Project design Essay Example | Topics and Well Written Essays - 1250 words

Project design - Essay Example However, packaging of ice cream on commercial basis was always a problem for mass producers. Initially they used to supply the product in cups but in the early 1900 manufacturers identified a strong need of introducing ice cream carriers which were less costly and more productive. John was too frustrated those days because of the increasing raw material cost. He has been into the ice cream manufacturing industry since last twenty years but now he was facing immense difficulty in meeting up all the business expenses while maintaining good profit margins. His company used to do business in the late 19th century and the early 20th century. They had paper cups, glass jars or even plastic boxes in order to store, transport and sell the product. However, due to the changing business scenario and the advancing technology the prices of ice cream carriers raised beyond expectations and hence the major ice cream manufacturers including John’s ice cream had to plan again the entire busin ess strategy. Developing a new business idea so as to cater the needs of customers is very difficult and risky. Ideas can be generated through various sources but the most common and widely applicable source is brainstorming (Bragg). Paper and plastic carriers were very costly, they were incurring huge wastage and the natural environment was becoming contaminated. Considering this scenario and the declining company profits, John called his managing team including supply chain managers, financers, marketers and the advisors. After two months of intense brainstorming and parameter analysis they finally decided to introduce an entirely new ice cream carrier which was not only cost effective and friendly to the environment but it was also the most feasible, interesting, tasty and edible ice cream carrier ever produced. So now John was out of his initial frustration period he knew his need i.e. an ice cream carrier which could be eaten away along with the ice cream. However, the next sta ge was even more difficult as the team of researchers was still uncertain about the exact ingredients they must use to make the carrier eatable and safe to health. One of the advisors analyzed the cooking books to find a recipe for carriers which could easily hold ice cream for a longer time period without melting it away or soaking its moisture. Hence pastries and creams were thoroughly studied but since both of these were naturally soft materials and could not hold ice cream in the required solid form for a considerable time period therefore they were ultimately rejected. Then John evaluated the effectiveness of ice cream carriers made from flour. These were also rejected because of water absorption. Hence the frustration for not being able to implement the business idea was initiated and now John started to spend some more time in kitchen so as to identify the best possible material which could be used as an ice cream carrier. While introducing a new product or even making an inn ovation in the current product range there is significant value of time. Company has to profoundly move from product details, ideas, development, screening and finally the introduction (Fuller). All of these procedures must be followed in a timely manner. But here the time was running fast and the profits were decreasing even faster. It has now been one year that the entire team was evaluating different ice cream carriers. Some of them proved to be highly absorbent while others were too hard to eat

Carrying out an open-loop step response on the process trainer pt326

Carrying out an open-loop step response on the process trainer pt326 INTRODUCTION: The control systems are based up on the behaviour of the dynamics systems and it is also a branch of the engineering and mathematical model of the process. The desired output of the system is called as reference. A controller is device which observes and outcome the changes in the output that are affected by the input variables. And it is also used to operate the input variables to a system to achieve the desired result on the output of the system. It is very simple and flexible to solve using the mathematical model. In control system design, we have a concept of feedback control system. The main concept of this feedback loop is to control the system performance and it is a negative feedback because the sensed value is subtracted from the desired value to produce the error signal which is amplified by the controller. To avoid the problem of the open-loop control system, the control system initiated the feedback loop. Where as in closed loop system, the control system uses the feedba ck to control the output of the process. One of the most widely used controllers in the design of continuous data control system is the PID controller, where PID stands for the proportional plus integral and derivative control. The PID controller is mostly used in the feedback control design. The controller is used for the operation of the error signal to produce the control signal. Proportional (P) control: This is the one type of action performed and used in the PID controllers is the proportional control. It is the simplest form of continuous control system that can be used in the closed loop system. Proportional control is used to minimize the fluctuation in the process, but it does not allow to bring back to the required set point. P-only controller provides the faster response than other controllers. The system first allows the P-only controller in order to get the system a few seconds/minutes faster. The main advantage of the P-only controller is the faster response time, it produces the deviation from the set point and this deviation is called offset. Mathematical Equations: P-only controller linearly correlates the controller output (actuating signal) to the error (difference between measured signal and set point). In the mathematical form, the p-controller is given below Y(t) = Kc e(t) + b Where Y(t)= controller output Kc = controller gain e(t)= error b= bias In the above equation the controller gain and bias are constant to each controller. The controller gain is the change in the controller output per change in the controller input. Bias is simply a controller output, when the error is zero. In the PID controller, when the signals are transmitted then the controller gain relates the changes in the output voltage to the changes in the input voltage. Thus, the gain ultimately changes in the input and output properties. If the controller output changes more than the input, Kc is greater than one. If the change in the input is greater the controller output, Kc is less than one. Ideally, Kc is equal to infinity then the error will be reduced to zero. Exact equalities cannot be achieved in the control logic. In this, the error will be allowed up to certain range of the system. Integral (I) Control: This is another type of action performed in the PID controllers is the integral control. Integral control is the second form of feedback control system. It is obtained used to remove the deviations that may exit. Thus the system moves to the steady state and original settings. A positive error will cause the signal to be increase and whereas a negative error will cause the signal to be decrease the system. However, I-only controller is much slower in response time than the P-controller. Thus, the slower response time will be reduced by combining with another form such as P or PD controller. It is often used to measure the required variables to remain within a narrow range and also require a fine tuning control. Mathematical Equations I-controller correlates the controller output to the integral of error. The integral of error is taken with respect to time within a specified interval. In the mathematical form, the I-controller equation can be represented as Where C(t)= controller output Ti = integral time e(t)= error c(t0)= controller output before integration. Derivative (D) Control: This is another type of action performed in the PID controllers is the derivative control. I-control and D-control are a form of a feed forward control. D-control anticipates the process conditions by analyzing the change in error. It main function is to minimize the change in error, thus keeping the system in a consistent setting. The main benefits of the D-controller is to resist change in system, the most important of these being is oscillations. PI-controllers: PI-controller is a combination of both proportional plus integral controller. This is the feedback controller which drives the process/plant to be controlled with sum of error and also the integral of that value. In PID controllers, we have not yet used the D-controller (D=kd=0). The basic block diagram of the PI controller is shown below, The controller output for the above closed loop system is Where ÃŽ is the error of actual measured value from the desired set point. ÃŽ = SP PV. The main advantage of the PI controller; the integral terms in the PI controller causes the steady state error to be zero for a ramp input. The main disadvantes of using with the PI controller is the phase lag. This means that the phase margin decreases. Required Apparatus: The report of this experiment is carried out on the Feedback Process Trainer, PT326. The design of the control system consist of a computer ,A/D and D/A converters, and a printer used to provide the copies of the response system. The networked PCs used to obtain the system design using the nyquist simulation method employing the design and simulation program CODAS. Explanation of PT326: According to the industrial situation, the PT326 process trainer model is commonly used. This situation appears when the temperature control is required in the presence of transport delay and transfer lags. In this PT 326 process trainer, the trainer involves air that is strained from the atmosphere through a centrifugal blower and it is heated and passed over the heater through duct before it is being heated. The objective of the control is to sustain the temperature of the air at the required level. The temperature control can be achieved by varying the electrical power supplied to the heater grid. By using the bead thermistor which is placed in the flow at any three position along the duct, the air temperature may be sensed. The process trainer introduces the transport delay in the system which is located between the thermistor and heat coil. By setting the opening of the throttle, the mass flow of the air can be adjusted through the duct. The temperature sensors can be placed at any three of the position in the duct, so that these sensors can acts as a detector. The variation in the resistance of the temperature sensor is converted to the voltage variation through the bridge circui t and is available at terminal Y. The output of the temperature sensor can be used as feedback for connecting the terminal X and Y. The required temperature can be indicated by adjusting the knob label set value. In additionally, the set value can change the step by using the command throwing the switch as internal. An external referrence input can also be provided using the label as external. The difference between referrence input set value and feedback signal is availabel at terminal B and can be supplied to the heater power supply so that the gain can be adjusted by using the prportional band. To select a continuous control, the signal at A can be send directly to the heater power supply by using the switch s. The switch s can be alternatively used as on-off controller as well as it is used to select the two step control. This on-off control command reponds to the maximum heater power when on and for the zero heater power it is off. The hysterisis is an on-off controller which can be adjusted by the knob label as overlap. The maximum heater supply can be adjusted using the knob label as max heater power. The process may be seen to comprise a simple blower in which air is drawn from the atmosphere, blown past a heater grid and along a tube having a provision for several temperature to pick up. The purpose of the control system is to maintain the temperature of the air flowing in the tubeat some required set point. The output of the process is a temperature which is measured by the use f the thermistor bead transducer and bridge circuit. Procedure: In the set of experiments of the PT326 process trainer, a personal computer acts as a contoller. Three controller are going to be investigated, a) Proportional control b) Integral control c) Proportional plus integral control. The final experiment make use of the analytical control system to show how the control theory can be used to calculate the behaviour of the control system. a) Proportional control: Using the computer program go into the controller setting menu. Set the controller to be a proportional only type i.e set the kp= 0.1, ki= 0, kd= 0. On the process trainer, adjust the throttle to 25o and place the sensor in the position away from the heater. Vary the proportional gain and plot the graph of the steady state error against the proportional gain. Choose the value of gain we think for the best response and obtain the screen dump to get a copy from the printer. Finally, indicate on graph the onset of instability. b) Integral control: Using the computer program go into the controller setting menu. Set the controller to be a integral only i.e set the kp= 0, ki=0.1, kd=0. On the process trainer leave the throttle at 25o and kep the sensor in the position away from the heater. Vary the integral gain and plot a graph of steady state error against the integral gain. Choose a value of gain that gives the best response of the system and obtain the screen dump. Finally, indicate on the graph the onset of instability. c) Proportional-plus-Integral control: Using the computer program go into the controller setting menu. Set the controller to be proportional-plus-integral type i.e set the kp=0.1, ki=0.1, kd=0. On the process trainer leave the throttle at 25o, and keep the sensor in the position away from the heater. Vary the proportional and integral gains until we get the best response from the system and obtain the screen dump. d) Open-loop step response: Using the computer program PRESS o this will put the system under the open loop control. The programme will then automatically carry out an open loop step response. Obtain a screen dump for the open loop step response. From the loop step response it is possible to calculate the transfer function of the process trainer. The tranfer function has the form: Where K is the open loop D.C gain of the system and Td is the pure time delay present in the system and Tp is the time constsnt for the system. It is possible to measure these values directly from the open loop step response. The steady state error for the control system can be derived as : Steady state error = V/(1+kp k) e) After obtaining the open loop step response values like K, Tp, Td, e and R from the graph. Place the values of K,Tp and Td in MATLAB simulink. To simulate the plant only in open loop in CODAS. Compare the time response with the actual plant open-loop response. f) Introduce the controller into the simulation and in frequency domain, adjust proportional gain to give the gain margin of 2 i.e., Nyquist plot (controller plus plant, open-loop) cuts the real axis at -0.5. observe the corresponding time response(controller plus plant, closed loop in time domain). g) Following the Nyquist method (f), introduce an integral control term and observe the time response. h) Keeping the proportional plus integral control established in (g), adjust the overall gain(k) to give gain margin of 4,2,1.333,1 and 0.8 (corrresponding to the Nyquist plot cutting the real axis at -0.25, -0.5, -0.75, -1.0 and -1.25 respectively). Comparing the corresponding time responses on the same graph. i) Now,changing the overall gain back to 1 and substituting the proportional and integral gains as calculated using the (i) ziegler-Nichols and (ii) cohen and coon formulas. And comparing the time responses for the three methods (Nyquist,Ziegler-Nicholos and cohen and coon) on the same graph. j) Moving back to the industrial trainer, and substituting the PI gains that where obtained using the Nyquist method and observe the closed loop response. And finding to get fine tune PI gain to improve the performance of the system. MATLAB CODE (CODAS Program): The diagram represents the open loop step response of the system is The code for the plotting of the open loop step response of the sytem is hold on xlabel(Time) ylabel(Input (red), Output (green)) title(System response to a step input) plot(t,x,r) plot(t,y,g) grid on The code for the plotting of the closed loop step response of the system is hold on axis([0.0 10.0 -10.0 2900.0]) xlabel(Time) ylabel(Desired Output (blue), Actual Outputs) title(System responses to a step input) plot(t,x,k) plot(t,y,b) grid on The code for the nyquist process trainer in the nyquist plot for the closed loop response of the system is % Plant : Gp(s)=K*exp(-Td*s)/(1+Tp*s) % K=1.266; % DC Gain Td=0.35; % Time Delay Tp=0.729; % Time Constant % num_p=K; den_p=[Tp 1]; disp(Plant Transfer Function : ) plant_tf=tf(num_p, den_p,InputDelay,Td) % % Compensator: Gc(s)=Km*(Kp+(Ki/s)+Kd*s) = Km*(Kd*s^2+Kp*s+Ki)/s % disp(Km :) %Km=1.0 Km=2.0/(2) %Km=1.0 % Multiplier Kp=2.1397; % Proportional Gain Ki=0.857; % Integral Gain Kd=0.0; % Derivative Gain % num_c=Km*[Kd Kp Ki]; den_c=[1 0]; disp(Compensator Transfer Function : ) comp_tf=tf(num_c,den_c) % OL_tf=comp_tf*plant_tf % %Gain and Phase Margins % [Gm,Pm,Wcg,Wcp]=margin(OL_tf); disp(Gain Margin: ); Gm disp(Phase Margin: ); Pm % % Nyquist plot of OL TF for 0.2

Essay --

A genetic disorder is a sickness caused by one or many abnormalities or absentees in the genes or chromosomes. One interesting genetic disorder such as cancer, are found genetic but, can also be caused and affected by many by environmental factors such as being exposed to asbestos which may increase the risk of lung cancer and many other cancers. While on the other hand most disorders like Williams Syndrome are genetic and are primarily rare and only affect a limited amount of people about one in every several thousand. Because it is a genetic disorder that is estimated between 1 in 10,000 people worldwide, primarily caused by a micro-deletion on the seventh chromosome is what indicates the disorder being Williams Syndrome. Because Williams Syndrome is very uncommon within a large crowd among people, the causes that are known to trigger the disorder are very few. The causes or conditions that are known to trigger Williams Syndrome is by the deletion of twenty-six to twenty-eigh t genes on chromosome #7. Many people may conclude that just because Williams Syndrome is a â€Å"genetic† disorder meaning that it has to be inherited from their parents are incorrect. Most people may not inherit Williams syndrome because the chances of his or her child to inherit the syndrome is a low 50/50 chance. That is because when the deletion of the 26 – 28 genes that takes place within the chromosome number seven are of what randomly chosen events that particularly occur in the male or female eggs or sperm .When dealing with Williams syndrome many symptoms may come upon the person with this disorder. Some of the symptoms may be not be that eye catching or life threating but some, however some can be life threating. In resulting the person to ... ...consequences of having Williams Syndrome. Some examples would be that a type of cardiovascular disease will soon follow Williams Syndrome called Supravalvular Aortic Stenosis. Resulting ones largest blood vessel to get narrower and narrower causing the person to catch ones breath very often even if not exercising , abdominal pain, and sometimes if fatal heart failure. Furthermore Williams Syndrome is not a disorder that is to be thought of kindly. Just because it occurs 1 in 10,000 people does not mean it is not deadly. It has been estimated that 82 percent of people who die of Supravalvular Aortic Stenosis disease (a disease that follows Williams Syndrome) are 65 and older. And b2cause there are no cures for William syndrome even with the help of today’s modern science and technology people with it must be monitored and treated for symptoms throughout their lives.

