To establish positive and productive relationships

Arredondo Positive and productive relationships with families establish a strong connection for the benefit of nurturing and educating the children entrusted to my care. I know how important it is for the parents to know about their child's day, upcoming school events, and progress in all areas of the children's learning and development. I know that consistent communication is the key to a trusted partnership with parents. Having a clear understanding up front of what we can expect from each other helps us establish common goals for the benefit of the children.It is an important foundation for creating the very best early childhood experience for the parents and children. Daily communication between parents, teachers and school management is an essential component to my partnership. The parents will receive additional information on a weekly and monthly basis in a variety of formats including welcome letters, weekly and monthly newsletters, ongoing assessment communication, and paren t teacher conferences. Multiple forms of communication foster the connection between home and school to build relationships and create continuity of xperiences, which increase a child's sense of security and well being.I also provide my parents with helpful parent resources related to children's learning and development. Many items and links are classroom or age group specific, including book suggestions, home fun activities and additional online resources. In order to keep up with what's going on in the children's lives after they leave my care, I maintain a close personal relationship with the parents. To do this I must be attentive and trustworthy. I talk to the parents about the child's behavior at home as ell as at school.If there needs to be any adjustments including discipline I immediately talk to the parents about what we should decide on next. We discuss a plan that will work for home and at school so the child knows it's the same consequence in both environments. If ever I am not physically at work on a day a parent has a special request I leave a parent/ teacher log for them to fill out and leave. I was very eager to receive the questionnaires back from my parent's. I have quickly learned how much respect I have received from my families.I was thrilled to find that I meet, and in some cases over exceed expectations of the parents. Reading some of the parent's answers it's established that I have positive, responsive and cooperative relationships with their children and all members of their families. This was definitely one question all the parents seemed to agree on. In conclusion to this essay this has confirmed all my beliefs about my classroom and I. I will continue to grow professionally through out my years of teaching and look forward to many more

Supply Network Design

Supply Network Design The Supply Network Perspective: A supply network perspective means setting an operation in the context of all the operations with which it interacts, some of which are its suppliers and its customers. Materials, parts, other information, ideas and sometimes people all flow through the network of customer-supplier relationships formed by all these operations. On its supply side an operation has its suppliers of parts, or information, or services. These suppliers themselves : have their own suppliers who in turn could also have suppliers, and so on.On the demand side the operation has customers. These customers might not be the final consumers of the operation's products or services; they might have their own set of customers. †¢On the supply side is a group of operations that directly supply the operation; these are often called first-tier suppliers. They are supplied by second-tier suppliers. However, some second-tier suppliers may also supply an operation directly, thus missing out a link in the network. Similarly, on the demand side of the network, ‘first-tier' customers are the main customer group for the operation.These in turn supply ‘second-tier' customers, although again the operation may at times supply second-tier customers directly. The suppliers and customers who have direct contact with an operation are called its immediate supply network, whereas all the operations which form the network of suppliers' suppliers and customers‘ customers, etc. , are called the total supply network. Homeware manufacturer supplies some of its basic products to wholesalers which supply retail outlets. However, it also supplies some retailers directly with ‘made-to-order' products.Along with the flow of goods in the network from suppliers to customers, each link in the network will feed back orders and information to its suppliers. When stocks run low, the retailers will place orders with the wholesaler or directly with the manufacturer. The wholesaler will likewise place orders with the manufacturer, which will in turn place orders with its suppliers, which will replenish their own stocks from their suppliers. It is a two-way process with goods flowing one way and information flowing the other. It is not only manufacturers that are part of a supply network.The second (service) operation, an operation which manages an enclosed shopping mall, also has suppliers and customers that themselves have their own suppliers and customers. Figure 6. 2 shows the supply network for an operation which manages an enclosed shopping mall. Why consider the whole supply network? †¢There are three important reasons for taking a supply network perspective: †¢It helps an understanding of competitiveness. Immediate customers and immediate suppliers, quite understandably, are the main concern to competitively minded companies.Yet sometimes they need to look beyond these immediate contacts to understand why custo mers and suppliers act as they do. Any operation has only two options if it wants to understand its ultimate customers' needs at the end of the network. It can rely on all the intermediate customers and customers' customers, etc. , which form the links in the network between the company and its end-customers. Alternatively, it can look beyond its immediate customer and suppliers. Relying on one's immediate network is seen as putting too much faith in someone else's judgment of things which are central to an organization's own competitive health. It helps identify significant links in the network. The key to understanding supply networks lies in identifying the parts of the network which contribute to those performance objectives valued by end-customers. Any analysis of networks must start, therefore, by understanding the downstream end of the network. After this, the upstream parts of the network which contribute most to end-customer service will need to be identified. But they will not be equally significant. For example, the important end-customers for domestic plumbing parts and appliances are the installers and service companies that deal directly with domestic consumers.They are supplied by ‘stock holders' which must have all parts in stock and deliver them fast. Suppliers of parts to the stock holders can best contribute to their end-customers' competitiveness partly by offering a short delivery lead time but mainly through dependable delivery. The key players in this example are the stock holders. The best way of winning end-customer business in this case is to give the stock holder prompt delivery which helps keep costs down while providing high availability of parts. †¢It helps focus on long-term issues. There are times when circumstances render parts of a supply network weaker than its adjacent links.A major machine breakdown, for example, or a labour dispute might disrupt a whole network. Should its immediate customers and suppliers explo it the weakness to enhance their own competitive position, or should they tolerate the problems, and hope the customer or supplier will eventually recover? A long-term supply-network view would be to weigh the relative advantages to be gained from assisting or replacing the weak link. Design decisions in supply networks †¢The supply-network view is useful because it prompts three particularly important design decisions.These are the most strategic of all the design decisions treated in this part of the book. It is necessary to understand them at this point, however, because, as well as having a particularly significant impact on the strategy of the organization, they set the context in which all other process design decisions are made. The three decisions are: †¢1- How should the network be configured? This means, first, how can an operation influence the shape which the network might take? Second, how much of the network should the operation own? This may be called the ou tsourcing, vertical integration or do-or-buy decision. 2- Where should each part of the network be located? If the home ware company builds a new factory, should it be close to its suppliers or close to its customers, or somewhere in between? This decision is called the operations location decision. †¢3-What physical capacity should each part of the network have? How large should the home war factory be? Should it expand in large-capacity steps or small ones? These types of decisions are called long-term capacity management decisions. †¢Note that all three of these decisions rely on assumptions regarding the level of future demand. The supplement to this chapter explores forecasting in more detailDeciding whether to outsource †¢Although the effect of outsourcing on the operation's performance objective is important, there are other factors that companies take into account when deciding if outsourcing an activity is a sensible option. For example, if an activity has lo ng-term strategic importance to a company, it is unlikely to outsource it. For example, a retailer might choose to keep the design and development of its web site in-house even though specialists could perform the activity at less cost because it plans to move into web-based retailing at some point in the future.Nor would a company usually outsource an activity where it had specialized skills or knowledge. For example, a company making laser printers may have built up specialized knowledge in the production of sophisticated laser drives. †¢This capability may allow it to introduce product or process innovations in the future. It would be foolish to ‘give away' such capability. After these two more strategic factors have been considered the company's operations performance can be taken into account.Obviously if its operations performance is already too superior to any potential supplier, it would be unlikely to outsource the activity. But also even if its performance was c urrently below that of potential suppliers, it may not outsource the activity if it feels that it could significantly improve its performance. Figure 6. 3 illustrates this decision logic. Outsourcing and offshoring †¢Two supply network strategies that are often confused are those of outsourcing and off-shoring Outsourcing means deciding to buy-in products or services rather than perform the activities in-house.Off-shoring means obtaining products and services from operations that are based outside one's own country. Of course, one may both outsource and offshore as illustrated in Figure 6. 4. Offshoring is very closely related to outsourcing and the motives for each may be similar. Offshoring to a lower-cost region of the world is usually done to reduce an operation’s overall costs as is outsourcing to a supplier that has greater expertise or scale or both. Critical commentary †¢In many Instances there has been fierce opposition to companies outsourcing some off the ir processes.Trade unions often point out that the only reason that outsourcing companies can do the job at lower cost is that they either reduce salaries or reduce working conditions, or both. Furthermore, they say, flexibility is only achieved by reducing job security. Employees who were once part of a large and secure corporation could find themselves as far less secure employees of a less benevolent employer with a philosophy of permanent cost-cutting. Even some proponents of outsourcing are quick to point out the problems.There can be significant obstacles, including understandable resistance from staff who find themselves ‘outsourced'. Some companies have also been guilty of ‘outsourcing a Problem' . In other words, having failed to manage a process well themselves, they ship it out rather than face up to why the process was problematic in the first place. There is also evidence that, although long-term costs can be brought down when a process is outsourced, there may be an initial period when costs rise as both sides learn how to manage the new arrangement. The Location of capacity It was reputedly Lord Sieff, one-time boss of Marks and Spencer, the UK-based retail organization, who said, ‘There are three important things in retailing – location, location and location', and any retailing operation knows exactly what he meant. Get the location wrong and it can have a significant impact on profits, or service. For example, misallocating a fire service station can slow down the average journey time of the fire crews in getting to the fires; †¢locating a factory where there is difficulty attracting labour with appropriate skills will affect the effectiveness of the factory's operations.Location decisions will usually have an effect on an operation's costs as well as its ability to serve its customers (and therefore its revenues). Also, location decisions, once taken, are difficult to undo. The costs of moving an operation can b e hugely expensive and the risks of inconveniencing customers very high. No operation wants to move very often. †¢Reasons for location decisions Not all operations can logically justify their location. Some are where they are for historical reasons. Yet even the operations that are ‘there because they're there' are implicitly making a decision not to move.Presumably their assumption is that the cost and disruption involved in changing location would outweigh any potential benefits of a new location. Two stimuli often cause organizations to change locations: changes in demand for their goods and services, and changes in supply of their inputs. Changes in demand A change in location may be prompted by customer demand shifting. For example, as garment manufacture moved to Asia, suppliers of zips, threads, etc. started to follow them. Changes in the volume of demand can also prompt relocation.To meet higher demand, an operation could expand its existing site, or choose a larg er site in another location, or keep its existing location and find a second location for an additional operation; the last two options will involve a location decision. High-visibility operations may not have the choice of expanding on the same site to meet rising demand. A dry cleaning service may attract only marginally more business by expanding an existing site because it offers a local, and therefore convenient, service. Finding a new location for an additional operation is probably its only option for expansion.Changes in supply. The other stimulus for relocation is changes in the cost, or availability, of the supply of inputs to the operation. For example, a mining or oil company will need to relocate as the minerals it is extracting become depleted. A manufacturing company might choose to relocate its operations to a part of the world where labour costs are low, because the equivalent resources (people) in its original location have become relatively expensive. Sometimes a business might choose to relocate to release funds if the value of the land it occupies is worth more than an alternative, equally good, location.The objectives of the location decision †¢The aim of the location decision is to achieve an appropriate balance between three related objectives: †¢The Spatially variable costs the operation (spatially variable means that something changes with geographical location); †¢the service the operation is able to provide to its customers; †¢the revenue potential of the operation. †¢In for-profit organizations the last two objectives are related. The assumption is that the better the service the operation can provide to its customers, the better will be its potential to attract custom and therefore generate revenue.In not-for-profit organizations, revenue potential might not be a relevant objective and so cost and customer service are often taken as the twin objectives of location. In making decisions about where to locate an operation, operations managers are concerned with minimizing spatially variable costs and maximizing revenue and customer service. Location affects both of these but not equally for all types of operation. For example, with most products, customers may not care very much where they were made. Location is unlikely to affect the operation's revenues significantly.However the costs of the operation will probably be very greatly affected by location. Services, on the other hand, often have both costs and revenues affected by location. The location decision for any operation is determined by the relative strength of supply-side and demand-side factors (see Fig. 6. 5). Location techniques Although operations managers must exercise considerable judgement in the choice of alterative locations, there are some systematic and quantitative techniques which can help the decision process.We describe two here – the weighted-score method and the centre-of-gravity method. †¢Weighted- score method The procedure involves, first of dl, identifying the criteria which will be used to evaluate the various locations. Second, it involves establishing the relative importance of each criterion and giving weighting factors to them. Third, it means raring each location according to each criterion. The scale of the score is arbitrary. In our example we shall use 0 to 100, where 0 represents the worst possible score and 100 the best. Worked example An Irish company which prints and makes specialist packaging materials for the pharmaceutical industry has decided to build a new factory somewhere in the Benelux countries so as to provide a speedy service for its customers in continental Europe. In order to choose a site it has decided to evaluate all options against a number of criteria, as follows: †¢the cost of the site; †¢the rate of local property taxation; †¢the availability of suitable skills in the local labour force; †¢the site's access to the motorwa y network; †¢the site's access to the airport; the potential of the site for future expansion. After consultation with its property agents the company identifies three sites which seem to be broadly acceptable. These are known as sites A, B and C. The company also investigates each site and draws up the weighted-score table shown in Table 6. 2. It is important to remember that the scores shown in Table 6. 2 are those which the manager has given as an indication of how each site meets the company's needs specifically. Nothing is necessarily being implied regarding any intrinsic worth of the locations. Likewise, the weightings are an indication of how important the company finds each criterion in the circumstances it finds itself. The ‘value' of a site for each criterion is then calculated by multiplying. its score by the weightings for each criterion. †¢ †¢For location A, its score for the ‘cost-of-site' criterion is 80 and the weighting of this criterion i s 4, so its value is †¢80 X 4 = 320. All these values are then summed for each site to obtain its total weighted score. †¢ †¢Table 6. 2 indicates that location C has the highest total weighted score and therefore would be the preferred choice.It is interesting to note, however, that location C has the lowest score on what is, by the company's own choice, the most important criterion – cost of the site. The high total weighted score which location C achieves in other criteria, however, outweighs this deficiency. If, on examination of this table, a company cannot accept what appears to be an inconsistency, then either the weights which have been given to each criterion, or the scores that have been allocated, do not truly 1 reflect the company's preference. ?

