Green investing is a strategy that focused on only buying so-called "socially responsible" instruments. For example, green investing would eschew non-sustainable investments such as airlines or exploratory oil ventures. They tend to be companies that either conserve natural resources, or responsibly affect the environment (such as reducing carbon footprints). As far as the process of actual investment goes, this is usually done through a public traded company or venture. This allows virtually any person on the planet to invest in a green company.  

The most common form of investment is in individual publicly traded companies, otherwise commonly known as "common stock." These are traded via stock exchanges such as the renowned New York Stock Exchange, where exchange floor traders are typically characterized in movies as frenetically yelling at each other to "buy" or "sell." A far more sound strategy for investment that still allows for ownership in common stock, but spreads out the inherent risk among many companies (vis-a-vis a single company) is investing in either mutual funds, or Exchange Traded Funds (ETFs). Both are publicly traded, just like common stock, and offer the opportunity for asset management.  

While the overall composition and basic strategy behind both mutual funds and ETFs is effectively analogous, there are some key saliencies between the two, especially in the area of trade mechanics. Both mutual funds and ETFs are priced off what is referred to as a Net Asset Value (NAV).  Think of the NAV as being similar to the "per share price" of buying shares of an individual stock. Mutual funds operate on forward pricing, and only trade after the end of regular trading on the active exchanges. It is only after the common stocks and the mutual holds have stopped trading the value of the fund can be determined. Then, anyone who entered an order to buy or sell shares of that mutual before the close of regular trading will see their order executed at the same NAV. In other words, everyone pays or receives the same price as everyone else that day. There is no difference in price. ETFs, however, trade actively...just like common stocks.  And, while they have a NAV, they actually trade on the active market at either a premium (a price higher than) or a discount (a price lower than) to the NAV.  This means that two people, trading at different times of the day would expect to pay or receive slightly different prices than either other.  

Reach out to a green investment management company to learn more.