Author: Arabian Media staff

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Qatar-owned Paris Saint-Germain have won the Champions League for the first time, the culmination of the Gulf state’s 14-year project to turn the French club into a football superpower. Inside the Allianz Arena in Munich, PSG cruised to victory over an ageing Inter Milan side, who failed to register a single shot on target. The 5-0 scoreline was the widest margin in any Champions League final. Qatar Sports Investment, a state-backed fund, bought PSG — then a team with little record of success…

Currency fluctuations can have wide-ranging impacts on the economy. They can affect commerce, economic growth, capital flows, inflation, or interest rates. The strength or weakness of the underlying economy typically determines a currency’s exchange rate. Key Takeaways Investors can hedge their foreign currency risk via instruments such as futures, forwards, and options.Investors can benefit from a weak dollar by investing in overseas equities.The foreign exchange market (FOREX) is the most actively traded in the world. Exchange Rates Individuals might follow exchange rates when traveling to a foreign country, making import payments, or collecting overseas remittances. The value of the domestic…

A put option is the opposite of a call option. The holder has the right but not the obligation to buy an underlying security at a specified strike price before it reaches its expiration date in the case of a call option. A put option gives the holder the right but not the obligation to sell a certain amount of the underlying asset or security by the expiration date at a certain price. A put that’s in the money has intrinsic value. Investing can be a very rewarding experience but it can be a little daunting, not to mention intimidating, with all…

When the Fed adjusts its target rate range, banks borrow from each other at different rates and use the resulting average overnight lending rate to set mortgage rates. If the Fed raises the rate range, lending becomes more expensive, and lenders will charge higher mortgage rates. Conversely, if the Fed lowers the rate range, lending becomes less expensive, and mortgage rates will drop. Key Takeaways The Federal Reserve indirectly affects mortgage rates by implementing monetary policies that impact the price of credit.The Fed uses several tools to influence interest rates, including its discount window rate, interest on reserve balances, and…

Equity Research vs. Investment Banking: An Overview Investment banking may no longer be the undisputed first choice for the best and brightest. Instead of streaming into investment banking, many top graduates are now opting for careers in management consulting, technology, or launching their own startups. Equity research is also another destination for prospective financial employees. Equity research is sometimes viewed as the unglamorous, lower-paid cousin of investment banking. The reality, though, differs from this widely held perception. Here’s a head-to-head comparison of the two. Key Takeaways A career in finance can take many paths, including investment banking and equity research.Investment bankers…

A minority interest represents less than 50% ownership in a company. You can calculate it by multiplying the book value of a subsidiary by the total percentage owned by its minority shareholders. We explore the definition of minority interest a little further below along with further details on how to compute it. Key Takeaways A minority interest is ownership that consists of less than 50% of an enterprise.The parent company consolidates the financial results of the subsidiary with its own.A proportional share of equity in the subsidiary company shows up on the parent’s balance sheet attributable to the minority interest.The…

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Iran has increased its stockpile of highly enriched uranium by 50 per cent, according to the UN’s nuclear watchdog, raising the stakes even as the country holds talks with the US to resolve its nuclear stand-off with the west.According to a confidential International Atomic Energy Agency report obtained by the Financial Times, as of May 17, Iran possessed 408.6kg of uranium enriched to 60 per cent purity. This marks a sharp rise of 133.8kg since February.Iran remains the only non-nuclear weapons state known…

Mutual funds are popular vehicles that pool together money collected from investors. This capital is then invested in securities and assets such as stocks, bonds, cash, and money market vehicles based on the fund’s profile. It might be a small-cap fund, an international fund, or a government bond fund. Investors earn income on their investments in return. But do these vehicles pay interest or dividends? Many do. They also offer one of the easiest ways for investors to reap the benefits of compound interest. Key Takeaways Compound interest is calculated on the principal amount plus any additional deposits and interest.Mutual…

Although there are no maximum age requirements for getting a home equity loan or a home equity line of credit (HELOC), you must be at least 18 years old to apply for the loan. Home equity loans are structured similarly to traditional mortgages, with repayment schedules that can span 20 to 30 years. Taking out a home equity loan or home equity line of credit in retirement may mean you may not outlive the maturity of the loan. Be sure to carefully consider your finances and your goals, including the advantages and disadvantages of taking out a home equity loan…

Stocks and bonds are the usual go-tos for a legacy plan. But families with serious wealth often think bigger. From real estate to Picasso paintings, alternative investments can play a powerful role in the building of a lasting legacy. Alternative investments such as private equity, real estate, hedge funds, fine art, collectibles, and commodities offer opportunities for growth just like standard investments. They may also help you make an impact, protect your wealth, and pass it on. These assets are no longer fringe investments but have become important considerations for families looking to create a long-term financial strategy. Key Takeaways…