The Names for French Punctuation Marks and Symbols

Cathedrals Implied Glory and Importance to Christianity...

There is nothing, in any shape or form, implied about the glory of Cathedrals. These stone behemoths are simply glorious in size, design and aesthetic appeal all built into their design plan and plays an important role in the growth of faith in Christianity. But what is a Cathedral? In their very nature, they are holy places of worship for Christians. Unlike churches which are basic places of worship that are apt for most of the critical requirements of Christianity, Cathedrals are massive places of worship which act as the headquarters for the local diocese, or districts, of the certain sect of Christianity around it and are also where the Bishops resides. They serve as one of the holiest places of worship for Christians, but why?†¦show more content†¦This immediately gives Seville a heavenly appeal considering that most buildings at the time had very few aspects about them pointing skyward and if they had some they were for architectural purposes and not exaggerated. This would give anyone at that time the impression that their religion is the only true religion and that they should have faith because the will of their God is what built it; it would also give any none practicing individuals a jaw dropping sense of aw since no religion before had created buildings like this on a mass scale as the cathedrals were being built in the gothic era. This promoted more faith and belief in Christianity through the glorification of a place of worship and contributed greatly to the growth of the religion. All citizens of that day and age would have most certainly over looked the fact that while this building glorifies their religion in a way that no idea had been glorified before, their generous leaders name would be the most common name associated with this most holy of buildings followed by the name of the Holy Virgin Mary, not the other way around. After all, this Cathedral was a raw display of wealth and power to put the Hagia Sophia, the previous worldâ₠¬â„¢s largest cathedral at the time, in its place while maintaining approval of the church, a most powerful influence on the selection of the emperor. While these two buildings were both really different, they both shared some of the same aspects:Show MoreRelatedThe Philippine Architecture: Spanish Colonial Period18287 Words   |  74 Pagesmain four classifications of each were the Military architecture which made the Philippines to have watchtowers, fortresses, and other structures that served as defenses; Religious Architecture which focuses on the building of the churches for the Christianity purposes; Domestic Architecture which caused the evolution from bahay kubo to bahay na bato into the idea of Arquitecture Mestiza; and lastly, Civil Architecture which involves structures needed in running the city. Spanish Colonial Intent inRead MoreUt Unum Sint25504 Words   |  103 PagesEncyclical of Pope John Paul II promulgated on May 25, 1995 CONTENTS INTRODUCTION CHAPTER I - THE CATHOLIC CHURCHS COMMITMENT TO ECUMENISM Gods plan and communion The way of ecumenism: the way of the Church Renewal and conversion The fundamental importance of doctrine The primacy of prayer Ecumenical dialogue Local structures of dialogue Dialogue as an examination of conscience Dialogue as a means of resolving disagreements Practical cooperation CHAPTER II - THE FRUITS OF DIALOGUE Brotherhood rediscovered

CSL Ltd and Macquarie Group

Question: Discuss about the CSL Ltd and Macquarie Group. Answer: Introduction The future aspiration of the organisational leader is driven by the vision and mission statement of the firm. The vision statement articulates a broad conceptualization regarding the future destination of the organisation (Minoja, 2012). On the other hand, the mission statement is considered different than the vision statement, as it depicts the immediate future of an organisation and delineates the reason for the existence of the firm as well. In this regards, Klettner, Clarke and Boersma (2013) stated that the vision and mission statement builds the values of the organisation, which drives the overall management functions of the firm as well. Also, Cordeiro and Tewari (2014) mentioned that the corporate social sustainability builds responsiveness and accountability of the brand within the global business environments. Farooq, Aguenaou and Amor (2015) also stated that organisational value statement guides to create decisions and goals to meet the vision of the organisation. Considering the fact, the current study attempts to identify the vision or mission statement of two different firms from two different industries considering the case study of CSL Limited and MACQUARIE GROUP. At the outset of the survey, a comparison has been made of various values of both the firms. The study also covers the corporate social responsibility conducted by the current organisations and ends with the evaluation of stakeholder accountability in the business growth of both the firms. Vision or mission statement of CSL and MACQUARIE GROUP MACQUARIE GROUP: The MACQUARIE GROUPs vision statement is to bring together all the investments of the stakeholders into a single and integrated digital tool to help the clients efficiently manage individual wealth. The vision statement of the firm is as follows: The brand will never compromise with the standards. The company took the responsibility for all actions and managed potential integrity to maintain and honour promises. It has been identified that the vision is to maintain the courage to speak up when a mistake arises from the internal operation of the firm (www.macquarie.com, 2016). Opportunity, accountability and integrity are the original code of conduct of the