Open AccessThe Case Of Shearsons Unbundled Stock Units: Why Did They Fail And Can Value Be Created?
Author(s) -
Karen Craft Denning,
Ashok Abbott
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v7i2.6250
Subject(s) - unbundling , valuation (finance) , business , value (mathematics) , stock (firearms) , intrinsic value (animal ethics) , economics , industrial organization , financial economics , accounting , computer science , law , political science , mechanical engineering , machine learning , engineering
This paper uses rudimentary financial models to examine the valuation consequences of Shearsons now defunct financial innovation, unbundling. Though in its present form, this attempted financial innovation did not survive, a discussion of the potential value that may have been created is not without merit. First such a discussion may provide insights useful for future innovations. But perhaps more importantly, we suggest that under certain circumstances, for specific firms, unbundling does have the potential to create value.