UWS property taxation and finance Essay Example | Topics and Well Written Essays - 1500 words

UWS property taxation and finance - Essay Example UWS property taxation and finance The Mirvac Property Trust has two development funding; Meadow Springs and Seascapes. The Meadow Springs Estate is a residential estate located around and within a championship golf course in Mandurah (Compton, 2000). The estate is located approximately seventy five kilometers south of the Perth Central Business District. Meadow Springs is serviced by the Mandurah railway and Perth, allowing an easy commute for the Perth workers. The area has various shops, stores, and supermarkets located within the area. Mandurah area features various recreational facilities like restaurants, cinema complex, walkways, and parks. Meadow Springs is therefore a residential development site valued at $15.8M. The Mirvac Development Fund for Seascapes is closed end, unlisted, single project fund. The investment strategy for the fund is maximizing the value of investors by offering returns the development and investment of subdivision project and quality land (Harriss, 2008). Seascapes are a residential co mmunity located in Mandurah located seventy five kilometers Perth South. The project is comprised of the development of forty eight hectare land with subunits approval for five hundred and fifty five residential Lots in addition to a Grouped Housing Site. Seascapes are extended to view the foreshore of the Indian Ocean and are celebrated by tourists and residents alike for its relaxed atmosphere, waterways, and beaches. The property type for Seascapes is a residential development site valued at $23.6M... WACC is important for the Mirvac Property Trust because it enables the company to maintain their relationship with investors and grow their revenues. Weighted Average Cost of Capital for Mirvac Property Trust is composed of both equity financing and debt according to Mirvac Property Trust optimal mix of financing equity and debt. Weighted Average Cost of Capital has enabled the Mirvac Property Trust to make decisions about the proposed projects (Harriss, 2003). The Mirvac Property Trust came up with the above figures by computing Weighted Average Cost of Capital using the formula Weighted Average Cost of Capital = wt*rt+wp*rp +ws*rr. Where wt is long-term debt, wp is preferred stock,ws is the common stock, rt is the long term debt cost, rp is the preferred stock cost, and rr is retained earnings stock. Therefore, the projects below the anticipated Weighted Average Cost of Capital are rejected, while those above Weighted Average Cost of Capital were chosen. The weights for Mirvac Prop erty Trust used both the historical and target proportions. The target proportions were the capital mix that the Mirvac Property Trust achieved. Internal Rate of Return The Mirvac Property Trust has a target unlevered ten years IRR Internal Rate of Return of more than 11 percent. This is because the Mirvac Property Trust maximizes the property security and income growth and maintains a portfolio that is diversified (Lindholm, 2004). Mirvac trust has also continued to raise the portfolio quality through the disposal of non-aligned asset above or at valuation. The trust has utilized the development division to come up with commercial assets that are of high

Moral Stages of Development Essay Example | Topics and Well Written Essays - 750 words

Moral Stages of Development - Essay Example Interspersed throughout these critical learning levels are seven different stages of understanding in which the child slowly progresses from one level to the next. Kohlberg defines the first level of moral development as that time when a child is very impressionable to rules and standards of behavior, but only to the extent that he or she will act a certain way to avoid physical punishment or gain physical rewards (treats, etc.). Level Two moral development involves both conformity and loyalty to social norms, according to Kohlberg, and this is the level that parents and educators strive to instill in their children. In this stage, laws and societal rules are accepted and understand as being put in place for the good of the nation or group. In contrast, Level Three, also called the Autonomous Level, sees an individual making judgment choices based not only on societal expectations and laws but on his or her own personal ethical code, which has developed throughout the years (Kohlberg 1971). According to Miller, Van Esterik and Van Esterik, the concept of childhood itself has only been in use for a few hundred years (2001); this relative newness gives researchers few concrete ideologies when it comes to understanding the moral development of a young person in school. Kottak agrees that the role of the classroom and the effects of a changing world are constantly creating new issues with students; he feels that in particular, television has a great role to play in the gender development of students everywhere. Kottak notes that in a few short decades as television became omnipresent, students began treating their teachers and their peers with what he regards as less respect and simply less attention. Instead of learning their place in society from their teachers and their parents, they are also learning it from movies and TV programs; in fact these very programs have a direct effect on the gender bias in classrooms (Kottak 2000). Where parents and even teachers might tend to avoid actually discussing the issue of gender bias in the classroom and the wider world, television opens up the topic for discussion and children are learning early on about their history as a sex and making decisions about their future in this respect. Conclusion Kohlberg's levels of moral development can be directly implemented by teachers in early learning situations most effectively; the more time left before instilling basic social expectations, the more difficult it is to instill them at all. As children in level one are the most susceptible to learning fresh concepts, it is best that teachers of younger children do their best to address issues of gender bias in such a way as to bring the children forward into a new reality, instead of merely teaching them about what already exists. Perhaps this is the most crucial aspect of level one learning: instead of showing children the things that need changing and hoping they will decide to take a stand in the future, teach them about their role in a more perfected society, where the genders are truly

Keyword Critique Research Paper Example | Topics and Well Written Essays - 1750 words

Keyword Critique - Research Paper Example In sociology, persons are normally classified into groups according to their socio-economic conditions. Social stratification tries to understand political, social, ideological, cultural, and economic dimensions of social inequality. However, stratification is not homogenous concepts. It is by definition has multiple meanings and the meanings changes when placed against different contexts and different actors. In sociology, the use of the term stratification has changed from time to time. It even substantially changes in terms of meaning and practice in different schools such as Marxism, functionalism and structuralism. II. The Conceptualization of Stratification When someone tries to find answer of poverty in any society the concept of stratification becomes important. If we try to locate reasons behind the backwardness of Black people or women vis-a-vis White people or we try to gauge chances of a child born into working class family to climb the social ladder, we will lend into ou rselves into the study of social stratification. The methodological analysis of stratification seeks ‘to discover social gulfs- to find the gaps in people’s social relations and experience- which might explain the fissures in people’s perception of each other. ... Max Weber has tried to elaborate the concept of social stratification wherein he studies stratification in traditional societies or we could call them status-based societies and of modern societies. According to him in traditional societies, person’s social status was depended upon his ascribed status wherein a person possesses qualities, which are beyond his control like sex, class at birth ethnicity, race, caste, or religion. Whereas in modern society element of achievement or personal qualities defines persons social status. Max Weber has made distinction between social class, which is defined according to material wealth, and status class, which depends upon social honor, prestige and links to the religious institutions. Studies of social stratification try to understand at what extends class or status system affects modes of social action. It analyses class and status structures and its reproduction in the society. Social stratification tries to understand how inequality of condition and opportunities affects outcome and what are the methods used by groups to protect their class or status boundaries. In simple word, how people maintain their class privileges and how other sections try to get access to it, these are the issues which get importance in the study of social stratification. Social stratification investigates various ways through which class, status-groups are formed in the society, and through it sociologist understand the society. While fiercely criticising the empirical sociology dominated in the United States, Anderson and Massey points out that â€Å"as the status attainment model came to dominate American sociology, the study of stratification became progressively despatialized. Socio-economic outcomes were conceptualized as individual-level

Oral Contracts Assignment Example | Topics and Well Written Essays - 500 words

Oral Contracts - Assignment Example An important difference between written and oral contracts is in the time taken to sue for breaching of an oral contract is at times shorter. For instance in California, limitation is 2 years in regard to oral in comparison to 4 for written. Washington and Connecticut, 3 for oral and 6 for written. Georgia has 4 for oral and 20 for written (Clarkson, et al, 2006). Oral contracts are enforceable, inspite of popular belief. So long as there is sufficient evidence, any given court will enforce an agreement made orally. However there exists a single exception to this statute; if the subject matter falls within the law of frauds, which is an English law that was adopted in the US, which entails specific contracts to be in written form. This law is designed so as to avert fraudulent conduct especially when the given contract has got stakes that are high or durations that are long. Most states in the US usually call for written contracts in these circumstances; sale of real estates, leases for real estate lasting for more than a year, property transfer upon the death of the owner, agreements to settle another person’s debt and contracts for particular amount of cash (Jentz & Miller, 2008). Generally, a court will deem an oral contract not enforceable, when it falls within any of the above categories. Some sort of writing therefore, must exist and signed by all parties. Exceptions to this rule; claims even if a given oral contract is within its stipulations, it still will be enforced where; one of the parties partly complied with its stipulations or rather the plaintiff depended on the promise of the defendant and in the process suffered some injury as a result. Once again it is the burden of plaintiff to provide such evidence. It should be noted that contract law evidently does not support oral contracts. This is because oral contracts are hard to prove, and frequently form the foundation of deception. People are therefore

Small Wins Steps Essay Example | Topics and Well Written Essays - 500 words

Small Wins Steps - Essay Example Achievement of gender equality in the workplace is largely dependent on the corporate strategies. However, adopting approaches that base on gender equality is a major problem for organizations. In the work place, gender inequality mainly affects women. Long ago, women were victimized in the job market, and their entry was highly restrictive. Although this situation has been alleviated by policy changes in companies and at the national level, there still exist cases of gender inequality, which to a higher extent are embedded in the organizational cultures and are hard to detect (Meyerson and Fletcher 127). In the small wins strategy, the identification of gender inequality problem is crucial in the rectification process. Failure to identify a problem will lead to its persistence. As a leader, I realize there is a gender inequality situation that needs to be addressed. The second step is to diagnose the gender inequality problem. Here, a company establishes the specific gender inequality problem, whether it lies in salary remuneration differences, or bias in managerial positions. As a new leader, I realize that the face of gender inequality in my company is manifest salary remuneration. Women are paid less as compared to men. Third is patterns and consequences identification of gender inequality aspect. Here, we establish the organizational culture, and how it promotes gender discrimination. The final step is experimentation. Managers take the initiative of replacing company practices, which promote gender inequality, with better ones. This is through talks with the company employees to brainstorm possible solutions (Meyerson and Fletcher 133-134). Additionally, I would consider the impacts of external environment on company policymaking. These include institutional framework, external labor market, and relations with other companies. This closely fits in Meyerson and

How do movies or television influence peoples behavior use reasons and Essay

How do movies or television influence peoples behavior use reasons and specific examples to support you answer - Essay Example The first thing to note is that both television and movies happen to be aa great medium through which artists talents are demonstrated throughout the world. Through TVs people receive world news. It is a source of entertainment too. Individuals get relaxed when they take time to watch films. Children as ell learn from TV as they watch certain channels such as fox history, discovery among others. These are just but a few of positive benefits of television ad movies that positively affect the behaviors of people (Mariam, 2013). On the other hand, most children take more time to watch television as compared to time spent on outdoor sports. Such behavior is unhealthy and results to diseases such as eyesight problems, obesity as well other diseases. Surveys have shown that those children who spent most of their time watching TV do not do well in class. They become addicted to watching TV and prefer watching programs over doing their school homework. This is more common today now especially that most children have in their own bedrooms, their TV sets. Most people think that if there is no bad content showing in the TV then there is no need to stop the kid from watching TV. This makes children love TV and become lazy in class. It is the idea of many people that movies as well as television reflect the society. However, this is not the truth mostly. Most people today like watching movies and TV programs that ha violence within the content. Criminals learn from movies new tactics as well as tricks which they apply in murder, robbery and other harmful activities. Most young people today engage in crime as an influence of TV and movies. Another thing is that through movies, the under aged are able to access porn material easily (Mariam, 2013). It is well know that the youth can watch a lot of stuff in their bedroom TV sets. The bottom line is that as advantageous as it is, the system has a huge negative impact on individuals’ behavior too. The fact is that

