Questions tagged [corporate-finance]

the area of finance dealing with the sources of funding and the capital structure of corporations and the actions that managers take to increase the value of the firm to the shareholders

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25
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1answer
2k views

Are Fairtrade farmers paid worse than other farmers in the same regions?

There have been a few articles recently on the (in)efficiency of fair trade organisation Fairtrade. Here is an example from the Guardian: Sales of Fairtrade-certified products from Uganda and ...
4
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0answers
205 views

Does high CEO compensation correlate with poor performance?

In a study cited by Forbes, The Highest-Paid CEOs Are The Worst Performers, New Study Says, the authors state (among other similar conclusions): ... the 5% of CEOs who were the highest paid, [...] ...
14
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1answer
699 views

Did Fred Smith, founder of FedEx, gamble on blackjack to keep the company afloat?

There is a commonly cited claim that in the early 70s, Fred Smith - the founder of Fedex, risked the company's last $5,000 in a casino gamble: Desperate to pay bills, he flies to Las Vegas, wins $...
15
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1answer
1k views

Do US senators and congressmen make abnormally high returns on their stock market investments?

Nate Silver's popular book on the art and science of prediction, The Signal and the Noise has a chapter on financial markets called If you can't beat em.... The chapter spends some time discussing the ...
11
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1answer
702 views

Can a Bitcoin Exchange manipulate the exchange rate in a way that defrauds its users without consequence? [closed]

Bitcoin is an Internet currency with no centralized bank or agency underpinning it. I only recently heard about it and I've been trying to understand how it works and if it is safe, however this is a ...
15
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2answers
1k views

Do banks typically lose as much money as they make in the long term?

Nicholas Nassem Taleb makes the following passing statement in his latest meditation on the nature and management of risk (Antifragile): ...businesses with negative optionality (that is, the ...
18
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1answer
3k views

Is the pharmaceutical industry the most profitable business in the United States?

The Russia Today article Pharmageddon: America’s bitter pill claims The pharmaceutical industry remains the most profitable business in the US. More success and financial gain for the companies ...
17
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3answers
2k views

Do investment managers pick stock portfolios better, on average, than monkeys throwing darts?

Many individuals believe they can make significant quantities of money by stock trading. Much of the financial services industry wants the public to believe that it can take our savings and, by the ...
12
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1answer
510 views

Do record companies use a system that kept 99.995% of artists without any form of regular income?

This quote from TorrentFreak: Under the “sign-a-record-deal-or-remain-poor system”, 99% of artists didn’t get record deals with the abusive record industry – and out of those who did, 99.5% ...
27
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2answers
74k views

Does Louis Vuitton burn all their unsold bags?

It first ran across the notion with this meme Every year Louis Vuitton burns all their unsold bags A google search yields lots of results but none of them seems credible. Snopes yields nothing. ...
11
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1answer
791 views

Are many successful entrepreneurs post-secondary education dropouts?

One often hears anecdotes about how successful CEOs / founders / entrepreneurs are college or university dropouts, usually bringing up the same set of examples with one or two CEOs du jour. Most ...
12
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1answer
1k views

Did the Renault Espace sell only 9 cars when it was launched?

According to Richard Hammond of Top Gear, Renault's entry into the people carrier market sold just nine cars in its first month (1:18 - 1:27). However, I cannot find a single source to back up ...
19
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3answers
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Can Microsoft's success be attributed to their abuse of a monopoly

Can the success of Microsoft be attributed to their abuse of their operating system monopolies of MS-DOS through the various versions of Windows (and other related monopolies such as the Internet ...