Green Tech

DEFINITION of 'Green Tech'

1. Technology that is considered environmentally friendly based on its production process or supply chain.

2. A means of energy production that is less harmful to the environment than more traditional ways of generating energy, such as burning fossil fuels.

Green technology is a relatively young marketplace but investor interest runs very high in response to global warming fears and the increasing scarcity of many natural resources.

BREAKING DOWN 'Green Tech'

Green tech may be a stated goal of a business segment within a large company, or the focused mission statement of a smaller startup firm. It can cover anything from recycled product packaging to longer-lasting light bulbs and alternative energy production.

Specialized investment funds known as "green funds" seek out publicly traded leaders in the green tech movement for their investment dollars. In addition, many socially conscious investors may choose to only invest in companies that are environmentally friendly or have pledged to become so.

RELATED TERMS
  1. Green Fund

    A mutual fund or other investment vehicle that will only invest ...
  2. Green Marketing

    Marketing products and services based on environmental factors ...
  3. Green collar

    A worker who is employed in an industry in the environmental ...
  4. Green Investing

    Investment activities that focus on companies or projects that ...
  5. Green Economics

    Green economic theories encompass a wide range of ideas all dealing ...
  6. Alternative Energy ETF

    An exchange-traded fund that invests in companies engaged in ...
Related Articles
  1. Markets

    Green Technology: A Solid Investment Choice?

    With global investing in green energy on the rise, there are abundant opportunities for environmentally responsible, financially sound investments.
  2. ETFs & Mutual Funds

    Evaluating Green Equity Investments

    Learn how to find stocks that are both eco-friendly and profitable.
  3. ETFs & Mutual Funds

    Challenges Faced When Analyzing Green Chip Stocks

    The fact that a green chip is not yet a blue chip should not alarm investors, but they need to be aware of the differences and challenges that can arise from assuming these are durable companies ...
  4. Investing

    Forget Green Stocks, "Green" Will Do

    More and more companies are "going green", but that term, in itself, can be subjective.
  5. Markets

    Is it Time to Invest in Green Bonds?

    Green bonds have been growing in popularity at a rapid rate, but is it too early to invest?
  6. Investing

    The 10 Fastest Growing Green Startups in 2016

    These social entrepreneurs adopt triple bottom lines that champion urgent environmental problems while generating returns for shareholders.
  7. ETFs & Mutual Funds

    The Top 5 Alternative Energy Bond Mutual Funds for 2016 (TSBRX, CGAFX)

    Discover mutual funds that enable investors to focus their investments in alternative energy bonds. With these funds, investors can "do well and do good."
  8. Managing Wealth

    Go Green with a Investment in Green Bonds

    If you want to invest in a socially responsible way, green bonds may be for you. And as the market grows retail investment opportunities will grow too.
  9. Markets

    The Economics Of Solar Power

    Even with the massive strides made in technological innovation, sustainable energy has failed to usurp traditional fossil fuels.
  10. Managing Wealth

    How To Become A Renewable Energy Entrepreneur

    The recent trend towards greener, more sustainable technology is creating many opportunities for entrepreneurial-minded individuals.
RELATED FAQS
  1. What are green investments?

    Green investments are traditional investment vehicles (such as stocks, exchange-traded funds and mutual funds) in which the ... Read Answer >>
  2. Does investing in sustainable or "green" companies provide lower returns?

    To determine the kinds of returns that can be expected from investments in sustainable or "green" companies, the distinction ... Read Answer >>
  3. If my home runs power off the grid, what is the specific environmental impact?

    Going off the grid, or using solar energy, can result in much more than saving the homeowner money. It can help the planet ... Read Answer >>
  4. Is there a difference between socially responsible investing (SRI) and green investing?

    There isn't a huge difference between socially responsible investing (SRI) and green investing; green investing is actually ... Read Answer >>
  5. How can I make my home run on energy that is 100% off the grid?

    Taking a home 100% off the grid requires paying attention to all sources of energy in the home. These sources include more ... Read Answer >>
  6. How much of the United States' energy comes from oil and gas?

    Examine the energy sources for the United States, and learn how much of the total U.S. energy supply comes from the oil and ... Read Answer >>
Hot Definitions
  1. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  2. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  3. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  4. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  5. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  6. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
Trading Center