The Miller-Modigliani 1961 Ponzi scheme, alias "dividend irrelevance"

• Published in: International journal of law and management Vol. 54; no. 3; pp. 234 - 241
• Main Authors: Paulo, Stanley, Gale, Chris
• Format: Journal Article
• Language: English
• Published: Patrington Emerald Group Publishing Limited 11.05.2012; Emerald
• Subjects: Chief executive officers; Corporate profits; Court decisions; Criminal sentences; Documents; Ex dividend; Finance; Fines & penalties; Fraud; Insolvency; Investments; Investors; Limited liability companies; Mathematical analysis; Progressions; Proving; Pyramid operations; Securities fraud; Sentences; Statutes; Stock prices; Studies; United Kingdom > UK; United States > US; Dividends; Dividend irrelevance; Miller-Modigliani; Pyramid selling; Pyramid schemes; Ponzi scheme; Fraud; Financial fraud

Purpose - The purpose of this article is to expose the Miller-Modigliani 1961 Ponzi scheme that has masqueraded as a dividend irrelevance proof, and show that it constituted a Ponzi scheme at the time of publication and ever since publication. This is important especially as Miller-Modigliani 1961 s...