Robotic Mission vs Manned Mission Essay Example for Free

Robotic Mission vs Manned Mission Essay It is my opinion that if given a choice between a robotic and a manned space based exploration, it is better to execute a robotic mission. It is not worth the cost and risk for humans to simply explore space, except when the goal is specifically colonization. First, a manned mission would be much more technically complicated than a robotic one outweighing any incremental benefit resulting from a human presence. Second, the financial cost of manned missions to overcome the complications is not worth the projected costs. Third, funding robotic missions are indirect investments in aiding the current human condition. That is, the cost saving from robot missions could help relieve current issues here on earth. Lastly, pushing the boundaries of the unknown will always be fascinating to humans, but we would be pushing current human boundaries to explore much further past the moon, with our current technology. Advancements in robot technology can allow us to take the next step in advanced space missions. Some would argue the opposite; some would say that manned missions are essential to quench our curiosity and thirst for uncovering the unknown, our desperate search for answers about the universe, and to find life beyond our planet. There are specific advantages to robotic exploration over human space missions. Space is a dangerous place for humans in many ways; there are many factors working against long term human space travel. There is harsh radiation, zero gravity and the element of time to consider. Radiation, in form of cosmic rays (high energy particles) and other high-energy radiation emitted from our sun, breaks down DNA in our bodies (0), leads to major complications, and poses the largest threat to human space travel. Extended zero gravity exposure leads to bone destiny loss and weakened organs because our physiology evolved having gravity. Time is also a factor against human space travel; we simply cannot go fast enough and live long enough to make it. If we went 123,000 mph with current plasma engines (1) to the closest star, Proxima Centauri – 4. 22 light years away (2), it would take 23 thousands years (2. 1). We cant live that long but robots could possibly go faster and need no protection from anything except sensitive equipment. Robots don’t need to come back, they have no families and we can build new ones. As questions are asked about the cosmos we develop new detectors, telescopes, and probes to answer those questions safely, quickly, and with accuracy. Human space missions are extremely expensive, unsafe, and inefficient(3) compared to robotic ones. A manned mission would most likely involve advanced life support systems, ample social interaction that means more people, food, oxygen, radiation protection, constant exercise, etc. with all systems being mostly self-sustaining or replenishing. This is all equals to weight, cost, time, and research. Also, the effects of zero-gravity and cosmic radiation have not been studied in depth and the long term exposure, could be detrimental(4). Also, the effects on the mind, in the long term, we know little about. (5) Constant isolation and confinement could drive any crew mad. (5. 1) We currently don’t even have spacesuits that protect against radiation. (6) Dennis Bushnell, NASA Langley’s chief scientist said, â€Å"What’s affordable is not safe; what’s safe is not affordable. †(7). A robotic mission would not encounter any of these problems and risks. The space shuttle had a price tag of about $450 million per mission and today unmanned payload cost about $12,000 per pound. (8) Most of this cost is associated with the fuel it takes to escape Earth’s orbit which is burned upon take off. The less weight expended the less fuel is required for takeoff, thus saving money to make it worth these endeavors. Assuming we do not colonize the location we plan on exploring, we would want our fellow space explorers to return home to their families safely. This would require a mission plan home, this is more than one mission, an increase in cost and preparation, making a returning virtually impossible. (8. 1) Robotic space missions could directly address and change human conditions on Earth. The possibilities of immediate results on Earth are enticing, new technologies found through the research of problems encountered could lead to advanced propulsion technologies that could give us more efficient methods of travel here on Earth and possibly end our use of fossil fuels. Reaching and exploring asteroids could lead the way to learning how to divert one here on Earth(9). Possible colonization of new worlds can first be explored by robots, giving us an understanding of our true environment and helps us expand, as the human race; not any specific nation or country but for humankind as a whole. Finding new resources from asteroids, moons, and worlds in our solar system could give us a new era of economic stimulus, growth, and hopefully peace. By 2030 we human on Earth will be consuming the resources of two planets annually (10), this is a scary thought and we must prepare for the possibility of expanding our horizons to the new frontier, united as one people for the common good. Some opposing cases have been argued that it is essential for manned missions to be funded. It is very possible for us to reach Mars in one month (11) with a proposed 123,000 MPH plasma engine. This makes it imperative to do so immediately. With less and less standing in our way to colonizing our solar system, we must see these new frontiers with our eyes. New technologies researched for the survival of colonies in space, could bring many positive effects on Earth, such as closed-loop sustainable habitats would give the poor around the world, enough food. 12) This would not be possible, if we sent robots, since they don’t eat. The necessity for manned missions could inadvertently allow us to discover new technologies that will, assuredly help us on Earth. There even is the possibility of a one-way journey for a single candidate to colonize Mars. (13) This would reduce risk, cost, and the lives of other potential settlers. Since, there is no longer the competition of nations to reach space, like the space-race between USA and Russia, but today we work together, â€Å"Like a club of developers. (14) In conclusion, I feel that a robotic mission is the way to explore space. The cost, risk, and benefits gained from a manned mission are just not worth it, when compared to a robotic one. Although, the possibility of many technologies arising from the research aimed toward at solving current hurdles of successful manned missions, we should not to bear the risks associated with them since, robots are extension of ourselves. Endnotes 0: http://schoolworkhelper. net/2011/02/nasa-mission-to-mars-probes-design-dangers/ 1,11,14.

Traveling in the New Kingdom of Egypt Essay Example for Free

Traveling in the New Kingdom of Egypt Essay Life on the road to Thebes is hard for anyone, not the least for a foreigner from the land of Egypt’s former enemy. Not that it makes much difference if you have money. The poor walk; the rich take horses or camels. If you are walking along the roads and are suspected of being a foreigner, be prepared to be harassed. As for me, I am fortunate. I am neither poor, nor rich for I have some skills of value. These skills I would consider modest in comparison to the military conquests of other men which have defined most of my life. My name is Jakarob, the son of a stone mason from the land of Syria, but that land has long been abandoned by my family. The Hittite invasion swept away my father’s house. As a result, I received very little knowledge of stonemasonry and instead, survived by learning the art of languages such as Akkadian, Sumerian, and Egyptian. My knowledge of the surrounding regions, languages, and eventual journey into Egypt has made me a valuable asset to the court of Pharaoh Ahmose I. The caravan I ride with is apart of a group of professionals answering the request of the pharaoh; many of them have military expertise. These men are like me in ancestry. We are Semites who came across the Sinai into the land of Egypt seeking refuge in the land of Egypt from the Hittites. Our kings are referred to by the Egyptians as Hyksos, or â€Å"rulers of foreign lands† (Kishlansky, p. 22). We settled throughout the land of Egypt, taking up their customs, traditions, and assimilating into their culture. My father was among the first Semites to arrive in Egypt and settle. However, regardless of how assimilated our people have become in Egypt, we will never fully be accepted as Egyptian. To them we will always be foreigners. The most important innovation our people brought to the Egyptians was military technology, and hence the reason the caravan I am in consists of primarily military men. Before the Semites, the Egyptians had an army which was not very mobile. We introduced the chariot, along with a variety of tactics associated with using the chariot in combat. Then around 1552 B. C. E. , Ahmose I was able to expel the Hyksos and begin again the reign of Egyptian pharaohs (p. 23). Now it seems that no matter what Ahmose does, he will never get rid of his need for Semite military expertise, not to mention translators like myself. The chariot has become a symbol of Egyptian power, and in order for them to continue dominating local dissenters, the pharaoh must rely on our knowledge of chariot methods and tactics. Personally I have no qualms with helping the pharaoh build his base of power. Life under the Egyptians is much more preferable to life under the Hittites. Before coming to Egypt, my family spent a number of years fleeing the Hittites in Babylon and southern Mesopotamia. In this region I learned how to use the character system of writing of â€Å"cuneiform† and the language of Akkadian (p. 14). With this knowledge I was also able to learn how to write characters in my native tongue of Sumerian. The reason for this similarity I learned was that â€Å"for over a thousand years, scribes used the same symbols to write not only in Sumerian but also in the other languages of Mesopotamia, such as Akkadian, Babylonian, and Persian† (p. 15). Thus, culturally the peoples of Mesopotamia and Egypt share a common link in their system of languages. In contrast, the Hittites do not share in this cultural similarity. Instead, they originate from the Indo-European people with writing traditions vastly different than the cuneiform system. At one time, part of the Hittites’ land was of the Akkadian Empire under King Sargon and the Hittite influence was minimal (p. 16). Alas, that time has long since past, as well as the later period in which the Babylonian Hammurabi ruled his strong empire and prevented the Hittites from forming theirs. Over a period of time, Hammurabi’s successors were unable to deter the rise of the Hittites, and Babylon was overrun. Now on the road to Thebes, the threat of Hittite invasion is very far away. The Sinai desert protects Egypt from incursions by Hittite chariots. Egypt is a land of great wonder and ancient power, for the reign of the pharaohs has stretched back for generations. The source of Egyptian power comes from multiple sources, including religious authority, strong government bureaucracy, and the magnificent pyramids. Each of these pillars of Egyptian strength supports the other. King Zoser, â€Å"the founder of the Old Kingdom who built the first of the pyramid temples, the Step Pyramid at Sakkara,† could not have done so without an efficient bureaucracy and religious legitimacy (p. 21). Likewise, the pyramids reinforce a pharaoh’s power and religious significance, for the pyramids is the resting place for pharaohs in the afterlife. In other words, â€Å"the pyramids strengthen the image of the living king by honoring the physical remains of his predecessors† (p. 21). This focus on the afterlife is partially the reason for their early downfall. As I make each step closer to Thebes, I think about how the focus of Ahmose I have changed since his predecessors. Men from a multitude of backgrounds can contribute to the pharaoh’s court, even peasants (p. 22). I have no doubt my contribution will expand its power and that the second rise of Egypt’s power has just begun.