Female Genital Mutilation in the Middle East and North Africa Essay

Values and beliefs of a certain society can be illumined through the traditional cultural practices that often span from one generation to another. Globally, every social group has its own traditional cultural practices that are considered to be beneficial for the community. However, there are many instances that such practices may be harmful for some groups, most especially for women. Terrible traditional cultural practices are committed directly against females around the world. Despite the atrocities of such practices and its violation against human rights, many women-violent practices still exist and are prevalent in other countries. One of the most prevalent forms of harmful traditional practices is the Female Genital Mutilation (FGM) (Office of the High Commisioner of Human Rights-United Nations Organization [OHCR-UNOG]). The pervasiveness of FGM is attributed to people’s inability to question the morality of such action that should be addressed to those who practice female genital mutilation. As such, despite of the interventions of many international communities, in order to achieve gender equality, women are still violated and continue to be denied of various human rights. Hence, it can be perceived that many traditional cultural practices, including female genital mutilation is carried out for the benefit of the male populace (OHCR-UNOG). Historical Background of Female Genital Mutilation Female genital mutilation (FGM), also known as ‘female circumcision’ or ‘female genital cutting’, involves procedures that are centered in the partial or overall removal of the female’s external genitalia, or the infliction of injury to the genital organs of female for non-medical reasons. More often than not, the practice is performed by traditional circumcisers who are believed to play a significant role in the community where they belong. However, records have indicated that FGM is also carried out by medically trained professionals (World Health Organization [WHO]). FGM is considered to be an age-old practice existent in various communities globally because it is known to be a custom (OHCR-UNOG). However, FGM’s origin has not been well established. Certain theories indicate that female genital mutilation predates male mutilation (Davis 158 qtd. in Lightfoot-Klein). In one study, it was shown that FGM occurred in areas that are considered to be restricted to the rest of the world which includes Islamic, Semitic and Christian nations. It was contemplated that â€Å"the more ancient a custom or belief, the more universally it is found† (Lightfoot-Kline). All throughout history, reports regarding female circumcision has been existent. The very first historical reference of FGM can be traced from the literature of Herotodus, who wrote that FGM already existed during 5th century BC in Ancient Egypt. He even pointed out that the practice had its beginnings in Egypt or Ethiopia because FGM has been performed by Ethiopians, Phoenicians, and Hitties (Taba qtd. in Lightfoot-Kline). One Greek papyrus dated 163 BC found in the British museum indicated that circumcisions were performed on girls by the time they received dowries. Different authors claimed that FGM was practiced by early Romans and Arabs (Kline). Methods employed in order to repress women’s sexuality has been well recorded in history. In ancient Rome, women slaves are required to wear metal rings which were passed through the labia minora in order to prevent procreation. During the absence of their husbands, women from medieval England wore chastity belts to avoid promiscuity. Tsarist Russia, as well as France, America, and France during the 19th century already practice clitoridectomy; while evidences from mummified bodies of ancient Egypt indicate that excision and infibulation has been performed, thereby giving rise to the existence of pharaonic circumcision (OHCR-UNOG). Types of Female Genital Mutilation Various types of female genital mutilation are performed depending on the cultural history and traditions of a certain community. Basically there are three common types of FGM: (1) Type one or Sunna circumcision. â€Å"Sunna† is an Arabic term which means tradition in English. This form of FGM is done by removing the prepuce or the clitoris’ tip. (2) Type two also called as clitoridectomy or excision is widely practiced in Egypt. This procedure involves the removal of the whole clitoris including the prepuce, glans and the adjacent labia. (3) Type three which is commonly referred to as infibulation or pharaonic circumcision is the procedure commonly applied in Sudan and Somalia. Considered as the most dramatic type of FGM, infibulation, which literally means â€Å"to fasten with a clip or buckle,† involves not only the removal of the clitoris and the nearby labia, but also include the sewing of remaining parts of vulva with the use of a catgut or thread. Such form of mutilation leaves only a tiny hole in the female genital that serves as a passage for the urine and menstrual blood. Women who are infibulated are cut open during their wedding night in order to perform sexual intercourse. However, right after the act, they are sewn again in order to avoid infidelity. More often than not, the groom is responsible for opening the bride’s sewn genitalia with the use of a double-edged dagger. There are some instances that women are cut open and are sewn back together during the time of their separation with their husbands. (4) The remaining type of FGM which is categorized as type four mutilation includes procedures that inflict damage to the female genitalia. Such form of mutilation may range from piercing, pricking, and stretching of labia or clitoris; burning of the clitoris and other tissues of the genitalia through cauterization; scraping of vaginal orifice; vaginal cutting; placing corrosive substances to cause vaginal bleeding, and the introduction of herbal substances to narrow or tighten the vagina (Rosenthal). The most common type of FGM is the clitoral and labia minora excision which constitutes about 80% of all FGM case. However, infibulation is considered as the most extreme form which accounts to 15% of all the mutilation procedures (Steiner, Alston, and Goodman,). The Cultural and Religious Tie: Middle East and African Areas Located Above the Equator The principle of female genital mutilation is prevalent in the societies of African territory. The extent of such phenomena can be seen in 25 countries of Africa. Infibulation is widely performed in areas including Djibouti, Mali, Somalia, selected parts of Ethiopia, Egypt and the northern region of Sudan. Meanwhile, excision and circumcision are evident in Benin, Cameroon, Burkina Faso, Central African Republic, Gambia, Cote d’Ivoire, Chad, Guinea, Guinnea-Bissau, Kenya, Mauritania, Liberia, Senegal, Sierra Leone, Nigeria, Uganda, Togo and other areas in the United Republic of Tanzania (OHCR-UNOG). Currently, WHO estimated that annually about three million African girls are at risk for female genital mutilation and about 92 million of the female populace, age 10 years and above have already undergone mutilation. The prevalence of FGM in the said areas is associated primarily with myths and the ignorance of people towards biological, medical, and religious perspectives. As noted by Hanny Lighfoot-Klein: â€Å"The clitoris is perceived as repulsive, filthy, foul smelling, dangerous to the life of the emerging new born, and hazardous to the health and potency of the husband† (Lightfoot-Klein, n. p. ). Majority of African countries adhere to such beliefs that it has been well embraced and became a value, causing FGM to become a customary practice over time. In Sudan, the clitoris is believe to grow to the length of the neck of a goose; long enough to dangle between the legs which could rival the male penis if left uncut. Such concept influences the perception of males, thereby reinforcing them not to marry a woman who is uncircumcised or â€Å"unclean† (Lightfoot-Klein). Among the Bambara’s in Mali, it is widely viewed that once the clitoris touches the head of a child being born, automatically the child will die. As the clitoris is considered to be the male characteristic of females, its removal is seen as an action that would result in the enhancement of femininity. In Djibouti, Ethiopia, and Somalia, females are imposed to undergo mutilation in order to control their sexuality and ensure their virginity until marriage and their chastity right after (OHCR-UNOG). Because childbearing and marriage are the only options for most of African women, majority of them are forced to submit themselves to the practice genital mutilation which they also have to pass on to their daughters (Lightfoot-Klein). The institutionalization of patriarchal system within the society also plays a significant role in the perpetration of FGM. In ancient Mesopotamia, the code of Hammurabi embarked the presence of some features of patriarchy in public veiling and sexual repression of women. It was stated in the code that fathers were entitled to treat his daughter’s virginity as a ‘family property asset. Due to this system, women were categorized as â€Å"respectable,† meaning they were chaste and conforming, and â€Å"disreputable,† which translates to low class or slaves. As a result, women who bowed to the system benefited from it by securing their own safety as well as that of their children. However, they became the steadfast advocates of the system, thereby imposing it to their daughters. Present-day Africans follow the same patriarchal outlook. Female circumcision is then performed to the daughters of the women, who, during the time they were young, experienced mutilation. Although perceived by many as a violation against human rights, the practice is defended by the women themselves because they consider it as an essential part of their tradition that ensures the social standing of their family in the community they belong (Lighfoot-Klein). The existence of patriarchal society is attributed to economic reasons. Historically, fathers are known to be keen in identifying their â€Å"real† children, in order to know who is going to handle his property. Hence, it could be perceived that the establishment of systems including moral and religious values, as well as legal aspects became an imperative in order to protect the economic interests that uphold the society. In this regard, it is hard to abandon a custom that benefits the economic interest not only of the family but the whole society as well. The existence of such system guarantees profit for many, thereby catapulting â€Å"dayas† and medical practitioners to resist changes in the practice of female genital mutilation. Likewise, the family woman can gain considerable bride price if she is mutilated by the time of the marriage. Moreover, women continuously submit themselves to FGM for the fear that their husbands will divorce them for a second wife. This perspective serves as a threat for the women in the society who have no economic recourse and access to own properties and relies only on the â€Å"bride price gold that she wears on her body. † As such, it can be concluded that female genital mutilation is the result of the economic interest permeating within the society (Lightfoot-Klein). While many experts hold that female genital mutilation is an African custom, there are few reports regarding the existence of FGM in the Middle Eastern territory. This is understandable because it is difficult to study sexual relations in societies of Middle East. Almost everything regarding sexuality and personal matters are kept in private sphere. Likewise, books and research pertaining to Middle Eastern sexual habits are almost non-existent or at the most, heavily guarded by the comprehensive rules based from the Islamic law. However, recent finding from northern Iraq suggests that FGM is also practiced widely in societies outside of Africa. The case study of Iraqi Kurdistan served as an instructive case. In 2003, a German-Austrian NGO called WADI took the initiative to take medical and social support to the women in Kurdish areas. More than a year later, women who received support spoke about the practice of FGM. It was found out that Kurds used the sunna circumcision and were performed by midwives. Subsequent studies found out that of 1,544 women, 907 had undergone FGM, which further suggests that 60% of the population view mutilation as a normal practice. The discovery in Iraqi Kurdistan debunks the assumption that FGM is solely an African practice. As Fran Hosken quoted: â€Å"There is little doubt that similar practices—excision, child marriage, and putting rock salt into the vagina of women after childbirth—exist in other parts of the Arabian Peninsula and around the Persian Gulf (Hosken 278 qtd in Osten Sacken, and Uwer). The absence of medical records tackling FGM in the whole region does not necessarily mean that the Middle Eastern territories are free from female circumcision. Such issue is left undetected due to the lack of freedom to permit formal studies regarding the subject. Taboo also plays a significant role in the undercutting of researches in Arab nations. Many scholars and NGO in Arab countries prohibits the criticism predominant culture of Arabs and Muslims. Because of these findings many questions were raised by the critics of FGM, one of which is whether the said phenomena is a religious issue in the Middle East (Osten-Sacken and Uwer). Many Muslims and academics from the West claim that FGM is not based from religion rather it is a practice shaped by culture (Simonet qtd in Osten-Sacken and Uwer). However, in a village level, the people who are committed to the practice perceive the action as mandate by the religion. Although the law of Islam does not have any justifications regarding FGM, many Islamic clerics in the Northern part of Iraq advise women to undergo mutilation. If the women wish to abandon such practice, she must suffer the consequence of appearing disreputable in the eyes of the public (Mackie qtd ini Osten-Sacken and Uwer). Some Islamic scholars may disagree with FGM but others refer to the mention of FGM in the Hadith as a defense for the persistence of such practice in Middle East. The claim was further sufficed by the Islamic law specialist Sami Aldeeb Abu Salieh when he stated: The most often mentioned narration reports a debate between Muhammed and Um Habibah (or Um ‘Atiyyah). This woman, known as an exciser of female slaves, was one of a group of women who had immigrated with Muhammed. Having seen her, Muhammad asked her if she kept practicing her profession. She answered affirmatively, adding: â€Å"unless it is forbidden, and you order me to stop doing it. † Muhammed replied: â€Å"Yes, it is allowed. Come closer so I can teach you: if you cut, do not overdo it, because it brings more radiance to the face, and it is more pleasant for the husband. (Aldeeb Abu Sahlieh 575-622 qtd in Osten- Sacken and Uwen). Aldeeb Abu Sahlieh’s claim is further reinforced by other Islam scholars by stating that Islam condones sunna circumcision but not the pharaonic circumcision (Omer qtd in Osten-Sacken and Uwen), and that since the prophet Muhammad does not condemn the act, thereby making it permissible and cannot be outlawed (Aldeeb Abu Sahlieh qtd in Osten-Sacken). Ultimately, the practice of female genital mutilation in the Middle East may have its roots in the cultural scope of the region. However, its religious ties cannot be disregarded. Effects of Female Genital Mutilation The implications of FGM can be short-term and long term. The immediate consequences of the practice are hemorrhage, acute pain and infection. The infections are commonly acquired from the usage of unsterilized instruments performed in unhygienic areas and introduction of substances. The infections may range from tetanus, general septicamea, chronic pelvic infections, and recurrent urinary tract infections. Recently the transfer of HIV has also been a concern for the FGM researchers (OHCR-UNOG). Obstetric complications are also common among mutilated women. Pregnant mutilated woman put the life of her child in danger because the fetus is at risk of acquiring infectious disease. Likewise, the head of the child may be crushed during the delivery due to damaged birth canal. Furthermore, infibulated women are needed to be opened during child birth and are commonly reinfibulated after every delivery resulting to the scarring of the genitals. Cyst commonly referred to as epidermal clitoral inclusion cyst may also develop among women who undergo type 3 FGM (Rosenthal). Female Genital Mutilation has also psychological implications. These include sexual phobias, depression, and lack of libido which result in the premature ejaculation among women’s partners, personality disorders like rebellion which may eventually lead to psychiatric disorders (Rosenthal). Some evidences indicate that children who undergo FGM experience recurring nightmares (OHCR-UNOG). The socio-economic problems associated with FGM include higher divorce rate and drug abuse which are commonly associated with the males. It was found out that a male with mutilated wife has the tendency of using narcotics to give sexual pleasure to his wives (Rosenthal). Response to Female Genital Mutilation In 1997, World Health Organization (WHO) together with United Nations Children’s Fund (UNICEF) and United Nations Population Fund (UNFPA) issued statements against the continuous practice of female genital mutilation. By 2008, a new statement was issued supporting the increased advocacy of totally condemning FGM which was backed heavily backed by more countries of the United Nation. The 2008 statement include data concerning the past and present practice of FGM. The statement also gave emphasis on the increased recognition of human rights and provided evidences regarding the extent of the issue. The damaging effects of FGM were also presented in order to affect changes in the public policy. From 1997, various government and non-government organizations both in the international and local levels ratified laws abandoning FGM (WHO). Conclusion Based on the study, it is apparent that female genital mutilation predominantly place women in a disadvantaged position. Immense cultural pressure is considered to be the root cause of FGM. However, based from several findings, religion also serves as an encouragement for the existence of such practice. The impact of FGM does not only affect women but also the society where it is widely recognized as a custom. Although, international interventions reduced the prevalence of FGM in African regions during the past years, its practice may not be totally eliminated if practicing communities will not abandon the act itself. Hence, organizations as well as government agencies should further promote awareness regarding the issue of FGM. Works Cited Lighfoot-Klein, Hanny. â€Å"Prisoners of ritual: Some contemporary developments in the history of female genital mutilation. † The Female Genital Mutilation Cutting Education And Networking Project. 30 April-03 May 1991. 10 December 2008 . Office of the High Commisioner of Human Rights-United Nations Organization. â€Å"Fact sheet no. 23, harmful traditional practices affecting the health of women and children. † Office of the High Commissioner for Human Rights. 2008. 10 December 2008 . Osten-Sacken, Thomas and Uwer, Thomas. â€Å"Is female genital mutilation an Islamic problem? † The Middle East Quarterly. 2007. 10 December 2008 < http://www. meforum. org/article/1629#_ftn38>. Rosenthal, Sara. The Gynecological Sourcebook. Chicago, IL: McGraw-Hill Professional, 2003. Steiner, Henry, Alston, Philip and Goodman, Ryan. International Human Rights in Context: Law, Politics, Morals: Test And Materials. New York: Oxford University Press US, 2008 World Health Organization. â€Å"Female genital mutilation. † May 2008. 10 December 2008 .

