What it means
Stern is one of the professional schools of New York University and has a history going back to the start of the twentieth century. It was established in 1900 and is named after Leonard Stern, an alumnus and benefactor.
The school is based in Greenwich Village, a short distance from the financial district. Programmes include a full-time MBA, part-time and executive options, specialised master's degrees in fields such as finance, accounting and business analytics, and an undergraduate business programme.
The school offers PhD programmes for those who want academic careers. Many students look to finance, consulting and technology careers after graduating.
For people working in finance, Stern is also known for its faculty and their published work. Aswath Damodaran, a professor of finance there, is widely known for teaching valuation and for making his datasets and lecture material freely available online.
Robert Engle, who won the Nobel Memorial Prize in Economic Sciences in 2003 for work on modelling changing volatility, has also been long associated with its faculty. Choosing a business school is a financial decision, and non-finance professionals often ask how to judge it.
The right way is to compare the total cost, including tuition, living costs and lost earnings during study, with the likely increase in lifetime earnings. Fit with career goals, the alumni network and the location matter as much as any ranking.
A nuance is that the school's reputation varies by field, and published rankings change from year to year and between publishers. Prospective students should look at current employment reports from the school and speak to alumni.
This glossary entry is a general description, not an endorsement or a promise of any outcome. For employers, the school matters as a source of graduate talent and as a place to send managers for executive education.
A company that sponsors a manager through a programme should agree the terms in advance, including any commitment to stay for a set period afterwards. Treating the fee as an investment with a clear expected return keeps the decision grounded.
In practice
Real-world examples.
Example
A marketing manager at a mid-sized company considers a part-time MBA to move into finance leadership. She compares the programme's total cost with her expected pay rise and discusses with her employer whether it will contribute to the fees. She decides to apply and plans her savings over two years. She also asks her manager to confirm in writing which projects she will lead during the programme so her employer sees a return too.
Example
A financial analyst working on a company valuation uses publicly available teaching materials from a university professor to look up average industry margins and discount rates. Her team cites the source, uses it as one input among several, and keeps its own judgement on the final number.
Example
A recruiter at an investment bank attends campus events at several business schools in New York. Because of the school's proximity to the financial district, many students can attend interviews and evening events easily. The bank treats the school as one of several sources of graduate talent.
Case study
Seen in the real world.
Priya is an illustrative, fictional operations manager at a manufacturing firm. She enjoyed her work but found that board discussions about capital budgeting and valuation went over her head.
She considered a part-time business degree and listed the costs, including $120,000 of tuition over three years and some reduced bonuses. She estimated that a move into a finance leadership role would raise her annual pay by $25,000.
On those figures the extra pay would take about five years to cover the tuition, and she judged the other benefits, such as the network and skills, worthwhile. The illustrative lesson is that a degree should be assessed like any other investment, using costs, expected returns and honest assumptions.
Watch out
Common mistakes.
- Choosing a school only by its ranking, when fit, cost, career goals and alumni networks matter just as much.
- Counting only tuition as the cost, when lost earnings and living expenses can be as large.
- Assuming a degree guarantees a salary increase, when outcomes depend on the person, the job market and the sector.
Questions
People also ask.
Where is Stern located?
It is part of New York University and its main campus is in Greenwich Village in Manhattan, New York City.
What is Stern known for?
It is well regarded in finance and accounting, among other fields, though a school's strengths should always be checked against current information.
How should a non-finance professional decide whether an MBA is worth it?
Compare total cost with realistic gains in pay and career options, speak with alumni and consider alternatives such as short executive courses.
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