Definition of Ethical Investing

What is ethical investing? What is the definition of ethical investing? What does ethical investing mean?

To figure out what ethical investing means, let's first look at the definition of the term ethical:

"Being in accordance with the accepted principles of right and wrong as it applies to professional or social behavior."

Ethical investing is when you apply your code of ethics (or moral code) to the stocks that are in your portfolio.

For instance - let's say that you are against tobacco companies.

If you are choosing to "ethically invest", then you would steer clear of companies and mutual funds that have ties to / or invest in tobacco companies.

If you practice a certain religion, then you may be against birth control in all forms. If you choose to be an ethical investor, then you would avoid investing in any stocks that create birth control products.

This is ethical investing.

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