Author: Arabian Media staff

It is common for publicly traded corporations to provide more than just regular salary compensation to their management and key personnel. Often, corporate boards will decide to provide special compensation to key personnel, in order to attract and retain top talent and to help align management’s interests with those of shareholders. Key Takeaways Evergreen provisions allow companies to automatically issue a set amount of equity, such as stock options or shares, to key employees annually without requiring repeated board approvals.By tying management compensation to the company’s stock performance, evergreen provisions help align the interests of management and shareholders, providing an…

Jack Welch has attained legendary status in the business world and is considered by many of his peers and colleagues to be one of the greatest chief executive officers (CEOs) of all time. During his 20 years (1981-2001) of managing General Electric, as CEO and later as chair, Welch’s most notable achievement was increasing the market value of the firm. Welch increased it from approximately $14 billion when he took over, to a colossal $410 billion at the time of his retirement announcement in 1999, making GE the world’s second largest company by market capitalization, exceeded only by Microsoft. Along with Welch’s unique, effective…

Since its establishment in 1914 by President Woodrow Wilson, the Federal Trade Commission (FTC) has been protecting consumers, investors and businesses from anti-competitive practices such as monopolies, monopolistic mergers, price-fixing, bid-rigging, fraudulent and or deceptive advertising, and unfounded product claims. These important functions help the U.S. economy run smoothly, safely and fairly for business, consumer, and investor. Key Takeaways The Federal Trade Commission (FTC), established in 1914 under President Woodrow Wilson, aims to prevent anticompetitive practices such as monopolies, price-fixing, and deceptive advertising that harm consumers and investors.Over the decades, the FTC expanded its roles to address new challenges in the…

Key Takeaways A new paper found that hospital mergers ultimately lead to higher mortality rates at consolidated facilities.  Hospital staff wages decline as the ratio of patients to staff rises, which jeopardizes the quality of patient care. The study suggests that the trajectory of U.S. hospital mergers is concerning and will cause more future harm to local communities as they continue. Hospital consolidation can also lead to higher health insurance prices nationwide. Hospital mergers are bad for Americans’ health, according to a new paper published by the National Bureau of Economic Research (NBER).   Using data from nearly 150 high-concentration hospital…

Space exploration has long been an endeavor many argue should be public sector domain. Not only is space exploration expensive, the uncertain economic returns are anathema to profit-seeking companies. In addition, critics worry that private sector involvement in space will sully pure science and lead to unrestrained land-grabs that will be difficult to adjudicate in terrestrial courtrooms. Key Takeaways Private sector involvement in space has been significant since the start of space exploration, with companies like Boeing and Northrop Grumman historically contributing to the industry by building rockets and satellites for NASA and other space agencies.Despite growing interest from investors,…

People have many different styles and tastes when it comes to money, but making your money grow is typically considered the most fundamental investment objective. The best way to accomplish this goal will vary according to factors such as the investor’s risk tolerance and time horizon. However, there are some key principles and techniques that are applicable to many different types of investors and growth strategies. Key Takeaways Growth investing focuses on increasing wealth through capital appreciation, distinguishing it from income generation or capital preservation strategies.Growth investments often include small-cap stocks, technology, healthcare stocks, and speculative investments, each offering high…

Exchange rates are among the top factors that distinguish the health of a country’s economy. Also known as a forex rate, the foreign exchange rate is the value of the currency of one nation in relation to another nation’s currency. Key Takeaways Exchange rates reflect the value of one country’s currency against another and are key indicators of a nation’s economic health.A country’s GDP signifies its economic size and growth. Increased GDP often leads to a stronger currency as it indicates heightened demand for a country’s goods and services.CPI measures price changes in household goods and services, indicating inflation levels.…

The primary circumstance under which a bond issuer redeems a callable bond is a drop in interest rates. When rates fall, it makes no sense for the bond issuer to continue paying higher-than-average interest to investors when a provision in the bond allows for redemption before its maturity. After calling the high-interest bonds, the issuer can raise capital again by issuing new bonds at a lower interest rate. Key Takeaways Callable bonds allow issuers to redeem the bond before its maturity if interest rates drop, enabling them to save on interest payments by reissuing the bond at a lower rate.Investors…

Premium checking accounts can offer reduced fees, cash-back rewards, rate discounts, and enhanced service—but may not be worth the lost interest you could’ve earned elsewhere. What Are Premium Checking Accounts? Premium checking accounts are a bank’s higher-tier, broadly available deposit accounts for consumers who can maintain a minimum balance requirement in return for avoiding a monthly service charge. Many premier accounts require you to keep a minimum balance of $10,000 to $15,000 or more. Many of these accounts will credit the money you keep in linked savings, checking, retirement, and investment accounts within that banking family. However, some premium checking…

A penny stock is generally defined as a security issued by a small company that trades at less than $5 per share. These are stocks generally quoted over-the-counter, for instance on the OTC Bulletin Board or the pink sheets. The legal definition of a penny stock is more specific. A penny stock is any security that isn’t a National Market System (NMS) stock, registered to trade on a national securities exchange, and with a bid price of at least $4 per share. Other requirements must also be met in order for a stock not to be considered a penny stock.…