Mono Lake Committee

The atmosphere here makes you feel at peace with yourself. Not only do people FRR mom all over the world come here; photographers, journalists, ornithologists, but even locals come to connect with nature. As I am meditating on the shore line of Mono Lake, I begin to take in my sours endings. The scenery is unique and brings me peace. It unifies me with who I am and who I will become.I feel the UN baking down on me as a breeze lifts the smell of salt water towards me. When that settles, pick up a thick earthy smell that reminds me of wet grass. It's easy to notice different types of birds flying around, for example, lake birds and shore birds, Canadian geese, California g lulls, an osprey flying off the towering tuffs. It's amazing how the tuffs are composed of the same subs dances and yet they each have their own complexity. Was fascinated by the seagulls' nests tucked into the tuffs. If this lake wasn't here, there would be no place for the birds to rest and eat.Mono Lake isn't just a lake, it's a special lake. This lake is ever changing, there's always something new. Every hind around me is peaceful and yet buzzing with life. Places like Mono Lake matter because it gives people the chance to connect w tit nature and in today's overstretched world it's important to rest and reflect on life. In the cit y, there's no woods for people especially kids, to explore and discover places like these. No matter how many times people drive past this magical place, it never gets old.

Report On Service Quality Of Remington Hotel Essays

Report On Service Quality Of Remington Hotel Essays Report On Service Quality Of Remington Hotel Paper Report On Service Quality Of Remington Hotel Paper Expectancy-disinformation theory postulates that customer forms their satisfaction with a service as a result Of subjective comparison between their expectation and perceptions (Oh 1 999, up. 68-70). In this case study, the author will investigate the gaps in the service quality in Remington Hotel. The five main dimensions of the services will be measured on SERIAL scale to understand where gaps exist between expectation and perception of the customers. The author will also discuss reasons behind gaps and recommendations. Gaps in service quality as observed from Spenders complaint Knowledge AP (Gap 1) The non- availability of hotels airport facility in night hours was a simple expectation of Mr.. Spencer, which was not fulfilled. The gap visibly exists in knowledge of the Remington Hotel management who does not understand what service a customer expects from the hotels airport facility in night hours. A customer with delayed flight will expect airport facility to safely pick up the guests from airport to the hotel. Paranormal teal (1 985, up. 2-45) described this as Gap 1 -a gap between consumer expectation and management perception of those expectation. The absence of physical agility is a tangible evidence of incompetent service quality of the hotel. Knowledge gap can be due to incorrect market research, lack of feedback and too many organizational layers (Grazing 2007, up. 86-89). Standards gap (Gap 2) The example of gap of management perception and service quality specifications/standards was evid ent when there was only one desk left for registration at 11 PM while about 12 guests were waiting in queue. Management was not able to provide standard and prompt services to customers coming in night hours. Management understands expectations but as no system, which will deliver quality service as desired by the customers. Standards gap is due to faulty planning, bad management, lack of goals, and insufficient support and resources (Grazing 2007, up. 86-89). Delivery gap (Gap) is the difference between what managers have defined as standards of service quality and the way how a service was actually delivered (Belles 2011 , up. 42-43). There is a brazen example of gap in delivery of the service quality in Remington Hotel when Spencer with his wife and sleeping years old child, needed a luggage assistant to take his luggage to the room which is AR away in next building in night hours. Communication gap (Gap 4) represents variation between delivered service and what customer was actually told about the service itself. Mr.. Spencer was informed about the availability of airport facility in night hours but it was not clearly mentioned that the service is nit available in night hours. Communication gap occurs if communication is not integrated with services or if there is tendency to exaggerate the promises (Grazing 2007, up. 86-89). Gap in services (Gap 5) was evident when the desk clerk did many errors in providing the keys of rooms ND room allotment. Another desk clerk did not show courtesy to register the customers who approached just before her going off time. Gap 5 refers to difference between customers expectations regarding the service and their perception after the service (Belles 2011, up. 42-43). First priority dimension of service Madeline should certainly focus first on responsiveness dimension of service. Madeline witnessed on the very first day that there were heavy crowd of about 100 guests and guides in the lobby waiting for check in. To wait for 40 minutes in lobby for mere registration and check in was annoying for the customers. The maxim the first impression is the last impression -holds true. Responsiveness means the willingness and readiness of the employees to provide prompt service, which was not appreciable in the hotel. The other dimensions that need attentions are assurance and empathy, which are related with knowledge, positive attitudes and courtesy of the employees. Humanity is the dimension of service, which is provided to preserve dignity and self -respect of the client (Grazing 2007, up. 86-89). The customers trust and confidence in the service will be strengthened with polite and courteous attitudes of the employees. It was a very unwelcoming scene when a desk clerk was in hurry to leave the work without paying attention towards the guests waiting in a long queue. The lack of courtesy creates lack of trust in customers mind. Measuring gaps in customers expectations and perceptions After finding the expectation data, it was possible for Madeline to measure the existing gaps in expectation and the perception. The gaps were seen as higher in two dimensions: Reliability and Responsiveness. Madeline should deal with improvement is responsiveness first, as it affects the clients immediately and directly after their entrance into the hotel. It was important to avoid scene Of disorder, disappointment and tension in the lobby and hotel. The gap between perception and expectation in tangible dimension is -0. , in reliability ;0. 7, in responsiveness -0. 7, in empathy -0. 2 and in assurance O. Thus, dissatisfaction is observed in 4 out of 5 dimensions but it is highest in two dimensions (reliability and responsiveness). Madeline should investigate the reason for low expectations from hotel regarding assurance and empathy dimensions. Low expectation is not a healthy sign for a large size hotel. Important information to collect Madeline should also get information about employees satisfaction, recruitment procedures, retention, schedule, training and motivation in the Remington Hotel. Madeline should find out how efficient the internal and external communications are. The feedback from staff and clients, participation of the staff in planning are equally important. She should also examine what the lofty promises are made by the hotels that are not met. This will minimize the dissatisfaction due to the communication gap. For example, availability or non-availability of airport services in night hours should be visibly mentioned in the external communication. The gaps appear due to many constraints and fluctuations in demands (Paranormal et al 1 985, p. 45). There are other attributes such as imprecise standards, short distribution channel, face-to-face interaction, fluctuating demands and clustered peak periods posing hurdles in quality service care. Customer satisfaction also depends on additional elements like price, personal and situational factors that may occur during the service supply (Boon-ITT 2012, p. 52-53). Important points to ponder in improving the service quality Management should understand and fulfill the customers demands. Resolving the complaints make the customer more loyal to the hotel than those who never complained. Designing of services should be according to the identified customers demand, such as appointing luggage assistance in night hours and having more front desks to deal with crowd of customers. Suitable people and technology should be applied. Proper recruiting, training and motivation can improve the functional dimension of service quality. Awarding the employees should be introduced (Belles 2011). Only realistic promises through suitable channel should be communicated. Horizontal and vertical communication inside the organization should be established. All employees should participate in quality research. The attitude of guests and employees can be studied simultaneously (Belles 201 1 , p. 51). The positive attitudes of employees enhance customers loyalty therefore best employees should be employed. Employees behavior and attitude can influence customers perception of satisfaction (Briggs 2007, up. 006-1019; Moll and Josh 201 1, up. 19-24). The physical evidence (tangible) signifies the commitment of the management and improves the overall experience of the customers (Briggs 2007, up. 1006-1019).

