10 Best Ways to Improve Writing Skills for Finance Students

October 23, 2019

It is very easy to assume that not all sorts of studies require lots of creative writing. That is true, but many spheres involve business writing, and that may turn out to be even harder to master. If you happen to be a finance student, you know what we are talking about. Of course, while you are still in college, you can benefit from the best academic writing services there are on offer. The experts in business writing will help you succeed with any task. However, what shall you do when it comes to real life? What is meant is a proven fact that there is a lot of reading and writing in the professional finance sphere too. Taking all that into consideration, we decided to give a handful of tips to follow to perfect your business writing and build your professional career easily and successfully!

The relevance

The first thing you need to do before you start to write is to consider the relevance of your text. You need to evaluate the target audience, the subject, and its relevance to the audience. It is best to keep in mind that no one wants to get through the pages of unnecessary writing irrelevant to the subject.

Keep it compact

As it was mentioned above – keep your writing strict to the point and keep it short. Business is an area where people value their time greatly. That is why, when you have a point, state it compactly and clearly, bring the key subject to the surface, do not make the reader look for the details all over the text.

Put it simply

Of course, when you are in college, you want to show off all the pretentious words that you know. However, that does not work well in real life. The fact remains that no one wants to check every word in the dictionary to get the general meaning of your message. That is one of those key points that many people leave out, and that affects their rise up the career ladder, not in a very positive way.

Active Voice

It is obvious that everyone writes the way he or she talks in real life, at least close to that. Nevertheless, even if you are an eager user of Past Voice in real life, that would be one of the major mistakes you make in your business writing. The truth is that Active Voice is clear and direct, not to mention that it is more interesting. Surely, there are cases when Passive Voice is irreplaceable, but it is best if you set a rule to stick to the Active one as closely as possible in your writing.

Keep it professional

Very often, we hear the same rule applied to the aspect of writing – you should be unique. That is partially true. However, you need to be extra careful when composing a business text. The fact is that even if you want to drop a few lines to ease the atmosphere, you need to think about it thoroughly. Some innocent joke that you think is fun at the moment may show your unprofessional side, and that is something none of the successful people would want. A piece of advice, once you write something, think about it as if it were an article in a popular newspaper – would you feel comfortable about it? If the answer is positive, then there is nothing to worry about!

State the purpose

If you are usually writing some informative messages, then you may skip this one. However, if you are composing the text with a purpose to it, make sure that it is clear and that the reader will get it straight away. Try not to leave anything hidden in-between the lines.

The title

Be it a title that you need or an email subject, it must be catchy. However, at the same time, it should specify your message in general. That is why it is safe to say that the title or the email subject is the key point to your success, so you need to give it some thought and consideration before applying it to the text.

Stick to the point

Yes, it sounds obvious enough that you should stick to the point in your text, but that should be a sole topic. What is meant is that you shouldn’t be changing the subject of your message with every next paragraph. Keep your attention centered at one topic throughout the text so that the reader does not get confused as to which point is the main in this message.

Keep it positive

There is this one unspoken rule that everyone should be aware of not only finance students. You should never bring the bad news over the email or a letter or any other written piece. It is very easy to misread the tone as well as the intentions of the message, which contains some bad news, so it is always best to do it in person. It is a lot harder, but actions speak louder than words, right?

Don’t be lazy

This can be understood in various ways, but what we have in mind is proofreading. You shouldn’t be too lazy to proofread the text before handing in. You may even give it some time before you get back to it so that you can view it from a different angle.

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US Non-Residents: What Makes One and What Insurance They Need

October 23, 2019

A US non-resident is a person who doesn’t have a permanent residence in the country or lives outside of the US for more than three months a year. Citizenship doesn’t play a big role in distinguishing a resident from a non-resident.

What Makes One a US Non-Resident

It’s a twisted topic to get into at first, so here are some of the examples that make you a non-resident:

You live outside of the US for three or more months in a year;
You visit the US for the pleasure of business but live outside of the country.
Example: you immigrated to Europe but visit your friends and family from time to time;
You’re sure your residence is temporary.
Example: you come to the country for education or business but expect to come back to your home country upon graduation or the end of the contract.
You reside in the US for three or more months every year.
Example: you’re a European citizen but you go to the US for several months every year for business.

So, as a citizen of another country, you may become a non-resident if you have any minimal ties with the US. Those can be immediate family, business partnership, education, etc.

As a US citizen, you may become a non-resident if you have the same ties with another country. If those make you travel for more than three months in a row annually, you’re on the list.

Non-Resident Insurance Needs

To make sure your health and possessions are all safe in the US, you will need different kinds of insurance. They’re basically contracts between you and your insurer. It implies they will cover you or your family financially if anything happens to you or your possessions.

