"Green" stocks are investments in companies that are environmentally friendly and energy conscious. Thanks to an increased interest in preserving, maintaining and saving the planet from pollution, reducing dependence on energy sources like oil, gas and coal, and preventing the depletion of natural resources, investing in green stocks is popular and easy. You can buy green stocks on all major exchanges, through several mutual fund companies that have such specialized funds, and from the Over-the-Counter Bulletin Board through a broker/dealer.
Identification
Identifying green stocks is sometimes difficult and other times obvious. Some green stocks invest in alternative energy such as solar and wind. One of the most familiar is First Solar. Several large companies such as BP, Exxon and Mitsubishi Electronics have divisions in alternative energy. Waste management companies that provide disposal and recycling services are another venue for green investing. Waste Management is one of the largest. Companies that help clean up oil spills, such as Ecospehere Technologies, are another type of investment.
Research
Research individual stocks on web giants like Yahoo Finance, Google Finance and specialty websites such as Green Chip Stocks. In addition, several ETFs (exchange traded funds) are dedicated to alternative investments such as the Claymore Solar Index, which trades under the symbol TAN. ETFs are listed on many financial websites.
Considerations
Investing in green companies can be volatile and risky, especially in newer and smaller companies. Be wary of penny stocks that tout new and unproven products. Check a company's financials and be wary of unsolicited emails that sound like sure things.