Women Are The Soul Of Our Community Sociology Essay

Women Are The Soul Of Our Community Sociology Essay Introduction: Status and Social Position of Women The women are the soul of our community and they are self build and self trained human responsible for the morale development of their children, inspiration for the family and an example for the community to follow. As a wife, woman is his best friend and inspiration. The history conveys that, Each successful man has an inspiring woman responsible for success.  [1]   According to Swami Vivekananda- That country and that nation that do not respect women have never become great, nor ever be in future. According to Historian Romilla Thapper- Within the Indian sub-continent there have been infinite variations on the status of women diverging according to culture malice, family structure, class, caste, property rights and morals. Tagores said, Womens are the ornaments of society. The society was male dominated and he ruled mainly by ethics and morals. But now a days womens are enjoying the topmost supremacy and these have won over intelligence and mental capacity of the men. Today if it was that the society was Male-Dominated then india wouldnt have produced highlighting examples such as P.T.Usha-The Women Athlete, Lata Mangeshkar-The Nightingale and the Singer, Sonia Gandhi-Political and Klpana Chawla-The Indian Astronaut. Today the proverb given above has proved true. A woman is the pillar of a family, and concussively that of a nation. The statue of liberty which is symbol of peace and liberty is none other than that of a woman. Therefore, respect women and every life.  [2]   In spite of fifty percent of the population on the world wide, women were not in equal status with men. This differential position causes socialization raises from boys and girls are different roles. As a traditional form, the status and social role of the women in every society, specific Indian society have been women are weaker than men. Women are the teachers of the society and they are not competitors. Woman as the mother is the best friend and teacher for the child, especially girl child (Firestone, Catlett, 1993, the Mother-Daughter Bond). Woman as friend is an inspiring support for any task. Woman as wife is a best friend and supportive partner for the husband. Woman as a family member is a best family manager and care taker of family values and traditions. Women as a community member are an example of love, friendliness, inspiration and the best worker. These are the normal roles and responsibilities performed by the women community around the world. Woman is an all-round pla yer in the game where, playground is family. The only difference is that, woman is an all-round player at almost all such play grounds around the world. In family, woman is an excellent manger cum worker.  [3]   The social stratification of women in-India however leaves them as a second rate citizen. This is no more evident than the violence to which a woman is subjected in her domestic setup. Violence against woman is present is every society cutting boundaries of class, culture, education and age. Even though most societies proscribe violence against woman, the reality is that she is tortured physically, psychologically, sexually and economically, the right to equality, security dignity and self worth are denied to woman. At times the place where a woman seeks love, safety, security and shelter, becomes a place of terror and violence at the hands of somebody close to them whom they trust.  [4]   If we visualize the multiple view of the, woman from various families working for her children, family and herself; we will find that there several women working for the development of their respective families. In broad sense, they are working for combined development of the family, community and society in which they live because; community is the united from of varied families. A woman is never appreciated for her indirect participation in this strong development and in the progress of her children, family or external community. She can be said as a silent and selfless leader. We take woman as a strong pillar on which the progress of the family and community depends. If she is educated enough to utilize and manage the family resources in smart manner and every woman does so, than such community will definitely progress irrespective of the variations in the religion, tradition, culture and financial background that are present in any community around the world. There can be many ci rcumstances that can prevent woman from performing at her best. It can be lack of peer support, illiteracy, lack of knowledge, lack of resources or lack inspiration to name few.  [5]   Crime, atrocity and violence against woman is a manifestation of the historically unequal power relations between (revelation of the factual disproportionate power relation among) man and woman, which led to the domination of a womans fuller advancement. Violence in the domestic spare is usually committed by them who are or who have been, is position of trust and intimacy and power-husbands father, brother, uncle sons or other relatives. It does not mean that women are not violent but their actions account for a small percentage of domestic violence. Such as outside homes these type activity boy friend and unknown person. The criminals, atrocious abuser and the abused are tied together because of emotional, physical, biological, familial, residential and financial ties, and are often their intimate partners.  [6]  Perpetrators of domestic violence seek power and control over their survivors. The factors which contribute to the continued prevalence of violence are mainly the womens lack of access to legal information, aid or protection (womans lack of deprivation of approach to legal information, to provide support or safeguard) and also the lack of laws that effectively prohibit violence against women.  [7]  There is also failure to reform existing laws and the efforts made on part of public authorities to promote awareness of and enforce existing laws are also inadequate. The absence of educational and other means to address the causes and consequences of violence is also the reason behind the prevalence of violence. The Universal Declaration of Human Rights (UDHR) declares that Motherhood and childhood are entitled for special care whether born in or out of wedlock shall enjoy the same protection.  [8]  The Indian constitution enshrines in Art.14, 15, 39(a) (d) and (e) that the state shall ensure a just social order for women based on equality and dignity. In spite of all these, and on the sacred land of Sita, Sabitri and Damayanti it found that women are being seduced, tortured, and enjoyed and betrayed. In spite of Constitutional guarantees and legal protection there is a rise on the trend of committing offenses against women and the domestic violence is one of them. Women have always played a specific and crucial role which has been veiled in society and history. Traditionally, the Indian woman has been the keystone of the family and society in general. She creates life, nurtures it, guards and strengthens it. In her task as mother, she plays a vital role in the development of the nation.   [9]   Status and social position of women in India Women in India have been always topics of concern since ancient period. They can as a exact example of perfect home-makers. With their incomparable quality of the calm ness of mind they easily handle even toughest situation as well. The Indian women are fully devoted to their families. They are preached in the names like as Goddess Durga, Goddess Saraswati, Parvati and goddess Kali.  [10]  The evolution of the status and social position of women in India  [11]  has been a continuous process of ups and downs throughout history. For the purpose of depicting a brief survey of the changing position and role of women in India throughout history, four broad periods are considered: Ancient Period Medieval Period Modern India Period British-India Period. After Independence Period Brief described each period on following as:-

Biography of Karl Marx Essay -- biographies Biography Karl Marx Essays

Biography of Karl Marx Few names evoke as strong a response as Karl Marx. Some consider him a genius and a prophet, while others see only evil in his ideas. Everyone agrees that Marx stands among the social thinkers with the greatest impact on the world's people. There are many people who pass into and out of our lives. It is those great people that are remembered forever. One great person is Karl Marx. He is an extraordinary person that has changed and shaped the way of the future. Marx had many great experiences and achievements throughout his lifetime for which he is remembered. On May 5, 1818, Karl Marx was born to father, Heinrich Marx, and his wife, Henriette. Karl was born in Trier, Prussia, where he lived throughout his childhood. His father was a lawyer and his family lived among the â€Å"petty-bourgeoisie.† 1 The bourgeoisie at this point in time was considered the middle class in society. The Marx family was Jewish, but later converted to Protestantism in 1824. In October of 1830, Marx enrolled at the Trier Gymnasium. At Trier Gymnasium Marx obtained his high school education. Following graduation from Trier, he decided to continue his education and go on to attend Bonn University as a law student in October of 1835. Here, Marx studied for only several months, and then enrolled at Berlin University in October of 1836. At Berlin University he also studied law, but majored in history and philosophy. While attending Bonn University, Marx decides to propose to Jenny Von Westphalen in the summer of 1836. Jenny Von Westphalen was Marx's love of his life. The two of them had played and grown up together throughout their childhood. According to Eleanor Marx, â€Å"Karl wai... ...in Neue Zeit 1897 <http://www.marxists.org/archive/marx/bio/marx/eleanor.htm> (29 October 2001) 3. Marx 4. Lenin 5. Thomas, Paul, â€Å"Nature and Artifice in Marx,† History of Political Thought [Great Britain], 1998. 485-503 (29 October 2001) 6. Thomas 7. Thomas 8. Engels, Frederick, "Karl Marx," in Die Gartenlaube 1868 <http://www.marxists.org/archive/marx/bio/marx/eng-1869.htm> (29 October 2001) 9. Lenin 10. Lenin 11. Unknown, "Draft of a Speech at the Graveside of Karl Marx," in La Justice 1883 <http://www.marxists.org/archive/marx/works/1883deat/justice.htm> (29 October 2001) Links: www.philosophypages.com/ph/marx.htm http://www.maoism.org/marx/marx_idx.htm www.stud.unisg.ch/~ajaritz/marx/marxh.htm www.lucidcafe.com/library/96may/marx.htm www.xs4all.nl/~aboiten/marx.html

Sound and Sense in Langston Hughes The Negro Speaks of Rivers Essay

Sound and Sense in Langston Hughes' The Negro Speaks of Rivers    The text of the poem can be found at the bottom of this page.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In Langston Hughes' poem "The Negro Speaks of Rivers," Hughes makes use of some interesting poetic techniques. This poem is written in free verse, and seems, at first glance, to be very unstructured. Hughes repeats words and lines, but does not make use of repeated sounds. Hughes' rivers are very rich in symbolism, and are not just simple bodies of water. Finally, some of his word choices near the end of the poem help to bring the message of the poem across more strongly. These poetic techniques contribute greatly to the quality of the poem.    In this poem, Hughes chooses to use free verse. This is typical of Hughes, who was a pioneer of so-called "spoken-word poetry," as opposed to more structured forms. Hughes was inspired by black American traditions, and wanted to make his poems accessible to everyone, and accurately reflect American life. He wrote this poem in words that common people of his time could understand, even if they did not have a great education. Since much of Hughes' intended audience was black and not well educated, Hughes wrote a poem that does not require much formal poetic training to understand. However, it is also a very deep poem, one that still lends itself to these methods of study.    Hughes makes use of repeated words and even repeats lines, but does not use alliteration, assonance, or consonance. The lack of sound repetition helps to stop the poem from having a "singsong" tone, which is not needed in a poem with a "serious" message such as this. The poem, though, takes on a structure that is reminiscent of many black spirituals, a form with whic... ...    Works Cited American Heritage Dictionary of The English Language, The. Third Edition. Boston: Houghton Mifflin, 1992. "It's A Hughes Thang." (18 May 1998). "Student Commentaries - Langston Hughes."   (18 May 1998).    The Negro Speaks of Rivers By Langston Hughes I've known rivers: I've known rivers ancient as the world and older than the flow of human blood in human veins. My soul has grown deep like the rivers. I bathed in the Euphrates when dawns were young. I built my hut near the Congo and it lulled me to sleep. I looked upon the Nile and raised the pyramids above it. I heard the singing of the Mississippi when Abe Lincoln went down to New Orleans, and I've seen its muddy bosom turn all golden in the sunset. I've known rivers: Ancient, dusky rivers. My soul has grown deep like the rivers.    Sound and Sense in Langston Hughes' The Negro Speaks of Rivers Essay Sound and Sense in Langston Hughes' The Negro Speaks of Rivers    The text of the poem can be found at the bottom of this page.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In Langston Hughes' poem "The Negro Speaks of Rivers," Hughes makes use of some interesting poetic techniques. This poem is written in free verse, and seems, at first glance, to be very unstructured. Hughes repeats words and lines, but does not make use of repeated sounds. Hughes' rivers are very rich in symbolism, and are not just simple bodies of water. Finally, some of his word choices near the end of the poem help to bring the message of the poem across more strongly. These poetic techniques contribute greatly to the quality of the poem.    In this poem, Hughes chooses to use free verse. This is typical of Hughes, who was a pioneer of so-called "spoken-word poetry," as opposed to more structured forms. Hughes was inspired by black American traditions, and wanted to make his poems accessible to everyone, and accurately reflect American life. He wrote this poem in words that common people of his time could understand, even if they did not have a great education. Since much of Hughes' intended audience was black and not well educated, Hughes wrote a poem that does not require much formal poetic training to understand. However, it is also a very deep poem, one that still lends itself to these methods of study.    Hughes makes use of repeated words and even repeats lines, but does not use alliteration, assonance, or consonance. The lack of sound repetition helps to stop the poem from having a "singsong" tone, which is not needed in a poem with a "serious" message such as this. The poem, though, takes on a structure that is reminiscent of many black spirituals, a form with whic... ...    Works Cited American Heritage Dictionary of The English Language, The. Third Edition. Boston: Houghton Mifflin, 1992. "It's A Hughes Thang." (18 May 1998). "Student Commentaries - Langston Hughes."   (18 May 1998).    The Negro Speaks of Rivers By Langston Hughes I've known rivers: I've known rivers ancient as the world and older than the flow of human blood in human veins. My soul has grown deep like the rivers. I bathed in the Euphrates when dawns were young. I built my hut near the Congo and it lulled me to sleep. I looked upon the Nile and raised the pyramids above it. I heard the singing of the Mississippi when Abe Lincoln went down to New Orleans, and I've seen its muddy bosom turn all golden in the sunset. I've known rivers: Ancient, dusky rivers. My soul has grown deep like the rivers.   

