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A Glossary of Socially Responsible Investing Terms

Understanding SRI means knowing the meaning of terms such as corporate social responsibility, microloan and shareholder advocacy. Here's a useful reference source.

Lilly Ledbetter Fair Pay Act
The Lilly Ledbetter Fair Pay Act extends the time limit within which an employee must file a complaint of pay discrimination.

Say-On-Pay
Say-on-pay is a tactic used by corporate shareholders to express their sentiments and influence directors on executive compensation.

Apartheid
Apartheid was the term to describe a system of legal racial separation in South Africa from 1948 to 1994. The role of socially responsible investing was significant in the ending of apartheid.

Community Development Banks
A definition of community development banks, a primary investment vehicle for socially responsible investors.

Community Development Credit Unions
A definition of community development credit unions, often used by socially responsible investors seeking to assist low-income borrowers.

Community Development Loan Funds
A definition of community development loan funds, which are often used by socially responsible investors to help communities in need.

Community Investing
A definition of the socially responsible investing strategy of community investing.

Community Reinvestment Act
A federal act created by Congress to encourage depository institutions to help meet the credit needs of the communities in which they operate.

Corporate Social Responsibility
A definition of a principal of socially responsible investing related to the behavior of corporations in society.

Expense Ratio
A definition of the investment term expense ratio.

Faith-Based Investing
Faith-based investing, sometimes called morally responsible investing, is one of the fastest growing subsets of socially responsible investing.

Home-Equity Line of Credit
A home equity line of credit is a line of credit secured by a home.

Libor
Libor is short for the London interbank offered rate, an interest rate at which banks can borrow funds from other banks in the London interbank market.

Market Capitalization
A definition of the investment term market capitalization.

Microloan
A definition of a form of financing made to borrowers who often lack a credit history and cannot qualify for a traditional loan. Believed by socially responsible investors to be an important tool for community investing.

Mortgage-Backed Security
A type of security that is secured by a mortgage or collection of mortgages.

Moskowitz Prize for Outstanding Research in Socially Responsible Inves
A definition of the Moskowitz Prize for Outstanding Research in Socially Responsible Investing, awarded annually by the Haas School of Business at the University of California Berkeley and the Social Investment Forum

Screening
A definition of a socially responsible investing strategy in which investments are selected or eliminated based on various SRI criteria.

Shareholder Activism
A definition of an approach to socially responsible investing in which investors attempt to influence corporate behavior through discussions with management, resolutions, proxy voting and divestment.

Socially Responsible Investing - Methodists
The Methodists represent a branch of Protestantism that dates back to 1739. The founder was John Wesley.

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