Finance Weekly News Update November 25, 2017 – December 1, 2017

Trading This Market Could Make the World a Better Place

Kennedy, Emma

Posted 11/29/2017

Key words and Definitions

Stock exchange – a market where financial securities are bought and sold.

Socially responsible investing – investing in firms that engage in ethical business practices.

Listing requirements – financial and ownership requirements firms must maintain for their stock to be listed on an organized stock exchange.

Summary: Key Points in the Article.

The Social Stock Exchange (SSE) in London is an organized stock exchange that limits firms to those attempting “to fix social problems or improve the environment.” Firms must pass a strict vetting process before listing. The SSE started with only 12 firms in 2013 but now has nearly 50 listed firms.

The SSE claims that it is the only regulated stock exchange in Europe that offers investors the chance to only “trade shares in companies committed to a better world.” The SSE functions as a primary market and then lists the firms for secondary market trading. The exchange acts as a one-stop shop for financing for firms that meet the SSE’s listing requirements.

Thinking Critically Questions:

1. What do investors interested in social responsibility need to consider?
2. What is the difference between the primary market and the secondary market?
3. How do listing requirements determine which stock exchange a firm begins trading on?

Multiple Choice Questions

1. Which of these is the most well-known stock exchange with the strictest listing requirements?
d. none of these

2. Listing requirements can include;
a. number of shareholders
b. last year’s revenue
c. stock price
d. all of these

3. The only lists firms that attempt to improve the environment or offer methods of fixing social problems.
a. SSE
d. none of these