Legal and Ethical Implications for Classroom Management Essay

Today’s classrooms are more dynamic than ever before. Educational needs of students are changing at breakneck speeds, along with the demands being placed on their teachers. There are associated legal and ethical implications that are evolving as rapidly as the technology that is driving a lot of the change. In order to have a chance to meet the needs of students and legal/ethical obligations, educators must have well developed classroom management techniques. These can get tricky quite often and require balancing the increasingly diverse needs of many different people. To be an effective teacher today is extremely difficult for these reasons. This essay will examine some of the current issues that teachers are exposed to in today’s classrooms by summarizing four journal articles and responding to them. The specific issues will be free speech and what it means in a school setting, cell phones in classrooms, bullying (specifically of students with disabilities), and gender specific dress codes. Freedom of Speech The issue addressed in the first article summary is freedom of speech and how it is interpreted in a public school setting in relation to the distribution of religious materials. This is really not a new topic of debate. Current precedents have been set in court cases dating as far back as1969 and the Tinker vs. Desmoines case. In that case, the court decision reads that, in order to prohibit any students’ expression of opinion, the school must provide evidence to support the fact that the actions being suppressed would be significantly disruptive (Essex, 2006). Because it is an issue of ongoing debate there are cases still being heard all over the country. This article is specifically in response to a case in the New York Supreme Court, where a student was prohibited from distributing religious fliers on school property. The question is, why was the student prevented from expressing her opinion in the first place. According to Essex (2006), one of the requirements placed on schools is that they remain viewpoint neutral. This means that if the literature was suppressed because it was religious in nature, the suppression violated her First Amendment rights, even in the school setting. In all court cases, the real message has been that schools are responsible for making sure parents and students are aware that the schools are merely sending messages indiscriminately from religious and non-secular sources and that they are not in support of any of them (Essex, 2006). Really the essence of the article is that sound policies must be in place, well documented, and consistently followed for a school to be able to regulate what a student says or distributes and there must be no endorsement of any particular ideas from any group or student. Cell phones The next topic of discussion is cell phones in classrooms. The article being summarized is entitled The Only Thing We Have to Fear is†¦120 Characters. In this article, Kevin Thomas and Christy McGee (2012) make arguments for the use of cellphones in classrooms in spite of the fact that 69% have banned them. This paper responds to the many reasons for disallowing their use, and then it goes on to highlight some ideas about why cell phones should be used as educational tools. Both sides of the discussion certainly make valid points. If 69% schools have taken students cell phones away, there must be some reasons. Thomas & Mcgee (2012) identified and responded to four commonly offered rationales, including misuse for cheating, replacing Standard English with textese, sexting, and cyberbulling. It seems rather obvious that these are negative side effects of the technology, however there are also positive results that can be attributed to the use of cell phones. Today, they are relatively affordable and powerful miniature computers. When used properly, the possibilities for better use of time are astonishing. According to Thomas and McGee (2012), teachers need to be modeling appropriate behavior with their portable electronic devices and taking advantage of the benefits because the technology is not the cause of the problems. The problems being associated with cell phones all existed in some form, long before modern technology. Thomas Diamates (2010) reports that courts have supported schools in their efforts to ban cell phone use as long as the school follow established procedures. Bullying The third topic has to do with bullying, specifically students with disabilities. These students stand out in the classroom, as they are â€Å"different† and so they are subjects of increased abuse from fellow students (Eckes and Gibbs, 2012). Schools and teachers have an obligation to provide students with disabilities a free appropriate public education (FAPE) in the least restrictive environment according to the Individuals with Disabilities Education Act (2004). This paper looks at the findings in several court cases to establish what is required of teachers in situations where students with disabilities are being bullied. What this article shows is that there are an increasing number of suits against school where disabled children are being bullied. The interpretation of what is considered an appropriate education, and whether or not the school took proper preventative/disciplinary steps in light of the bullying are the reasons for these suits. The findings of this study provide evidence that the courts will generally side with schools that have taken and documented actions to alleviate the harassment. In Brown vs. Monroe County Board of Education (1999), the Supreme Court ruled that for a school to be liable, it must receive federal funds, it must have been aware of and acted â€Å"deliberately indifferent† to the harassment, and the bullying must have been severe enough to deprive educational opportunity (Eckes and Gibbs, 2012). Basically, schools must make an adequate effort to alleviate the harassment in order to limit their liability, and this has been upheld by the courts in cases like Werth v. Board of Directors (2007), and Biggs v. Board of Education (2002). Dress codes The last article on the list takes a look at how and why public schools can or cannot implement gender based dress codes. Proponents of dress codes list reasons including less distractions, less pressure to dress right, safety, and lower cost to families. Opponents say that dress codes take away students expressive rights, which are already severely limited in school settings. In this particular case, Ceara Sturgis had her picture and name removed from her senior yearbook because she is a lesbian who was more comfortable wearing the school prescribed male outfit. The current question is whether or not this is in violation of her civil liberties. Historically the courts have upheld the rights of schools to implement dress codes with very few exceptions. In Blau v. Fort Thomas Public School District (2005), a father brought suit against the school for violating 1st and 14th amendment rights with their dress code. The court found no violation of rights since â€Å"it is not related to suppression of the content of expression, it furthers a substantial government interest, and it does not burden substantially more speech than is necessary to further that interest† (Dowling-Sender, p. 34, 2005). On the other side of the coin, in United States vs. Virginia (1996), schools were required to show a â€Å"legitimate and important† reason for any gender based restrictions (Smith, 2012). In Ceara’s case, the school is going to have to show that it meets all these criteria, and the outcome has some potentially far reaching consequences. What all this means is that teaching in todays classrooms must be dynamic. Teachers need to be aware of their ever-changing legal and ethical obligations as educators. Decisions must be based on sound judgment and carefully documented observations. Teachers, students, and parents must work together and communicate with each other to create the best possible learning environment for everyone.

