Myron S. Scholes

AAA

DEFINITION of 'Myron S. Scholes'

An American economist and winner of the 1997 Nobel Prize in Economics along with Robert Merton for their method of determining the value of stock options, the Black-Scholes model. (Fischer Black, the co-author of the Black-Scholes equation on which the model is based, died in 1995.) Scholes' research has also focused on taxation and incentives.

INVESTOPEDIA EXPLAINS 'Myron S. Scholes'

Scholes earned an MBA and Ph.D. from the University of Chicago. He taught at the Massachusetts Institute of Technology (MIT) and the University of Chicago before joining Stanford in 1983 as a finance professor. Scholes was also a co-founder of the hedge fund Long-Term Capital Management, which was initially extremely successful but later failed spectacularly, which led to a group of large banks bailing them out to prevent an averse reaction in the financial markets.

RELATED TERMS
  1. Black Scholes Model

    A model of price variation over time of financial instruments ...
  2. Black's Model

    A variation of the popular Black-Scholes options pricing model ...
  3. Tax Evasion

    An illegal practice where a person, organization or corporation ...
  4. Long-Term Capital Management - ...

    A large hedge fund led by Nobel Prize-winning economists and ...
  5. Tax Avoidance

    The use of legal methods to modify an individual's financial ...
  6. Premium to Surplus Ratio

    Net premiums written divided by policyholders’ surplus. The premium ...
Related Articles
  1. Professionals

    Quants: The Rocket Scientists Of Wall ...

  2. Mutual Funds & ETFs

    Taking A Look Behind Hedge Funds

  3. Options & Futures

    Massive Hedge Fund Failures

  4. Options & Futures

    Hedge Funds: Higher Returns Or Just ...

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center