August 2020 – Vanderbilt Business Review

31Aug

By Dave Ghosh1 Comment

All Posts, Opinion

OPINION: The Value of an MBA

There was a time when a Master’s in Business Administration – simply known as an “MBA” – was the degree to pursue. Regardless of price, it gave people a chance to pursue a high-earning career of their choice. If one felt trapped by a job and wanted a breath of fresh air, an MBA provided them the opportunity to switch to something else. If one wanted to maximize their wages but could not do so with their present job, an MBA allowed them to increase their earnings. Schools continue to advertise the degree as one that can propel someone to management and comfortable living, as evidenced by Harvard Business School’s statistics which shows that students received a $148,750 median salary. This statistic, along with the fact that many CEOs of the top companies have an MBA, suggests that it is st...

Dry Powder: Economic Threats in the Post-Pandemic Era

As part of the historic 2nd quarter contraction in the US gross domestic product, investment spending decreased by a massive 49% under the duress precipitated by the COVID-19 pandemic. Poor general economic conditions translated to uncertainty in the minds of investors. Meanwhile, investors received government relief aid that they did not use to invest. As a result, there is now an estimated $1.5 trillion in unused capital in private equity funds alone that could be invested as soon as negative economic conditions recede. This massive glut of capital could create an explosion of investment and is therefore referred to as dry powder. Pandemic induced uncertainty has contributed to a buildup of dry powder in the global economy, something that economists are concer...

Stock Splits, Why?

For many people, the stock market seems daunting, regardless of how much money you have or do not have. The number one concern investors have about any stock is the price. Lower priced stocks are more attractive to investors for a multitude of reasons, but there is one main reason: they can buy more shares with the same investment. Smaller share prices make it more attractive for small investors to buy shares of a stock. Companies know this truth about investing; for that reason, the most popular stocks, including Apple, Google, and Amazon, have all split multiple times in the past. Split? Yes, all of these titans of industry have split up their shares into multiple shares of stock before. For the main reason of attracting investors by offering a smaller price per share. However,...