How Much Do Donations Help College Applications

How Much Do Donations Help College Applications SAT / ACT Prep Online Guides and Tips This is a question a lot of students think about during the college admissions process. If my parents could afford to donate $1 million, would I get in? Do donations affect your admissions chances? If so, by how much? In this article, I'll answer all of these questions. What Do Admissions Offices Usually Look for in Applicants? To answer the question of how much do college donations help college admissions, we must first break down the qualifications for a â€Å"normal† applicant (who does not donate).In brief, admissions officers are looking for students: who meet or exceed their average GPA for admitted students who meet or exceed their 25th/75th percentile SAT or ACT score for admitted students The 25th percentile score means that 25% of the students attending have a score at or below that number (this is below average). 75th percentile means that 75% of students have a score at or below that number. In essence, the 25th/75th percentile covers the middle 50% of all students admitted to the school. If you score at the 75th percentile for any school and have great grades from your high school, you have a great chance at getting in. If you're at the 25th percentile, you'll need to have a strong application to boost your odds of getting in.You can find out both of these numbers by Google searching â€Å"[College Name] Freshman Admit Profile† or â€Å"[College Name] SAT† or â€Å"[College Name]† ACT.† Of course, they factor in personal statements, supplements, achievements, letters of recommendation, etc., but without meeting the two qualifications listed above, a â€Å"normal† applicant would not have a great chance of getting in.However, admissions offices also look for special applicants known as â€Å"development cases† or â€Å"development admits† (although admission officers do not publicly acknowledge such). What Is a â€Å"Development Case† in Admissions? As defined by Daniel Golden, author of â€Å"The Price of Admission: How America’s Ruling Class Buys Its Way into Elite Colleges- and Who Gets Left Outside the Gates† who conferred with sources in the Office of Undergraduate Admission at Stanford while writing his books,â€Å"‘Development case [is] a term that refers to the children of important donors or potential donors,† who receive an even more substantial advantage than legacies (students whose parents attended the school). Why are they called development cases? To be honest, in all of my research, I have been unable to answer this question, but I would guess it either comes from the fact that these applicants can help "develop" the university (the funds their families donate will be used for development) or these applicants themselves are in need of further "development" since they do not meet the "normal" admissions standards of the university. How Much Money Do You Need to Donate (or Potentially Be Able to Donate) to Qualify as a â€Å"Development Case†? An admissions officer will not publically answer this question, but in my research, I found that Stanford considers development cases to be applicants from families capable of donating $500,000 or more. You basically need to buy a building. I'm sure it's comparable at the other elite colleges, especially when you take into account that Stanford has the 4th largest endowment out of all US Colleges with over $18.6 billion.If Stanford gives preferential treatment to students who could donate $500,000 or more, I'm sure other schools with smaller endowments will at least do the same. NOTE: so there is no confusion, this $500,000 or more is in ADDITION to paying the $200,000 or more in tuition for the student to attend the university. Why Do Colleges Accept â€Å"Development Cases† Over More Qualified Applicants? From a practical standpoint, colleges want to admit students who are likely to add the most value back to the school. This can be through donations or achievements that feed the school's reputation. By accepting a development case, they're basically saying that the value of the donations from that student's family now and in the future are worth more than a student who isn't able to donate that money.In even simpler terms, they want additional donations to protect their university's endowment and make it better by building new facilities and making other improvements to the school. Do Admissions Officers Seek Out â€Å"Development Cases† or Do They Wait to Be Contacted? Universities definitely look out for potential â€Å"development cases† in their applicant pool. Universities are a business (even if they are non-profits). Right or wrong, they admit â€Å"development cases† in order to get more money for the university to build better facilities, provide more scholarships, and generally make the university better. A former admissions officer at Stanford admitted that each year she was given a list from the Office of Development of applicants who were the children of significant donors. Former admissions officers at other elite colleges have admitted this as well. Want to build the best possible college application? We can help. PrepScholar Admissions is the world's best admissions consulting service. We combine world-class admissions counselors with our data-driven, proprietary admissions strategies. We've overseen thousands of students get into their top choice schools, from state colleges to the Ivy League. We know what kinds of students colleges want to admit. We want to get you admitted to your dream schools. Learn more about PrepScholar Admissions to maximize your chance of getting in. Exactly How Much of an Advantage Do â€Å"Development Cases† Receive in Admissions? Again, according to Golden,â€Å"It can be as big as 400 or 500 points out of 1600 on the SAT, using the old 1600-point scale,† Golden said. â€Å"It can help a student with a score of 00 out of 1600 get into a top university.† In other words, these â€Å"special† applicants do not need to meet the 25th/75th percentile score for schools. They only need to be within 400 or 500 points (for the SAT) of the 25th/75th percentile.This help means the student could go from being an average applicant to a middle-ranking public college like UC Santa Cruz or UC Riverside to a serious Ivy League contender. How Prevalent Are â€Å"Development Cases† at Elite Colleges? While it varies from school to school, 4%- 5% of accepted freshmen at Dartmouth were given special admissions consideration due to donations by their parents. Also, Duke admitted in the early 2000s to easing its admissions qualification to admit about 100 students each year due to their family's wealth.I would guess this number is similar across all elite colleges, and development cases taking up 4-5% of the freshman class is very significant because it means 100-125 more qualified students did not receive admission. With great money comes great power (and little responsibility). How Do â€Å"Development Cases† Attempt to Secure Admission (If They Haven’t Yet Donated)? According to Golden, â€Å"wealthy parents sometimes use private counselors with contacts in admissions offices to indicate that they are likely to donate large sums of money if their child is admitted.†However, these parents do not have an explicit quid pro quo with the admissions office such as "I'll donate X amount if you admit my child," but there is rather an implicit understanding that they will donate a significant sum of money if their child is accepted. One of these elite private counseling companies, The Ivy Coach, says that money only helps so much. It won't turn an F student into an Ivy Leaguer, but it can help a student who is on the fence be admitted, and there is a specific amount that will get that kid in.However, they won’t tell you the number because they want you to pay them money to â€Å"guide you† and then they will tell you how much you need to pay the school. The president and founder of The Ivy Coach, Bev Taylor, did explain the type of advantage the children of large donors receive,â€Å"They’ll get a better read or they’ll get a second read, they’ll get a second look. ‘How can we accept this kid?’ is the question. Instead of looking to see what’s wrong here, let’s look to see how we can accept this kid.† Now that you have gotten the theoretical explanation of how much donations help in college applications let’s examine some real life â€Å"development cases†: Real Life Examples of â€Å"Development Cases† In his book, Golden references Margaret Bass, a Stanford Class of ’02 Graduate, as an example of a classic development case. Margaret Bass is the daughter of and alumnus who is one of Stanford's former chairs of the Board of Trustees and donated$25 million to Stanford in 1991 and $50 million to the Graduate School of Business in 2005. Bass was a so-so high school student. She was ranked in the middle of her class (40th of 79 students), and out of the nine students from her high school that applied to Stanford that year, she was the only one offered a spot in the freshman class, but she had the second lowest SAT score of those students (1220 out of 1600). At Duke, Maude Bunn earned admission despite her low SAT scores. Her family is famous for Bunn coffeemakers and has a large fortune from it. Duke admitted her hoping that her parents would repay the university. Her parents became the co-chairmen of a Duke fundraising campaign for Duke parents. This has happened more recently as well. In 2013, Maisie Lynton, daughter of Harvard alum and current Sony Pictures CEO, was torn between Harvard and Brown. Her father reached out to Brown, a school he didn't attend, and donated over a million dollars to create scholarships. She was offered admission to the class of 2019. Should You Donate? While I think $500,000 or more will help you out quite a bit, if you're planning on donating $10, 50, 100 or 1,000, keep your money! And don’t even think of trying to bribe the admissions officer, they’ve seen it before! A former admissions officer said several parents each year try innocent bribes (such as offering to buy him dinner) while others try more direct bribes (such as leaving an envelope with $1,000 in it at the admissions office). These bribes were rejected. Save your bribe for the admissions office, but if you have $500,000 or more to donate to the university endowment, you might just have a shot at the Ivy League. What’s Next? Let’s help you get into college with or without a donation. Taking the SAT?Check out our ultimate SAT study guide to help you with your prep. Taking the SAT very soon? Check out our guide to cramming for the test. Not sure where you'd like to go? We'll help you find the right college for you. Nervous about getting arecommendation letter for your college application? Learn about who you should askto write itand check out ourtemplate for a good letter. Want to improve your SAT score by 160 points or your ACT score by 4 points?We've written a guide for each test about the top 5 strategies you must be using to have a shot at improving your score. Download it for free now:

Purposes and Effects of the Electoral College

Purposes and Effects of the Electoral College Since the United States Constitution was ratified, there have been five Presidential elections where the candidate who won the popular vote did not have enough Electoral College votes to be elected as President.  These elections were as follows:   1824 – John Quincy Adams defeated Andrew Jackson1876 – Rutherford B. Hayes defeated Samuel J. Tilden1888 – Benjamin Harrison defeated Grover Cleveland2000 – George W. Bush defeated Al Gore2016 – Donald Trump defeated Hillary Clinton.It should be noted that there is a significant amount of evidence to question whether John F. Kennedy collected more popular votes than Richard M. Nixon in the 1960 election due to severe irregularities in Alabama voting results. The results of the 2016 election have brought forth a great deal of debate with respect to the continued viability of the Electoral College.  Ironically, a Senator from California (which is the largest U.S. state- and an important consideration in this debate) has filed legislation in an attempt to start the process necessary to amend the U.S. Constitution to ensure that the winner of the popular vote becomes the President-elect- but is that truly what was contemplated by the intent of the founding fathers of the United States? The Committee of Eleven and the Electoral College In 1787, the delegates to the Constitutional Convention were extremely divided about how the President of the newly formed country should be elected, and this issue was sent to the Committee of Eleven on Postponed Matters.  This Committee of Elevens purpose was to resolve issues that could not be agreed upon by all the members.  In establishing the Electoral College, the Committee of Eleven attempted to resolve the conflict between state rights and federalism issues.   While the Electoral College provides that U.S. citizens could participate by voting, it also gave protection to the rights of the smaller and less populous states by giving each state one Elector for each of the two U.S. Senators as well as for each member of the U.S. State of Representatives.  The workings of the Electoral College also achieved a goal of the delegates to the Constitutional Convention that the U.S. Congress would not have any input in the Presidential election whatsoever. Federalism in America   In order to understand why the Electoral College was devised, it is important to acknowledge that under the U.S. Constitution, both the federal government and the individual states share very specific powers. One of the most important concepts from the Constitution is Federalism, which, in 1787, was extremely innovative. Federalism arose as a means to exclude the weaknesses and hardships of both a unitary system and a confederation James Madison wrote in the Federalist Papers that the U.S. system of government is neither wholly national nor wholly federal. Federalism was the result of years of being oppressed by the British and deciding that the U.S. government would be grounded on specified rights; while at the same time the founding fathers did not want to make the same mistake that had been made under the Articles of Confederation where essentially each individual state was its’ own sovereignty and could override the laws of the Confederation. Arguably, the issue of state rights versus a strong federal government ended shortly after the America Civil War and the post-war period of Reconstruction. Since then, the U.S. political scene has been made up of two separate and ideologically distinct major partisan groups – the Democratic and Republican Parties. In addition, there are a number of third or otherwise independent parties. The Effect of the Electoral College on Voter Turnout U.S national elections have a significant history of voter apathy, which over the last several decades show that only about 55 to 60 percent of those eligible will actually vote.  An August 2016 study by the Pew Research Center  ranks the U.S. voter turnout at 31 out of 35 countries with a democratic government. Belgium had the highest rate at 87 percent, Turkey was second at 84 percent and Sweden was third at 82 percent. A strong argument can be made that U.S. voter turnout in Presidential elections stems from the fact that, due to the Electoral College, every vote does not count. In the 2016 election, Clinton had 8,167,349 votes to Trump’s 4,238,545 in California which has voted Democratic in every Presidential election since 1992. In addition, Trump had 4,683,352 votes to Clinton’s 3,868,291 in Texas which has voted Republican in every Presidential election since 1980. Further, Clinton had 4,149,500 votes to Trump’s 2,639,994 in New York which has voted Democratic in every Presidential election since 1988. California, Texas and New York are the three most populated states and have a combined 122 Electoral College votes. The statistics support the argument of many that under the present Electoral College system, a Republican presidential vote in California or New York does not matter, just as a Democratic presidential vote in Texas does not matter. These are only three examples, but the same can be stated as true in the predominantly Democratic New England states and the historically Republican Southern states. It is entirely probable that voter apathy in the United States is due to the belief held by many citizens that their vote will not have any effect on the outcome of the Presidential election. Campaign Strategies and the Electoral College When looking at the popular vote, another consideration should be campaign strategies and finances. Taking into consideration the historical vote of a particular state, a presidential candidate may decide to avoid campaigning and or advertising in that state. Instead, they will make more appearances in states that are more evenly divided and can be won to add onto the number of Electoral votes which are required to win the Presidency.   One final issue to consider when weighing the merits of the Electoral College is when does the U.S. Presidential vote become final. The popular vote occurs on the first Tuesday after the first Monday in November every fourth even year that is divisible by four; then the Electors of the Electoral College meet in their home states on the Monday after the second Wednesday in December of the same year, and it isn’t until January 6th immediately following the election that the joint session of Congress counts and certifies the votes. However, this seems to be moot seeing that during the 20th Century, in eight different Presidential elections, there has been a sole elector who did not vote consistent with that Elector’s states popular vote. In other words, the results on election night reflect the final electoral college vote.   In every election where the individual who lost the popular vote was voted in, there have been calls for ending the Electoral College. Obviously, this would not affect the outcome of the 2016 election but it could have an impact on future elections, some of which might be unforeseen.