Car insurance.
As the name implies, this type of insurance covers the expenses on your vehicle in case of an accident. In a lot of countries, it’s illegal to drive without auto insurance. You can find out more useful information about it in this article.
Health insurance.
This type implies that if you get hurt or fall ill, the insurer will pay the full or partial cost of your treatment. There are a lot of nuances to this one, so make sure you read about all the cases before signing the paper.
Life insurance.
This one implies that in case of your death, your family will get a certain sum of money to pay for your bills and cover the death expenses. It doesn’t sound positive, but it’s a very popular type of insurance for the US non-residents.

Be sure to contact several insurers before you make your choice. And always read the contract thoroughly, better even consult a lawyer. This will help you avoid unpleasant situations, like having to prove your insurer they are liable to pay for damages in a particular accident when it happens.

It’s crucial to be informed on all of the incidents like this and to be ready to take action when needed.

5 Financing Tips for a Successful Start-Up Launch

October 23, 2019

Startups have made a big name for themselves in the past decade, with giants like Google and Uber continuing to dominate the marketplace. How you fund your business can play a major part in the future success of your enterprise.

Choosing the right financing option for your business will help you to plan and achieve your long and short-term goals. Before you get started, keep these financing tips in mind:

1. Credit Cards

It might seem like a dangerous financial plan, but credit cards can actually be a useful and cost-effective way to start a business.

Many cards come with additional benefits, such as 0% intro APR and cash-back rewards.

Choosing a card that comes with benefits you would have to pay for anyway, like business-related travel expenses and meals, can also help you to save in the long run.

It is also possible to take advantage of these perks without paying exorbitant interest fees. Even if you don’t pay off your full balance during the grace period, creating a detailed plan with help you predict how much you’ll owe over your repayment period.

Eliminating your balance as soon as possible is the best way to use credit cards as financing. This option is best for covering costs that you plan on paying off in a short amount of time.

2. Organic Income / Moonlighting

If you want to forgo borrowing altogether, you can still get your business off the ground. Generating supplemental income is another tried-and-true way to finance your start-up venture.

Depending on your schedule and current commitments, you could take a variety of different part-time jobs to fill the gaps.

Popular side hustles include:

Ridesharing
Web development
Virtual admin support
Graphic design
Serving/hospitality
Freelance writing

3. Auto Title Loans

Do you own a vehicle that’s in decent condition? You could be sitting on a nice chunk of cash, and you don’t even have to give up the use of your car.

Rather than selling your vehicle, get an auto title loan quote. Your interest rate, loan amount, and repayment terms depend on the value of your vehicle as well as your income and credit score.

While having a favorable credit score can help you to secure a lower interest rate, this is still a popular choice for borrowers with lower scores.

If you need money quickly and you don’t want to pay high bank fees, consider taking out a car title loan.

4. Payday Advances

This is typically not the first financing choice for most will-be startups, but payday advance loans can be a valuable funding tool if used responsibly.

Payday advance loans are usually high-interest, extremely short-term loans that are based almost exclusively on the applicant’s income.

The best aspect of payday loans is the speed, as you can leave with loans of up to a few thousand dollars the day you apply.

If you have expenses that need to be reconciled immediately, but you know you’ll be able to pay the balance off quickly, payday advance loans might be a good option for you.

5. Personal Contacts

The oldest, but least conventional, financing method is relying on personal resources. Friends and family could be an invaluable resource for budding businesses.

This is another popular choice for people who want to avoid debt at all costs. Reaching out to personal contacts via direct communication, fundraising outreach, or even crowdfunding websites are all ways to collect the amount you need.

If you cast a wide net and target people who support your company’s vision, you can earn a substantial sum in a short amount of time.

For most new business owners, financing is one of the biggest hurdles. Rather than running to the nearest bank, consider these alternative financing options instead.

Fashion and Politics – What’s the Connection?

October 22, 2019

Politics is believed to be an isolated field – a field that’s dependent on international affairs, the art of policy making and how one can establish connection with his or her voters. Fashion and politics are generally believed to be two entirely separate entities. While one is entirely linked with fashion runways, accessories and fashion stylists, the other is strictly associated to political decision making. However, you would be surprised to know that how these two fields are so strongly interrelated. How? Let’s explore…

Jackie Kennedy

Jackie Kennedy, being the first lady of the USA has always been remembered in the political circles. But, politics was not certainly the only reason that made Kennedy’s personality so popular amongst her peers and political followers. She has always been admired and acknowledged by fashion stylists, celebrities and even non-political followers around the world. Her love for pillbox hats and opulent pearls has reflected her pure and candid style persona that’s one of the top reasons why her followers have always admired her. Dr. Carolyn Mair, behavioral psychologist and author of The Psychology of Fashion, revealed in a recent Laguna Pearl Study that pearls are generally preferred by women with soft and generous heart. Kennedy’s personality was the true reflection of both these attributes. People loved her because of her candidness and down to earth charisma.

Donald Trump

The current American President’s life is full of controversies. With his stubborn attitude towards his policies and decision making, Trump surely doesn’t have a huge fan following. His style is way too conventional and inflexible. In fact, we’ve never seen him carrying anything other than power suits and ties. Psychologists consider Trump’s fashion statement to be extremely rigid and bossy. He seems to be too unimaginative when it comes to experimenting with his fashion taste. His rigid and conventional mindset is also visible in his policies and decision making.