brand. The overall brands approach is based on the three long-held principles. The overall analysis states that the vision of the Macquarie Group is smart, measurable, achievable and realistic as well. The SMART goals are qualitatively measurable. CSL Limited: The core values of CSL Limited are to provide safe and efficient products. The vision of the firm is as follows: Customer focus is the original image of the company. In this context, Elias and Tucunduva Philippi (2015) stated that the company works hard to keep the trust level of the customers. Also, managing brand innovation is also another important vision of the enterprise. Promoting safety and supporting technological innovation to improve service quality have become one of the images of the business. Integrity and outstanding commitment to the transparency across all communication levels are considered one of the heritage visions of the firm CSL Limited (www.csl.com.au, 2016). Managing long-term collaboration with all stakeholders is seen as a major vision of the enterprise. It also helps the company managing a superior performance regarding producing high-quality products and innovative services. The current vision statement of CSL Limited is aligned with each component of the SMART goals. The vision is smart, measurable and achievable. At the same time, the vision elements are realistic and timely achievable as well. The vision statement analysis for both the firm indicates that CSLs vision statement is better than the enterprise MACQUARIE GROUP. Values of CSL and MACQUARIE GROUP CSL Ltd emphasises to provide the standardised marginal products that help the consumers to improve the health conditions. In the circumstance of the present context, Brennan (2010) mentioned that the brand invests around US$460 million over the RD team in order to discover the specific drugs that can easily be the solutions of the high chronic diseases. The corporate value of CSL is highly specific and time bound. Morsing and Roepstorff (2014) mentioned that since, the brand deals with the pharmaceutical products, therefore, it is the exclusive responsibility of the management to ensure the primary safety of the consumers. Hence, CSL focuses on the plasma-derived and the recombinant products to reduce the side effects of the medicines. CSL works in an organised manner, and the activities are planned for the short tenure, which helps the enterprise to attain the corporate objectives. However, MACQUARIE GROUP emphasises on providing all possible diversities to its employees, which influence the internal members to increase both the professional and the personal expertise. Cordeiro and Tewari (2014) mentioned that the management believes in providing widespread flexibilities with its staffs. Through the specific action, the management manages to increase the motivational aspects of the employees. The value creation strategy of MACQUARIE GROUP is recognised to be achievable. CSR (Corporate Social Responsibility) activities performed by CSL and MACQUARIE GROUP The CSR activities of CSL In the framework of the current subject, Farooq, Aguenaou and Amor (2015) mentioned that CSL is continuously improving its protein-based therapies to develop the new medicines that prevent the serious human illness. The RD (Research and Development) actions are led by the Chief Scientific Officer (CSO). According to Klettner Clarke and Boersma (2013), CSL is majorly committed to the RD activities in a responsible manner. The particular approach ensures the quality of the research project, which confirms the safety, well being and an active clinical trial of the patients. Minoja (2012) determined that the CSL ensure an operating responsibility in the marketplace by marketing the medicine in an ethical manner. The enterprise is committed to offering accurate and balanced information to its healthcare professional and governments. Through the particular action, the company seeks to receive adequate support from the government to provide best possible care to its patients. According to E lias and Tucunduva Philippi (2015), the CSLs CSR activities is highly realistic, as the production process, packaging and the medicine transportation action generate greenhouse gas emission. The CSL team performs sustainable practices to minimise the environmental impacts. The CSR activities of MACQUARIE GROUP Morsing and Roepstorff (2014) mentioned that the environmental impact of the brands operations, predominantly relate to the resources the brand uses within the offices, data centres and the air travel. The management of MACQUARIE GROUP managed the environmental impact of monitoring and limiting the resource use. The brand includes the energy efficiency measures, data centre virtualization, water management and waste recycling programs. In the similar instance, Farooq, Aguenaou and Amor (2015) specified that the MACQUARIE GROUP is committed to conducting the business by the applicable regulations and laws of the regional governing authority. Thus, assessing the above activities, it could be perceived that the CSR actions initiated by the brand are highly accurate. The enterprise provides all possible diversities to its employees to utilise the potential growth within the workplace. Evaluating the above context, a perception is derived that the CSR activities of CSL Ltd are far more specific and measurable that MACQUARIE GROUP. The CSR action of CSR is far more organised and planned than MACQUARIE GROUP, which helps the enterprise to achieve its corporate objectives efficiently. Stakeholders feedbacks in the corporate statement The stakeholders feedbacks are analysed below: As per the annual report of the firm, the company has consistently achieved the growth through the process execution and the business strategy. In the