Image by artbymags via Flickr
It is obvious how buying directly from a green company makes a big difference in growing the green economy. You are directly supporting that company. Then how does investing in green companies grow the green economy? Since when we buy stock it is usually in the secondary market, which means it does not go directly to the company. However, when more people buy stock from a green company, the share price is pushed up and creates more value for the company.
Another reason to buy from green, progressive and proactive companies, is to avoid profiting from the evils of greed, violating the planet and people, etc. If enough people stop buying stock in companies with “questionable” practices, their stock value will go down. This directly hurts the corporate officers, which usually hold a large amount of the stock. When they are affected in this way, they have a strong incentive to look at their business practices and possibly improve their corporate citizenship.
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