Joe Biden

Unlike Trump, Joe Biden’s fashion taste is all about candidness and innovation. From classic button down shirts to baggy trousers and suits, we’ve seen him wearing all formal and casual attires with utmost class and perfection. Biden’s friendly styling choices are also evident in his political perspectives. People love to connect with him and considers him a common man with whom they can freely discuss their problems and concerns.

Elizabeth Warren

With her traditional, classic look and traditional styling preferences, Elizabeth Warren’s styling is all about minimalistic fashion approaches. She seems to be not much interested in experimenting with her styling choices and prefers to stick to classic cuts and silhouettes. Warren loves wearing cool and classic light colors. Also, her love for pearls is quite evident in whatever she wears. According to the Pearl Source, people who prefer pearls over other accessories tend to be soft-hearted and more truthful by heart. They acquire genuine personalities that help them better connect with their peers and followers. Elizabeth Warren’s political standing is the true reflection of these attributes. She is simple, sophisticated yet so stylish that millions of people love to consider her an ultimate political icon.

Kamala Harris

Kamala Harris’s bold and contemporary fashion taste is visible in her political planning and decision making. Despite her outgoing and seemingly open-minded personality, many of Kamala’s supporters have been surpised by her outdated views on sex work. She is confident, self-assured and well-informed. According to psychologists, Kamala Harris’s style statement is all about modern silhouettes, cool and light color choices draped flawlessly in matching jackets and cardigans. What sets Harris’s personality apart from her opponents is her love for jewelry (lots of jewelry to be precise). From high-end diamonds to beautiful pearls, Harris certainly knows well how to pull off each of her styles flawlessly.

Bernie Sanders

Bernie Sander is the one American politician who is famous worldwide for his wisdom and calculated political approach. While Sanders also appears to be in love with the power suiting and ties, the way he carries those ensembles is more inclined towards candidness and grace rather than stubbornness and inflexibility. People love and admire Sander because they can easily connect with him. He’s down to earth and well-informed who is loved by hundreds of his followers all over the USA.

You’re what you wear. The way you style and present yourself in front of others speak volume about your personality. Same is the case with politicians. People go through their political perspectives later on but instantly develop an opinion when they see their favorite politicians on the stage.

Fashion and politics have a strong affiliation and are used by politicians all around the world to show their inner self in front of the general public and their peers. Politicians make use of their fashion statement to connect with the voters and use it as a tool to influence other leaders around them. Fashion is not just a field, it’s in fact a way of life!

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Short History Of Casinos

October 18, 2019

The ancient times

Gambling appeared back then, in the ancient times. Archaeologists have found some prototypes of dices created several thousand years before Christ. It is believed that initially, these items were used for fortune-telling and magic rituals, and only then became an attribute of gambling.

The mass culture of gambling was formed in antiquity. In ancient Rome, in the 6th century BC, the so-called Circus was created – a public place where visitors were playing craps and making money bets.

Wanna try out one of the world’s oldest entertainments? Today, you don’t need to travel to Monaco to expose yourself to one of the longest-standing activities. You can just turn on your device and play online casino games whenever and wherever you want. In order to choose the best gambling service, you can visit the best casino online Australia or read this page to find out about top online casinos tested by Zen online casino guide.

The Adorable First Casino Ever

The history of the real casino began with the first gambling establishment in Europe legally opened in Venice in 1638. The casino was called Il Ridotto. The term “casino” itself was formed from the Italian word meaning “a small house”.

The origin of this word is explained by the fact that before the opening of the first legal casino, gambling was organized in private houses. Often, along with gambling, the audience was entertained by dancing and music. The meals and drinks were also served. It is believed that the Il Ridotto casino was designed to amuse people with gambling during the renowned Venetian carnival. Only the privileged people were allowed to enter the gambling establishment. Respectively, the bets were huge.

There always were certain rules to follow:

1. The visitors of the casino were told how to dress;
2. There were behavior patterns to abide by;
3. The players had to order some specific dishes from the menu.

The existence of Il Ridotto was beneficial to the state because it had to pay high taxes on its activities.

However, the negative attitude of the church towards this kind of amusement forced the government to make gambling illegal. Due to these laws, the first official casino in the world, Il Ridotto, was closed.

But the casinos could not be conquered

Despite numerous church sermons denouncing “the sinful nature of gambling”, and despite the authorities banning gambling as well, casinos began to spread rapidly outside Italy.

In 1765, the casino fashion reached the neighbor of Italy – France. The first casino opened in this country was, of course, in its capital – Paris. This was possible thanks to Cardinal Mazarin, who hoped to replenish the state treasury with the help of taxes from the gambling business. This casino contained a novelty not seen before – the roulette game, which quickly gained popularity among a large number of players.

