Stock Market Glossary
Commitment
Active dialogue between investors and companies to improve their ESG practices.
In brief: Active dialogue between investors and companies to improve their ESG practices.
Meaning in practice
Instead of simply excluding shares, engagement strategies attempt to achieve change from within – through the exercise of voting rights, general meeting proposals and direct discussions with management.
Context for investors and traders
The term helps put market information into context. Its relevance depends on the instrument, investment horizon and current market situation, so it should be read with other data and a personal risk framework.
How to use this in practice
Use the term first to describe the situation and add verifiable data: time frame, benchmark, costs and liquidity. Only then does it become an assessment that can be connected to an investment objective and risk budget.
What to keep in mind
Avoid false precision. Many market terms describe probabilities or historical patterns; they neither guarantee a return nor replace the review of a specific security.