opinion of Horisch et al. (2015), investing in research and development to make advance the medical therapies is the core portfolio of the firm that expands its market share. The report of the stakeholders specifies that the relentless commitment of the organisation increases its productivity and efficiency. Thus, it could be deduced that the specific goal of the firm is completely measurable, and it is achievable in the every sector of its activities. Furthermore, the life saving and life-enhancing therapies of the company acts in a sustainable and responsible way to illustrate the tangible commitments (Jung et al. 2015). Therefore, as per the opinion of the stakeholders, the trademark rules and labels of the firm is entirely realistic. Adding to this, the CSR (Corporate Social Responsible) approach of the firm highlights the social, environmental and economic performance of the company that assists in drawing the attention of the stakeholders towards the firm. Considering the opinion of Corno and Razzak (2012), the continuous growth of the biopharmaceutical company reflects that the health and safety performance of the company completes within the projected time. Therefore, it could be identified that the overall activities of the firm are also aligned with the timely factor and also completely achievable to influence the organisational goal. Macquire Group The annual report of the MACQUIRE GROUP indicates that the firm supports the entire community where it operates. According to the opinion of Corno and Razzak (2012), the global finance service provider firm is expertise to cover the capital market, funds management, asset financing and retail financial services. Thus, the specific goals of the firm are completely aligned with its operations. As per the stakeholder's reports, the diversified functionality of the enterprise, strong capital position and the robust risk management process has contributed to enhancing the profitability record of the firm (Husted and Allen, 2010). Therefore, the measurable and achievable attribute of the SMART objectives of the firm has been identified. Furthermore, the sustainable shareholder value to meet the stakeholders expectations is an example of the sound corporate governance of the firm. The management of the MACQUIRE GROUP is capable of encouraging the employees and business opportunities while o perating in a strong risk management framework (Noddings, 2007). Hence, the timely and realistic attribute has also been founded to the business performance of MACQUIRE GROUP and as well as with the stakeholders feedbacks. Conclusion The primary assertion of the study indicates that the overall management process of the two firms named, CSL Ltd., Australia and the MACQUIRE GROUP. As per the research on the current context, it has been observed that the commitment of the CSL Ltd., Australia is to save the lives and improve the quality of peoples life. The firm is focused on fulfilling the customers requirements. On the other hand, the opportunity, accountability and integrity are the three major factors of MACQUIRE GROUP. The purpose of this firm is to realise the opportunity and the benefits for the clients, shareholders and the other business entity. While conducting the research, the research associate has analysed that both the chosen firms are in the stable position to meet the specific objectives with SMART goal attribute. Thus, it could be inferred that the business of the two different industries are in the profitable state to achieve the long-term goal. Reference: Brennan, D., 2010. Corporate social responsibility: The corporate governance of the 21st century. 2nd ed. Netherlands: Kluwer Law International. Cordeiro, J.J. and Tewari, M., 2014. Firm characteristics, industry context, and investor reactions to environmental CSR: A Stakeholder theory approach. Journal of Business Ethics, 130(4), pp.833849. Corno, F. and Razzak, F., 2012. Intelligent energy optimization for user intelligible goals in smart home environments. IEEE Transactions on Smart Grid, 3(4), pp.21282135. Elias, M.F. and Tucunduva Philippi, S., 2015. Mission, vision, and corporate values. Organizational Cultures: An International Journal, 13(4), pp.1526. Farooq, O., Aguenaou, S. and Amor, M.A., 2015. Corporate social responsibility policy and brand value. Journal of Applied Business Research (JABR), 31(6), pp.2013. Horisch, J., Schaltegger, S. and Windolph, S.E., 2015. Linking sustainability-related stakeholder feedback to corporate sustainability performance: An empirical analysis of stakeholder dialogues. International Journal of Business Environment, 7(2), pp.200212. Husted, B.W. and Allen, D.B., 2010. Corporate social strategy: Stakeholder engagement and competitive advantage. Cambridge, UK: Cambridge University Press. Jung, K., Morris, K.C., Lyons, K.W., Leong, S. and Cho, H., 2015. Mapping strategic goals and operational performance metrics for smart manufacturing systems. Procedia Computer Science, 44(5), pp.184193. Klettner, A., Clarke, T. and Boersma, M., 2013. The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy. Journal of Business Ethics, 122(1), pp.145165. Limited, C., 2016. CSL Ltd is a leader in plasma protein biotherapeutics. Available at: https://www.csl.com.au/about [Accessed 11 August 2016]. Limited, M.G., n.d. Personal. Available at: https://www.macquarie.com/au [Accessed 11 August 2016]. Minoja, M., 2012. Stakeholder management theory, firm strategy, and Ambidexterity. Journal of Business Ethics, 109(1), pp.6782. Morsing, M. and Roepstorff, A., 2014. CSR as corporate political activity: Observations on IKEAs CSR IdentityImage dynamics. Journal of Business Ethics, 128(2), pp.395409. Noddings, N., 2007. Aims, goals, and objectives. Encounters/Encuentros/Rencontres on Education, 4(1), pp.122125.

