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Investing in Open Source?

Posted by Cliff on from the money-for-good-causes dept.

echrist1 asks: "I'm in my school's investment club, and I'm in charge of investing $10,000 (real money) into technology equities. Clearly I want to make a profit, but I also want to do something to help the Open Source movement. Does anyone know of mutual funds that invest specifically in companies that further Open Source?"

1 of 77 comments (clear)

  1. Market investing doesn't help the company by Maple+Syrup · · Score: 5, Insightful

    You seem to be under the impression that if you buy $1,000 worth of Red Hat stock (for instance) that the money somehow goes to Red Hat. This is not correct.

    The issuing company got their money at the IPO. When you buy that $1000 worth of stock, your $1000 goes to the previous stockholder, and *none* of it - not a dime - goes to the issuing company.

    The only benefit the issuing company has - and it's an indirect benefit - is that if you buy that $1000 worth of stock you create a slight upward pressure on the stock price, which, in turn, will increase the "market capitalization" value of the company.

    Frankly, if you want to help Open Source financially, your best bet is to take a percentage of the profits and donate it to your favorite non-profit Open Source entity.

      -Maple Syrup