Question

What is the primary focus of a Social Stock Exchange (SSE)?

• A. Trading traditional stocks
• B. Listing and trading securities of social enterprises
• C. Cryptocurrency transactions
• D. Real estate investments

Answer 1

Answer:

B. Listing and trading securities of social enterprises

Social Stock Exchange (SSE) 

• SSE is a specialized stock exchange with a focus on listing and trading securities of social enterprises and impact-driven organizations.
• It aims to create a platform where investors can support and finance companies, generating positive social and environmental impact alongside financial returns.
• Securities listed on SSEs may include social impact bonds, green bonds, social enterprise stocks, and other impact investment products.
• SSEs typically have stringent eligibility criteria, requiring organizations to meet specific social and environmental standards to be listed.
• Disclosure requirements on SSEs emphasize transparency and accountability in reporting social and environmental performance.
• SSEs are part of a global initiative, with exchanges established in various countries, including India.
• SSEs play a significant role in promoting the integration of financial markets with social and environmental considerations, fostering a more inclusive and responsible approach to investing.