Gender Equality in International Business - 848 Words

In past experience, through travels outside of the country for business relations it was discovered very early on that most cultures will respect fairness and tolerance, but each to a different degree. American women in managerial positions have had to struggle to find ways to be effective in cultures where their authority and credibility are not traditionally the norm. Perhaps it was the value of fairness that clashed with tolerance or respect for diversity on this particular business trip to Japan over 10 years ago. However, even if there was an underlying agreement on such values, in this particular scenario these values were prioritized differently among the two different cultures and might have been expressed different for that†¦show more content†¦Furthermore, under the circumstances of intense competition and the need for expediency, the women were advised to do what ever was in the best interest of the company, which forced them to sit along the side lines as observe rs through most of the trip. The women did not attend meetings even though they were highly trained and in some cases more qualified than their male counterparts. The women were not invited to dinner engagements to discuss business affairs, and nor were they invited to attend recreational activities outside of the office with other business partners while on this trip. Although disappointing, the trip was not without some success as the men were able to accomplish the company’s goals. However, her male counterparts took all the credit for her hard work, with very little ever being said about what she had done to help them achieve the company’s objective. The companies response to this dilemma, however, was expected and in a way understandable at the time. Mostly because she knew that laws in other countries and norms were not always well defined, and it was evident that conflicting priorities were going to arise as they traveled from culture-to-culture. But what bothered her was the impression that corporate inadvertently overlooked the ethical elements of this business decisions, or worse still, choose to ignore it. Moreover, it was determinedShow MoreRelatedEconomic and Social Progress in Canada1720 Words   |  7 Pagessuffrage, women have made tremendous economic and social progress in Canada. Canada has been called a world leade r in the promotion and protection of womens rights and gender equality, (Foreign Affairs and International Trade Canada). 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As a resultRead MoreThe Ways Gender Difference Is A Basis For Inequality974 Words   |  4 Pagesways gender difference is a basis for inequality in contemporary society? Gender refers to the socially constructed categories of feminine and masculine. It is one of the major factors in social difference and inequality in today’s society. Gender inequality refers to unequal treatment or perceptions of individuals based on their gender. It arises from differences in socially constructed gender roles. Using a paragraph based approach I intend to individually analyse various aspects of gender differencesRead MoreGender Inequality : A Critical Issue That Affects Women s Rights1662 Words   |  7 PagesGender Inequality Research Paper Gender inequality is a critical issue that affects more women than their male counterparts all around the world. Gender inequality is a form of legal discrimination towards women’s rights. In order to progress and grow as a community and society, gender equality needs to be acknowledged. According to LISTVERSE, the top ten â€Å"extreme† examples of gender inequality towards women that exists around the world today, specifically in the Middle East and North Africa, areRead MoreGender Equality In Russia1200 Words   |  5 PagesSoviet Union period, equality between men and women in the country has not yet been granted. One of the central points of the Bolshevik revolution and the Soviet Constitution gave women guaranteed equal rights, thought Russian government still has not kept up with its promises to women along with many other issues. Male citizens in Russia still have the majority of the rights in the country. Failure to resolve this matter, the Russian government has drafted laws that prohibit gender discrimination in