The Iranian

The Nuclear race between Iran and Israel has been an ongoing conflict of low intensity for decades. It has been a long time since it became apparent that this strain will always fuel the instability in Middle East region, and remain a particular concern for the GCC states and especially UAE. It is obvious that the stability or the balance of powers can never be achieved as long as both states, Iran and Israel, continue to compete for victory in the arms race.Advertising We will write a custom essay sample on The Iranian-Israeli Nuclear Race and Its Implications on the GCC/UAE Security specifically for you for only $16.05 $11/page Learn More A distinct sense of insecurity keeps growing among the countries of the Gulf region, and such awareness will definitely have its implications on the neighbor countries. For some time already the UAE has been voicing its concerns about the region’s instability, although in the past few years it has moved from to lerant and patient rhetoric to a more apprehensive attitude and bold statements, along with the fellow countries of GCC. The combination of these factors and the cited arguments allow to come to a definite conclusion regarding the need for UAE to reshape the programs of military security and place greater focus on foreign policy and relations between the countries, as well as turning attention to its own nuclear program, not for militarization or entering a new round of arms race, but merely for preserving the balance of power in the region and making explicit its intentions to resist any threats. A thorough background research has shown that the nuclear programs of both countries have been influencing not only the Middle East Region but the political life and international relationships all over the world for at least three decades. It is well known that Israel has neither denied nor confirmed the fact that it has constructed or possessed the nuclear weapons. However, the implicati ons of possession of a nuclear arsenal and its estimated numbers have varied from year to year, with the last probable assessment of the Federation of American Scientists has been of 80 missiles by 2015, although Israel might have produced enough plutonium for 100-200 warheads (par. 4-18). The Israeli scientific nuclear program is based on the use of a nuclear reactor and reprocessing plant in Dimona, Israel. The government of Israel has acknowledged the existence of plant site; however, it is not willing to disclose any details, and the information remains classified. Such policy has been also known as the so-called â€Å"nuclear ambiguity,† which Israel has maintained throughout its history. Another way of dealing with the tension in the region for Israel lies in applying significant efforts to prevent neighbor countries from acquiring the nuclear weapons or developing the nuclear programs. Most of these efforts have been definitely aimed at Iran, as Israel has been warning that a nuclear Iran will become a threat not only to the Jews, but it would also threaten the safety of all the GCC countries and might provoke a new round of the arms race. The anxiety of the Israelis is easy to understand; however their strategies are unable to solve the threat of the nuclear dilemma, moreover, they may worsen it in some ways. Despite the deep Israel-US cooperation, according to a report on Israel policies by Haim Malka (2012),Advertising Looking for essay on international relations? Let's see if we can help you! Get your first paper with 15% OFF Learn More The strategies†¦ [of] deterrence, containment, and entente, as well as a military strike†¦ [do not] solve the threat of a potentially nuclear threat. Every strategy poses complicated dilemmas for Israel and the United States, which means that managing Israeli expectations and actions will become more complex in the months and years ahead. (61) The nuclear status of Iran is as indefinite as Israel’s, but it has always evoked greater interest and concern. According to a report on Iranian nuclear program, for scientific and nuclear energy purposes the country now possesses two uranium mines, uranium processing facilities that include at least three uranium enrichment plants, a research reactor and several research sites (Kerr 1-5). The same research also notes: Although Iran claims that its nuclear program is exclusively for peaceful purposes, the program has generated considerable concern that Tehran is pursuing a nuclear weapons program†¦ [The IAEA] has concerns about the program, particularly evidence that Iran may have conducted procurement activities and research directly applicable to nuclear weapons development. (Kerr 1) The abovementioned facts can be used to describe the roots of the problem in its entirety. The two advanced and covert nuclear programs create major regional instability and pose a severe security threat to the GCC states and the U AE in particular. At the same time, the only thing opposed to the threat and used to maintain the delicate power balance in the region is the US liability to provide conventional weapons and a â€Å"nuclear umbrella† for Israel only, even while Israel itself