Financial markets

They expect a “short and shallow” downturn.

Most entrepreneurs understand that if the fundamentals of a business idea—the management team, the market opportunities, the operating systems and controls—are sound, chances are there’s money out there. The challenge of landing that capital to grow a company can be exhilarating. But as exciting as the money search may be, it is equally threatening. Built […]

Companies are increasingly paying for acquisitions with stock rather than cash. But both they and the companies they acquire need to understand just how big a difference that decision can make to the value shareholders will get from a deal.

The story of a royal trading company comes to life on an 18th-century stock certificate.

BlackRock’s CEO on the dangers of short-termism

The SEC is considering changing the rules. Here’s why it shouldn’t.

By instigating the dot-com crash, the capital markets have placed the entire new economy at risk.

Companies from Apple to Unilever have issued them.

Not long ago I asked the officer of a regional investment banking firm why the price-earnings ratio for a small publicly held company was so low. “After all,” I said, “this company has the potential to grow since it’s in the dental equipment industry. It seems to me it warrants a high ratio.” “Don’t you […]

Today's asset-light disruptors pose an even greater threat.

Stimulate the economy, shrewdly manage UK-Euro trade talks, and above all, don’t deregulate finance.

In financial markets, as in many human endeavors, there’s a battle between reason and madness. On one side are the disciples of the efficient-markets hypothesis: the notion that markets fully, accurately, and instantaneously incorporate all relevant information into prices. These adherents assume that market participants are rational, always acting in their own interest and making […]

Lessons from Switzerland's electricity network.

Marketers like to work on the demand side—take what’s in demand, make it cheaper, run a lot of ads, make a profit. If you can increase demand for what you already make, a lot of problems take care of themselves. It’s the promise of the typical marketing organization: Give us money, and we’ll increase demand. […]

It’s a tough time to be a middleman.

Rational investors, beta, CAPM—everything they taught you in business school is now open to debate.

An analysis finds 50% of China’s loans to developing countries go unreported.

Despite underwhelming returns, investors keep giving them money.

Activist investors and mistaking M&A for strategy.

In 1961, Richard Salomon, the sole owner of Charles of the Ritz, decided to issue public shares in his company. The perceived advantages were the possibility...