International marketing plan guide Essay Example | Topics and Well Written Essays - 500 words - 2

International marketing plan guide - Essay Example However, understanding of the market conditions in Qatar for efficient service delivery and success of the marketing channels for use by the university is mandatory. This study aims at analyzing the international pricing that will fit the Qatar market to be adopted by Marywood University for success in accessing international students from Qatar. The different aspects of price will be used to analyze the qualities of the Qatar market to provide insight to effective pricing mechanism for the Qatar market. The high demand in Qatar results in low price sensitivity for established university institutions. However, for a new entrant in the market the prices have to conform to the levels of pricing to the Qatar market, owing to sensitivity to new universities in the region and the need for quality education (Ibp, 209). After some time, the prices can be adjusted upwards when Marywood University has established a high acceptance in Qatar and has convinced the public and the regulatory authorities of the quality of its programs both graduate and undergraduate. There are many substitutes for education in Qatar from both international and local universities and the pricing have to reflect the rates offered by the competition, if not better to allow for augmented market share (Ibp, 203). The most notable competition in Qatar is Qatar University offering both graduate and undergraduate programs. Therefore, using the prices offered at Qatar University, Marywood University should develop prices to meet these needs at a region of QAR 176,191. A high and continuously increasing demand for university education exists in Qatar owing to the few Qataris having attained high education levels to allow them to access jobs requiring high skills and understanding (Abougomaah, 67). There has been an increased need by the Qatar government to reverse the use of highly skilled expatriates resulting in high demand for education in Qatar. The current and expected future demand for

Recuitment and Selection Process Essay Example | Topics and Well Written Essays - 1000 words

Recuitment and Selection Process - Essay Example The new employees must be able to meet the standards for innovation in law enforcement (Ackerman, 2009). Special Agents To achieve its objectives, the FBI looks for highly motivated men and women who posses the intelligence, skills and integrity necessary to be a special agent. Special Agent candidates are required to have a Bachelor’s degree in any discipline and three years of full-time work experience. In addition, citizens can also qualify to be an FBI agent with a degree in law, accounting, engineering, computer science, or any 4-year degree and fluency in a foreign language needed by the FBI. The main languages that are considered include: Spanish, Russian or Chinese (Fbijobs.gov, 2012). Qualification Requirements for Police Officers The FBI recruits any US citizen of 21 years and above. In addition, the prospective agents must have a valid driver’s license as well as pass the FBI background investigation. The candidates are then required to receive a top secret s ecurity clearance. There are various requirements to qualify as an FBI police officer. However, there are educational and job related experience that is needed in every position. Experienced police officers are allowed to join the FBI at grade GS6, GS 7 or GS 8 grade levels. Other police officer who do not have specialized work experience can only join the FBI at grade GS 5. ... In addition, the FBI allows police officers to submit their resumes directly to the police recruiters. After the application process, the recruits are then subjected to a written test and panel interview (Fbijobs.gov, 2012). 2. Phase I Testing After the best candidate for the position has been selected, they are then contacted and scheduled for testing. Written tests are given to the successful applicants. In addition, panel interview is also conducted on the applicants. The writing test normally takes place at the FBI facility. Tests consist of two processes. The first process involves a written and video portion. Process two involves a panel interview which is conducted by active duty FBI police officers. Candidates who qualified through foreign language requirements are given additional test to determine their proficiency in the foreign languages (Fbijobs.gov, 2012). 3. Phase II testing A candidate must be selected based on their competitiveness, and the requirements of the FBI. T hese candidates also qualify for a conditional Job offer. The FBI selects candidates based on their budgetary constraints and skills required to perform the duties. The FBI officers ensure that successful applicants know the job title, GS law enforcement pay grade and salary (Fbijobs.gov, 2012). 4. The FBI Background Investigation Successful candidates who have been able to get a conditional job offer at the FBI are required to provide their personal information to the Equip system. In addition, the candidates are required to have a Top secret clearance before they begin the background investigation. During the background test, candidates are expected to go through a polygraph investigation procedure as well as through credit

Leukemia Essay Example | Topics and Well Written Essays - 500 words - 1

Leukemia - Essay Example It might be chronic and acute (WebMd). Chronic leukemia deteriorates gradually and may not bring about manifestations for a considerable length of time (WebMd). This type of leukemia, which advances through the span of months to years, includes overproduction of mature white platelets that cannot function similar to typical white cells. Acute leukemia deteriorates quick and may make a person feel wiped out immediately. It grows inside of days to weeks, and expansive quantities of immature cells also called "blasts" develop (WebMd). These cells cannot work as typical white platelets, so individuals with intense leukemia are at a higher danger of contamination. Since the body is so caught up with delivering immature cells, it cannot produce the same number of red cells or platelets, which can bring about bleeding issues and anemia. Leukemias are likewise subdivided into the sort of influenced blood cell. By this division, leukemia might also be myelogenous and lymphocytic (WebMd). Myelogenous leukemia influences the other kind of cells that ordinarily get to be granulocytes, red platelets, or platelets. Lymphocytic (also called lymphoblastic) leukemia influences white platelets called lymphocytes (WebMd). On the off chance that the harmful change happens in the kind of marrow that makes lymphocytes, the sickness is called lymphocytic leukemia (WebMd). A lymphocyte is a sort of white cell inside a persons vertebrae insusceptible framework (WebMd). In the event that the malignant change happens in the kind of marrow cells that go ahead to deliver red platelets, different sorts of white cells, and platelets, the ailment is called myelogenous leukemia. The rate at which leukemia advances and how the cells supplant the typical blood and marrow cells are distinctive with every type of leukemia. Based on these divisions, there are four most common types of leukemia: Chronic lymphocytic leukemia (CLL) frequently

Benjamin Franklin and the Economy of the Colonies Essay

Benjamin Franklin and the Economy of the Colonies - Essay Example Reacting to the advocates of the Stamp Act who claimed that the Seven Years War had been waged to the detriment of Britain to protect the interests of Native Americans, Franklin referred once again to the fur trade subject: â€Å"The last war was begun, not ‘for the immediate protection’ of all Americans, but for the protection of British trade, carried on with British manufactures among the Indians in America† (Greene 1995, 261). Franklin also commented on the dispatching of Braddock’s army by the Crown to America as a way to safeguard British trade and that the â€Å"trade with the Indians, though carried on in America, is not an American interest† (Greene 1995, 261). The war had been waged to create new markets for English producers and traders, and, as argued by Franklin, should justly shoulder the burden of maintaining the army (Isaacson 2003) that at the time inhabited the colonized lands. Economic Structure of the Colonies In a working colonia l economy, the capitalist interconnectedness of the colonies and the mother country generally resulted in a colonial imbalance of trade. The colonies pay for the products of the mother country and are pushed to produce those unprocessed materials needed by the colonial capitalists. In this process they are backed up by the new capital and investment of the balances of the mother country (Beer 1958). Hence, in the southern settlements, tobacco mostly was being generated to supply revenues for the British products the plantation owners needed; yet, since the trade left the British with a positive balance, its capitalists had by the 1770s at least ?4,000,000 spent in southern planting activities (Wahlke 1962, 1). To pay for the fees on these arrears, according to Wahlke (1962), southern planters were forced to continuously broaden their agricultural activities and to take part in the secondary operations of the fur trade and land assessment. Evidently, the northern colonies were a sour ce for iron, whale products, furs, and lumber, and these Britain greatly required sustaining her autonomy of European supplies. Through payments, the loosening of trade limitations and the rewarding of preferred places in the main market, Britain tried to persuade these businesses, in part because it needed these materials and in part to deflect northern capital from reaching into manufacturing, shipping, and shipbuilding (Greene 1995). Yet, the policy was a failure. The northern colonies were purchasing more and more volumes of British products and services, and were hence heavy debtors in the direct trade (Greene 1995). Obviously, these economic systems only benefited the British capitalists and merchants in terms of favorable balances. The colonies in turn were increasingly buried in debt. In the system of mercantilism, colonies were obliged to support the mother country in gaining an export surplus, economic independence, and favorable balance of trade. Colonies were obliged to provide supplies which would otherwise have to be acquired from non-colonial reservoirs, produce exports by the manufacture and trade of goods in high demand in other markets, and supply a market for the exports of the mother country (Greene 1995). In return, the mother country would furnish the settlements with military protection, and centralized regulation of the economy. But mercantilism was ‘not an American interest’

The state of E-learning initiatives in Saudi Arabia Universities Essay

The state of E-learning initiatives in Saudi Arabia Universities - Essay Example This technology, popularly referred to as E Learning, has significantly contributed to the expansion of courses offered and, more importantly, has emerged as an efficient and effective quality education tool for students who want to pursue their education from home. Indeed, the use of the internet as a medium to impart knowledge has experienced unprecedented growth over the past years. The 21st century witnessed acceptance of the internet as the preferred medium of education and instruction in quite a few Western European and United States colleges and universities. Determined not to be left behind, Saudi universities and college took the initiative to implement E Learning technologies. They started off well and a number of colleges put in place courses with credits on the web and students had the facility to get information and also use the services of online tutorials to prepare for the exams. The practice of providing online course information for students has entrenched itself in the educational landscape and indeed, has taken root in countless universities and colleges around the world. Even so, the aforementioned constitutes a minor componential element of E Learning based approach to education. Accordingly, most Saudi colleges took the initiative and put in place the short term plan of posting information online and tying up with International partners and universities in the West to offer their online courses and degrees to the Middle East. The aim was to provide localised service.

Journals review in Venture Capital topics Essay Example | Topics and Well Written Essays - 750 words

Journals review in Venture Capital topics - Essay Example While many financial venture capital funds are structured as SBICs, their main goals, however, are to ensure the profitability of the corporate parent and make the most investment returns out of the financial expertise and contacts of the corporate staff. Third, corporate venture capital funds are either subsidiaries or stand-alone firms organized by non-financial institutions like industrial firms, for instance. They function as in the case of industrial firms to make early investments and take advantage of new technologies. Finally, venture capital limited partnerships are funds organized by professional venture capital firms who have the capability to organize, invest, manage, and liquidate the capital raised from the partnership. The most predominant type in the market for venture capital finance is the venture capital limited partnership which manages more than half of the total industry resources. Unlike SBICs or financial and non-financial corporate funds which have problems in internal affairs, funding sources, or compensation packages, limited partnerships are the safest choice in venture capital funds. They function solely to maximize earnings from venture investments. Most European venture capital funds are sourced from financial institutions like banks, unlike the US venture capital which sources more on institutional investments like pension funds. In Europe, banks are more dominant and powerful that a significant number of venture capital firms are owned and managed by them. Their investments are diverse and are scattered along many different funds. Aside from having strict financial goals, European banks are also found to have strategic objectives in managing their investments. In fact, almost half of European venture funds in 2000 were sourced from banks, insurance companies, and other corporate investors. In the US, however, institutional investors are the most popular sources of funding. Pension funds, for instance, allot only a

The state of E-learning initiatives in Saudi Arabia Universities Essay

The state of E-learning initiatives in Saudi Arabia Universities - Essay Example This technology, popularly referred to as E Learning, has significantly contributed to the expansion of courses offered and, more importantly, has emerged as an efficient and effective quality education tool for students who want to pursue their education from home. Indeed, the use of the internet as a medium to impart knowledge has experienced unprecedented growth over the past years. The 21st century witnessed acceptance of the internet as the preferred medium of education and instruction in quite a few Western European and United States colleges and universities. Determined not to be left behind, Saudi universities and college took the initiative to implement E Learning technologies. They started off well and a number of colleges put in place courses with credits on the web and students had the facility to get information and also use the services of online tutorials to prepare for the exams. The practice of providing online course information for students has entrenched itself in the educational landscape and indeed, has taken root in countless universities and colleges around the world. Even so, the aforementioned constitutes a minor componential element of E Learning based approach to education. Accordingly, most Saudi colleges took the initiative and put in place the short term plan of posting information online and tying up with International partners and universities in the West to offer their online courses and degrees to the Middle East. The aim was to provide localised service.

California Travel and Authority Commission Assignment

California Travel and Authority Commission - Assignment Example The greatest challenge posed on the Destination Marketing Organization (DMO) is global warming. Its effects on the natural environment are detrimental. For instance, it causes rising of sea level; migration of wild animals; and hurricanes. In spite of the present economic impact tourism has had on California, it faces significant adaptability challenges. Reason being, majority of the tourist attraction sites depend on the natural environment. Efforts meant to sustain the existing environmental condition are very expensive, and their implications are far reaching. A notable example, the United States Congress, has been tasked with the responsibility of protecting tourist sites for the upcoming generation. However, they have yet to establish what it means for the future and present use of large portions of land in the coastal regions and forests (Kahrl & Ronald-Holst, 2012). Next, tourism is regard as being the most taxed industry. This ranges from the airline tickets, accommodation, a nd charges for car hire. Consequently, tourists shifting to destinations that are more accommodating (5 Key Issues Facing Travel and Tourism, 2012). The tourism industries and DMO entirely depend on each other, in the event of challenges; the existence of both is negatively affected.   An elaborate way of administrating tourist destination is through the establishment of DMO. Destination Marketing Organization (DMO) plays a major role towards the success of the tourism sector. However, it also in charge of some other roles, namely: facilitate a broad understanding of the economic and societal dimension of demand and supply in the tourism sector; enable the growth and diversification of existing sectors of tourism. It will ensure increased competitive nature of this sector; develop a joint venture between the public and private participants within the tourism industry.