At the beginning of the 18th century, the first casinos were opened in other European countries. Thanks to a sufficiently large number of players who liked to participate in such entertainments, the prize amounts were pretty good. The opportunity to earn some decent money attracted the players. This way the popularity of the casino was facilitated.

Getting closer to our days…

The heyday of European casinos was in the 19th century. The interiors were becoming more and more luxurious; the service rose to an unprecedented level of comfort. Each self-respecting person had to appear in a casino, which has also turned into a place of discussion of burning political issues.

Despite the general enthusiasm for casinos among prosperous citizens, by the end of the 19th century, most casinos in Europe, due to amendments to the gambling legislation, were forced to close. The only casino that managed to stay afloat was Monte Carlo, which did not have restrictions on gambling.

Also, from the end of the 19th century, the small principality of Monaco began getting popular. After some time passed, the experience gained in the gambling business has allowed the founding of the recognized capital of gambling in the USA – Las Vegas.

To conclude

Gambling is old and gold. Having appeared in ancient times, casinos have always been up and running these days.

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Five of the Latest Recruitment Trends of 2019

October 18, 2019

Recruitment, like most industries, is one that is consistently changing. There’s now a need for there to be more creative in this area, especially when the market is led by candidates. Recruiters must be on the ball if they’re to land the top talent, and below are some of the trends we’ve seen in 2019.

Artificial Intelligence

Artificial intelligence, more commonly known as AI, has had an impact on multiple industries, so it’s no surprise to learn of its influence in recruitment. As a recruiter, it’s vital to have the latest tech featuring in your toolkit, and AI fits that bill. AI can be useful in a multitude of ways in recruitment, with one being to assess how a candidate answers targeted questions. The technology can also be used to complete video and phone interviews too.

Digital applicants

Back in the day, applying for a job would require a paper CV, and in many cases it still does. However, as times are changing, going digital is a trend which has made an impact this year. This is a worldwide trend and includes anyone from Liverpool and London to Sydney and Bangkok. With more and more people communicating via video, streaming and social media, it makes sense for recruitment to move in this direction too. So, video CVs and job applications are now more popular than ever, with many interviews conducted over a video interface such as Skype.

Furthermore, this even extends to leading recruitment sites sending email alerts to notify the candidate of new jobs the moment it becomes available. So for example, anyone interested in any specialised jobs in say, Liverpool, can use https://uk.jobrapido.com/Jobs-in-Liverpool and set up such email alert. Thus, adding efficiency and convenience to the entire process.

Mobile

People are spending more time on their smartphones than ever because they’re capable of doing a lot more than they were just several years ago. When it comes to job hunting, using a smartphone is fast becoming the method of choice for many, and this is something which recruiters are capitalising on now. Not only are job sites and the like optimised for mobile, with bespoke apps on the market, a lot of recruiters involved mobile technology in the recruitment process too, such as talking on the phone, or via apps.

Social media

Social media is one of the most potent weapons a recruiter has in their arsenal, and when used correctly it can provide fantastic results. We mentioned the recruitment process above, and like everything else in the industry, that too is changing. Therefore, social media has fast become a way to hunt for the top talent to fill vacancies. For example, on Facebook there are groups which likeminded people populate. As a recruiter, infiltrating groups or being active on pages which relate to the industry or sector you’re operating in will allow you to not only find people but learn about them too.

LinkedIn

LinkedIn is a more profession version of Facebook in many people’s eyes, and it has now become somewhat of a hangout for recruiters. Not only can job vacancies be posted on the platform, but it’s also a fantastic way to headhunt talent too. With LinkedIn being the place where you can find out the professional history of people when combined with social media platforms such as Facebook, Twitter and Instagram, you have the recruitment world very much at your fingertips.

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7 Advantages Of An Ensured Vehicle

October 17, 2019

Driving is a necessity in the world today. For many, it is essential to get from one place to the next. It is also essential to have a car to get to school, head to work and do errands. All those who have a car should ideally make sure that it is ensured. An insured car from AUS trade insurance has many advantages. It’s vitally important in an accident, making sure that any company and person can meet all deadlines and ultimately drive on the road without worry.

Accident Help

If someone gets into an accident while driving, it can have dire consequences. Someone might be hurt in an accident. They might also be at risk of hurting others in the process. Insurance will cover such costs. This means they don’t fret if they get into any kind of road accident. All financial issues will be taken care of in the aftermath of the problem.

Assured Transportation

Transportation to get to is essential. Each person needs to make sure they can get to work on time. When someone gets into a car accident, their ability to get to work can be stymied. An insurance company will come to their rescue. They are there in a car the person can use in the meantime. This means they don’t have to take off from work or miss school because it’s too hard to get there.

Ease of Doing Business

Someone may own a company. Part of the ownership and management of any company is having transport. They might need to get goods from one place to the next. When a truck, car or another mode of transport is damaged, it can interfere with the owner’s ability to carry out the functions of their job. Insurance can step in and get it all done for them. An insured vehicle is one that will work to make sure any business owner can stay on track and in business.