Health Care Marketing Information Matrix Free Essays

Source of Health InformationType of Health-Related InformationMarketing MessagesHow the Consumer May Assess the Accuracy or Reliability of the Marketing Messages List the information source, such as Internet websites, WebMD, MedLine, or the news media. Type of information provided by the sourceList at least one marketing message being communicated to the consumer within this information source. List one approach the consumer may use to verify the accuracy of the marketing message. We will write a custom essay sample on Health Care Marketing Information Matrix or any similar topic only for you Order Now Example: Website relating to Zyrtec McNEIL-PPC, Inc. (n. d. ). Zyrtec. In Zyrtec. Retrieved from http://www. zyrtec. com/econsumer/zyrtec/index. view Example: Information relating to the use of Zyrtec in the treatment of allergiesExample: Zyrtec is a fast-acting allergy medicine that maintains its effect for 24 hours after a single dose. Example: Use the product to assess whether it works as stated. Web MD relating to appetite suppressants http://www. ebmd. com/diet/guide/weight-loss-prescription-weight-loss-medicineInformation relating to a prescription weight loss drug to treat obesityAppetite suppressants trick the body into believing it is not hungry or that it is full. The best way to ensure if the appetite suppressants are reliable are by purchasing the product and trying the product for a few weeks or months to see if it actually works. Website relating to Listerine http://www. listerine. om/products-why-mouth-rinse-at-nightInformation relating to an antiseptic mouth wash (Lis terine) to kill plaque and gingivitis germs. Rinsing with Listerine twice a day cleans your whole mouth and kills plaque and gingivitis for 24 hoursListerine is the only branded anti- microbial mouthwash among OTC rinses to receive the ADA Seal of Acceptance. On the other hand, it has 25 years of research to validate it kills plaque and gingivitis. Website relating to Infants’ Motrin http://www. motrin. com/product_links/20? val=overview# Information relating to infants’ Motrin that support reducing fever, sore throat, toothaches, and minor aches and pains due to the common cold Infants’ Motrin contains Ibuprofen. Ibuprofen is a nonsteroidal anti-inflammatory drug (NSAID) over-the-counter. NSAIDs are effective in relieving pain and reducing fever. Follow the label carefully and shake well before using. Locate the dosing chart and apply dose based on the weight, otherwise age. Use the enclosed measuring device. Only use up to 4 times daily and give to child every 6- 8 hours. How to cite Health Care Marketing Information Matrix, Papers

