It is important first to understand that prominent publicly-traded companies with significant business ties to these countries are present in the portfolios of most Americans. This is particularly true for those investors who own stocks and bonds in international companies. And with today's global economy, many U.S. based companies have significant business and economic ties to these countries. On average, U.S. investors with a diversified domestic and international portfolio have exposure to these companies representing between 20-30 percent of their investments.

It is also important to understand that the governments of Iran, Syria and other terrorist-sponsoring states look to foreign investment from these same companies to provide capital, technology, goods, equipment and expertise that is essential to economic growth rates that these countries require to maintain their hold on power and to fund their range of activities, including the sponsorship of terrorism and the development of weapons of mass destruction. These regimes would be effectively isolated without access to financial institutions, trading partners, infrastructure, energy development firms, and other companies held in the investment and retirement portfolios of investors around the world. In turn, the strength of the economies of these countries plays a clear role in propping up their philosophies. Iranian President Ahmadinejad's vulnerability in the recent elections was due primarily to the faltering domestic economy, rather than his foreign policy. Without the willingness of these foreign companies to develop the economies of Iran, Sudan, Syria and North Korea, government revenues would plummet and growth rates would not remotely keep up with the needs of urban, youthful populations. Ultimately, economic issues could breed change in leadership and a state's behavioral patterns.

Companies that have decided to do business with these countries are not in the U.S. capital markets by accident. They are interested in the financing that U.S. investors can provide and are otherwise interested in having high demand for the stock already outstanding to support overall share value. By investing in these companies, not only are investors participating as partial owners in these corporate activities, but they also support the funding and share value needs of corporate managers. In these ways, investors play a role in supporting and facilitating the activities of the companies they invest in, including decisions to conduct business with state sponsors of terrorism. The reality of this hit home for Joseph Maurer, a retired fire fighter who lost his daughter on 9/11, who told a New York City television audience that he was outraged at the thought of his retirement dollars being invested in companies whose global activities provide large-scale revenues -- as well as advanced, potentially "dual use" technologies and equipment -- to governments that support terror.

Although the willingness of companies to do business with Tehran, Pyongyang, Khartoum and other governments has been tested over recent years, many companies continue to weather the political turmoil anticipating that the public relations costs associated with these business activities will be worthwhile and ultimately benefit their company and share price. This is where you can make a difference. Shareholder activism and divestment rallies a constituency of people that are empowered to alter this business practice. This is accomplished through highlighting reputational concerns in the U.S. and by excluding investment in and divestment from stock and bond holdings in these companies on the basis of their decision to conduct business in these countries.

To illustrate the connectivity, consider the following examples:

Iran's shipping industry is a prime example of the regime's dependence on foreign corporations, many of which are publicly-traded in New York, London and on other exchanges. One of the world's largest global banks based in Germany was part of a consortium of banks negotiating with Iran in May of 2006 for a line of credit which helped to finance Iran's expansion of its port facilities and merchant fleet. Two Korean heavy equipment manufacturers, among other firms traded on the world's largest stock exchanges, have constructed dozens of crude oil tankers for the Islamic Republic of Iran Shipping Line (IRISL). In 2008, the U.S. Treasury imposed sanctions against the IRISL and its 18 subsidiaries for providing logistical support to Iran's armed forces, which support terrorism.

Despite domestic, state-owned-enterprises such as the National Iranian Oil Company, Iran is dependent on foreign energy companies to effectively and efficiently explore and develop its oil fields. Widely traded firms including French and Italian oil giants participate in these projects. Their development of Iranian oil fields results in Iran's single largest source of revenue: oil exports. These exports result in cash receipts by the National Iranian Oil Company, which often distributes the money to Iran's central bank, Bank Markhazi, where it becomes available for the state's discretionary use. Iran is well known to be the largest funder of terrorism and is clandestinely funding and developing a nuclear weapons program. In addition, Bank Markhazi has been identified as source of illicit financial transactions regarding such activities by the U.S. government.

Iran has also benefited considerably from major international banks that have operated in Iran for many years that provide essential trade and project financing for domestic and, more importantly, foreign infrastructure investment. Foreign financing reached a new level in 2002, however, when prominent French and German banks led a multi-staged sovereign bond offering that was Iran's first since the 1979 Islamic Revolution. The offering raised EUR 625 million in July 2002 and another EUR 375 million in December 2002, bringing in over EUR 1 billion for Tehran's discretionary use.

These and hundreds of other firms play important roles in contributing to the economies of terrorist-sponsoring states. Investors in these companies hold shares and ownership of these operations on a level that is causing discomfort for a growing number of individuals and organizations.

The Terror-Free Investing™ movement is one of the most powerful tools in the "financial war on terror". Terror-Free Investing™ supporters are privatizing the financial war on terror and making a difference by influencing corporate behavior.