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.

Stock definition

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

Activist investor definition

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