alleryStart learning →Social investing is the practice of doing what?
AInvesting only in companies within one country
BInvesting only in the shares of small companies
CInvesting in whichever security yields the most
DLimiting investments to securities matching beliefs
Answer & Solution
Correct answer: D. Limiting investments to securities matching beliefs
1. Some investors limit their investments to securities such as stocks and bonds that coincide with their beliefs about ethical and social responsibility.
2. This practice is called social investing.
3. Its aim is to encourage businesses to be more socially responsible.
4. Geography, company size, and pure yield-chasing are not what defines the practice.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 2 "Making Ethical Decisions and Managing a Socially Responsible Business", section 2.4 Responsibilities to Investors_
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