Author: Arabian Media staff

Economics is a social science that examines how people produce, distribute, and consume goods and services. This means that much of the field is based on human behavior, which can be somewhat irrational and unpredictable. For this reason, economics is a science with certain inherent limitations that prevent its practitioners – economists, that is – from being able to predict markets’ performance accurately and know exactly how certain policies will affect different sectors and economies. Key Takeaways Economics is heavily influenced by human behavior, which is often unpredictable and irrational. This leads to inherent limitations in predicting market performance accurately.Unlike…

Image: ADX The Abu Dhabi Securities Exchange (ADX) has listed the region’s first-ever thematic exchange-traded fund (ETF), offering investors direct exposure to the rapidly growing quantum computing sector. The Boreas Solactive Quantum Computing UCITS ETF, trading under the symbol QUANTM, is the 17th ETF to be listed on the ADX and the second this year. The new fund tracks the Solactive Developed Quantum Computing Index, providing investors with a single, tradable security that offers exposure to 25 companies at the forefront of quantum computing. The ETF includes global mega-cap companies such as Alphabet, Amazon, IBM, Microsoft, and NVIDIA, reinforcing ADX’s…

Key Takeaways Gregory, South Dakota, experiences few natural disasters, helping retirees avoid high insurance premiums and costly property damage. The cost of living is well below the national average, with a 2025 median home price of $240,000 and lower everyday expenses. South Dakota has no personal income tax, and seniors may also qualify for property tax relief programs that further reduce expenses. Climate change doesn’t just affect weather and the environment—it can also impact your retirement. Living in an area prone to natural disasters may mean higher insurance premiums, steeper utility bills, and costly home repairs. To help avoid those…

A contingent liability is an existing condition or set of circumstances involving uncertainty regarding possible business loss, according to guidelines from the Financial Accounting Standards Board (FASB). In the Statement of Financial Accounting Standards No. 5, it says that a firm must distinguish between losses that are probable, reasonably probable or remote. There are strict and sometimes vague disclosure requirements for companies claiming contingent liabilities. Key Takeaways Contingent liabilities are potential obligations that depend on uncertain future events. They must be classified as probable, reasonably probable, or remote, according to FASB guidelines.Only contingent liabilities deemed probable and with estimable amounts are recognized on a company’s financial statements.…

Savers who deliberately buy tangible assets for investment purposes value their tangible goods as a form of value diversification and as a hedge against economic uncertainty. Some might believe that tangible assets represent a higher chance of high returns than capital assets, such as stocks and bonds. You should consider investing in tangible assets if and when they make sense as part of your overall financial plan. Tangible assets exist outside of an account balance, financial statement or exchange market. Put another way, tangible assets have a physical form and natural value. It’s likely that you have already invested in…

In economics, an externality is defined as a cost or benefit incurred by a third party as a result of economic activity that the third party has no relation to. An economist may use equilibrium models to succinctly measure externalities as a deadweight loss or gain. This occurs as a result of differences between social and individual marginal cost or benefit curves. However, going from theory to practice creates problems with estimating the effect of externalities since they are sometimes unknown.  Key Takeaways Externalities are costs or benefits incurred by third parties from an economic activity that they are not directly related to. They can be…

Two common metrics to measure profitability are gross profit and earnings before interest, taxes, depreciation and amortization (EBITDA). Regardless of which metric is used, all measures of profitability begin with revenue. Revenue is income generated from the sale of goods or services and is calculated by multiplying the price of a product by the number of items sold. Product pricing, therefore, can dramatically impact profitability at every level, including gross profit and EBITDA. If all else remains equal, an increase in price generates a corresponding increase in revenue and profit. If Company ABC sells 10,000 widgets at $5 each, its revenue…

The percentage of large-cap stocks in a diversified investment portfolio depends on an investor’s investment goals, risk tolerance, and time horizon. Large-cap, also sometimes called “big cap”, refers to companies that have more than $10 billion a market capitalization value. Key Takeaways Large-cap stocks are considered safer investments due to their representation of large, well-established companies, making them suitable for conservative portfolios.Diversification is crucial in investment portfolios, which can be achieved by mixing different asset classes like stocks, bonds, real estate, and forex.Investors can enhance diversification within stocks by including large-, mid-, small-, and micro-cap stocks, balancing growth potential and risk.Age influences…

Interest rates affect the decisions you make with money. Some of these are obvious – think about how much more money you would stick in your savings account if it paid 15% interest instead of 0.5%. How much less money would you put into stocks or your 401(k) if you could get 15% in a simple bank account? On the flip side, you might take out a new credit card at 3%, but you probably wouldn’t borrow at 30% unless you absolutely needed to. There are less obvious impacts, too. For entrepreneurs and bankers, interest rates affect calculations about future…

Regardless of your investment objective, bonds often play a significant role. Some funds, like the Vanguard Total Bond Market ETF, are designed to give access to a wide variety of income-generating vehicles while minimizing costs. Many bond funds are suitable as core holdings for investors. Here, we take a look at five of the top bond funds for long-term investors. Key Takeaways Fidelity Total Bond Fund (FTBFX) aims to provide high current income with 75% invested in debt securities and 15% in riskier, low-rated bonds. It also uses derivatives for additional returns, making it a valuable option for income-focused investors.Vanguard…