Social Stock Exchanges

Catalyst for Impact Investing?

Author: Karen Wendt

Publisher: Springer International Publishing

Book Series : Sustainable Finance

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

Table of Contents

About this book

This book examines funding platforms for impact investing known as social stock exchanges (SSE) and ways to approach impact investing at regulated traditional exchanges. The book analyses the antecedents and prerequisites for the successful implementation of SSEs. It presents the creation of SSEs as a necessary step towards a more democratic and popular impact investing market, and a way to align the asset search process for investors with capital access for entrepreneurs. It also analyses the installation of impact investing at traditional stock exchanges drawing from Green Bonds and Social Bonds.

The book showcases successful financial structuring, integrating impact into existing financial products. It discusses standalone impact solutions, the status quo of impact investing, social entrepreneurship and the pros and cons of platforms versus the use of traditional stock exchanges for impact investing. It highlights aspects of adjusted portfolio and product structuring, innovation in the context of listing criteria and makes proposals for impact stock listings at platforms and traditional stock exchanges.

Frontmatter

Chapter 1. Introductions

Abstract

Social Stock Exchanges are a new socio-economic phenomenon. Attracting investment seems to be one of the main problems of social and ecological oriented entrepreneurs. SSEs are trading and exchange platforms that allow social and green businesses to raise capital by attracting investors willing to invest in businesses that create blended value and apply a lockstep approach. They address the need for a dedicated liquid marketplace with transparent price building mechanisms. As benefits of social stock exchanges the following have been raised by practitioners and researchers (see Chap. 2).

Karen Wendt

Chapter 2. Literature Review

Abstract

According to Barile et al. (2018) sustainability has been shaped by corporate social responsibility. In a traditional view stemming from the Corporate Social Responsibility World the inevitable consequence of wanting to compress sustainability operational rules in an ideal direction has resulted in the definition of three dimensions that specify sustainability (description according to Barile et al. (2018)):

Karen Wendt

Chapter 3. Traditional Stock Exchanges

Abstract

According to Michie one of the primary functions of a stock exchange is to provide a quick, persistent and constant demand for purchase and sale of security and to establish a liquid market (Michie 1987). In details the functions can be categorized as follows according to Michie (ibid).In short liquidity is a precondition to enable constant sale and purchase of securities and a smooth price building mechanism. This plus the regulation differentiates them from platforms. The NASDAQ explains liquidity in its glossary of financial terms as the ease with which securities can be bought and sold without wide price fluctuations.

Karen Wendt

Chapter 4. Critical analysis and Prognosis on the Development of SSEs

Abstract

Given that several of the early SSE-type funding platforms have come and gone and most of the remaining ones are limited in size and activity, very little empirical research has been done specifically on SSEs. However, the recent growth of SSX in the UK, continued work on BVSA, IX, BRiiX, and SVX in Mexico, as well as the upcoming launch of the new SVX in Canada and GIIVX in Austria, may in the near- and mid-term future provide increasing opportunities for studying the nature and operations of these platforms and their relationship to the broader field of impact entrepreneurship and investing. At the same time the UN SDG may function as a game changer as they establish a vision, a ToC and a universally agreed impact goal endorsed by 194 member states, which helps in creating a level playing field in the financial sector at least for the impact investing segment.

Karen Wendt

Chapter 5. Conclusions and Limitations

Abstract

This work offered analyzed the impact investing landscape by using a double perspective both theoretical and practical. The interviews provide interesting insights for future studies. Although impact investing is still in the early stages of its development, the growing interest from mainstream financial institutions signal that the field is no longer merely an interesting idea in the minds of a few devoted enthusiasts.

Karen Wendt

Backmatter

Title: Social Stock Exchanges
Author: Karen Wendt
Publisher: Springer International Publishing
Electronic ISBN: 978-3-030-99720-5
Print ISBN: 978-3-030-99719-9
DOI: https://doi.org/10.1007/978-3-030-99720-5