Investment Avenues

INVESTMENT AVENUES 1. 1 INTRODUCTION TO INVESTMENT The money one earns is partly spent and the rest is saved for meeting future expenses, instead of keeping savings idle one may like to use savings in order to get returns on it in the future, this is called as investment. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. Mere earning will not help one to secure the future, so it becomes important to invest. One of the important reasons why one needs to invest wisely is to meet the cost of Inflation. Inflation is the rate at which the cost of living increases. The cost of living is simply what it costs to buy the goods and services you need to live.Inflation causes money to lose value because it will not buy the same amount of a good or a ser vice in the future as it does now or did in the past. The sooner one starts investing the better. By investing early one allow one’s investments more time to grow, whereby the concept of compounding increases one’s income, by accumulating the principal and the interest or dividend earned on it, year after year. The dictionary meaning of investment is to commit money in order to earn a financial return or to make use of the money for future benefits or advantages.People commit money to investments with expectations to increase their future wealth by investing money to spend in future years. For example, if you invest Rs. 1000 today and earn 10% over the next year, you will have Rs. 1100 one year from today. An investment can be described as perfect if it satisfies all the needs of all investors. So, the starting point in searching for the perfect investment would be to examine investor needs.If all those needs are met by the investment, then that investment can be terme d the perfect investment. Most investors and advisors spend a great deal of time understanding the merits of the thousands of investments available in India. Little time, however, is spent understanding the needs of the investor and ensuring that the most appropriate investments are selected for him. Before making any investment, one must ensure to: ? ? ? ? ? ? ? ? ? ? ? ? Obtain written documents xplaining the investment Read and understand such documents Verify the legitimacy of the investment Find out the costs and benefits associated with the investment Assess the risk-return profile of the investment Know the liquidity and safety aspects of the investment Ascertain if it is appropriate for your specific goals Compare these details with other investment opportunities available Examine if it fits in with other investments you are considering or you have already made Deal only through an authorized intermediary Seek all clarifications about the intermediary and the investment Expl ore the options available to you if something were to go wrong, and then, if satisfied, make the investment. 1. 2 INVESTMENT NEEDS OF AN INVESTOR Investing money is a stepping stone to manage spending habits and prepare for the future expenses. Most people recognize the need to put their money away for events or circumstances that may occur in future. People invest money to manage their personal finances some of them invest to plan for retirement, while others invest to accumulate wealth. Each one has a different need and each of them expect something from their money in future. By and large, most investors have eight common needs from their investments: i. ii. iii. iv. v.Security of original capital Wealth accumulation Tax Advantages Life cover Income 1. 3 TYPES OF INVESTMENT AVENUES Fi gure 1. 1: Various investment alternatives Source: Investment analysis and portfolio management Author: Prasanna Chandra Figure 1. 1 shows various investment alternatives which are explained below. One can invest money in different types of Investment instruments. These instruments can be financial or non-financial in nature. There are many factors that affect one’s choice of investment. Millions of Indians buy fixed deposits, post office savings certificates, stocks, bonds or mutual funds, purchase gold, silver, or make similar investments. They all have a reason for investing their money.Some people want to supplement their retirement income when they reach the age of 60, while others want to become millionaires before the age of 40. We will look at various factors that affect our choice of an investment alternative, let us first understand the basics of some of the popular investment avenues. 1. 3. 1 Non marketable Financial Assets: A good portion of financial assets is represented by non-marketable financial assets. These can be classified into the following broad categories: ? Bank Deposits: The simplest of investment avenues, by opening a bank account and depositi ng money in it one can make a bank deposit. There are various kinds of bank accounts: current account, savings account and fixed deposit account.The interest rate on fixed deposits varies with the term of the deposit. In general, it is lower for fixed deposits of shorter term and higher for fixed deposits of longer term. Bank deposits enjoy exceptionally high liquidity. ? ? Post Office Savings Account: A post office savings account is similar to a savings bank account. The interest rate is 6 percent per annum. Post Office Time Deposits (POTDs): Similar to fixed deposits of commercial banks, POTD can be made in multiplies of 50 without any limit. The interest rates on POTDs are, in general, slightly higher than those on bank deposits. The interest is calculated half-yearly and paid annually. Monthly Income Scheme of the Post Office (MISPO): A popular scheme of the post office, the MISPO is meant to provide regular monthly income to the depositors. The term of the scheme is 6 years. T he minimum amount of investment is 1,000. The maximum investment can be 3, 00,000 in a single account or 6, 00,000 in a joint account. The interest rate is 8. 0 percent per annum, payable monthly. A bonus of 10 percent is payable on maturity. ? Kisan Vikas Patra (KVP): A scheme of the post office, for which the minimum amount of investment is 1,000. There is no maximum limit. The investment doubles in 8 years and 7 months. Hence the compound interest rate works out to 8. 4 percent. There is a withdrawal facility after 2 ? years. National Savings Certificate: Issued at the post offices, National Savings Certificate comes in denominations of 100, 500, 1,000, 5,000 and 10,000. It has a term of 6 years. Over this period Rs. 100 becomes Rs. 160. 1. Hence the compound rate of return works out to 8. 16 percent. ? Company Deposits: Many companies, large and small, solicit fixed deposits from the public. Fixed deposits mobilized by manufacturing companies are regulated by the Company Law Boa rd and fixed deposits mobilized by finance company (more precisely non-banking finance companies) are regulated by the Reserve Bank of India. The interest rates on company deposits are higher than those on bank fixed deposits, but so is risk. ?Employee Provident Fund Scheme : A major vehicle of savings for salaried employees, where each employee has a separate provident fund account in which both the employer and employee are required to contribute a certain minimum amount on a monthly basis. ? Public Provident Fund Scheme: One of the most attractive investment avenues available in India. Individuals and HUFs can participate in this scheme. A PPF account may be opened at any branch of State Bank of India or its subsidiaries or at specified branches of the other public sector banks. The subscriber to a PPF account is required to make a minimum deposit of 100 per year. The maximum permissible deposit per year is 70,000. PPF deposits currently earn a compound interest rate of 8. 0 perc ent per annum, which is totally exempt from taxes. 1. 3. Bonds: Bonds are fixed income instruments which are issued for the purpose of raising capital. Both private entities, such as companies, financial institutions, and the central or state government and other government institutions use this instrument as a means of garnering funds. Bonds issued by the Government carry the lowest level of risk but could deliver fair returns. Many people invest in bonds with an objective of earning certain amount of interest on their deposits and/or to save tax. Bonds are considered to be a less risky investment option and are generally preferred by risk-averse investors. Bond prices are also subject to market risk. Bonds may be classified into the following categories: ? Government ecurities: Debt securities issued by the central government state government and quasi government agencies are referred as gilt edge securities. It has maturities ranging from 3-20 years and carry interest rate that u sually vary between 7 to 10 percent. ? Debentures of private sector companies: Debentures are viewed as a mixture of having a shareholding and a fixed interest loan. Debenture holders are normally entitled to a return equivalent to a fixed percentage of their initial investment. The security inherent in debentures makes them a safer investment than shares. ? ? Preference shares: Investing in shares is safer and dividends are assured every year. Savings bonds 1. 3. Mutual funds: A mutual fund allows a group of people to pool their money together and have it professionally managed, in keeping with a predetermined investment objective. This investment avenue is popular because of its cost-efficiency, risk-diversification, professional management and sound regulation. There are three broad types of mutual fund schemes classified on basis of investment objective: ? Equity schemes: The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes norma lly invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc. and the investors may choose an option depending on their preferences.Growth schemes are good for investors having a longterm outlook seeking appreciation over a period of time. ? Debt schemes: The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short ru n and vice versa.However, long term investors may not bother about these fluctuations. ? Balanced schemes: The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt instruments. These funds are also affected because of fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds. 1. 3. 4 Real Estate: Residential real estate is more than just an investment.There are more ways than ever before to profit from real estate investment. Real estate is a great investment option. It can generate an ongoing income source. It can also rise in value overtime and prove a good investment in the cash value of the home or land. Many advisors warn against borrowing money to purc hase investments. The best way to do this is to save up and pay cash for the home. One should be able to afford the payments on the property when the property is vacant, otherwise the property may end up being a burden instead of helping to build wealth. 1. 3. 5 Equity Shares: Equities are a type of security that represents the ownership in a company. Equities are traded (bought and sold) in stock markets.Alternatively, they can be purchased via the Initial Public Offering (IPO) route, i. e. directly from the company. Investing in equities is a good long-term investment option as the returns on equities over a long time horizon are generally higher than most other investment avenues. However, along with the possibility of greater returns comes greater risk. 1. 3. 6 Money market instruments: The money market is the market in which short term funds are borrowed and lent. These instruments can be broadly classified as: ? Treasury Bills: These are the lowest risk category instruments fo r the short term. RBI issues treasury bills [T-bills] at a prefixed day and for a fixed amount. There are 4 types of treasury bills: 4-day T-bill, 91-day T-bill, 182-day T-bill and 364-day T-bill. ? Certificates of Deposits: After treasury bills, the next lowest risk category investment option is certificate of deposit (CD) issued by banks and financial Institution (FI). A CD is a negotiable promissory note, secure and short term, of up to a year, in nature. Although RBI allows CDs up to one-year maturity, the maturity most quoted in the market is for 90 days. ? Commercial Papers: Commercial papers are negotiable short-term unsecured promissory notes with fixed maturities, issued by well-rated organizations. These are generally sold on discount basis. Organizations can issue CPs either directly or through banks or merchant banks.These instruments are normally issued for 30/45/60/90/120/180/270/364 days. ? Commercial Bills: Bills of exchange are negotiable instruments drawn by the se ller or drawer of the goods on the buyer or drawee of the good for the value of the goods delivered. These are called as trade bills and when they are accepted by commercial banks they are called as commercial bills. If the bill is payable at a future date and the seller needs money during the currency of the bill then the seller may approach the bank for discounting the bill. 1. 3. 7 Life insurance policies: Insurance is a form of risk management that is primarily used to hedge the risk of a contingent loss.Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company that sells insurance; insured or the policyholder is a person or entity buying the insurance. The insurance rate is a factor that is used to determine the amount which is to be charged for a certain amount of insurance coverage, and is called the premium. It can be classified as: ? Money-back Insurance: Money-back Insurance schemes are used as investment avenues as they offer partial cash-back at certain intervals. This money can be utilized for children’s education, marriage, etc. ? Endowment Insurance: These are term policies.Investors have to pay the premiums for a particular term, and at maturity the accrued bonus and other benefits are returned to the policyholder if he survives at maturity. 1. 3. 8 Bullion Market: Precious metals like gold and silver had been a safe haven for Indian investors since ages. Besides jewellery these metals are used for investment purposes also. Since last 1 year, both Gold and Silver have highly appreciated in value both in the domestic as well as the international markets. In addition to its attributes as a store of value, the case for investing in gold revolves around the role it can play as a portfolio diversifier. 1. 3. 9 Financial Derivatives: Derivatives are contracts and can be used as an underlying asset. Various types of Derivatives are: ? Forwards: A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the future at today’s pre-agreed price. Futures: A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Futures contracts are special types of forward contracts in the sense that the former are standardized exchange traded contracts ? Options: Options are of two types – calls and puts. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date. Swaps: Swaps are private agreements between two parties to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolios of forward contracts. E. g. Currency swaps, inte rest swaps. 1. 3 EVALUATION OF VARIOUS INVESTMENT AVENUES Table 1. 1: Summary evaluation of various investment avenues Investment Avenues Return Current yield Equity shares Non convertible debentures Equity schemes Debt schemes Moderate Low Low High No tax on Very High Low High High High High Very High High Negligible Low Average Nil High Low Capital appreciation High High Fairly High High High Risk Marketability/ Liquidity Tax Shelter Convenience ividend Bank deposits Public provident fund Life insurance policies Residential Moderate Moderate Gold and Silver Source: Investment analysis and portfolio management Author: Prasanna Chandra Table 1. 1 shows the evaluation of various investment avenues. From this table we can say that risk, liquidity and return are the so called factors which are considered before making an investment. But there is a trade off between risk and return. Higher the risk higher is the return. Lower the risk and lower is the return. The decision of which mode of investment to choose largely depends upon the investors necessity and the factors which according to him is the most vital one. People with more security concern choose fixed investment like bank deposits and investments in government securities and various post office savings.The main reason for choosing such an investment mode is that the amount invested in the above stated securities seems to be very secure and hence they seemed to be more preferred one where security is the prime concern. People whom returns are most important are ready to take risk to earn fairer risk. The preferred mode of investment over here is equity shares and mutual fund. The risk factor in these modes of investment is basically the returns are basically performance based. If the company performs well the investors can accept fairer returns but if the company fails to perform then there can be a threat to the invested amount. Hence the returns are very volatile with the changes in the market conditions .Nil Moderate Negligible Low Average Average Nil Moderate Nil Average Nil Moderate Nil Average Section 80 C benefit Section 80 C benefit High Nil Fair Average Very High Very High Moderate Nil Negligible High Low Very High 1. 4 ATTRIBUTES OF INVESTMENT Investment can be said to be an art. Many people invest money without knowing what they are doing. Only a few people really understand the art of investing money. They invest according to certain principles. There are also certain factors that affect the investment decisions. All these are done mainly to increase the return on the investment and also to keep the risk to a minimum. The various factors that affect the investment decisions are given below. For evaluating an investment avenue, the following attributes are relevant. ) Rate of Return: The rate of return on an investment for a period (which is usually a period of one year) is defined as follows: Rate of return = Annual income + (Ending price – Beginning price) Beginnin g price Yield: Yield is the annual rate of return for any investment and is expressed as a percentage. With stocks, yield can refer to the rate of income generated from a stock in the form of regular dividends. This is often represented in percentage form, calculated as the annual dividend payments divided by the stock's current share price. Current yield= Annual cash inflows Market price Capital Appreciation: It’s the rise in the market price of an asset. Capital appreciation is one of two major ways for investors to profit from an investment in a company. The other is through dividend income. ) Risk: The risk of investment refers to the variability of its rate of return. A simple measure of dispersion is the range of values, which is simply the difference between the highest and the lowest values. Figure 1. 2: Relationship between Expected Return and Risk Figure 1. 2 shows the relationship between expected return and risk. From this figure it is clear that with higher risk the returns also increases while it decrease as the risk decreases. High variance indicates high degree of risk and low variance indicates lesser risk. Expected returns increases when investors is willing to take risk. Other measures commonly used in finance are as follows: ?Variance: This is the mean of the squares of deviations of individual returns around their average values ? Standard deviation: This is the square root of variance ? Beta: This reflects how volatile the return from an investment is, in response to market swings. ? Risk = Actual Return – Expected Returns If, Actual Return = Expected Return = Risk Free Investment If, Actual Return ; or ; Expected Return is risky investment c) Marketability: An investment is highly marketable or liquid if: ? ? ? It can be transacted quickly The transaction cost is low; and The price change between two successive transactions is negligible. The liquidity of a market may be judged in terms of its depth, breadth, and resilience .Depth refers to the existence of buy as well as sells orders around the current market price. Breadth implies the presence of such orders in substantial volume. Resilience means that new orders emerge in response to price changes. Generally, equity shares of well established companies enjoy high marketability and equity shares of small companies in their formative years have low marketability. High marketability is a desirable characteristic and low marketability is an undesirable one. d) Tax Shelter: Tax benefits are of the following three kinds: ? ? ? Initial Tax Benefit: An initial tax benefit refers to the tax relief enjoyed at the time of making the investment.Continuing Tax Benefit: A continuing tax benefits represent the tax shield associated with the periodic returns from the investment. Terminal Tax Benefits: A terminal tax benefit refers to relief from taxation when an investment is realized or liquidated. e) Convenience: Convenience broadly refers to the ease with which the investment can be made and looked after. The degree of convenience associated with investments varies widely. At one end of the spectrum is the deposit in a savings bank account that can be made readily and that does not require any maintenance effort. At the other end of the spectrum is the purchase of a property that may involved a lot of procedural and legal hassles at the time of acquisitions and a great deal of maintenance effort subsequently. 