IT Infrastructure Management

Question: Research study on Cyber Security, Business Continuity and Compliance. Answer: Abstract: One of the major issues in today IT world is Cyber Attack. Wang and Lu, (2013) opined that Cyber security is the type of protection of different information system from doing different types of damages and thefts of both the software and hardware and also different types of misdirection and disruption of provided services. To stop and mitigate these types of attacks proper types of security measures are needed. This report reflects about the types of risks and different mitigation strategies that are used to mitigate the risks with different possible solutions needed in the business organization. Index terms: hacking, cyber security, firewall, business continuity Introduction Now days with the rapid technological advancements the large areas of different potential sources and different new opportunities the cyber security mainly defined for doing the protection of networks, systems and data of cyberspace. On the other side, Younis, and Kifayat, (2013) opined that cyber security is mainly referred to different information technological security and also focused on the process of protecting networks, computers and data from different nature of unauthorized accesses and destruction. The process of cyber security mainly enforced in different business operations in terms of protecting the confidential resources and data (Dutt, Ahn, Gonzalez, 2013). Different types of cyber security software are available in the markets which are not getting sufficient to provide appropriate security on office networks. According to Kolkowska, Dhillon, (2013), cyber security process is mainly adopted for the protection of lots of confidential data and information of business organization. Based on collected reports, lost of confidential information of large business organization gets affected due to unethical cyber attacks in the every year. This particular report mainly reflects about the types of cyber attacks and effects of cyber attacks (Verlinde Verlinde, 2013). It also discussed about different security measures that are implemented in doing the protection from all these cyber attacks and business compliance implicated in the context are discussed. Cyber Security: Business Continuity, Compliance and Impacts on IT System Cyber Security: According to Liu et al., (2012), cyber security is one of the information systems which is implemented for doing domestic purposes in terms of preventing different cyber attacks with the help of different internet sources. The main aim of this system is to protect all types of types of unethical attacks and the protection of all confidential information stored in the system. The process of cyber security system discussed about the development of firewall in term of preventing malicious file to enter, virus source detection, and different types of antidote software for doing the decryption and deletion of virus effected files (Liu et al., 2012). It also discussed that in the cloud storage device, all documents are stored in the cloud online virtual interface. Compliance of Business Systems According to Kott and Arnold, (2015), cyber security system gets developed for doing the protection of different important documents as well as confidential information of business organization. Based on the collected report, large organization loses lots of critical documents due to different types of unethical cyber attacks. Tran et al., (2013) also discussed that cyber security rules emphasized to ensure the firewall system of company systems in terms of penetrating different malicious files to enter the system. The company must also comply with different security guidelines to guarantee the security of stored documents. Business Continuity The process of business continuity mainly defined with the help of different actions plans, contingency design and concerned security plan implemented by business organization (Liu et al., 2012). All business organization needs to have definite action plan to implement the new system. It also endured proper security