From the course: Finance and Accounting Tips

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What is corporate governance?

What is corporate governance?

From the course: Finance and Accounting Tips

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What is corporate governance?

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- Do you own any shares of stock? More than half of our U.S. households do. The 2013 Survey of Consumer Finances, which is a study commissioned every three years by the Federal Reserve, found that almost half of our U.S. households own shares of publicly traded companies, either as direct investments in specific companies, or as an investment in a mutual fund, a retirement plan, or other stock investment vehicle. If you own a mutual fund, then the mutual fund owns on your behalf a small number of shares of many different companies. One of the most popular types of mutual funds invest money in the Standard & Poor's 500, usually called the S&P 500, which his comprised of the 500 most valuable, publicly traded companies in the United States. Investments in an S&P 500 Index Fund are made in proportion to the relative market value of each of the 500 companies, with the highest proportion invested in the most valuable companies, like Microsoft, Apple, Exxon Mobile, and so forth. For…

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