1. APPROACHES TO INVESTMENT DECISION MAKING The stock market is thronged by investors pursuing diverse investment strategies which may be subsumed under four broad approaches: i. Fundamental Approach: The basic tenets of the fundamental approach, which is perhaps most commonly advocated by investment professionals, are as follows: ? There is an intrinsic value of a security, which depends upon underlying economic (fundamental) factors. The intrinsic value can be established by a penetrating analysis of the fundamental factors relating to the company, industry, and economy. ? At any given point of time, there are some securities for which the existing market price will differ from the intrinsic value.Sooner or later, of course, the market price will fall in line with the intrinsic value. ? Superior returns can be earned by buying under-valued securities (securities whose intrinsic value exceeds the market price) and selling over-valued securities (securities whose intrinsic value is less than the market price). ii. Psychological Approach: The psychological approach is based on the premise that stock prices are guided by emotion rather than reason. Stock prices are believed to be influenced by the psychological mood of investors. When greed and euphoria sweep the market, prices rise to dizzy heights. On the other hand, when fear and despair envelop the market, prices fall to abysmally low levels.Since psychic values appear to be more important than intrinsic values, the psychological approach suggests that it is m ore profitable to analyze how investors tend to behave as the market is swept by waves of optimism and pessimism, which seem to alternate. The psychological approach has been described vividly as the ‘castles in the air’ theory Burton G. Malkiel. Those who subscribe to the psychological approach or the ‘castles in the air’ theory generally use some form of technical analysis which is concerned with a study of internal market data, with a view to developing trading rules aimed at profit making. The basic premise of technical analysis is that there are certain persistent and recurring patterns of price movements, which can be discerned by analyzing market data.Technical analysts use a variety of tools like bar chart, point and figure chart, moving average analysis, breadth of market analysis, etc. iii. Academic Approach: Over the last five decades or so, the academic community has studied various aspects of the capital market, particularly in the advanced cou ntries, with the help of fairly sophisticated methods of investigation. ? Stock markets are reasonably efficient in reacting quickly and rationally to the flow of information. Hence, stock prices reflect intrinsic value fairly well. Put differently, Market price = Intrinsic value ? Stock price behaviour corresponds to a random walk. This means that successive price changes are independent. As a result, past price behaviour cannot be used to predict future price behaviour. ?In the capital market, there is a positive relationship between risk and return. More specifically, the expected return from a security is linearly related to its systematic risk iv. Eclectic Approach: The eclectic approach draws on all the three different approaches discussed above. The basic premises of the eclectic approach are as follows: ? Fundamental analysis is helpful in establishing basic standards and benchmarks. However, since there are uncertainties associated with fundamental analysis, exclusive relia nce on fundamental analysis should be avoided. Equally important, excessive refinement and complexity in fundamental analysis must be viewed with caution. Technical analysis is useful in broadly gauging the prevailing mood of investors and the relative strengths of supply and demand forces. However, since the mood of investors can vary unpredictably excessive reliance on technical indicators can be hazardous. More important, complicated technical systems should ordinarily be regarded as suspect because they often represent figments of imagination rather than tools of proven usefulness. ? The market is neither as well-ordered as the academic approach suggest, nor as speculative as the psychological approach indicates. While it is characterized by some inefficiencies and imperfection, it seems to react reasonably efficiently and rationally to the flow of information.Likewise, despite many instances of mispriced securities, there appears to be a fairly strong correlation between risk a nd return. ? Level of return often necessitates the assumption of a higher level of risk. 1. 7 COMMON ERRORS IN INVESTMENT MANAGEMENT Investments always do not generate wealth sometimes it fail do so because of some conditions. The reason for this failure is either the market condition or some mistakes made by the investors. We cannot control market condition but errors made by investors could be avoided. Investors appear to be prone to the errors in managing their investments. Some of the errors made by investors are discussed below: 1. 7. Inadequate Comprehension of Return and Risk Many investors have unrealistic and exaggerated expectations from investments, in particular from equity shares and convertible debentures. One often comes across investors who say that they hope to earn a return of 25 to 30 percent per year with virtually no risk exposure or even double their investment in a year or so. They have apparently been misled by one or more of the following; (a) tall and unju stified claims made by people with vested interests; (b) Exceptional performance of some portfolio they have seen or managed, which may be attributable mostly to fortuitous factors; and (c) Promises made by tipsters, operators, and others. In most of the cases, such expectations reflect investor inexperience and gullibility. 1. 7. Vaguely Formulated Investment Policy Often investors do not clearly spell out their risk disposition and investment policy. This tends to create confusion and impairs the quality of investment decisions. Ironically, conservative investors turn aggressive when the bull market is near its peak in the hope of reaping a bonanza; likewise, in the wake of sharp losses inflicted by a bear market, aggressive investors turn unduly cautions and overlook opportunities before them. Ragnar D. Naess put it this way: â€Å"The fear of losing capital when prices are low and declining, and the greed for more capital gains when prices are rising, are probably, more than an y other factors, responsible for poor performance. if you know what your risk attitude is and why you are investing, you will learn how to invest well. A well articulated investment policy, adhered to consistently over a period of time, saves a great deal of disappointment. 1. 7. 3 Naive Extrapolation of the Past Investors generally believe in a simple extrapolation of past trends and events and do not effectively incorporate changes into expectations. As Arthur Zeikel says: â€Å"People generally, and investors particularly, fail to appreciate the working of countervailing forces; change and momentum are largely misunderstood concepts. Most investors tend to cling to the course to which they are currently committed, especially at turning point. † `The apparent comfort provided by extrapolating too far, however, is dangerous. As Peter Bernstein says: â€Å"Momentum causes things to run further and longer than we anticipate. They very familiarity of a force in motion reduces our ability to see when it is losing its momentum. Indeed, that is why extrapolating the present into the future so frequently turns out to be the genesis of an embarrassing forecast. † 1. 7. 4 Cursory Decision Making Investment decision making is characterized by a great deal of cursoriness. Investors tend to: ? ? ? Base their decisions on partial evidence, unreliable hearsay, or casual tips given by brokers, friends, and others.Cavalierly brush aside several of investment risk (market risk, business risk, and interest rate risk) as greed overpowers them. Uncritically follow others because of the temptation to ride the bandwagon or lack of confidence in their own judgment. 1. 7. 5 Untimely entries and exits Investors tend to follow an irrational start and stop approach to the market characterized by untimely entries (after a market advance has long been underway) and exit (after a long period of stagnation and decline). 1. 7. 6 High costs Investors trade excessively and spend a lot on investment management. A good proportion of investors indulge in day trading in the hope of making quick profits.However more often transaction cost wipes out whatever profits they may generate from frequent trading. 1. 7. 7 Over-Diversification and Under-Diversification Many individuals have portfolios consisting of thirty to sixty, or even more, different stocks. Managing such portfolios is an unwieldy task and as R. J. Jenrette put it: Overdiversification is probably the greatest enemy of portfolio performance. Most of the portfolios we look at have too many names. As a result, the impact of a good idea is negligible. † Perhaps as common as over-diversification is under-diversification. Many individuals do not apparently understand the principle of diversification and its benefit in term of risk reduction.A number of individual portfolios seem to be highly under-diversified, carrying an avoidable risk exposure. 1. 7. 8 Wrong Attitude towards Losses and Profits An investor has an aversion to admit his mistake and cut losses short. If the price falls, contrary to his expectation at the time of purchase, he somehow hopes that it will rebound and he can break even. Surprisingly, such a belief persists even when the prospects look dismal and there may be a greater possibility of a further decline. If the price recovers due to favourable conditions, there is a tendency to dispose of the share when its price more or less equals the original purchase price, even though there may be a fair chance of further increases.The psychological relief experienced by an investor from recovering losses seems to motivate such behaviour. This means the tendency is to let the losses run and cut profits short, rather than to cut the losses short and let the profits run. 1. 8 RISKS IN INVESTMENT Risk is uncertainty of the income /capital appreciation or loss or both. Every investment (equity, debt, property, etc. ) carries an element of risk that is unique to it. Tho ugh risk cannot be totally eliminated, it can be managed by undertaking effective risk management. To manage risk, one first need to identify different kinds of risks involved in investing and then take appropriate steps to reduce it.Risk and return share a direct relationship with one another. Therefore, an investment which carries negligible risk, will offer a low return (viz. bonds issued by the Reserve Bank of India) while an investment which carries a higher risk, also offers the potential of higher returns (stocks). All investments are a ‘trade off’ between risk and returns. Let us first discuss the types of risks. 1. 8. 1 Types of Risks All investments carry their unique set of risks. Though there are several types of risks, the important ones are – market risk, credit risk, interest rate risk, inflation risk, currency risk and liquidity risk. These are briefly explained below: ) Market Risk: A share may rise or fall depending on the fortunes of the compan y, the industry it is in, or in response to investor sentiment. b) Credit Risk: This risk is attributed to debt investments wherein the borrower may default on interest and/or principal repayment. c) Interest Rate Risk: When interest rates rise, fixed income investments lose value. This is because the investor will continue to earn the same (lower) interest rate until the investment matures while market interest rates have already gone up. In order to compensate for a lower interest rate compared to the market rate, the fixed income investment will thus have to be priced at a lower rate. ) Inflation Risk: Rising inflation will erode the value of your income and asset. Due to inflation, the cost of products and services will rise and consequently, your future income and assets will be worth less than what they are worth today. e) Currency Risk: Changes in exchange rates between currencies could lead to decline in value of your investments. With Indian investors now being allowed to i nvest in other countries, you will now be exposed to currency risk i. e. a fall in the value of the currency in which you are investing vis-a-vis your home currency i. e. the Rupee. f) Liquidity Risk: Certain investments carry the risk of poor liquidity either due to the nature of the asset or regulatory reasons.For example, property is inherently an illiquid investment as it cannot be sold as simply as selling stocks. Certain investments like the Reserve Bank of India bonds are not transferable till maturity. Investments in Equity Linked Savings Schemes are illiquid for a period of 3 years and in case you redeem from such schemes, your tax benefit is withdrawn. 1. 8. 2 Risk Management Once different kinds of risks associated with investments are identified appropriate steps can be taken to reduce these risks. Some of these steps are: a) Diversification: Most types of risks can be managed by diversifying your investments across asset classes (stocks, bonds, properties etc. ), indust ry, currencies etc.Diversification spreads the risk and reduces the adverse impact that any one investment might have on a portfolio. b) Research and Monitor: Rigorous research and continuous monitoring will help in controlling the market and credit risk of your investments. This will caution beforehand to avoid an investment and alert in case the risk is increasing on an investment already undertaken. 1. 8. 3 Risk Tolerance Level: Risk includes the possibility of losing money. However, extra considerations should be made in addition to the safety of the principal and the potential for growth. These considerations include the likelihood of achieving the financial goals you have established.Additionally, one should consider whether he/she is willing and able to accept a higher level of risk in order to achieve further rewards. Before starting on the setting of the investment portfolio, every investor should establish his/her risk tolerance level. Only after this he/she is ready to bu ild strategies for the accomplishment of his/her financial goals. The higher the degree of risk involved in the investment portfolio the greater the chances of higher returns and failures. The setting of the risk tolerance level is very subjective issue. However, younger investors can afford more risk taking since they have more time to fix the losses. On the other hand older investors should apply more conservative approach since they have less time in front of them.But, they should keep in mind that they greatly decrease their chances of faster achieving their financial goals. A portfolio that carries more bonds is considered more conservative and risk averse. However, the one that includes a greater percentage of stocks is more risk taking with higher potential of rewards. Many financial experts recommend the diversification between investments with different degrees of risk. This is a good idea since your portfolio will benefit from the rises and falls of the different investmen ts and will alleviate the potential of losing money. Risk Personalities: Based on the risk capacity and risk tolerance, risk appetite can be decided. This is the level of risk that one is ready to bear.Broadly risk personalities can be categorised at 3 levels – Conservative, Balanced and Aggressive. Each risk personality has a different objective which it aims to achieve through the investment portfolio. These personalities are explained below: ? ? ? Conservative personality: For investors having this personality preservation of the capital invested is the ultimate goal, even if it means compromising on the returns. Balanced personality: People with this type of personality wish to strike a balance between high-risk and low-risk investments. Aggressive personality: Investors with such personality do not wish to compromise at all on the returns, even if their capital erodes. 2. 1 INTRODUCTIONIndian investor today have to endure a slow-moving economy, the steep market declines prompted by declining revenues, alarming reports of scandals ranging from illegal corporate accounting practices like that of Satyam to insider trading to make investment decisions. Stock market’s performance is not simply the result of intelligible characteristics but also due to the emotions that are still baffling to the analysts. Despite loads of information coming from all directions, it is not the calculations of financial wizards, or company’s performance or widely accepted criterion of stock performance but the investor’s irrational emotions like overconfidence, fear, risk aversion, etc. seem to decisively drive and dictate the fortunes of the market. The market is so volatile that its behaviour is unpredictable. In the past couple of years, the movement of share prices exceeded all the limits and had gone remarkably low and high levels. These dramatic prices of the shares ruin the concept of intrinsic value and rational investment behaviour. The traditi onal finance theories assume that investors are rational but they are unable to explain the behaviour and pricing of the stock market completely. Many research studies have validated the relationship between a dependent variable i. e. , risk tolerance level and independent variables such as demographic characteristics of an investor.Most of the Indian investors are from high income group, well educated, salaried, and independent in making investment decisions and from the past trends it is also seen that they are conservative in nature. Television is the media that is largely influencing the investor’s decisions. Hence, in the present project report an attempt has been made to study the relationship between risk tolerance level and demographic characteristics of Indian investors. 2. 2 STATEMENT OF THE PROBLEM This study on investor’s behaviour is an attempt to know the profile and the characteristics of the investors so as to understand their preference with respect to their investments. The main focus of the study is to discover the influence of demographic factors like gender and age on risk tolerance level of the investor.The study mainly concentrates on the factors that influence an individual investor before making an investment. It also studies the various patterns in which investors like to invest their money based on their risk tolerance level and other demographic factors like income level, occupation etc. 2. 