Tag: private investment trust

game Vincent Martinez 

The SEC’s Chief Economist Ponders Options


As mentioned in an earlier post, the SEC has its own chief economist, Chester Spatt, who oversees the Office of Economic Analysis.

Last Thursday, Mr. Spat spoke at a private investment trust conference at Carnegie-Mellon University. His speech did not address the current tussle over the derived option markets being developed jointly by the SEC and the technology sector; he only mentioned that “issuers may indeed utilize efforts to construct marketed instruments that replicate the cash flows and valuations of employee stock options. Of course, it would be important for the instrument and the associated market process to be properly designed in order to provide an estimate of the fair value cost incurred by the firm in issuing employee stock options.”

“Proper design” is what the argument is all about, so far. The concern is that what issuers call “proper design” might be called a “structured transaction” by investors.

Anyway, there were some other interesting questions raised by Mr. Spatt in his speech, having to do with executive compensation and stock options. A couple excerpts that might make your wheels turn a little faster; in all cases the emphasis is my own, not Mr. Spatt’s.

“One striking feature of these (option)programs is the discreteness of vesting dates and option exercise dates. The option grants tend to occur infrequently, e.g., annually or quarterly. This seems to be rather puzzling. Why is that an efficient form of compensation, for example, as compared to a more continuous set of vesting dates, option exercise dates and option exercise prices? Given that relevant economic decisions are being made more frequently (continuously?), it is hard to rationalize compensation that is so discontinuous. Discontinuous compensation is vulnerable to manipulation, without obvious advantages over a smooth compensation profile.”

“If the option moves too far out of the …

Blog Vincent Martinez 

5 Clever Ways To Unlock More Disposable Income


If there’s one question on everyone’s lips, it’s how do I increase my disposable income? We all wish we had a little more private investment trust cash to spend on going to restaurants or bars. We’d all love to buy new clothes without feeling guilty about it. Even on a decent income, your money is soon diverted elsewhere. There’s your rent or mortgage payments; there’s insurance, the car and savings to make. It all adds up, and you often find yourself with nothing left over at the end of the month. In this post, we’ll help you find a way to increase that pocket-money and help you live a nicer life!

  1. Ask for a raise

The facts are hard to ignore here. Most people who ask for a raise get one. If you’ve been at your job for over a year or eighteen months, it’s a perfectly reasonable request. It’s worth waiting until you’ve finished a big project or been given more responsibility. Tie the question to an achievement you’ve completed at work. If you think you deserve it, ask for it.

  1. Rent out your home

Of course, this won’t be a viable option for everyone. However, it’s now easier than ever to rent out a room in your house. Websites like London2let.com allow you to list your spare room online. In popular cities like London, you’ll have a renter within the week. It’s a quick and easy way to generate a big monthly increase in your finances. You may have to adjust your lifestyle to accommodate a renter, but you’ll love the extra money.

  1. Get a second job

The harsh reality is that more cash often means more work. Don’t think of it as a chore, though, find something you love. Perhaps you could work in the old …