believes that such deterrence system should, in fact, be extended to Gulf allies (Malka 57). This means that neither UAE nor any of the GCC states own a nuclear program for deterrence use and have no way to defend them or compete with the previously mentioned military programs of Iran and Israel. The analysis of the current situation shows that the Iranian – Israeli nuclear holocaust is not much likely to happen given the fact that modern Iran is not prone to taking significant risks, and it does not want to enter international isolation again as its economy and international relations have just started evolving after long years of boycott and deteriorating relations between Iran and the Western Countries in partic ular. Yet the Iranian official speeches do not hesitate to express aggressive strategies and the government shows its willingness to use its weapons against any threats posed by Israel, both real and speculative.Advertising We will write a custom essay sample on The Iranian-Israeli Nuclear Race and Its Implications on the GCC/UAE Security specifically for you for only $16.05 $11/page Learn More Iran struggles to be introduced to the world as the only Muslim country who can give Israel a fitting reply, and therefore it will be able to act as major power in the Middle East region and to play the role of the guardian for GCC states, which may serve their expansionist ambitions in compliance with their religious and cultural Shiite doctrine. A policy paper on Iranian doctrine states the following: Iranian centrality has created a vision for Tehran’s regional role that does not follow the known rules of the international order; instead, it is based on transnational doctrinal discourse and policies to â€Å"create a Shiite nation† with Iran as its center and political term of reference. Thus, Iran resembles Israel only, which also sees itself as a state for world Jews. (Emirates Policy Center 65) Thus, it is obvious that Iran can become a source of greater instability than Israel now, meaning that the UAE and GCC should contain the Iranian role in the Gulf region for the sake of maintaining the balance of power. While according to a research conducted by Alireza Nader, the Iranian attempts to undermine the stability of the UAE socio-political system have been unsuccessful, and the domestic intelligence has deterred the attempts to do so, the Iranian threat to the GCC countries should not be completely dismissed; while the acquisition of the nuclear weapons will not change the equation dramatically, the balance will be disrupted (14-16). The recommended policies for dealing with an acute topic of nuclear safety in the Middl e East region should include at least a few different options to address every aspect of the problem. First of all, it is important to establish a distinct foreign policy concerning the relations with Iran and Israel, which should not be threatening but rather warning and showing the calm and confident strength and determination. The GCC countries must turn away from the accusation discourse and seek rapprochement with both Israel and Iran, under a condition that such policies will be reciprocated. Another recommendation might involve UAE taking advantage of its already established nuclear program. The information provided in a report by Karim Sadjadpour and Ali Vaez shows that â€Å"the UAE signed a landmark contract with a Korean-led consortium †¦ to construct four nuclear reactors†¦ The UAE has sought to become a nonproliferation model by †¦ ratifying the Additional Protocol to its IAEA safeguards agreement †¦ [and] renouncing †¦ to enrich uranium or rep rocess spent fuel† (22). For purposes of maintaining a secure nuclear program that could be used in the future if there is any need to develop a deterrence weapon, the UAE should gain the International community support to her nuclear program and subsequently invest in nuclear technology for safety.Advertising Looking for essay on international relations? Let's see if we can help you! Get your first paper with 15% OFF Learn More Works Cited Emirates Policy Center. The Doctrinal Foundations of Iran’s Geopolitical Project. Abu-Dhabi, UAE: Emirates Policy Center (EPC) Iranian Studies Unit, 2014. Print. Federation of American Scientists. â€Å"Status of World Nuclear Forces.† 2015. Web. https://fas.org/issues/nuclear-weapons/status-world-nuclear-forces/ Kerr, Paul K. â€Å"Iran’s Nuclear Program: Status. Congressional Research Service Report for Congress.† 2012. PDF File. 04 Dec. 2015. https://fas.org/sgp/crs/nuke/RL34544.pdf Malka, Haim. â€Å"Israel.† Gulf Kaleidoscope: reflections on the Iranian challenge. Ed. Jon. B. Alterman. Washington, DC: Center for Strategic International Studies, 2012. 49-61. Print. Nader, Alireza. Iran After the Bomb: How Would a Nuclear-Armed Tehran Behave? Santa-Monica, CA: RAND Corporation, 2013. Print. Sadjadpour, Karim, and A. Vaez. Iran’s Nuclear Odyssey. Costs and Risks. Washington, DC: Carnegie Endowment for International Peace, 2013 . Print. This essay on The Iranian-Israeli Nuclear Race and Its Implications on the GCC/UAE Security was written and submitted by user Haylee Michael to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Ozone Depletion essays