Low Cost

Insurance for any vehicle is surprisingly inexpensive. For a few dollars, the person can insure many vehicles. Business owners often pay a lot of money for the vehicles they put on the road. A business vehicle is a business expense and something that many companies have chosen to invest capital in. It’s ideal to make sure that such an investment is totally protected. When a business owner purchases insurance, they are making sure their bottom line is protected should something happen when it’s on the road.

Fast Service

Working with an insurance company also means fast service. If something goes wrong, there will be someone on the scene to help fix it soon. Insurance companies are well aware of the need to rise to a challenge and assist their clients. Someone waiting by the side of the road after an accident can be relaxed knowing there’s someone from the insurance company ready and willing to help them.

Meeting Deadlines

Deadlines are important when it comes to operating a business and in a person’s personal life. Many people need to meet deadlines. They need to get to work on time. They also need to get work done for a client in on time. When a vehicle is not functioning, this can make it hard for them to get things done. The insurance company will make sure that all such deadlines can be met and met with ease even if the vehicle breaks down. A series of deadlines need not stand in their way even if there is a problem with their chosen mode of transport.

Worry-Free

Above all, having insurance on hand means that the person who owns the vehicle can head out on the road without worry. They don’t have to fear that a single breakdown can lead to ongoing problems that only get worse. They also don’t have to worry that the vehicle they have invested in so carefully will be damaged and they’ll be unable to replace it. The insurance company is constantly there for them at any time of the day or night. They can relax and totally enjoy the perfect ride anywhere they’re going.

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What is a short squeeze and how to trade it

October 16, 2019

The term short squeeze is one you may have occasionally come across but not been quite sure exactly what it meant. It typically occurs around a stock was showing a large decline, but then all of a sudden bounced right back.

It is something that is quite often associated with stock shorting. It is a principal proposition, which declares that stock shorting is high risk. Even so, there are many investors out there that make big money from it.

Legendary investor, Carson Block, made his name by short selling stocks. It was not just on American stocks where he earned big money, but also on stocks from across the globe. He is one of lots more who have made large profits from basically going short on stocks.

He has stated numerous times that there are many fundamental reasons as to why investors should short a certain stock. There are many different ways they can trade the short squeeze. What he said was most important was making sound observations of the market and getting the basics right.

There are often genuinely very good reasons why an investor should short a stock. This is why selling short is what large hedge funds predominantly focus on. However, it does mean that you need to have lots of funds available in order to withstand the highly volatile market. This is the reason why few retail traders sell short.

Nonetheless, within the daily trading community, selling short is reasonably common. When discussing the short squeeze it is important to remember that it does not, in anyway, meaning that the stock is reversing. It may reverse, but it is not guaranteed that it will be followed by a change in the trend.

However, before looking into that, we must first understand what the psychology is behind the shorting of stocks.

The negativity around short selling stocks

To understand this fully, it is helpful to know how stocks can be short sold. Short selling / shorting sees a trader lending shares and then selling them. Once the stock has been short sold, the investor closes the position and returns the stock to the broker. However, there are some risks associated with this, with them including margins.

Another risk, which is widely portrayed, is the losses that can be made when an investor is short. One famous example is the short position that Joe Campbell held. He was responsible for having a short position on a pharmaceuticals company. In the hope of making a profit, Campbell actually ended up making large losses after the stock rallied overnight by 800% whilst his position was short. This came about as a result of a CEO of another pharmaceutical company taking a major stake in the one Campbell was shorting on. This put him into a margin call and he became heavily indebted to his broker.

A short squeeze – what is it?

It is defined as a jump up in the price of a stock and can happen for a variety of different reasons. When short sellers begin to feel the pinch their short positions are close, which leads to a buy. This, therefore, becomes a self fulfilling prophecy, which sends the stock price up.

When lots of short sellers make a move on a stock, the price of the stock tends to go lower. However, when it makes the smallest of moves upwards, those selling short must satisfy their margin calls. With the amount of margin calls going up, those investors selling short cover their shorts by closing their positions. This, therefore, adds to the stock’s demand and so sends the price of the stock up.

One real life example saw a stock value fall from highs of $350 to as little as $250. However, as a result of what was previously explained, a reversal took place. Short positions came in at somewhere between $250 and $270 but after the reversal closed at slightly over $280. This was due to short positions working to cover their bets. This resulted in extra demand for the stock, which then led it to jump up.

Why do short squeezes happen?

Short sells are generally dominated by medium and short term investors. These kinds of individuals are not wanting to or are not willing to hold onto the stock during any short term declines in its value. Because of this, those investors are highly sensitive to price fluctuations.

When investors short sell they have taken a margin. This is a risky thing and if they go wrong, the investor has to put in more funds. They other option they have is to make their position liquid. This is referred to as covering the shorts. As a result of their sensitivity to price, investors selling short tend to close the position at the smallest hint of an upward movement in the stock. Over time short sellers become squeezed out, which leads to the demand increasing, thus pushing the value of the stock up.

