A social stock exchange (SSE) is a regulated marketplace where social enterprises can raise capital from investors who are interested in supporting social and environmental causes.
SSEs are similar to traditional stock exchanges, but they have a specific focus on social impact.
How SSEs work
SSEs work by listing social enterprises that meet certain criteria, such as having a social or environmental mission, being transparent and accountable, and using their profits to achieve their mission. Investors can then buy and sell shares in these social enterprises, and the money raised is used by the enterprises to fund their operations and grow their businesses.
Benefits of SSEs
Social Stock Exchanges offer a number of benefits, including:
- Providing a new source of capital for social enterprises
- Promoting transparency and accountability among social enterprises
- Encouraging investors to invest in social and environmental causes
- Raising awareness of social and environmental issues
SSEs around the world
SSEs are still a relatively new concept, but they are growing in popularity around the world. There are now SSEs in operation in a number of countries, including India, the United Kingdom, and Brazil.
The future of SSEs
SSEs are expected to play an increasingly important role in the future of social finance. As more and more investors are looking to invest in social and environmental causes, SSEs are providing a valuable platform for social enterprises to raise capital and grow their businesses.