3 REVIEW OF LITERATURE The literature review section examines the importance of research studies, company data or industry reports that serve as a foundation for the setup of study. The research dimension of the related literature and the relevant information begins from an explanatory perspective, approaching towards specific studies which do related to judge the limitations and informational gaps in data from the secondary sources.This analysis may reveal conclusions from past studies to realize the reliability of the secondary so urces and their credibility. This in turn enables one to rely on a comprehensive review for the study. Literature suggests that major research in the area of investor’s behaviour has been done by behavioural scientists such as Weber (1999), Shiller (2000) and Shefrin (2000). Shiller (2000) who strongly advocated that stock market is governed by the market information which directly affects the behaviour of the investors. Several studies have brought out the relationship between the demographics such as Gender, Age and risk tolerance level of individuals. Of this the relationship between Age and risk tolerance level has attracted much attention.Horvath and Zuckerman (1993) suggested that one’s biological, demographic and socioeconomic characteristics; together with his/her psychological makeup affects one’s risk tolerance level. Malkiel (1996) suggested that an individual’s risk tolerance is related to his/her household situation, lifecycle stage and subje ctive factors. Mittra (1995) discussed factors that were related to individuals risk tolerance, which included years until retirement, knowledge sophistication, income and net worth. Guiso, Jappelli and Terlizzese (1996), Bajtelsmit and VenDerhei (1997), Powell and Ansic (1997), Jianakoplos and Bernasek (1998), Hariharan, Chapman and Domain (2000), Hartog, Ferrer-I-Carbonell and Jonker (2002) concluded that males are more risk tolerant than females.Wallach and Kogan (1961) were perhaps the first to study the relationship between risk tolerance and age. Cohn, Lewellen et. al found risky asset fraction of the portfolio to be positively correlated with income and age and negatively correlated with marital status. Morin and Suarez found evidence of increasing risk aversion with age although the households appear to become less risk averse as their wealth increases. Yoo (1994) found that the change in the risky asset holdings were not uniform. He found individuals to increase their inves tments in risky assets throughout their working life time, and decrease their risk exposure once they retire. Lewellen et. l while identifying the systematic patterns of investment behaviour exhibited by individuals found age and expressed risk taking propensities to be inversely related with major shifts taking place at age 55 and beyond. Indian studies on individual investor’s were mostly confined to studies on share ownership, except a few. The RBI's survey of ownership of shares and L. C. Gupta's enquiry into the ownership pattern of Industrial shares in India were a few in this direction. The NCAER's studies brought out the frequent form of savings of individuals and the components of financial investments of rural households. The Indian Shareowners Survey brought out a volley of information on shareowners.Rajarajan V (1997, 1998, 2000 and 2003) classified investors on the basis of their demographics. He has also brought out the investor’s characteristics on the b asis of their investment size. He found that the percentage of risky assets to total financial investments had declined as the investor moves up through various stages in life cycle. Also investor’s lifestyles based characteristics has been identified. The above discussion presents a detailed picture about the various facets of risk studies that have taken place in the past. In the present study, the findings of many of these studies are verified and updated. Latha Krishnan (2006) explained as Investments come in many forms.While some people consider hard assets such as land, house, gold and platinum as investments, others look to monetary instruments such as stocks and bonds as ways to make their money grow. A cautious or conservative investor is unlikely to play carelessly with his hard-earned money. So he keeps to safe investments that guarantee the return of his capital and still earn good returns in a stipulated period if the product in which he invested gains in that pe riod. In such an investment, even if the markets go down and he does not gain much, he also does not suffer a heavy loss. A wealthy person with more money to invest can take more risks and invest in a variety of products that major financial players provide.A wealth of information on these as well as comments and criticisms on their performances and profitability is readily available. â€Å"Perception of investors towards capital market instruments globally† by John Marshall and â€Å"Investment analysis and Portfolio management’† by Punithavathy Pandian. John Marshall’s study was at global scale and it explains the perception of people across globe towards capital market instruments and Pandian explains the theoretical aspects of capital market instruments and use of various investment avenues to build a strong portfolio. 2. 4 NEED FOR STUDY Investing money is a crucial and deciding the avenues where to invest needs a lot of planning. In India people are more conservative and hence prefer investments that are less risky.Similarly there are other demographic factors like age, income level, gender which affect their decision. As the availability of financial products increase, perception of investors towards such avenues changes over a period of time. It becomes important for a marketer to understand the perception of investors towards investment avenues to successfully pitch the product. Marketing is known as meeting needs profitably. If the marketer is able to understand the mindset of investor towards a product then he/she will be in a position to market the product. This report attempts to study the behavior of Indian investors while making an investment. Here we also look upon other factors that influence them while making investment decisions.Innovations in financial products like derivatives, unit linked insurance products, fund of funds likewise are not easily understood by the investor. Hence the need for this study arises t o understand what exactly an Indian investor thinks before investing his/her money and how much risk he/she is willing to take. This report gives the marketer and other peers to successfully market the financial products which are more popular, as it gives information regarding the perception of investors towards investment avenues in India. 2. 5 OBJECTIVES OF THE STUDY 2. 5. 1 Primary Objectives ? ? ? ? ? ? ? To study the investment characteristics of investors To study the objectives of investment plan of an investors To study the demographic information of investors 2. 5. Secondary Objectives To know the preferred investment avenues of investors To identify the preferred sources of information influencing investment decisions To understand the risk tolerance level of the investors and suggest a suitable portfolio To study the dependence/independences of the demographic factors (Gender, Age, income level) of the investor and his/her risk tolerance level 2. 6 SCOPE OF STUDY Based o n previous research in related areas, a questionnaire was constructed to measure the investment pattern of individuals on the basis of demographic characteristics and the risk tolerance of investors was also calculated. It helped us to understand how an Indian investor behaves while investing.This study will be helpful to mutual fund companies and other investment companies to understand individual behaviour of investors so that they could build suitable investment options for them individually. Also this study will help the investor to decide the areas where they could invest. 2. 7 HYPOTHESIS A hypothesis describes the relationship between or among variables. A good hypothesis is one that can explain what it claims to explain, is testable and has greater range, probability and simplicity than its rivals. There are two approach of hypothesis testing: 1) Classical or sampling theory statistics and 2) The Bayesian approach In the present dissertation chi square test has been used to f ind out the dependence/independence of various factors that influence investment decision.Hypothesis has been found between following factors: ? ? ? ? ? Gender and risk tolerance of respondents Age and preferred investment avenues by the respondents Income and investment avenues preferred by the respondents Age of respondents and time horizon for investment Age and risk tolerance of the respondents 2. 8 RESEARCH DESIGN Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. ? Research type Many investors were reluctant to reveal their investment details especially the amount of money invested so, referral sampling method is used for this study. Sample description The sample was drawn from the population of the potential investors from Tamil Nadu. A survey was conducted to understand the investor’s behaviour with the help of questionnaire. It was carried out with a sample siz e of 100 investors. 2. 9 TOOLS FOR DATA COLLECTION Primary data: The data has been collected directly from respondent with the help of structured questionnaires. Secondary data: The secondary data has been collected from various magazines, journals, newspapers, text books and related websites. 2. 10 METHOD OF ANALYSIS Statistical techniques like Chi square test, simple percentage method are used to analyze and interpret raw data. Chi square was used to show the dependency/independency of various factors.After collecting the data its variable having defined character, it was tabulated and analyzed with the help of charts and graphs in Microsoft Excel 2007. 2. 11 LIMITATIONS OF STUDY †¢ †¢ †¢ †¢ Sample size is small because of the time constraint Respondent may be hesitant to provide their investment details Behaviour of investors doesn’t remain same for long time Time for the study is limited 3. 1 INDIAN FINANCIAL MARKET Money always flows from surplus sect or to deficit sector. That means persons having excess of money lend it to those who need money to fulfil their requirement. Similarly, in business sectors the surplus money flows from the investors or lenders to the businessmen for the purpose of production or sale of goods and services.So, we find two different groups, one who invest money or lend money and the others, who borrow or use the money. The financial markets act as a link between these two different groups. It facilitates this function by acting as an intermediary between the borrowers and lenders of money. So, financial market may be defined as ‘a transmission mechanism between investors (or lenders) and the borrowers (or users) through which transfer of funds is facilitated’. It consists of individual investors, financial institutions and other intermediaries who are linked by a formal trading rules and communication network for trading the various financial assets and credit instruments.Financial market talks about the primary market, FDIs, alternative investment options, banking and insurance and the pension sectors, asset management segment as well. India Financial market happens to be one of the oldest across the globe and is the fastest growing and best among all the financial markets of the emerging economies. The history of Indian capital markets spans back 200 years, around the end of the 18th century. It was at this time that India was under the rule of the East India Company. The capital market of India initially developed around Mumbai; with around 200 to 250 securities brokers participating in active trade during the second half of the 19th century. 3. 1. Scope of Indian Financial Market The financial market in India at present is more advanced than many other sectors as it became organized as early as the 19th century with the securities exchanges in Mumbai, Ahmedabad and Kolkata. In the early 1960s, the number of securities exchanges in India became eight – incl uding Mumbai, Ahmedabad and Kolkata. Apart from these three exchanges, there was the Madras, Kanpur, Delhi, Bangalore and Pune exchanges as well. Today there are 23 regional securities exchanges in India. The Indian stock markets till date have remained stagnant due to the rigid economic controls. It was only in 1991, after the liberalization process that the India securities market witnessed a flurry of IPOs serially. The market saw many new companies spanning across different industry segments and business began to flourish.The launch of the NSE (National Stock Exchange) and the OTCEI (Over the Counter Exchange of India) in the mid 1990s helped in regulating a smooth and transparent form of securities trading. The regulatory body for the Indian capital markets was the SEBI (Securities and Exchange Board of India). The capital markets in India experienced turbulence after which the SEBI came into prominence. The market loopholes had to be bridged by taking drastic measures. 3. 1. 2 Potential of Indian Financial Market India Financial Market helps in promoting the savings of the economy – helping to adopt an effective channel to transmit various financial policies.The Indian financial sector is welldeveloped, competitive, efficient and integrated to face all shocks. In the India financial market there are various types of financial products whose prices are determined by the numerous buyers and sellers in the market. The other determinant factor of the prices of the financial products is the market forces of demand and supply. The various other types of Indian markets help in the functioning of the wide India financial sector. 3. 1. 3 Features of Indian Financial Market ? ? India Financial Indices – BSE 30 Index, various sector indexes, stock quotes, Sensex charts, bond prices, foreign exchange, Rupee & Dollar Chart Indian Financial market news ?Stock News – Bombay Stock Exchange, BSE Sensex 30 index, S&P CNX-Nifty, company information, is sues on market capitalization, corporate earnings statements ? Fixed Income – Corporate Bond Prices, Corporate Debt details, Debt trading activities, Interest Rates, Money Market, Government Securities, Public Sector Debt, External Debt Service ? ? ? ? ? ? ? ? Foreign Investment – Foreign Debt Database composed by BIS, IMF, OECD,& World Bank, Investments in India & Abroad Global Equity Indexes – Dow Jones Global indexes, Morgan Stanley Equity Indexes Currency Indexes – FX & Gold Chart Plotter, J. P. Morgan Currency Indexes National and Global Market Relations Mutual Funds Insurance Loans Forex and Bullion The main functions of financial market are: ? ? ? It provides facilities for interaction between the investors and the borrowers. It provides pricing information resulting from the interaction between buyers and sellers in the market when they trade the financial assets. It provides security to dealings in financial assets. It ensures liquidity by provid ing a mechanism for an investor to sell the financial assets. It ensures low cost of transactions and information. 3. 2 CLASSIFICATION OF FINANCIAL MARKETS Figure 3. 1: Classification of financial markets Source: Investment analysis and portfolio management Author: Prasanna Chandra Figure 3. 1 shows the classification of financial markets.From this figure we can interpret that there are different ways of classifying financial market. ? One is to classify financial market by the type of financial claim. The debt market is the financial market foe fixed claims (debt instrument) and the equity market is the financial market for residual claims (equity instruments) ? The second way is to classify financial markets by the maturity of claims. The market for short term financial claims is referred to as the money market and the market for long term financial claims is referred to as the capital market. ? The third way to classify financial markets is based on whether the claims represent n ew issues or outstanding issues.The market where issues sell new claims is referred as primary market and the market where issues sell outstanding claims is referred as secondary market. ? The fourth way to classify financial markets is by the timing of delivery. A cash or spot market is one where the delivery occurs immediately and forward or futures markets are those markets where the delivery occurs at a pre determined time in future. ? The fifth way to classify financial markets is by the nature of its organizational structure. An exchange traded market is characterized by a centralized organization with standardized procedures and an over the counter market is a decentralized market with customized procedures.These markets are further explained in detail. 3. 3 MONEY MARKET The money market is a market for short-term funds, which deals in financial assets whose period of maturity is up to one year. It should be noted that money market does not deal in cash or money as such but s imply provides a market for credit instruments such as bills of exchange, promissory notes, commercial paper, treasury bills, etc. These financial instruments are close substitute of money. These instruments help the business units, other organizations and the Government to borrow the funds to meet their short-term requirement. Money market does not imply to any specific market place.Rather it refers to the whole networks of financial institutions dealing in short-term funds, which provides an outlet to lenders and a source of supply for such funds to borrowers. Most of the money market transactions are taken place on telephone, fax or Internet. The Indian money market consists of Reserve Bank of India, Commercial banks, Co-operative banks, and other specialized financial institutions. The Reserve Bank of India is the leader of the money market in India. Some Non-Banking Financial Companies (NBFCs) and financial institutions like LIC, GIC, UTI, etc. also operate in the Indian money market. 3. 4 CAPITAL MARKET Capital Market may be defined as a market dealing in medium and long-term funds.It is an institutional arrangement for borrowing medium and long-term funds and which provides facilities for marketing and trading of securities. So it constitutes all long-term borrowings from banks and financial institutions, borrowings from foreign markets and raising of capital by issue various securities such as shares debentures, bonds, etc. The market where securities are traded known as Securities market. It consists of two different segments namely primary and secondary market. The primary market deals with new or fresh issue of securities and is, therefore, also known as new issue market; whereas the secondary market provides a place for purchase and sale of existing securities and is often termed as stock market or stock exchange. 3. 4. PRIMARY MARKET The Primary Market consists of arrangements, which facilitate the procurement of longterm funds by companies by mak ing fresh issue of shares and debentures. You know that companies make fresh issue of shares and/or debentures at their formation stage and, if necessary, subsequently for the expansion of business. It is usually done through private placement to friends, relatives and financial institutions or by making public issue. In any case, the companies have to follow a well-established legal procedure and involve a number of intermediaries such as underwriters, brokers, etc. who form an integral part of the primary market.You must have learnt about many initial public offers (IPOs) made recently by a number of public sector undertakings such as ONGC, GAIL, NTPC and the private sector companies like Tata Consultancy Services (TCS), Biocon, Jet-Airways and so on. 3. 4. 2 SECONDARY MARKET The secondary market known as stock market or stock exchange plays an equally important role in mobilizing long-term funds by providing the necessary liquidity to holdings in shares and debentures. It provide s a place where these securities can be encashed without any difficulty and delay. It is an organized market where shares and debentures are traded regularly with high degree of transparency and security.In fact, an active secondary market facilitates the growth of primary market as the investors in the primary market are assured of a continuous market for liquidity of their holdings. The major players in the primary market are merchant bankers, mutual funds, financial institutions, and the individual investors; and in the secondary market you have all these and t