Bonuses Are Risk Management Tool, Says Ritholtz

The video discusses the role of bonuses in financial firms as tools for retention and risk management. It highlights the skills required in the finance industry and the impact of market trends. The video also examines compensation strategies and the competition for talent between banks and tech companies. Finally, it covers investment strategies, emphasizing the importance of diversification and understanding market shifts.

What are the two primary functions of bonuses for employers as discussed in the text?

How do bonuses serve as a risk management tool in the post-financial crisis era?

What factors contribute to the high earnings of individuals in the financial sector according to the text?

What was the significance of the record number of IPOs mentioned in the text?

What does the term 'long tail distribution' refer to in the context of financial bonuses?

How has the compensation structure in financial firms changed according to the discussion?

What strategies do successful investors use to manage their stock holdings over time?