The main focus of socially responsible investing is to:

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Prepare for the Investment SAE Test. Utilize flashcards and multiple choice questions, each with hints and explanations. Ace your exam!

The main focus of socially responsible investing (SRI) is to support ethical companies and practices. This investing approach seeks to align an investor’s personal values and societal impact with their investment choices, placing an emphasis on investing in companies that engage in ethical practices, uphold social responsibility, and contribute positively to society and the environment.

Investors who engage in SRI often consider factors like environmental sustainability, social justice, and corporate governance, alongside traditional financial metrics. This means that rather than purely focusing on maximizing financial returns, they aim to choose investments that reflect their values and promote positive societal outcomes. Thus, the emphasis on supporting ethical companies directly aligns with the fundamental principles of socially responsible investing.

Other options do not encapsulate the essence of socially responsible investing. For instance, prioritizing financial returns overlooks the values-driven aspect of SRI, while maintaining strict investment guidelines can refer to various fund strategies that do not necessarily prioritize ethical concerns. Engaging in aggressive trading tactics runs counter to the longer-term, value-oriented approach typical of socially responsible investing.

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