Author: Arabian Media staff

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…

Image: Supplied The Technology Innovation Institute (TII), the applied research arm of Abu Dhabi’s Advanced Technology Research Council (ATRC), and NVIDIA, the global leader in accelerated computing and artificial intelligence (AI), have launched the Middle East’s first joint laboratory dedicated to AI and robotics. The TII-NVAITC (NVIDIA AI Technology Centre) Joint Lab for AI and Robotics aims to develop next-generation AI models, robotics platforms, and humanoid technologies, with the goal of accelerating innovation across multiple industries. The agreement was signed at TII’s headquarters in Abu Dhabi. “This collaboration with NVIDIA marks a major step toward building AI-enhanced robotic systems capable…

Bank of America Corporation (BAC) is the second-largest bank in the United States, behind JPMorgan Chase (JPM) but ahead of Wells Fargo (WFC), Citigroup (C), and U.S. Bancorp (USB). For fiscal year 20201, Bank of America held $3.2 trillion in assets. It reported $89.1 billion in revenue net of interest expenses and had a market capitalization of $359 billion at the end of 2021. Key Takeaways The Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) is the largest mutual fund holder of Bank of America, owning 219.4 million shares, which accounts for 2.54% of the bank’s total shares.Bank of America…

Business Class vs. First Class: An Overview In several ways, flying first class can be a big improvement over business class. Whether it’s the airport experience, seats, service, or meals, you may have a better experience flying first class. However, is the often higher price worth it? Let’s look at the main differences between these two flight tiers. Key Takeaways Differences between business class and first class exist, but they’re not as pronounced as those between economy and first class.First-class lounges may offer amenities on a different level, but in most airports, the pre-takeoff wait experience is fairly similar in…

Key Takeaways: Legendary investor Charlie Munger called the first $100,000 difficult to earn but pointed out how compound growth makes all your future gains easier. It takes 9.5 years to save $100,000 if you’re putting away $650 per month at an average 7% annualized return. After that decade, it only takes just under two and a half more to become a millionaire, showing the speed of growth under compound interest once you save six figures. Legendary investor Charlie Munger, Warren Buffett’s longtime business partner at Berkshire Hathaway Inc. (BRK.A, BRK.B), understood the psychology of wealth building better than most. “The…

Key Takeaways More than a third of Americans said they couldn’t cover a sudden $400 expense with cash or cash equivalents.Those who were unable to pay for emergencies said they would turn to a credit card, sell something, borrow money from a friend or relative, or take out a loan of some kind.Men are more likely to have emergency savings, a surveys from by U.S. News & World Report have found. A major car repair. An unexpected medical bill. A broken appliance that can’t wait. These are the kinds of expenses that take a toll on monthly budgets and savings,…