Ozone Depletion essays Stratospheric ozone depletion is a worldwide concern that has been addressed by several international organizations. Ozone depletion characterize the environmental problems we as humans face today; it is global and the direct, however unintended result of human industry and if not regulated can cause catastrophic effects; affecting humans and everything that lies upon the earth. Ozone is a bluish, reactive gas, whose molecule is made by three oxygen atoms. Nearly 90% of the Earth's ozone is situated in the stratosphere, the atmosphere layer between 10 to 40 kilometers above Earth's surface, where it is continuously generated and destroyed by the UV radiation. (6) The ozone forms from the action sunlight on oxygen. This action has been taking place for many millions of years and naturally occurring nitrogen compounds in the atmosphere apparently have kept the ozone levels at a stable state. Only a small portion of ozone is in the troposphere, the internal atmospheric layer. Ozone was first noticed around 1956 in at Halley Bay, Antarctica. Soon, an English scientist gave the term ozone depletion. His observation showed that acidic precipitation damages things. Chemicals that react with the oxygen atom temporarily freed whenever an ozone molecule breaks apart. (2) The only ozone destroyers of concern are those that can participate in a catalytic cycle that is, where one trace catalytic chemical can be responsible for destroying tens or even hundreds of thousands of ozone molecules. (5) There are more than a dozen of catalytic cycles that influence the stratospheric ozone at different altitudes. The most effective cycles involve chlorine (Cl), bromine (Br), nitrogen oxides (NOx) and hydrogen oxide radicals (HOx). Natural catalytic cycles involving NOx and HOx have historically helped keep ozone levels in the atmospheric stable. (6) Various human activities have released ozone-destroying chemicals int...

Understanding Where Money Goes in the Stock Market

Understanding Where Money Goes in the Stock Market When a stock market price for a company suddenly takes a nosedive, a stakeholder may wonder where the money they invested went. Well, the answers not so simple as someone pocketed it. Money that enters the stock market through investment in a companys shares stays in the stock market, though that shares value does fluctuate based on a number of factors. The money invested initially in a share combined with the current market value of that share determine the net worth of shareholders and the company itself. It may be easier to understand this given a specific example such as three investors - Becky, Rachel, and Martin - entering the market to buy a share of Company X, wherein Company X is willing to sell one share of their company in order to increase capital and their net worth through investors. An Example Exchange in the Market In this scenario, Company X has no money but owns one share that it would like to sell the open exchange market while Becky has $1,000, Rachel has $500, and Martin has $200 to invest. If Company X has an Initial Public Offering (IPO) of $30 on the share and Martin buys it, Martin would then have $170 and one share while Company X has $30 and one less share. If the market booms and Company Xs stock price goes up to $80 per share, then Martin decides to sell his stake in the company to Rachel, Martin would then exit the market with no shares but up $50 from his original net worth to now total $250. At this point, Rachel has $420 left but also acquires that share of Company X, which remains unaffected by the exchange. Suddenly, the market crashed and Company X stock prices plummet to $15 a share. Rachel decides to opt out of the market before it goes any further down and sells her share to Becky; this places Rachel with no shares at $435, which is down $65 from her initial net worth, and Beck at $985 with Rachels stake in the company as part of her net worth, totaling $1,000. Where the Money Goes If weve done our calculations correctly, the total money lost has to equal the total money gained and the total number of stocks lost has to equal the total number of stocks gained. Martin, who gained $50, and Company X, who gained $30, have collectively gained $80, while Rachel, who lost $65, and Becky, who is sitting on a $15 investment, collectively lost $80, so no money has entered or left the system. Similarly, AOL’s one stock loss is equal to Becky’s one stock gained. To calculate the net value of these individuals, at this point, one would have to assume the current stock exchange rate for the stake, then add that to their capital in the bank if the individual owns stock while subtracting the rate from those who are down a share. Company X would, therefore, have a net value of $15, Marvin $250, Rachel $435, and Beck $1000. In this scenario, Rachels lost $65 has gone to Marvin, who gained $50, and to Company X, who has $15 of it. Further, if you change the value of the stock, the total net amount Company X and Becky are up will be equal to $15, so for every dollar the