Question

Short Essay: Discuss how the economy impacts the world of investing.

Answer 1

Impact investing consists of private equity and some specialty bonds (green bonds ) has traditionally the domain of the development institutions and specialist funds.It is growing rapidly as investors look for ways to generate benefits for society along with financial returns . Impact investing can potentially grow much largerwith dramatic implications for the worlds development agenda .Development financial institutions and specialist fund managers account for three quarters of the impact investing market. Impact investing needs to offer investors a transparent basis on which they can invest their money to achieve mesurableoutcomes for society in addition to adequate financial returns . From 2007 impact investment has grown and diversified in notable ways .Researchers hae engineered the the ways of tracking and reporting impact giving investors grater confidence that their money is producing social benefit andhelping entrepreneurs make more effective decisions about their strategies . In an impact economy the norms practices ,standards and policies that are attached to the pursuit of social impact would be widely accepted consistent and stable as the norms are associated with pursuit of the profit.The potential development that would enable the impact economy to mature fully are creating an industry bodythat promote policies and standards of excellence and moves all participants to adopt them and instituting public polices that provide incentives and create certainty An impact economy is a different kind of system from a traditional capitalist economy that prioritizes financial returns. In an impact economy consumers and shareholders will challenge entrepreneurs and executives to show that they generate profit in manner that contributes to the public good