Evaluating Derivatives Market in India

Evaluating Derivatives Market in India Introduction to Derivatives Market The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking-in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. However, by locking-in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of risk-averse investors. Derivative products initially emerged, as hedging devices against fluctuations in commodity prices and commodity-linked derivatives remained the sole form of such products for almost three hundred years. The financial derivatives came into spotlight in post-1970 period due to growing instability in the financial markets. However, since their emergence, these products have become very popular and by 1990s, they accounted for about two-thirds of total transactions in derivative products. In recent years, the market for financial derivatives has grown tremendously both in terms of variety of instruments available, their complexity and also turnover. In the class of equity derivatives, futures and options on stock indices have gained more popularity than on individual stocks, especially among institutional investors, who are major users of index-linked derivatives. Even small investors find these useful due to high correlation of the popular indices with various portfolios and ease of use. The lower costs associated with index derivatives vies-versa derivative products based on individual securities is another reason for their growing use. The following factors have been driving the growth of financial derivatives: Increased volatility in asset prices in financial markets, Increased integration of national financial markets with the international markets, Marked improvement in communication facilities and sharp decline in their costs, SCOPE OF THE STUDY The study is limited to â€Å"Derivatives with special reference to futures and option in the Indian context and the Networth Stock Broking Ltd., data for this study is from 27-DEC -2007 to 31-JAN- 2008 which represent sample for the study. The study cant be said as totally perfect. This study is only a humble attempt at evaluating derivatives market in Indian context. The study is not based on the international perspective of derivatives markets, which exists in NASDAQ, CBOT etc. HYPOTHESIS The Market data that has been used to see whether the Break Even Point (BEP) calculated can be used has an indicator to the investor to maximize the returns on its investment. OBJECTIVES OF THE STUDY 1. To understand the concept of derivatives in a more appropriate way. 2. To study various trends in derivative market. 3. To understand the scope and growth of derivatives in India. 4. To study the role of derivatives in Indian financial market 5. To study in detail the role of the future and options. METHODOLOGY 1. Data Collection : For this study the date collected is of secondary nature, The data of the Nifty index have been collected from â€Å"Economic Times† and internet. The data collected for January contract and the date consist from period 27th December, 2007 to 31st January, 2008. 2. Analysis: The analysis consist of the tabulation of the data assessing the profitability positions of the futures buyer and seller and also option holder and the option writer, representing the data with s and making the interpretation using data. TIME PERIOD Data collected for analyzing this study is from 27-DEC 2007 to 31-JAN-2008. Time taken to complete this project is 45 days LIMITATIONS OF THE STUDY The study is conducted in short period, due to which the study may not be detailed in all aspect. Lack of time on performing the project in detail study. Unavailability of software package which will help in calculation Lack of software knowledge to determine the correct future estimations. The data collected is completely restricted to 31st January, 2008; hence this analysis cannot be taken universal. CHAPTER II INTRODUCTION TO CAPITAL MARKET COMPANY PROFILE Introduction To Indian Capital Market Indias financial market began its transformation path in the early 1990s. The banking sector witnessed sweeping changes, including the elimination of interest rate controls, reductions in reserve and liquidity requirements and an overhaul in priority sector lending. Persistent efforts by the Reserve Bank of India (RBI) to put in place effective supervision and prudential norms since then have lifted the country closer to global standards. Around the same time, Indias capital markets also began to stage extensive changes. The Securities and Exchange Board of India (SEBI) was established in 1992 with a mandate to protect investors and improvements into the microstructure of capital markets, while the repeal of the Controller of Capital Issues (CCI) in the same year removed the administrative controls over the pricing of new equity issues. Indias financial markets also began to embrace technology. Competition in the markets increased with the establishment of the National Stock Exchange (NSE) in 1994, leading to a significant rise in the volume of transactions and to the emergence of new important instruments in financial intermediation. For over a century, Indias capital markets, which consist primarily of debt and equity markets, have increasingly played a significant role in mobilizing funds to meet public and private entities financing requirements. The advent of exchange-traded derivative instruments in 2000, such as options and futures, has enabled investors to better hedge their positions and reduce risks. In total, Indias debt and equity markets were equivalent to 130% of GDP at the end of 2005. This is an impressive stride, coming from just 75% in 1995, suggesting issuers growing confidence in market based financing. However, the size of the countrys capital markets relative to the United States, Malaysias and South Koreas remains low, implying a strong catch-up process for India. While some form of financial derivatives trading in India dates back to the 1870s, exchange traded derivative instruments started only in 2000. Then, stock index futures, with the Sensex 30 and the SP CNX Nifty indices as the underlying, began trading at the BSE and NSE. Since their inception, the basket of instruments has expanded and now features individual stock futures, and options for stock index and individual stocks. NATIONAL STOCK EXCHANGE (NSE) The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. NSE Mission 1. NSEs mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of: 2. Establishing a nation-wide trading facility for equities, debt instruments and hybrids, 3. Ensuring equal access to investors all over the country through an appropriate communication network, 4. Providing a fair, efficient and transparent securities market to investors using electronic trading systems, 5. Enabling shorter settlement cycles and book entry settlements systems, and 6. Meeting the current international standards of securities markets. The standards set by NSE in terms of market practices and technologies have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. Its that force which is guiding the industry towards new horizons and greater opportunities. Equity shares By investing in shares, investors basically buy the ownership right to the company. When the company makes profits, shareholders receive their share of the profits in the form of dividends. In addition, when company performs well and the future expectation from the company is very high, the price of the companys shares goes up in the market. This allows shareholders to sell shares at a profit, leading to capital gains. Investors can invest in shares either through primary market offerings or in the secondary market. The primary market has shown abnormal returns to investors who subscribed for the public issue and were allotted shares. Stock Exchange: In a stock exchange a person who wishes to sell his security is called a seller, and a person who is willing to buy the particular stock is called as the buyer. The rate of stock depends on the simple law of demand and supply. If the demand of shares of company x is greater than its supply then its price of its security increases. In Online Exchange the trading is done on a computer network. The sellers and buyers log on to the network and propose their bids. The system is designed in such ways that at any given instance, the buyers/sellers are bidding at the best prices. The transaction cycle for purchasing and selling shares online is depicted below: TRANSACTION CYCLE Role of Clearing House The clearing house of the exchange interposes itself between the buyer(the long position) and the seller (the short position).this mean clearing house becomes seller to buyer and the buyer to seller. Because the clearing house is obliged to perform on its side of each contract, it is the only party that can hurt if any trader fail to fulfill his obligation. The clearing house protects its interest by imposing margin requirements on traders. Ever since its inception in 1993, Networth Stock Broking Limited (NSBL) has sought to provide premium financial services and information, so that the power of investment is vested with the client. We equip those who invest with us to make intelligent investment decisions, providing them with the flexibility to either tap into our extensive knowledge and expertise, or make their own decisions. NSBL made its debut in to the financial world by servicing Institutional clients, and proved its high scalability of operations by growing exponentially over a short period of time. Now, powered by a top-notch research team and a network of experts, we provide an array of retail broking services across the globe spanning India, Middle East, Europe and America. Currently, we are a Depository participant at Central Depository Services India (CDSL) and aim to become one at National Securities Depository (NSDL) by the end of this quarter. Our strong support, technology-driven operations and busines s units of research, distribution and advisory coalesce to provide you with a one-stop solution to cater to all your broking and investment needs. Our customers have been participating in the booming commodities markets with our membership at Multi Commodity Exchange of India (MCX) and National Commodity Derivatives Exchange (NCDEX) through Networth Stock.Com Ltd. NSBL is a member of theNational Stock Exchange of India Ltd (NSE) andthe Bombay Stock Exchange Ltd (BSE)on the Capital Market and Derivatives (Futures Options) segment. It is also a listed company at theBSE. Corporate Overview †¢ Networth is a listed entity on the BSE since 1994 †¢ The company is professionally managed with experience of over a decade in broking and advisory services †¢ Networth is a member of BSE, NSE, MCX, NCDEX, AMFI, CDSL †¢ Current network in Southern and Western India with 107 branches and franchise. Presence in major metros and cities †¢ Empanelled with prominent domestic Mutual Funds, Insurance Companies, Banks, Financial Institutions and Foreign Financial Institutions. †¢ Strong experienced professional team †¢ 20000+ strong and growing client base †¢ Average daily broking turnover of around INR 1 billion †¢ AUM with Investment Advisory Services of around INR 3 billion Products and services Portfolio v Retail and institutional broking v Research for institutional and retail clients v Distribution of financial products v Corporate finance v Net trading v Depository services v Commodities Broking Infrastructure †¢ A corporate office and 3 divisional offices in CBD of Mumbai which houses state-of-the-art dealing room, research wing management and back offices. †¢ All of 107 branches and franchisees are fully wired and connected to hub at corporate office at Mumbai. Add on branches also will be wired and connected to central hub †¢ Web enabled connectivity and software in place for net trading. †¢ 60 operative IDs for dealing room †¢ State of the Art accounting and billing system, on line risk management system in place with 100% redundancy back up. †¢ In house technology back up team to ensure un-interrupted connectivity. Online Trading There is nothing more exhilarating, more daring and more rewarding than making the right trade at the right time. Welcome to our Internet trading platform which brings you a world class experience of online trading. Clicknetworth is a software application suite that offers comprehensive facilities so users can watch Market Prices while they trade. The application is highly integrated which enables the user to place orders in live environment. The user screen is fully customizable by the user to display information based upon his/her own preferences Trading Platform Networth offers advanced and convenient online trading facility with N-easy and N-swift which are completely safe and secure. N-easy: A Powerful and user friendly browser based platform ideally suited for Investors N-swift: An Advanced EXE based application suite that is ideally suited for Traders Features:- * Clients can trade in NSE Cash, NSE FO and BSE Cash. * Single screen order / trade entry as you can add NSE-Cash, Derivative BSE scripts in the same Market Watch. * Features such as Lock the Screen, TOP 20 by Most Active Volume, Value, Gainers, Losers, Market Movement and more will help you customise your trading platform according to your specific focus. * Facility for Online Funds Transfer. Your credit limit increases instantaneously on completion of a successful transfer. Total holdings with NSBL and NSBL CDSL DP (POA) can be viewed and delivery sale can also be made. * Needless to mention other standard features as Real-Time market data, live order status, Real time position updates etc. CHAPTER III REVIEW OF LITERATURE DEFINATION OF DERIVATIVE Derivative is a product whose value is derived from the value of one or more basic variables, called bases (underlying asset, index, or reference rate), in a contractual manner. There are two types of derivatives that are trades on NSE; namely Futures and Options. The underlying asset can be equity, forex, commodity or any other asset. For example, wheat farmers may wish to sell their harvest at a future date to eliminate the risk of a change in prices by that date. Such a transaction is an example of a derivative. The price of this derivative is driven by the spot price of wheat which is the â€Å"underlying†. In the Indian context the Securities Contracts (Regulation) Act, 1956 (SC(R) A) defines â€Å"equity derivative† to include A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security. A contract, which derives its value from the prices, or index of prices, of underlying securities.The key to understanding derivatives is the notion of a premium. Some derivatives are compared to insurance. Just as you pay an insurance company a premium in order to obtain some protection against a specific event, there are derivative products that have a payoff contingent upon the occurrence of some event for which you must pay a premium in advance. Example: When one buys a cash instrument, for example 100 shares of ABC Inc., the payoff is linear (disregarding the impact of dividends). If we buy the shares at Rs50 and the price appreciates to Rs75, we have made Rs2500 on a mark-to-market basis. If we buy the shares at Rs50 and the price depreciates to Rs25, we have lost Rs2500 on a mark-to-market basis. Instead of buying the shares in the cash market, we could have bought a 1 month call option on ABC stock with a strike price of Rs50, giving us the right but not the obligation to purchase ABC stock at Rs50 in 1 months time. Instead of immediately paying Rs5000 and receiving the stock, we might pay Rs700 today for this right. If ABC goes to Rs75 in 1 months time, we can exercise the option, buy the stock at the strike price and sell the stock in the open market, locking in a net profit of Rs1800. If the ABC stock price goes to Rs25, we have only lost the premium of Rs700. If ABC trades as high as Rs100 after we have bought the option but before it expires, we can sell the option in the market for a price of Rs5300. Classification of Derivatives Types of Derivatives The most commonly used derivatives contracts in NSE are ,FUTURES and OPTIONS which we shall discuss in detail later. Here we take a brief look at various derivatives contracts that have come to be used. Forwards: A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the future at todays 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. Warrants: Options generally have lives of upto one year, the majority of options traded on options exchanges having a maximum maturity of nine months. Longer-dated options are called warrants and are generally traded over-the-counter. LEAPS: The acronym LEAPS means Long-Term Equity Anticipation Securities. These are options having a maturity of upto three years. Baskets: Basket options are options on portfolios of underlying assets. The underlying asset is usually a moving average or a basket of assets. Equity index options are a form of basket options. Participants and Functions v Hedgers face risk associated with the price of an asset. They use futures or options markets to reduce or eliminate this risk. v Speculators wish to bet on future movements in the price of an asset. Futures and options contracts can give them an extra leverage; that is, they can increase both the potential gains and potential losses in a speculative venture. v Arbitrageurs are in business to take advantage of a discrepancy between prices in two different markets. If, for example, they see the futures price of an asset getting out of line with the cash price, they will take offsetting positions in the two markets to lock in a profit. The derivative market performs a number of economic functions. First, prices in an organized derivatives market reflect the perception of market participants about the future and lead the prices of underlying to the perceived future level. The prices of derivatives converge with the prices of the underlying at the expiration of derivative contract. Thus derivatives help in discovery of future as well as current prices. Second, the derivatives market helps to transfer risks from those who have them but may not like them to those who have appetite for them. Third, derivatives, due to their inherent nature, are linked to the underlying cash markets. With the introduction of derivatives, the underlying market witnesses higher trading volumes because of participation by more players who would not otherwise participate for lack of an arrangement to transfer risk. Fourth, speculative trades shift to a more controlled environment of derivatives market. In the absence of an organized derivati ves market, speculators trade in the underlying cash markets. Margining, monitoring and surveillance of the activities of various participants become extremely difficult in these kind of mixed markets. Fifth, an important incidental benefit that flows from derivatives trading is that it acts as a catalyst for new entrepreneurial activity. The derivatives have a history of attracting many bright, creative, well-educated people with an entrepreneurial attitude. They often energize others to create new businesses, new products and new employment opportunities, the benefit of which are immense. Sixth, derivatives markets help increase savings and investment in the long run. Transfer of risk enables market participants to expand their volume of activity. Derivatives thus promote economic development to the extent the later depends on the rate of savings and investment. The first stock index futures contract was traded at Kansas City Board of Trade. Currently the most popular index futures contract in the world is based on SP 500 index, traded on Chicago Mercantile Exchange. During the mid eighties, financial futures became the most active derivative instruments generating volumes many times more than the commodity futures. Index futures, futures on T-bills and Euro-Dollar futures are the three most popular futures contracts traded today. Other popular international exchanges that trade derivatives are LIFFE in England, DTB in Germany, SGX in Singapore, TIFFE in Japan, MATIF in France, etc. Indian Derivatives Market Starting from a controlled economy, India has moved towards a world where prices fluctuate every day. The introduction of risk management instruments in India gained momentum in the last few years due to liberalisation process and Reserve Bank of Indias (RBI) efforts in creating currency forward market. Derivatives are an integral part of liberalisation process to manage risk. NSE gauging the market requirements initiated the process of setting up derivative markets in India. In July 1999, derivatives trading commenced in India CHRONOLOGY OF INSTRUMENTS 1991 Liberalisation process initiated 14-Dec-1995 NSE asked SEBI for permission to trade index futures. 