I've recently been trying wrap my head around the concept of corporate governance. How should I use it to evaluate my stocks? Thanks, S.A.
Gregg Greenberg: If you feel overwhelmed by the concept of corporate governance, it's understandable. It's a very broad, fairly mushy idea that isn't easily defined. One of the better definitions comes from the International Chamber of Commerce:
"Corporate governance is the relationship between corporate managers, directors and the providers of equity, people and institutions who save and invest their capital to earn a return. It ensures that the board of directors is accountable for the pursuit of corporate objectives and that the corporation itself conforms to the law and regulations."
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