Myron Scholes quotes

Myron Scholes is a Canadian economist, renowned for his pioneering work in financial economics and derivative pricing. His research led to the development of the Black-Scholes model, a fundamental tool for valuing options in financial markets. He received the Nobel Prize in Economic Sciences for his contributions to the field. Here are 19 of his quotes:

Every side of a coin has another side.

Myron Scholes

Innovation must lead infrastructure for a simple but compelling reason: Innovation produces new types of products and markets, and it is virtually impossible to know how to run those markets efficiently before they are created.

Myron Scholes

If we internationalize everything, we end up with rules that stifle freedom and innovation.

Myron Scholes

I'm a theorist, not an institutionalist.

Myron Scholes

Now it is time to encourage the BIS and other regulatory bodies to support studies on stress-test and concentration methodologies. Planning for crises is more important than VAR analysis.

Myron Scholes

A bank needs models to measure risk. The problem, however, is that any one bank can measure its risk, but it also has to know what the risk taken by other banks in the system happens to be at any particular moment.

Myron Scholes

My career in academic research has not been involved with active management of securities. I've tried to understand risk-and-return relationships; also the pricing of derivative securities.

Myron Scholes

From an early age I was very, very fascinated by uncertainty.

Myron Scholes

My view is that one should diversify broadly across different fund investments. However, it's tough for investors to try to pick the appropriate risk level that they should manage their funds at. Having a personal adviser would be helpful.

Myron Scholes

All models have faults - that doesnt mean you cant use them as tools for making decisions.

Myron Scholes

Most of the time, your risk management works. With a systemic event such as the recent shocks following the collapse of Lehman Brothers, obviously the risk-management system of any one bank appears, after the fact, to be incomplete. We ended up where banks couldn't liquidate their risk, and the system tended to freeze up.

Myron Scholes

My first reaction on being awarded the Nobel Prize was, actually, I thought of Fischer Black, my colleague. He unfortunately had passed away. And there was no doubt in my mind that if he were still alive, he would have been a co-recipient of the Nobel Prize.

Myron Scholes

A futures contract is a derivative, but the futures exchange doesn't call them 'derivatives,' they call them 'futures.'

Myron Scholes

If someone says to you, 'Go to an old-folks' home,' that's kind of ridiculous, because a lot of old people are doing terrific things for society.

Myron Scholes

I think in our global economy, uncertainty is ever increasing. So to accommodate to that, we need to build a dynamic economy and dynamic rules that can adapt to changing circumstances.

Myron Scholes

I was involved with Wells Fargo Bank as a consultant in the late 1960s and early 1970s, when I suggested to them that they develop a product that has become known as index funds.

Myron Scholes

Tax incentives might spur hiring in the short run, but how lasting are those gains if the jobs expire with the tax credits and they come at the expense of investing in the new technologies of the future?

Myron Scholes