18-Nov-1996 SEBI setup L.C.Gupta Committee to draft a policy framework for index futures. 11-May-1998 L.C.Gupta Committee submitted report. 7-July-1999 RBI gave permission for OTC forward rate agreements (FRAs) and interest rate swaps. 24-May-2000 SIMEX chose Nifty for trading futures and options on an Indian index. 25-May-2000 SEBI gave permission to NSE and BSE to do index futures trading. 9-June-2000 Trading of BSE Sensex futures commenced at BSE. 12-June-2000 Trading of Nifty futures commenced at NSE. 25-Sep-2000 Nifty futures trading commenced at SGX. 2-June-2001 Individual Stock Options Derivatives SWAPS A contract between two parties, referred to as counter parties, to exchange two streams of payments for agreed period of time. The payments, commonly called legs or sides, are calculated based on the underlying notional using applicable rates. Swaps contracts also include other provisional specified by the counter parties. Swaps are not debt instrument to raise capital, but a tool used for financial management. Swaps are arranged in many different currencies and different periods of time. US$ swaps are most common followed by Japanese yen, sterling and Deutsche marks. The length of past swaps transacted has ranged from 2 to 25 years. Swaps Pricing: There are four major components of a swap price. v Benchmark price v Liquidity (availability of counter parties to offset the swap). v Transaction cost v Credit risk Benchmark Price:Swap rates are based on a series of benchmark instruments. They may be quoted as a spread over the yield on these benchmark instruments or on an absolute interest rate basis. In the Indian markets the common benchmarks are MIBOR, 14, 91, 182 364 day T-bills, CP rates and PLR rates. Liquidity: which is function of supply and demand, plays an important role in swaps pricing? This is also affected by the swap duration. It may be difficult to have counter parties for long duration swaps, specially so in India Transaction costs include the cost of hedging a swap. Transaction cost: Say in case of a bank, which has a floating obligation of 91 days T. Bill. Now in order to hedge the bank would go long on a 91 day T. Bill. For doing so the bank must obtain funds. The transaction cost would thus involve such a difference. Yield on 91 day T. Bill 9.5% Cost of fund (e.g.- Repo rate) 10% The transaction cost in this case would involve 0.5% Credit risk: Credit risk must also be built into the swap pricing. Based upon the credit rating of the counterparty a spread would have to be incorporated. Say for e.g. it would be 0.5% for an AAA rating. Introduction to Futures Future contract is the simplest of all financial assets. A future contract is just an agreement between two parties to buy and sell an asset at a fixed price in the future. Futures markets were originally designed to solve the problems of forward markets. Future contracts are managed through an organized future exchange Future contracts are a type of derivative security because the value of the contract is derived from an underlying instrument. The exchange specifies standard features of future contract to facilitate liquidity in the futures contracts. The net value of a future contract is zero because future contract represents a zero sum game between a buyer and a seller. Future contracts are standardized to facilitate convenience in trading and price reporting. A futures contract may be offset before maturity by taking opposite position which means that future trading can be closed by entering into equal into an equal and opposite transaction. Future contract must specify at least five terms of the contract and they are: 1) The identity of the underlying commodity or financial instrument. 2) The future contract size. 3) The future maturity date. 4) The delivery or settlement procedure. 5) The future price. TYPES OF FUTURES A commodity future is a future contract in a commodity like cocoa, aluminum etc. A financial future is a futures contract in a financial instrument like Treasury bill, currency or stock index. Futures contracts are: v Futures contracts are organized/ standardized contracts, which are traded on the exchanges. v These contracts, being standardized and traded on the exchanges are very liquid in nature. v In futures market, clearing corporation/ house provides the settlement guarantee. v Every futures contract is a forward contract traded on exchange and clearing corporation/house provides the settlement guarantee for trades. v Are of standard quantity; standard quality (in case of commodities). Have standard delivery time and place. What Does Future Trading Apply to Indian Stocks? Future trading is a type of investments which involves speculating on the prices of securities in the future. Securities traded in future contract can be a stock (Reliance India Limited, TISCO, etc), Stock Index (NSE Nifty Index), commodity (Gold, Silver, Agricultural Products, etc) Unlike stocks and bonds, when we involve in future trading then we do not buy or own anything but we speculate the future direction of the price in the security we are trading. Suppose we speculate on Stock Index (NSE Nifty index). If we speculate that the future price of Stock Index can go up in the future then we would buy a future contract. If we speculate that the future price of Stock Index can go down then we would sell a future contract. Futures Trading accounts A future exchange allows only exchange members to trade on the exchange floor. There are various things to know about future trading accounts. The first thing is that a margin is always required. A margin is the amount of money that we put up to control a future contract. http://www.tradingpicks.com/futures.htm How to Trade in SP CNX NIFTY Futures? http://www.nse-india.com/content/press/futidx_invguide.pdf Trading on CNX Nifty futures is just like trading in other security. Before buying or selling we use to predict the direction of the market and based on that prediction we buy or sell the index. A profit is made when the closing price on the expiration day is higher than the value at which we had bought the index. If we had predicted a bearish market, and had sold the index then we make a profit. Trading cycle for SP CNX Nifty Futures The trading cycle for SP CNX Nifty future contracts is 3 months. On the trading day a new contract is introduced. This contract will be introduced for three month duration. As a result there will be 3 contracts available for trading in the market ( i.e., first contract is in near month, second in mid month and third in far month duration) Example If Trading in NIFTY Starts from January 2002 then following chart gives us the beginning and expiry date of the contract. Contract/Month Expiry/Settlement January 2002 January 28th February 2002 February 20th March 2002 March 19th After January 28th, the first trading day will be on January 29th. Contract/Month Expiry/Settlement February 2002 February 24th March 2002 March 30th April 2002 April 20th To trade futures in NSE, traders have to open an account with a future brokerage firm known as Future Commission Merchant (FCM). FCM records the trades, monitors them and advice t Evaluating Derivatives Market in India Evaluating Derivatives Market in India Introduction to Derivatives Market The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking-in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. However, by locking-in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of risk-averse investors. Derivative products initially emerged, as hedging devices against fluctuations in commodity prices and commodity-linked derivatives remained the sole form of such products for almost three hundred years. The financial derivatives came into spotlight in post-1970 period due to growing instability in the financial markets. However, since their emergence, these products have become very popular and by 1990s, they accounted for about two-thirds of total transactions in derivative products. In recent years, the market for financial derivatives has grown tremendously both in terms of variety of instruments available, their complexity and also turnover. In the class of equity derivatives, futures and options on stock indices have gained more popularity than on individual stocks, especially among institutional investors, who are major users of index-linked derivatives. Even small investors find these useful due to high correlation of the popular indices with various portfolios and ease of use. The lower costs associated with index derivatives vies-versa derivative products based on individual securities is another reason for their growing use. The following factors have been driving the growth of financial derivatives: Increased volatility in asset prices in financial markets, Increased integration of national financial markets with the international markets, Marked improvement in communication facilities and sharp decline in their costs, SCOPE OF THE STUDY The study is limited to â€Å"Derivatives with special reference to futures and option in the Indian context and the Networth Stock Broking Ltd., data for this study is from 27-DEC -2007 to 31-JAN- 2008 which represent sample for the study. The study cant be said as totally perfect. This study is only a humble attempt at evaluating derivatives market in Indian context. The study is not based on the international perspective of derivatives markets, which exists in NASDAQ, CBOT etc. HYPOTHESIS The Market data that has been used to see whether the Break Even Point (BEP) calculated can be used has an indicator to the investor to maximize the returns on its investment. OBJECTIVES OF THE STUDY 1. To understand the concept of derivatives in a more appropriate way. 2. To study various trends in derivative market. 3. To understand the scope and growth of derivatives in India. 4. To study the role of derivatives in Indian financial market 5. To study in detail the role of the future and options. METHODOLOGY 1. Data Collection : For this study the date collected is of secondary nature, The data of the Nifty index have been collected from â€Å"Economic Times† and internet. The data collected for January contract and the date consist from period 27th December, 2007 to 31st January, 2008. 2. Analysis: The analysis consist of the tabulation of the data assessing the profitability positions of the futures buyer and seller and also option holder and the option writer, representing the data with s and making the interpretation using data. TIME PERIOD Data collected for analyzing this study is from 27-DEC 2007 to 31-JAN-2008. Time taken to complete this project is 45 days LIMITATIONS OF THE STUDY The study is conducted in short period, due to which the study may not be detailed in all aspect. Lack of time on performing the project in detail study. Unavailability of software package which will help in calculation Lack of software knowledge to determine the correct future estimations. The data collected is completely restricted to 31st January, 2008; hence this analysis cannot be taken universal. CHAPTER II INTRODUCTION TO CAPITAL MARKET COMPANY PROFILE Introduction To Indian Capital Market Indias financial market began its transformation path in the early 1990s. The banking sector witnessed sweeping changes, including the elimination of interest rate controls, reductions in reserve and liquidity requirements and an overhaul in priority sector lending. Persistent efforts by the Reserve Bank of India (RBI) to put in place effective supervision and prudential norms since then have lifted the country closer to global standards. Around the same time, Indias capital markets also began to stage extensive changes. The Securities and Exchange Board of India (SEBI) was established in 1992 with a mandate to protect investors and improvements into the microstructure of capital markets, while the repeal of the Controller of Capital Issues (CCI) in the same year removed the administrative controls over the pricing of new equity issues. Indias financial markets also began to embrace technology. Competition in the markets increased with the establishment of the National Stock Exchange (NSE) in 1994, leading to a significant rise in the volume of transactions and to the emergence of new important instruments in financial intermediation. For over a century, Indias capital markets, which consist primarily of debt and equity markets, have increasingly played a significant role in mobilizing funds to meet public and private entities financing requirements. The advent of exchange-traded derivative instruments in 2000, such as options and futures, has enabled investors to better hedge their positions and reduce risks. In total, Indias debt and equity markets were equivalent to 130% of GDP at the end of 2005. This is an impressive stride, coming from just 75% in 1995, suggesting issuers growing confidence in market based financing. However, the size of the countrys capital markets relative to the United States, Malaysias and South Koreas remains low, implying a strong catch-up process for India. While some form of financial derivatives trading in India dates back to the 1870s, exchange traded derivative instruments started only in 2000. Then, stock index futures, with the Sensex 30 and the SP CNX Nifty indices as the underlying, began trading at the BSE and NSE. Since their inception, the basket of instruments has expanded and now features individual stock futures, and options for stock index and individual stocks. NATIONAL STOCK EXCHANGE (NSE) The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. NSE Mission 1. NSEs mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of: 2. Establishing a nation-wide trading facility for equities, debt instruments and hybrids, 3. Ensuring equal access to investors all over the country through an appropriate communication network, 4. Providing a fair, efficient and transparent securities market to investors using electronic trading systems, 5. Enabling shorter settlement cycles and book entry settlements systems, and 6. Meeting the current international standards of securities markets. The standards set by NSE in terms of market practices and technologies have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. Its that force which is guiding the industry towards new horizons and greater opportunities. Equity shares By investing in shares, investors basically buy the ownership right to the company. When the company makes profits, shareholders receive their share of the profits in the form of dividends. In addition, when company performs well and the future expectation from the company is very high, the price of the companys shares goes up in the market. This allows shareholders to sell shares at a profit, leading to capital gains. Investors can invest in shares either through primary market offerings or in the secondary market. The primary market has shown abnormal returns to investors who subscribed for the public issue and were allotted shares. Stock Exchange: In a stock exchange a person who wishes to sell his security is called a seller, and a person who is willing to buy the particular stock is called as the buyer. The rate of stock depends on the simple law of demand and supply. If the demand of shares of company x is greater than its supply then its price of its security increases. In Online Exchange the trading is done on a computer network. The sellers and buyers log on to the network and propose their bids. The system is designed in such ways that at any given instance, the buyers/sellers are bidding at the best prices. The transaction cycle for purchasing and selling shares online is depicted below: TRANSACTION CYCLE Role of Clearing House The clearing house of the exchange interposes itself between the buyer(the long position) and the seller (the short position).this mean clearing house becomes seller to buyer and the buyer to seller. Because the clearing house is obliged to perform on its side of each contract, it is the only party that can hurt if any trader fail to fulfill his obligation. The clearing house protects its interest by imposing margin requirements on traders. Ever since its inception in 1993, Networth Stock Broking Limited (NSBL) has sought to provide premium financial services and information, so that the power of investment is vested with the client. We equip those who invest with us to make intelligent investment decisions, providing them with the flexibility to either tap into our extensive knowledge and expertise, or