Making the short squeeze work for you

The first step here is to work out where the stock you are interested in purchasing is in a decline or a rally. Once identified you can then look for a short position on it. This will let you know if the position is crowded or not. As the number grows of short floats you are able to anticipate the occurrence of a short squeeze. However, lots of other things are also required to take place for this to happen.

The ratio of short floats works out the amount of shares, which are short compared with the total number of shares that are outstanding, e.g. a company which has 100 million shares that are outstanding and a total amount of short shares of 10 million, has a short float ratio of one percent.

Whenever the ratio of short floats is greater than 40 percent, the market is acting bearish. However, it is not uncommon to see the ratio above 50 percent.

What to take away

With all this information you should now have a better understanding of what a short squeeze is and how to spot the signs of one so that you can use it to your advantage in order to make some good profits.

Companies Need to Prepare for Activist Investors

October 13, 2019

By Rachel Carroll

Companies have always viewed delivering profits, healthy dividend payments and a stable, or rising share as the best way to ensure positive investor sentiment. If companies want to deal effectively with activist investors, communication is key.

Activist investors are on the rise. Recent research from asset manager Lazard identified activist campaigns at 226 larger companies globally in 2018, a 20% rise on 2017, with activist funds investing a record $65bn of fresh capital. Meanwhile, the Activist Investing Annual Review 2019, produced by Activist Insight in association with international law firm Schulte Roth & Zabel, noted there were as many as 922 companies targeted in 2018 worldwide compared with 856 in 2017. Asia hit a record high in 2018 with 111 companies targeted, just slightly lower than the figure of 148 for Europe. While such statistics may strike fear in the hearts of some boards and chief executives, having a clear investment research strategy focused on a number of key measures, can combat or even prevent activist investors from taking predatory positions and fomenting unrest. Keeping close to shareholders by constantly communicating with them, monitoring shareholder registers, building relationships with funds or individuals that take up significant holdings, developing strong links to investment analysts and having a strong social media presence are all very effective measures that companies can take to guard against activist investors.

Activist investors have a long history

Few companies welcome the arrival of an activist investor. It’s not hard to see why. The emergence of activist investors in the 1980s, saw them aggressively buying up large amounts of shares in target companies often in an attempt to trigger demergers, management changes and share buybacks. Harassed targets occasionally accused raiders of “greenmail” – buying shares in a company and threatening a takeover, forcing owners to buy then back at a higher price – or demanding money as a condition for lifting their siege. And while less common today activist investors still engage in aggressive public attacks, litigation or even proxy battles, with the ultimate goal of many to secure a seat on the board of the target company to influence its future direction and potential growth.

Even the largest companies are not safe

This year has already seen a sharp rise in activity amongst activist investors and with Sterling continuing to weaken against a basket of currencies – in particular the US dollar – there have been warnings that many of the UK’s largest companies are at risk of being swamped by activist investors as they fail to satisfy shareholders, with companies including Whitbread, Centrica and Next among 54 businesses identified as being vulnerable. So far this year US-based investor Edward Bramson has already applied pressure on Barclays bank through a stake held by his Sherborne vehicle, in an attempt to muscle his way on to the bank’s board. Elliott Management, Paul Singer’s hedge fund, is making noise about governance and unsatisfactory profit margins at Pernod Ricard, the French spirits maker. Hedge fund ValueAct’s two-year campaign at Olympus, its first Asian investment, resulted in a deal to appoint three non-Japanese board directors and it is reported to be seeking a new Japanese target.

Most recently Crystal Amber, the activist investment fund has threatened printing giant, De La Rue with plans for an emergency general meeting of shareholders to force chairman, Phillip Rogerson to resign. Chief executive, Martin Sutherland has already done so following a torrid year for the company which has seen its share price fall 45% in the wake of several significant setbacks, not least of which was the loss of the government contract to continue to make British passports, while there have also been a number of profit warnings. Crystal Amber, perhaps understandably, is concerned this leaves De La Rue vulnerable to a takeover bid that might harm its investment. In a development that as has surprised the City meanwhile, Elliott Advisers, the UK subsidiary of an aggressive $34bn US hedge fund, has recently taken a 5% stake in the over-50s insurer Saga, a relative minnow given Elliott Advisers normally takes positions in FTSE 100 companies. Such is the level of activity one might be forgiven for thinking no company is safe.

Fundamental part of a company’s IR strategy should be to keep very close to shareholders

But activist investors can only thrive in an environment where a company has neglected its shareholder base. While it may sound obvious, maintaining a close relationship with investors is a fundamental part of any approach if a company wishes to avoid activists from hijacking shareholder meetings or calling for new a strategy or, worse still, a change of leadership.

Regular trading updates are vital. They should also be honest: if there are problems within the company identifying those early and communicating how the company intends to deal with them is vital.

