Impact investing is an investment strategy that reconciles financial performance and positive spinoffs for society.
This investment strategy differs from socially responsible investing, which focuses on avoiding any prejudice. Conversely, the objective of impact investors is to contribute positively to society.
For example, avoiding investing in the fossil fuel sector is part of a socially responsible investment approach, whereas an investment in the renewable energy industry is an impact investment.
Related Terms
If a company was an apple pie, a stock would be a slice of the pie. In short, a stock is a slice of a company. Everyone who owns a piece of a company has the right to share a portion of the profits of the company. Read more
An activist investor is a someone who buys many shares in the same company in order to influence how it is managed. For example, if you think that McDonald’s would be more successful if it sold tuna Hamburgers, you could buy 20% of McDonald’s shares and become the majority shareholder. Read more
Institutional Investor definition
An institutional investor is basically an organization that trades stocks and securities in a large enough quantity that they get special treatment that you and I won’t get as investors. Read more
About The Author: Edouard
Edouard is a financial analyst at Hardbacon. He is responsible for compiling lists of securities that our users can find in the "Explore" section of the application.
More posts by Edouard