks to consider both financial return and social/environmental good to bring about a positive change.
In what kind oif stuff do they invest?
In general, socially responsible investors encourage corporate practices that promote environmental stewardship, consumer protection, human rights, and diversity. Some avoid businesses involved in alcohol, tobacco, fast food, gambling, pornography, weapons, contraception/abortifacients/abortion, fossil fuel production or the military.[1] The areas of concern recognized by the SRI practitioners are sometimes summarized under the heading of ESG issues: environment, social justice, and corporate governance.
QWhat is one of the earliest examples opf responsible investing?
The origins of socially responsible investing may date back to the Religious Society of Friends (Quakers). In 1758, the Quaker Philadelphia Yearly Meeting prohibited members from participating in the slave trade – buying or selling humans
Some of the best-known applications of socially responsible investing were…
religiously motivated
What developed in the mid 2010s?
gender lens investing
wqhat is one reason Why companies care about their stock price?
A healthy stock price is a barometer for a company’s financial health. Financial analysts are constantly scrutinizing a company’s earnings performance and expected future earnings. Analysts and investors look favorably on companies with well-performing stock prices along with a track record of solid earnings. Many financial ratios use the stock price of a company in their calculations. For example, the price-to-earnings ratio, or P/E, measures whether a company’s stock price is appropriately valued relative to earnings.
What mighty be another reason?
A favorable stock price is critical for a company seeking equity financing. Companies initially receive capital with an initial public offering of a company’s shares. However, additional share issuances can be used to raise billions of dollars in capital. Equity financing allows a company to fund expansion efforts, pay down debt, and purchase other companies.
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What about the risk of takeover?
The prevention of a takeover is another reason that a corporation might be concerned with its stock price. When a company’s stock price falls, the likelihood of a takeover increases since the company’s market value is cheaper.
Read more: Why Do Companies Care About Their Stock Prices? | Investopedia https://www.investopedia.com/investing/why-do-companies-care-about-their-stock-prices/#ixzz5KwsbGRbS
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WEhat about the press?
If a company’s stock price is performing well along with the company, the company is likely to receive more favorable press from analysts and the media. The larger a company’s market capitalization, the more analyst coverage a company would likely receive. Media and analyst coverage is a form of free marketing that helps to spread the word about a company’s products and services to a wider audience.
Read more: Why Do Companies Care About Their Stock Prices? | Investopedia https://www.investopedia.com/investing/why-do-companies-care-about-their-stock-prices/#ixzz5KwsnK5kl
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