Joseph Stiglitz on What Business Schools Teach That’s Wrong

The Motley Fool interviewed Nobel Prize-winning economist Joseph Stiglitz in his office at Columbia Business School. In this clip, Stiglitz answers the question, “What is something that is taught in the modern business school that gives a flawed sense of how risk and financial markets work?”

The Danger of Stock Option Grants

Stock options are a great idea run amok, as evidenced by the massive option packages awarded to some high-profile CEOs. Options are given tax treatment so companies have an incentive to depend on them for more of their employee compensation. But options are not free to current investors, as they dilute present and current earnings per share. Bill Mann offers a shorthand he learned from … [ Read more ]

How a Start-up Evolves

Businesses grow from start-up to conglomerate in three distinct phases, each of which is driven by a different type of person. The differences and conflicts between these waves of activity help explain why so many small companies self-destruct as they grow, and why so many large companies are so bad at doing anything new.