stock goes up, Becky will have a net gain of $1 and Company X will have a net loss of $1 - so no money will enter or leave the system when the price changes. Note that in this situation nobody put more money in the bank from the down market. Marvin was the big winner, but he made all his money before the market crashed. After he sold the stock to Rachel, hed have the same amount of money if the stock went to $15 or if it went to $150. Why Does Company Xs Value Increase When Stock Prices Fall? It is true that Company Xs net value does go up when the stock price goes down because when the price of the stock plunges, it becomes cheaper for Company X to repurchase the share they sold to Martin initially. If the stock price goes to $10 and they repurchase the share from Becky, they will be up to $20 as they initially sold the share for $30. However, if the stock price goes to $70 and they repurchase the share, they will be down $40. Note that unless they actually make this transaction Company X does not gain or lose any cash from changes in the share price. Lastly, consider Rachels situation. If Becky decides to sell her share to Company X, from Rachels perspective it doesn’t matter what price Becky charges Company X as Rachel will still be down $65 no matter what the price. But unless Company actually makes this transaction, theyre up to $30 and down one share, no matter what the market price of that share is. By constructing an example, we can see where the money went, and see that the guy making all the money made it just before the crash happened.

Financial Markets and Institutions Essay Example | Topics and Well Written Essays - 1500 words

Financial Markets and Institutions - Essay Example Financial intermediaries have played a major role the development and growth of the world’s economy. The financial institutions such as banks and other financial institutions such as microfinance institutions, investment ventures, and Sacco’s provide funds for the development of businesses operations. The Financial intermediaries help investors to save to improve their living conditions. For example, finance institutions give loans to small enterprises and individuals who make take less risky loans but give high returns in terms of interest rates. These returns are used to provide loans for other investors. Banks and credit unions take money that has been saved and use the money to give loans to investors; mutual funds take contributions from a group of investors and invest in a high investment requiring assets which individual investors would not have been able to invest in alone thereby spreading the risk. Financial intermediaries that encourage savings include retire ment benefits institutions, housing finance institutions, insurance companies, and mutual funds where members of the public are encouraged to save for their old ages, investment purposes, and better housing. In a country where a culture of savings and borrowing is encouraged there is a significant change in the living standards of the citizens leading to development and growth of the country’s economy in general. The financial institutions encourage savings while using those savings to lend out to the individuals or the organizations that want to borrow money to invest. Financial intermediaries receiving capital from those willing to invest and in turn disbursing it to those willing to borrow capital achieve this. Allen and Santomero (1999, pp. 1-42) reported that financial intermediaries play a role in providing an avenue for organizations to access the financial markets. Financial intermediaries have been known to undertake underwriting and acting as agents to the stock exc hange. When financial intermediaries undertake underwriting they are able to market the shares and other instruments on behalf of their clients as well as advise their clients on the best offer that they can attain maximum capital. The Financial intermediaries provide a channel to the financial market to their clients through underwriting. Financial intermediaries also play a role in providing credible information to their clients. The Financial intermediaries are able to represent their clients in the market by providing consultative services about the stock market. Most banks in the twenty first century have formed a different department that deals with stock market consultative services. The financial intermediary investigates for the best possible investment venture for its clients both individuals and organizations. This accrues a fee to the clients who pays the financial intermediary for the services offered (Allen & Santomero 1999, pp. 1-42). Consequently, Allen and Santomero (1999, pp. 1-42) documented that financial intermediaries reduce the lending risks upon utilizing its lending services. There are many syndicates and pyramids in the economy who want to exploit individuals and organizations by providing loans at very high rates. The financial intermediaries have been created by law and are governed by the government through the central bank. The law ensures that all financial intermediaries use a lending rate that does not exploit the members of