Among the actions a company’s board of directors can take to mitigate the threat posed by activist investors is to regularly communicate with their investors as well as the wider market. Regular trading updates are vital. They should also be honest: if there are problems within the company identifying those early and communicating how the company intends to deal with them is vital. It shows leadership, a willingness to be self-critical and a commitment to make improvements. It’s also shows transparency. One of the great mistakes that companies make is that they do not report for months on end. This can lead shareholders to distrust the management team or feel taken for granted, neither of which is helpful.

Treating all shareholders as equal, regardless of how many shares they hold, is also wise. Those with larger holdings –such as pension funds that can claim to represent a large number of smaller investors – may argue that they entitled to a greater amount of information and/or influence but in reality providing information to larger shareholders, while keeping smaller investors in the dark, will only lead to resentment which an activist investor will be able to exploit.

Boards need to monitor shareholder register changes and foster new substantial shareholders

Something that many large corporations ignore is their own shareholder register. This is dangerous for two reasons: firstly, it enables activist investors to take a position in the company that gives them potential influence over the direction of the company and secondly boards miss opportunities to build strong relationships with new substantial shareholders. As a case in point, for the past six months Just Eat has found itself under attack from US hedge fund Cat Rock, which has criticised the takeaway app’s ‘unambitious targets and flawed incentive schemes’. The US hedge fund, has built up a 2% stake in Just Eat over the past two years and towards the end of last year began to criticise the company for becoming “the worst-performing public equity in online food delivery”.

In December, Cat Rock urged Just Eat to shed assets, change pay incentives for senior executives and announce three-year financial targets by the end of January. By February Just Eat chief executive, Peter Plumb – after just 16 months in the role – was forced to resign and the company came under renewed pressure from Cat Rock, which this time began calling for the company to merge with Dutch rival Takeaway.com, in which the hedge fund held a 4.9% stake. While Just Eat said it took “communications with all our shareholders extremely seriously” Cat Rock was able, with just a 2%

stake, to apply significant pressure on the company. Soon after Just Eat reported revenue rose 43% to close to £800m last year, reversing losses from a year earlier. It also reported profits of £80m with full-year 2019 revenue expected to be between £1bn-£1.1bn. Yet none of this persuaded Cat Rock to give up its attack on the company.

There followed market speculation that Amazon could take a stake in Just Eat after the Competition and Markets Authority issued an initial enforcement order regarding Amazon’s minority stake investment in Deliveroo, believing there was evidence that the two firms were planning to merge. By July having still not found a new chief executive Just East bowed to the pressure from Cat Rock and announced its merger with Takeaway.com.

Could Just Eat’s predicament have been avoided? We cannot know for certain but if management had kept a closer eye on who was buying the company’s shares and reached out to new and potentially significant shareholders, this would definitely have helped.

Investment research can help maintain a strong investor and shareholder profile

Investment research is also a key tool in companies’ armoury to help maintain a healthy relationship with investors. All senior company executives want to communicate a positive narrative around their company’s growth trajectory and future plans. Independent research can support and amplify this. Having the backing of analysts who agree with the underlying business model and believe that the strategy the company is pursing will yield the desired results can help prevent or mitigate activist attacks.

Equally, independent investment research may highlight some areas where improvement is required or where a particular strategy may have unintended consequences and so may help the company to address problems earlier. It may also highlight to the company areas of concern its shareholders may already have, as well as maintain a healthy profile with its retail investors. A common mistake most companies make is believing that performance alone is sufficient to maintaining a strong relationship with investors. While paying a healthy dividend to shareholders and returning value through a rising share price will be appreciated by investors, analyst research that supports the company’s vision or highlights areas for improvement that the board actively engages with will ensure that more difficult periods are dealt with most easily than might otherwise be the case.

Digital defence – use social media to reach out to investors

Boards and senior management need to communicate as effectively as possible with their shareholders. Today this means engaging with using social media. It is not enough to use traditional media or trading updates. If an activist investor is calling for change, it is vital that senior executives know the view of shareholders. A social media campaign that targets a meaningful sample size of institutional and retail investors can help companies gain that knowledge in advance. This goes deeper than simply looking for social media posts where investors actively complaint about the company. It extends to the use of emoji’s, and Likes. If there is a Facebook page through which shareholders speak to one another and share their concerns it is important that companies are aware of what those concerns might be. Obtaining insights into investor sentiment on key issues can be invaluable. A recent survey by a global communications consultancy found that 90% of buy/sell-side investors used social media to research investments.

For a company already under attack from activist investors, a coordinated approach across multiple online platforms is likely to be necessary. LinkedIn is probably the best way to reach institutional shareholders. Placing ads on Google search to direct investors to a proxy microsite, which can give

answers to questions that shareholders are asking. Targeted ads on Facebook can place key messages into the newsfeeds of retail shareholders and employees. Display ads can appear alongside top-tier news coverage. Having an effective social media strategy does not guarantee victory in a battle with activist investors – but not having one would likely be a key factor in losing it.