system to ensure the safety of critical documents and protection from infection of malicious plans. Some of the aspects of contingency business discussed below (Tran et al., 2013): Recovery: It helps to destroy different types of malicious files from entering to the system and recovering the lost materials. Flexibility: It ensure to boost up the systems defense against different cyber attacks Contingency: The active actions plan is placed to retrieve original state of system at the time high priority cyber attacks which forced the system to the common network. All these three aspects are get implemented in terms of maintaining the continuity of the business in commercial organizations (Venkatesh, Thong Xu, 2012). Effects on Information technology: Based on the increasing number of cyber attacks and hacking, this particular topic became one of the important concerns. Based on these attacks, the large number of information and different important documents get lost every year (Venkatesh, Thong Xu, 2012). It caused huge damage in the IT sectors. Based on large scale of multinational business organizations, all attacks damages the reputation and competitiveness by doing the leakage of different business strategies and confidential files. Therefore, the effective security system should get designed in the proper manner to protect the It industry from different unethical hackers (Holtshouse, 2013). Conclusion This particular study concludes that cyber security is mainly referred to security system which is employed in various domestic internet networks and offices. The basic goal of the system is to protect all unethical attacks and to prevent all types of confidential documents stored in the system. Depending on the implementation strategies of different cloud storage system, the significance of cyber security increased more when the cloud system becomes susceptible of cyber attacks. In this study, it also discussed about different cyber security software which get available in market, which are not get sufficient to provide best security in the office networks. Apart from that, it also discussed about different types of unethical hackers which gets developed for doing stronger and better hacking tools to break the systems. That is why; it deduced that more types of cyber security systems need to be designed for the protection of the industry from different types of security breaches and kind of unethical hackers. Turnitin Test Answer 1: In the turnitin test, it did not found any types of originality and matches of relevant ideas and existing works. Both bold matches and colored also not been identified Answer 2: No similarities with the existing articles is also identified Answer 3: No types of direct quotation is used in the assignment Answer 4: The types of in-text citation also used from the authenticated and authorized sources Answer 5: No types of similarities also identified in the entire assignment Answer 6: All the references and sources are used to gather knowledge and ideas which are provided under the reference header References Mo, Y., Kim, T. H. J., Brancik, K., Dickinson, D., Lee, H., Perrig, A., Sinopoli, B. (2012). Cyberphysical security of a smart grid infrastructure. Proceedings of the IEEE, 100(1), 195-209. Sheoran, P., Singh, S. (2014). Applications of Ethical Hacking. International Journal of Enhanced Research in Science Technology Engineering, 3(5), 112-114. Tran, S. T., Le Ngoc Thanh, N. Q. B., Phuong, D. B. (2013). Introduction to information technology. In Proc. of the 9th inter. CDIO conf.(CDIO). Venkatesh, V., Thong, J. Y., Xu, X. (2012). Consumer acceptance and use of information technology: extending the unified theory of acceptance and use of technology. MIS quarterly, 36(1), 157-178. Verlinde, E., Verlinde, H. (2013). Passing through the Firewall. arXiv preprint arXiv:1306.0515. Wang, W., Lu, Z. (2013). Cyber security in the Smart Grid: Survey and challenges. Computer Networks, 57(5), 1344-1371. Younis, M. Y. A., Kifayat, K. (2013). Secure cloud computing for critical infrastructure: A survey. Liverpool John Moores University, United Kingdom, Tech. Rep.