make their own decisions. NSBL made its debut in to the financial world by servicing Institutional clients, and proved its high scalability of operations by growing exponentially over a short period of time. Now, powered by a top-notch research team and a network of experts, we provide an array of retail broking services across the globe spanning India, Middle East, Europe and America. Currently, we are a Depository participant at Central Depository Services India (CDSL) and aim to become one at National Securities Depository (NSDL) by the end of this quarter. Our strong support, technology-driven operations and busines s units of research, distribution and advisory coalesce to provide you with a one-stop solution to cater to all your broking and investment needs. Our customers have been participating in the booming commodities markets with our membership at Multi Commodity Exchange of India (MCX) and National Commodity Derivatives Exchange (NCDEX) through Networth Stock.Com Ltd. NSBL is a member of theNational Stock Exchange of India Ltd (NSE) andthe Bombay Stock Exchange Ltd (BSE)on the Capital Market and Derivatives (Futures Options) segment. It is also a listed company at theBSE. Corporate Overview †¢ Networth is a listed entity on the BSE since 1994 †¢ The company is professionally managed with experience of over a decade in broking and advisory services †¢ Networth is a member of BSE, NSE, MCX, NCDEX, AMFI, CDSL †¢ Current network in Southern and Western India with 107 branches and franchise. Presence in major metros and cities †¢ Empanelled with prominent domestic Mutual Funds, Insurance Companies, Banks, Financial Institutions and Foreign Financial Institutions. †¢ Strong experienced professional team †¢ 20000+ strong and growing client base †¢ Average daily broking turnover of around INR 1 billion †¢ AUM with Investment Advisory Services of around INR 3 billion Products and services Portfolio v Retail and institutional broking v Research for institutional and retail clients v Distribution of financial products v Corporate finance v Net trading v Depository services v Commodities Broking Infrastructure †¢ A corporate office and 3 divisional offices in CBD of Mumbai which houses state-of-the-art dealing room, research wing management and back offices. †¢ All of 107 branches and franchisees are fully wired and connected to hub at corporate office at Mumbai. Add on branches also will be wired and connected to central hub †¢ Web enabled connectivity and software in place for net trading. †¢ 60 operative IDs for dealing room †¢ State of the Art accounting and billing system, on line risk management system in place with 100% redundancy back up. †¢ In house technology back up team to ensure un-interrupted connectivity. Online Trading There is nothing more exhilarating, more daring and more rewarding than making the right trade at the right time. Welcome to our Internet trading platform which brings you a world class experience of online trading. Clicknetworth is a software application suite that offers comprehensive facilities so users can watch Market Prices while they trade. The application is highly integrated which enables the user to place orders in live environment. The user screen is fully customizable by the user to display information based upon his/her own preferences Trading Platform Networth offers advanced and convenient online trading facility with N-easy and N-swift which are completely safe and secure. N-easy: A Powerful and user friendly browser based platform ideally suited for Investors N-swift: An Advanced EXE based application suite that is ideally suited for Traders Features:- * Clients can trade in NSE Cash, NSE FO and BSE Cash. * Single screen order / trade entry as you can add NSE-Cash, Derivative BSE scripts in the same Market Watch. * Features such as Lock the Screen, TOP 20 by Most Active Volume, Value, Gainers, Losers, Market Movement and more will help you customise your trading platform according to your specific focus. * Facility for Online Funds Transfer. Your credit limit increases instantaneously on completion of a successful transfer. Total holdings with NSBL and NSBL CDSL DP (POA) can be viewed and delivery sale can also be made. * Needless to mention other standard features as Real-Time market data, live order status, Real time position updates etc. CHAPTER III REVIEW OF LITERATURE DEFINATION OF DERIVATIVE Derivative is a product whose value is derived from the value of one or more basic variables, called bases (underlying asset, index, or reference rate), in a contractual manner. There are two types of derivatives that are trades on NSE; namely Futures and Options. The underlying asset can be equity, forex, commodity or any other asset. For example, wheat farmers may wish to sell their harvest at a future date to eliminate the risk of a change in prices by that date. Such a transaction is an example of a derivative. The price of this derivative is driven by the spot price of wheat which is the â€Å"underlying†. In the Indian context the Securities Contracts (Regulation) Act, 1956 (SC(R) A) defines â€Å"equity derivative† to include A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security. A contract, which derives its value from the prices, or index of prices, of underlying securities.The key to understanding derivatives is the notion of a premium. Some derivatives are compared to insurance. Just as you pay an insurance company a premium in order to obtain some protection against a specific event, there are derivative products that have a payoff contingent upon the occurrence of some event for which you must pay a premium in advance. Example: When one buys a cash instrument, for example 100 shares of ABC Inc., the payoff is linear (disregarding the impact of dividends). If we buy the shares at Rs50 and the price appreciates to Rs75, we have made Rs2500 on a mark-to-market basis. If we buy the shares at Rs50 and the price depreciates to Rs25, we have lost Rs2500 on a mark-to-market basis. Instead of buying the shares in the cash market, we could have bought a 1 month call option on ABC stock with a strike price of Rs50, giving us the right but not the obligation to purchase ABC stock at Rs50 in 1 months time. Instead of immediately paying Rs5000 and receiving the stock, we might pay Rs700 today for this right. If ABC goes to Rs75 in 1 months time, we can exercise the option, buy the stock at the strike price and sell the stock in the open market, locking in a net profit of Rs1800. If the ABC stock price goes to Rs25, we have only lost the premium of Rs700. If ABC trades as high as Rs100 after we have bought the option but before it expires, we can sell the option in the market for a price of Rs5300. Classification of Derivatives Types of Derivatives The most commonly used derivatives contracts in NSE are ,FUTURES and OPTIONS which we shall discuss in detail later. Here we take a brief look at various derivatives contracts that have come to be used. Forwards: A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the future at todays 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. Warrants: Options generally have lives of upto one year, the majority of options traded on options exchanges having a maximum maturity of nine months. Longer-dated options are called warrants and are generally traded over-the-counter. LEAPS: The acronym LEAPS means Long-Term Equity Anticipation Securities. These are options having a maturity of upto three years. Baskets: Basket options are options on portfolios of underlying assets. The underlying asset is usually a moving average or a basket of assets. Equity index options are a form of basket options. Participants and Functions v Hedgers face risk associated with the price of an asset. They use futures or options markets to reduce or eliminate this risk. v Speculators wish to bet on future movements in the price of an asset. Futures and options contracts can give them an extra leverage; that is, they can increase both the potential gains and potential losses in a speculative venture. v Arbitrageurs are in business to take advantage of a discrepancy between prices in two different markets. If, for example, they see the futures price of an asset getting out of line with the cash price, they will take offsetting positions in the two markets to lock in a profit. The derivative market performs a number of economic functions. First, prices in an organized derivatives market reflect the perception of market participants about the future and lead the prices of underlying to the perceived future level. The prices of derivatives converge with the prices of the underlying at the expiration of derivative contract. Thus derivatives help in discovery of future as well as current prices. Second, the derivatives market helps to transfer risks from those who have them but may not like them to those who have appetite for them. Third, derivatives, due to their inherent nature, are linked to the underlying cash markets. With the introduction of derivatives, the underlying market witnesses higher trading volumes because of participation by more players who would not otherwise participate for lack of an arrangement to transfer risk. Fourth, speculative trades shift to a more controlled environment of derivatives market. In the absence of an organized derivati ves market, speculators trade in the underlying cash markets. Margining, monitoring and surveillance of the activities of various participants become extremely difficult in these kind of mixed markets. Fifth, an important incidental benefit that flows from derivatives trading is that it acts as a catalyst for new entrepreneurial activity. The derivatives have a history of attracting many bright, creative, well-educated people with an entrepreneurial attitude. They often energize others to create new businesses, new products and new employment opportunities, the benefit of which are immense. Sixth, derivatives markets help increase savings and investment in the long run. Transfer of risk enables market participants to expand their volume of activity. Derivatives thus promote economic development to the extent the later depends on the rate of savings and investment. The first stock index futures contract was traded at Kansas City Board of Trade. Currently the most popular index futures contract in the world is based on SP 500 index, traded on Chicago Mercantile Exchange. During the mid eighties, financial futures became the most active derivative instruments generating volumes many times more than the commodity futures. Index futures, futures on T-bills and Euro-Dollar futures are the three most popular futures contracts traded today. Other popular international exchanges that trade derivatives are LIFFE in England, DTB in Germany, SGX in Singapore, TIFFE in Japan, MATIF in France, etc. Indian Derivatives Market Starting from a controlled economy, India has moved towards a world where prices fluctuate every day. The introduction of risk management instruments in India gained momentum in the last few years due to liberalisation process and Reserve Bank of Indias (RBI) efforts in creating currency forward market. Derivatives are an integral part of liberalisation process to manage risk. NSE gauging the market requirements initiated the process of setting up derivative markets in India. In July 1999, derivatives trading commenced in India CHRONOLOGY OF INSTRUMENTS 1991 Liberalisation process initiated 14-Dec-1995 NSE asked SEBI for permission to trade index futures. 18-Nov-1996 SEBI setup L.C.Gupta Committee to draft a policy framework for index futures. 11-May-1998 L.C.Gupta Committee submitted report. 7-July-1999 RBI gave permission for OTC forward rate agreements (FRAs) and interest rate swaps. 24-May-2000 SIMEX chose Nifty for trading futures and options on an Indian index. 25-May-2000 SEBI gave permission to NSE and BSE to do index futures trading. 9-June-2000 Trading of BSE Sensex futures commenced at BSE. 12-June-2000 Trading of Nifty futures commenced at NSE. 25-Sep-2000 Nifty futures trading commenced at SGX. 2-June-2001 Individual Stock Options Derivatives SWAPS A contract between two parties, referred to as counter parties, to exchange two streams of payments for agreed period of time. The payments, commonly called legs or sides, are calculated based on the underlying notional using applicable rates. Swaps contracts also include other provisional specified by the counter parties. Swaps are not debt instrument to raise capital, but a tool used for financial management. Swaps are arranged in many different currencies and different periods of time. US$ swaps are most common followed by Japanese yen, sterling and Deutsche marks. The length of past swaps transacted has ranged from 2 to 25 years. Swaps Pricing: There are four major components of a swap price. v Benchmark price v Liquidity (availability of counter parties to offset the swap). v Transaction cost v Credit risk Benchmark Price:Swap rates are based on a series of benchmark instruments. They may be quoted as a spread over the yield on these benchmark instruments or on an absolute interest rate basis. In the Indian markets the common benchmarks are MIBOR, 14, 91, 182 364 day T-bills, CP rates and PLR rates. Liquidity: which is function of supply and demand, plays an important role in swaps pricing? This is also affected by the swap duration. It may be difficult to have counter parties for long duration swaps, specially so in India Transaction costs include the cost of hedging a swap. Transaction cost: Say in case of a bank, which has a floating obligation of 91 days T. Bill. Now in order to hedge the bank would go long on a 91 day T. Bill. For doing so the bank must obtain funds. The transaction cost would thus involve such a difference. Yield on 91 day T. Bill 9.5% Cost of fund (e.g.- Repo rate) 10% The transaction cost in this case would involve 0.5% Credit risk: Credit risk must also be built into the swap pricing. Based upon the credit rating of the counterparty a spread would have to be incorporated. Say for e.g. it would be 0.5% for an AAA rating. Introduction to Futures Future contract is the simplest of all financial assets. A future contract is just an agreement between two parties to buy and sell an asset at a fixed price in the future. Futures markets were originally designed to solve the problems of forward markets. Future contracts are managed through an organized future exchange Future contracts are a type of derivative security because the value of the contract is derived from an underlying instrument. The exchange specifies standard features of future contract to facilitate liquidity in the futures contracts. The net value of a future contract is zero because future contract represents a zero sum game between a buyer and a seller. Future contracts are standardized to facilitate convenience in trading and price reporting. A futures contract may be offset before maturity by taking opposite position which means that future trading can be closed by entering into equal into an equal and opposite transaction. Future contract must specify at least five terms of the contract and they are: 1) The identity of the underlying commodity or financial instrument. 2) The future contract size. 3) The future maturity date. 4) The delivery or settlement procedure. 5) The future price. TYPES OF FUTURES A commodity future is a future contract in a commodity like cocoa, aluminum etc. A financial future is a futures contract in a financial instrument like Treasury bill, currency or stock index. Futures contracts are: v Futures contracts are organized/ standardized contracts, which are traded on the exchanges. v These contracts, being standardized and traded on the exchanges are very liquid in nature. v In futures market, clearing corporation/ house provides the settlement guarantee. v Every futures contract is a forward contract traded on exchange and clearing corporation/house provides the settlement guarantee for trades. v Are of standard quantity; standard quality (in case of commodities). Have standard delivery time and place. What Does Future Trading Apply to Indian Stocks? Future trading is a type of investments which involves speculating on the prices of securities in the future. Securities traded in future contract can be a stock (Reliance India Limited, TISCO, etc), Stock Index (NSE Nifty Index), commodity (Gold, Silver, Agricultural Products, etc) Unlike stocks and bonds, when we involve in future trading then we do not buy or own anything but we speculate the future direction of the price in the security we are trading. Suppose we speculate on Stock Index (NSE Nifty index). If we speculate that the future price of Stock Index can go up in the future then we would buy a future contract. If we speculate that the future price of Stock Index can go down then we would sell a future contract. Futures Trading accounts A future exchange allows only exchange members to trade on the exchange floor. There are various things to know about future trading accounts. The first thing is that a margin is always required. A margin is the amount of money that we put up to control a future contract. http://www.tradingpicks.com/futures.htm How to Trade in SP CNX NIFTY Futures? http://www.nse-india.com/content/press/futidx_invguide.pdf Trading on CNX Nifty futures is just like trading in other security. Before buying or selling we use to predict the direction of the market and based on that prediction we buy or sell the index. A profit is made when the closing price on the expiration day is higher than the value at which we had bought the index. If we had predicted a bearish market, and had sold the index then we make a profit. Trading cycle for SP CNX Nifty Futures The trading cycle for SP CNX Nifty future contracts is 3 months. On the trading day a new contract is introduced. This contract will be introduced for three month duration. As a result there will be 3 contracts available for trading in the market ( i.e., first contract is in near month, second in mid month and third in far month duration) Example If Trading in NIFTY Starts from January 2002 then following chart gives us the beginning and expiry date of the contract. Contract/Month Expiry/Settlement January 2002 January 28th February 2002 February 20th March 2002 March 19th After January 28th, the first trading day will be on January 29th. Contract/Month Expiry/Settlement February 2002 February 24th March 2002 March 30th April 2002 April 20th To trade futures in NSE, traders have to open an account with a future brokerage firm known as Future Commission Merchant (FCM). FCM records the trades, monitors them and advice t