Merton Miller

AAA

DEFINITION of 'Merton Miller'

A prominent Chicago school economist. Miller was born in 1923 in Boston and won the Nobel Memorial Prize in Economics in 1990, along with Harry Markowitz and William Sharpe, for his work on the Modigliani-Miller theorem, which deals with the relationship between the value of a company and its debt-equity structure. His research focused on corporate finance and on the economic and regulatory problems of the financial services industry.

INVESTOPEDIA EXPLAINS 'Merton Miller'

Early in his career, Miller worked as an economist for the federal government, and later, he was a public director of the Chicago Board of Trade. He earned his Ph.D. from Johns Hopkins and taught at the London School of Economics and Carnegie Mellon University before joining the University of Chicago in 1961, where he taught until 1993.



RELATED TERMS
  1. Bird In Hand

    A theory that postulates that investors prefer dividends from ...
  2. Murray N. Rothbard

    A natural-law libertarian and ardent proponent of Austrian economics, ...
  3. Market Economy

    An economic system in which economic decisions and the pricing ...
  4. Chicago School

    An economic school of thought that originated at the University ...
  5. Free Enterprise

    An economic system where few restrictions are placed on business ...
  6. Invisible Hand

    A term coined by economist Adam Smith in his 1776 book "An Inquiry ...
RELATED FAQS
  1. Can the Efficient Market Hypothesis explain economic bubbles?

    The efficient market hypothesis (EMH) cannot explain economic bubbles because, strictly speaking, the EMH would argue that ... Read Full Answer >>
  2. How does mercantilism impede global economic growth?

    Mercantilism impedes global economic growth by leading producers to specialize in goods and services that do not take account ... Read Full Answer >>
  3. How are Rupert Murdoch's holdings distributed?

    Rupert Murdoch owns a controlling share of News Corporation and over 750 different businesses. Some of the major brands he ... Read Full Answer >>
  4. What is the history of corporations in America?

    The first American corporations were developed in the 1790s, almost instantly becoming key institutions in the economy. Though ... Read Full Answer >>
  5. Where did Modern Portfolio Theory (MPT) come from?

    Modern portfolio theory, or MPT, came from Harry Markowitz and was first introduced in a paper titled "Portfolio Selection" ... Read Full Answer >>
  6. How did Bernard Baruch attain his wealth?

    Bernard Baruch obtained his fortune by investing in profitable stocks on Wall Street. Baruch is known as a legendary stock ... Read Full Answer >>
Related Articles
  1. Economics

    Understanding Supply-Side Economics

    Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.
  2. Options & Futures

    Nobel Winners Are Economic Prizes

    Before you try to profit from their theories, you should learn about the creators themselves.
  3. Economics

    The Uncertainty Of Economics: Exploring The Dismal Science

    Learning about the study of economics can help you understand why you face contradictions in the market.
  4. Forex Education

    The Greatest Currency Trades Ever Made

    These speculators took big positions - and scored huge profits - in the currency market.
  5. Stock Analysis

    How MasterCard Likely Earned a Spot in Your Wallet

    An in depth look at MasterCard and its future prospects as an investment.
  6. Stock Analysis

    What Are Costco’s Latest Earnings?

    On March 5, Costco, the wholesale retail giant reported second-quarter earnings that handily outpaced analysts' expectations.
  7. Professionals

    What does C-Suite Mean?

    C-Suite is a slang term used to describe the highest level senior executives of a corporation. This is the decision-making, power center of a company. These individuals are usually paid well, ...
  8. Professionals

    What's Human Capital?

    Human capital is a company asset, but it’s not listed on the balance sheet. Human capital is all of the creative skills and knowledge embodied in the employees of a company -- skills that bring ...
  9. Personal Finance

    The 5 Best Fortune 500 Mentorship Programs

    These top Fortune 500 companies offer mentorship programs to recent graduates.
  10. Professionals

    What are Core Competencies?

    Core competencies are the essence of what a company does well. A business uses its core competencies to make and develop products, goods and services according to its company mission. Core competencies ...

You May Also Like

Hot Definitions
  1. Adverse Selection

    1. The tendency of those in dangerous jobs or high risk lifestyles to get life insurance. 2. A situation where sellers have ...
  2. Wash Trading

    The process of buying shares of a company through one broker while selling shares through a different broker. Wash trading ...
  3. Fixed-Income Arbitrage

    An investment strategy that attempts to profit from arbitrage opportunities in interest rate securities. When using a fixed-income ...
  4. Venture-Capital-Backed IPO

    The selling to the public of shares in a company that has previously been funded primarily by private investors. The alternative ...
  5. Merger Arbitrage

    A hedge fund strategy in which the stocks of two merging companies are simultaneously bought and sold to create a riskless ...
  6. Market Failure

    An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers ...
Trading Center