What is Socrates Belief an Example of the Topic Psychology Essays by

What is Socrates Belief about the Pursuit of truths by the Critical Methods of Inquiry The Socratic belief about the pursuit of truths by the critical methods of inquiry is reflected in the implication of the Socratic examination that virtually, every moral belief becomes false and an incitement to injustice the moment it becomes unquestioned or unquestionable (Rothman, Barbara Katz 2005, p. 22). Rothman cited that the Socratic Method is consists of dialectic of continuous questioning among critical thinkers that proceed in the spirit of the sifting and winnowing of ideas. Need essay sample on "What is Socrates Belief about the Pursuit of truths by the Critical Methods of Inquiry" topic? We will write a custom essay sample specifically for you Proceed According to Rothman, Socrates suggests that civic virtue and morals, unaccompanied by intelligence hygiene by a thinking which dissolves opinions rather are the invariable accomplices of injustice and immorality (Rothman, p. 22). Platos Apology contains Socrates trial and the private conversations in which according to Rachana Kamtekar it pretends to be the speech which Socrates himself gave (p. 100) in defense against the accusation that he has corrupted the mind of the young Athenians. However, Kamtekar pointed out that it is hard to determine the accuracy of Platos Apology due to the lack of precisely comparable surviving text (p. 100). In Platos Apology, Socrates used rhetoric to find the answer for a riddle given by his friend, whether there was someone in Athens who was wiser than him. Socrates then made an enquiry by asking questions with the men of Athens about their knowledge of good, beauty and virtue. Finding that no one among the men he questioned had knowledge he concludes that he is wiser only because he knew that he knew nothing (Socrates). Socrates belief about the pursuit of truth in Platos Apology by the critical methods of inquiry is clearly reflected by his conclusion on his findings about the answer to the question whether someone was wiser than him. He has done an enquiry and concluded based on his findings. When he was sentenced to death by drinking a poison, he turned down the pleas of his disciples to escape although he has opportunity to do so because he believes that the individual citizen can be completely subjected to the possibility of being accused of crimes by his fellow citizens and be found guilty of the charge. Socrates believes that the individual citizen is under contract with the laws of city he chose to live and by escaping would be contrary to his own teachings and principles. Thus, it appears that Socrates conclusion that he knew that he is wiser because he knew that he knew nothing as compared to the prominent men of Athens, who had resorted to inducing charges against him upon realizing their inferior knowledge, has to do with his belief about the pursuit of truth. The implication of this was that truth is a can be obtain trough critical inquiry on the available resources. What is needed is the determination to seek for an answer to the particular questions relating to the subject. It was for this reason that Socrates was willing to face death rather than escape it. Work Cited Kamtekar, Rachana Platos Euthyphro, and Crito UK: Rowman & Little field Publishers, 2005 Rothman, Barbara Katz Weaving a Family USA: Beacon Press, 2005. Socrates http://schools-wikipedia.org/wp/s/Socrates.htm

Lessons on French Parts of Speech

Lessons on French Parts of Speech Learning French is hard, and its even harder if you dont understand the basics of grammar in your own language. If your mind boggles when people start talking about nouns, adjectives, and other parts of speech, this lesson is for you. The eight parts of speech are listed below, with each one bolded in a sample sentence. Click each term to learn more about it, including examples, tips on figuring out which part of speech a particular word belongs to, and links to more detailed lessons. Adjective Je parle lentement parce que les nouveaux à ©tudiants sont la table.I am speaking slowly because the new students are at the table. Adverb Je parle lentement parce que les nouveaux à ©tudiants sont la table.I am speaking slowly because the new students are at the table. Article Je parle lentement parce que les nouveaux à ©tudiants sont la tableI am speaking slowly because the new students are at the table Conjunction Je parle lentement parce que les nouveaux à ©tudiants sont la tableI am speaking slowly because the new students are at the table Noun Je parle lentement parce que les nouveaux à ©tudiants sont la tableI am speaking slowly because the new students are at the table Preposition Je parle lentement parce que les nouveaux à ©tudiants sont la tableI am speaking slowly because the new students are at the table Pronoun Je parle lentement parce que les nouveaux à ©tudiants sont la tableI am speaking slowly because the new students are at the table Verb Je parle lentement parce que les nouveaux à ©tudiants sont la tableI am speaking slowly because the new students are at the table