Companies have always viewed delivering profits, healthy dividend payments and a stable, or rising share as the best way to ensure investor positive investor sentiment. If companies want to deal effectively with activist investors, communication is key. Fundamentally, companies need to maintain the same attitude they would have once had with their investors, reassuring them that their investment is safe, the company is honest and can be trusted and that is takes the concerns of its investors seriously. To do this they must engage positively with their shareholder base, both through investors relations communications but also through media and social media channels but they must also be equally active in putting an effective investment research strategy in place.

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Rachel Carroll is President, Managing Partner Edison Inc

References:
1. https://www.irmagazine.com/activism/activist-investors-targeted-922-companies-2018-report-highlights
2. https://www.ft.com/content/ca1f3af2-289e-11e9-a5ab-ff8ef2b976c7
3. https://www.ft.com/content/ab9c770e-0155-11e9-9d01-cd4d49afbbe3
4. https://www.standard.co.uk/business/market-report-just-eat-fattens-up-on-rumours-amazon-may-miss-deliveroo-a4186626.html
5. https://www.forbes.com/sites/goncalodevasconcelos/2018/01/11/3-easy-steps-to-keep-your-investors-happy/#75b3667f68a9
6. https://www.bbc.co.uk/news/business-47466821

How to get installment loans online with instant approval

October 11, 2019

What are instant loans?

This is a type of short term loan where an individual or business organization borrows a small amount of money from a bank or financial institute with a relatively high rate of interest and receives the cash in a matter of seconds. A large number of service providers will be able to help you to get installment loans online with instant approval. Therefore, you can refrain from the hassle of getting money to your hands. If you want a service provider that offers the fastest approval, you can learn more here about it.

The manner in which Instant Loans are provided

In much developed instances, one has to register online or simply research and gather information and find a trusted direct lending source online and fill out an application or form and meet the lenders requirements for the borrowing of instant loans. You will be able to receive the money in a short time frame leaving no space for any messy and time consuming activity.

Basic requirements for borrowing instant loans

It is true; requirements to borrow instant loans may vary from lending institution to institution but in the country there are set requirements that are applicable to all sources.

The first would be to meet the age requirement. This factor will defer according to the state but in most cases it is likely to be 18 years and above. Next, the individual or borrower must have an active or open bank account. He or she should have proof of income as well as a valid phone number.

Advantages of Instant Loans

It is acceptable and a common understanding that unpredictable things can happen. Supposedly, one is out shopping and once at the cashier comes upon the realization that the debit card does not have enough to cover the expense and in such a situation, what can one do? Simply opt for an Instant loan. The borrowers can receive their instant loan in a maximum time frame of ten minutes. This can save anyone from a lot of time wastage and so on.

In most instances, these instant loans are managed through online means which means the individual or organization in need of the money will not have to go around and waste time in ques. He or she can easily fill out an online application or register online depending on the lender’s requirements and have the money in your bank account via means of an online transfer. This would simply mean that there will definitely be no time wastage or even frustrating paper work one usually has to face when obtaining various other loans.

An added advantage to an instant loan is, depending on the lending source the required amount to borrow may depend. But one can borrow from a mere minimum value from $500 up to around $5,000. This means the individual does not have to take a higher sum of money which he or she will not be able to pay off and borrow just the required amount of money.

For what purpose can you use the installment loans?

You are provided with the chance to go ahead and use the installment loans for a variety of purposes. Here’s a list of some of the most prominent purposes out of them. This can help you to get a better idea on when you can obtain the installment loan.

Home repairs

If you need to do some repairs to your home and improve the good looks, you can go ahead with an installment loan. This will help you to refrain from the usage of high interest credit cards. On the other hand, you can also make sure that you are not using your savings to complete home repairs. This is one of the most common reasons why people in today’s world tend to obtain installment loans.

Medical bills

When you get sick unexpectedly and when you are provided with some urgent medical bills to pay, you will tend to go for an installment loan with instant approval. Medical debt can be frustrating. However, you can easily settle that by obtaining an installment loan. This can also be considered as the most common method followed by people to wipe out their medical bills.

Down payment for your vehicle

If you are trying to buy a new car, you will need to get some money to make the down payment. Even in such a situation, you can obtain an installment loan. It is true that many different options are available for you to cover up the down payment of the car. However, installment loans are less expensive when compared to other options.

Debt consolidation

People who have unsecured debts can get the assistance of installment loans to settle them with ease. For example, if you have outstanding debt on multiple credit cards, you can easily settle all of them with a single installment loan. Then you will be able to manage the single regular payment. This is more convenient to manage.

Likewise, you can use the installment loans to cover up all sorts of other expenses that you will come across. No matter what the reason is, you can use it as a survivor and overcome frustrating debts that you have to face with ease. All you have to do is to go through the above-mentioned process and obtain your loan. In the meantime, you need to locate a reliable lender as well.

Here is a list of offline instant loan companies that might help you

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