Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Mad Hatter

What it is:

In the business world, a mad hatter is a leader, usually a CEO, who makes unusual or impulsive decisions.

How it works (Example):

In Lewis Carroll's book Alice's Adventures in Wonderland, the main character, Alice, meets the Mad Hatter. The Mad Hatter enjoys frustrating Alice, and asks her riddles that, in turns out, he doesn't know the answers to. He engages Alice in pointless conversations and is a symbol of Wonderland's arbitrary and nonsensical sense of order. As Carroll writes: "Alice felt dreadfully puzzled. The Hatter's remark seemed to have no sort of meaning in it, and yet it was certainly English."

Why it Matters:

In the business world, mad hatters are very frustrating to work for. They often make capricious decisions that make little or no sense, leaving employees and stakeholders puzzled. Sometimes the decisions are for personal gain, though other times they are simply bad decisions.
 

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...