Citas con USCIS para informacin migratoria - INFOPASS

Citas con USCIS para informacin migratoria - INFOPASS Los empleados del Servicio de Inmigracià ³n y Ciudadanà ­a (USCIS, por sus siglas en inglà ©s) pueden ser la mejor fuente de informacià ³n para resolver dudas migratorias generales o para informar sobre estado del caso. Si se desea cerrar una cita para presentarse en una oficina del USCIS se puede hacer desde casa, ingresando por internet en la pgina oficial de este organismo en el apartado de InfoPass. Sin duda esta puede ser una buena opcià ³n para obtener informacià ³n de inmigracià ³n de calidad, aunque conviene tener muy presente que el USCIS nunca va a actuar como asesor legal. Para eso estn los abogados, que cada persona debe elegir libremente, si desea contar con ese servicio. Cà ³mo se cierrauna cita con InfoPass En la pgina del USCIS, hay una opcià ³n en la barra izquierda de la pantalla para elegir el idioma, entre los que estn incluidos el espaà ±ol y el inglà ©s. Debern rellenarse los campos en los que se pide que se escriba el nombre de la persona que va a acudir a la cita, su nà ºmero de telà ©fono, su fecha de nacimiento y el cà ³digo postal (zip code) en el que reside. InfoPass ofrece citas para, aproximadamente, dos semanas despuà ©s. Se puede elegir el dà ­a y la hora que ms convienen, si estn disponibles. Al finalizar el proceso de solicitud de cita, aparecer en la pantalla una confirmacià ³n de la misma en la que se incluye el dà ­a, fecha y lugar en el que hay que presentarse. Esta informacià ³n debe imprimirse y llevarla a la entrevista con el oficial del USCIS. Si se pierde la hoja, debe imprimirse otra volviendo a entrar en Info Pass. Si se pide una cita para ms de una persona, el sistema no admite que se pueda cerrar una seguida de la otra. Deber esperarse al menos media hora para realizar las citas. O tambià ©n es posible hacerlo inmediatamente si se utiliza o bien otra computadora o bien un navegador distinto. Por ejemplo, utilizar Explorer o Firefox para la primera vez y Chrome para la segunda.  ¿Por quà © Info Pass no me permite cerrar una cita? Es relativamente comà ºn que cuando se intenta utilizar Info Pass se obtiene un mensaje de error. Esto es porque el sistema est al mximo de su capacidad. Se puede intentar varias veces, hasta que funcione o bien se puede intentar en las horas de la madrugada. Menos personas lo intentan en esos momentos lo que hace ms probable que el sistema funcione adecuadamente.  ¿Quà © pasa si surge un imprevisto y no puedo acudir a la cita con el USCIS? Se puede cambiar el dà ­a y la hora de la cita. Basta con entrar de nuevo en la pgina de INFOPASS y hacer los cambios necesarios. Se necesita tener a mano la hoja impresa con la confirmacià ³n de la cita inicial, ya que à ©sta contiene un nà ºmero de confirmacià ³n que es necesario saber para hacer el cambio de cita para la entrevista en el USCIS.  ¿Quà © se debe llevar a la cita con el USCIS? 1. Todos los documentos relativos a la pregunta que se quiere formular. Si el original est en un idioma distinto al inglà ©s, debe traducirse. 2. La hoja de confirmacià ³n de la cita de Info Pass. 3. Una identificacià ³n oficial como por ejemplo la green card, el pasaporte, el I-94, la licencia de manejar del estado en el que se reside, el permiso de trabajo o cualquier otro I.D. emitido por las autoridades americanas. 4 .Es posible ir acompaà ±ado de una persona que haga de intà ©rprete, si no se entiende o habla bien el inglà ©s. Puede ser un familiar o un amigo, pero tiene que ser mayor de 21 aà ±os. Presentarse sin cita en una oficina del USCIS Si se necesita hacer la consulta con carcter de  urgencia  siempre es posible acudir a las oficinas locales del USCIS y esperar en fila hasta que un oficial pueda atender la pregunta.   A veces la  espera  dura horas e incluso es posible que se deba volver al dà ­a siguiente y hacer la espera de nuevo. Esto ocurre cuando el mismo dà ­a y en la misma delegacià ³n de Inmigracià ³n hay un nà ºmero muy grande de personas esperando para hacer su consulta. Otras formas de obtener informacià ³n migratoria Si la pregunta se refiere al estatus de un caso pendiente, el proceso a seguir es otro. Permitià ©ndose consultas electrà ³nicas, telefà ³nicas y, por supuesto, en persona. Si la duda se refiere a los tiempos medio de demora para trmites, estas  son las demoras migratorias para peticiones de green card  de familia, trmites de visas, solicitudes al USCIS, y retrasos en las cortes. Si lo que se busca es informacià ³n sobre el rà ©cord migratorio, hay varias formas de obtenerlo, dependiendo de quà © oficina tenga la informacià ³n.   Por otro lado, si lo que se desea es encontrar a una persona que puede estar detenida por Inmigracià ³n, entonces el lugar correcto para preguntar no es USCIS, que no se ocupa de esos asuntos. El camino correcto es contactar con ICE. Finalmente, los mexicanos sin importar su estatus migratorio en los Estados Unidos pueden marcar gratuitamente a un telà ©fono pagado por el sistema consular de su paà ­s. Brinda ayuda importante sobre cà ³mo obtener informacià ³n e incluso realizan ellos gestiones. Finalmente, este es un listado con 10 telà ©fonos en los que se puede resolver dudas migratorias, denunciar fraudes u obtener otra informacià ³n oficial. Consejos importantes para indocumentados Si no tiene todos los documentos en regla y se est ilegalmente en los Estados Unidos se aconseja que no se presente  voluntariamente en el USCIS para hacer una pregunta. Consulte a un abogado de inmigracià ³n o con una organizacià ³n reputada de apoyo a migrantes con servicio de asesorà ­a legal. La razà ³n para no presentarse en las oficinas en las oficinas del USCIS es que se trata de un edificio federal y pedirn que toda persona se identifique con un documento que de un modo u otro muestre estatus migratorio en el paà ­s. Podrà ­a darse el caso de que se arrestase al migrante indocumentado.

Cuban Revolution Essay Example | Topics and Well Written Essays - 1000 words

Cuban Revolution - Essay Example The Cuban Revolution immediately won the support of the masses and, indeed, the revolutionary leaders' popularity only increased, and expanded to include Latin American populations, as a result of political rhetoric which emphasised Cuban independence from US domination and the imperatives of adopting socialism to improve the socio-economic status of the majority (Sweig, 2004). Indeed, in assessing the causes of the Cuban Revolution and the reasons for its success, it is important to highlight the political and economic background. Politically, Cuba, as was the case with Latin American nations in general, had little autonomy and independence from Spain had not led to full-fledged sovereignty but to domination by the United States. Economically, the majority suffered from chronic and absolute poverty while a minority commanded and owned much of the nation's wealth and resources. The fact that the Cuban Revolution was motivated by the aforementioned conditions and determined their reve rsal ensured its popularity in both Cuba and Latin America. Indeed, the majority of the Cuban populace embraced Castro and his guerrillas, who appeared as young idealists. As rebel soldiers made their way to Havana they were welcomed as conquering heroes by throngs of local villagers who lined the roads and cheered the troops as they passed (Sweig, 2004). Proceeding from the above stated, it is evident that the United States' policies towards Cuba are among the most significant of the revolution's causes. Before 1959 the history of U.S.-Cuban relations played out in the context of U.S. hegemony over the island. Though previous administrations had resisted U.S. influence, few had rejected it outright (Perez-Stable, 1998). Indeed, throughout the history of U.S.-Cuban relations the Cuban elite, those of European origin whose wealth tied them to U.S. interests, had actively welcomed U.S. dominance. Thus, Cubans themselves, especially the elite class, together with U.S. policymakers were responsible for stifling Cuban nationalism and for providing the atmosphere in which the revolutionary government of Fidel Castro fundamentally changed the course of Cuban history and of Cuban-U.S. relations (Perez-Stable, 1998). Before Castro, U.S. officials had worked closely with Cuban leaders. Prior to the U.S. intervention in the Cuban War for Independence many Cubans actively sought U.S. rule. The Cuban elite feared the establishment of a truly democratic republic, or in their words, a Negro Republic (Perez-Stable, 1998). They played on U.S. racial fears and cultural stereotypes, marginalizing their own countrymen. The United States wanted to maintain the status quo and unfettered access to the Cuban economy; the Cuban elites wanted stability and to continue to reap the financial rewards of close ties with U.S. business interests. The Cuban elite also wanted power for themselves. Hence, after Spain surrendered to the United States, some members of the Cuban elite embraced U.S. control over their nation (Perez-Stable,

Acceptance of Homosexuality in the Society Essay - 2

Acceptance of Homosexuality in the Society - Essay Example The above statistics and conclusions clearly point towards genetic factors involved in homosexuality. Even though the percentage has slight differences, both identical twins and fraternal twins shows the tendency of becoming homosexuals if they genetic elements of homosexuality. The possibility of existence of homosexuality gene is widely discussed at present. â€Å"Although biologists are still far from answering this question, scattered evidence for a possible gene influencing sexual orientation has recently encouraged scientists to map out a guide to future research† (Is there a homosexuality gene?). Even though, such a gene has not been discovered yet, many of the biologists are confident of identifying such a gene which will answer all the questions related to the reasons of homosexuality. â€Å"Writing in the scientific journal Archives of Sexual Behavior, researchers from Queen Marys School of Biological and Chemical Sciences, and Karolinska Institutet in Stockholm report that genetics and environmental factors are important determinants of homosexual behavior† (Homosexual behavior due to genetics and environmental factors). Homosexuality is common in military. This is not because of genetic factors, but because of the environmental factors. Soldiers are not getting any opportunities for heterosexual activities and they will rely on homosexuality for relieving their sexual energy. Sexual activities are not only a biological need, but also a psychological need. If not relived properly, sexual energy can create immense problems to the living things.

England and the Colonies Essay Example for Free

England and the Colonies Essay The origins of the United States of America can be traced to the colonization of England in the 17th and 18th centuries. Thirteen of the states that are now part of the nation were initially English colonies. However, the relations between England and the colonies were severed when British policies proved to be too oppressive for the colonists. Eventually, the conflict led to the American Revolution, in which the colonies gained their independence from British rule. From the beginning, England and its colonies have differed in terms of social and political climate. These differences contributed in heightening the tension between the two. The colonies were established between the years 1607 and 1733 (Perry, 1989). The first colony was set up in Virginia in 1607. During that time, monarchy still existed in England, but the power of the Parliament in constricting royal authority had increased. This is the reason why the political climate in England was filled with tension. There was always a clash between the monarch and Parliament. When the first colony was founded, James I was the ruling monarch. He had constant disagreement with the Parliament, a disagreement which would eventually worsen with his successor and son Charles I. The tension between the monarch and the Parliament had become worse, prompting a civil war to occur in August 1642. The outcome of the war led to the execution of Charles I and the establishment of a republic. Royal rule was only restored in 1660, with Charles II as monarch (Perry, 1989). The social climate in England was also filled with tension. This was the result of the religious conflict which began during the reign of James I (Perry, 1989). When his predecessor Elizabeth I was the monarch, the Church of England dominated but many people embraced Protestantism. A group of Protestants known as Puritans wanted to remove what they thought was Roman Catholic influence on the Church of England. James I refused to acknowledge the Puritans’ clamor for religious change. During the rule of Charles I, the situation with the Puritans became more intense. William Laud was the archbishop of Canterbury and he promoted unjust treatment of Puritans. Because of his encouragement, many Puritans were fined and put in jail (Perry, 1989). The political climate in the colonies was significantly different from that of England. The colonists did not have a single, central government. They were not ruled by monarchy or Parliament. Those colonies located in Massachusetts, Connecticut and New Hampshire had their own government and set of laws (Perry, 1989). In the Pennsylvania colony, William Penn even supported political freedom (Perry, 1989). This situation left no room for political conflict, as the colonies were left on their own to govern themselves. Hence, the political climate in the colonies was more calm and stable than that in England. It was not until the conflict with England that the colonies were forced to unite and fight the British in war. On the contrary, the social climate is somewhat similar to that in England. Most of the colonists were persecuted in England for their religious beliefs (Perry, 1989). The reason why some of them decided to move to America was because they sought to establish a community where they could freely practice their religion. Unfortunately, some colonists repressed religious preference the same way British leaders did. In the Massachusetts Bay colony, they refused to welcome people who did not embrace the Puritan religion. However, other colonies were more tolerant than others. For instance, the colony established by Roger Williams in Rhode Island permitted people to practice whatever religion they wanted. The same religious tolerance was extended by Penn (Perry, 1989). England and the colonies differed in terms of political and social climate. In England, there was tension due to political conflict and religious intolerance. In the colonies, individual governments avoided political unrest. Just like in England, religious freedom is also repressed in the colonies; nonetheless, this repression is not absolute. Some colonies tolerated differences in religion. These are the differences between England and the colonies. Reference Perry, M. (1989). A History of the World. Massachusetts: Houghton Mifflin.

Ancient Mayan Civilization :: Pre-Columbian History Culture

Ancient Mayan Civilization The Ancient Mayan Civilization was built upon a rigid social structure based on their religious beliefs. They used a caste social structure in which divisions were based on wealth, inherited rank, privilege, profession, or occupation. Their beliefs were based on the fact that nature elements had the power to either help or harm. The Ancient Mayans used their social structure and beliefs to shape their daily lives. The Maya were a very religious people. They believed in many gods. All events centred around their religious beliefs. They wanted to stay in favour with the gods. In their belief system, the gods would bring the rain, heal the sick, bring plentiful harvests, and ensure the health and safety of the people if they were honoured. If the gods were angry, they would send drought, famine and disaster to the people. In order to keep the gods happy, they believed that a daily sacrifice of blood was necessary. They would open a wound and let the blood drip onto a paper. The paper would then be burned in an offering to the gods. It was believed that the priests could see the spirits in the smoke.Kings would also give blood offerings, which would please the gods. The Maya had a strong belief in the afterlife. When a king or nobleman died, the Maya people believed that he became one with the gods and would go to live in the sky with them. The Maya worshipped their ancestors as if they were gods. The dead were buried with food, tools, clothing, and whatever would be needed for their journey. Tombs were built to bury their rulers, and sacrifices and special funeral rituals were performed there. Religion was used to explain natural forces that organized the cosmos into an ordered place. Its ideological function was to comfort individuals, unify the society, justify wars, and to demonstrate the authority of ruling elites. At the top of the society were the ruler, k'ul ahau, his family, their retainers, courtiers, and priests. Others, including the most skilled and influential architects, merchants, and craftsmen were also part of the noble elite, providing their skills were useful to the ruler. In both the priesthood and the ruling class, nepotism was the prevailing system under which new members were chosen.Primogeniture was the form under which new kings were chosen as the king passed down his position to his son.

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