Music of the 20th Century Essay

In this history of music and arts, every period has its own characteristic style which is associated with the society from which it originated. The period of the 19th and 20th century perceived the two world wars, and had been a period of many changes: advancement in technology, a period of many inventions such as the telephone, television, electronic light, computers, cassette tapes, synthesizers, CD players, and many others. Because of this inventions, experimentations were made in the field of music and arts. Claude Debussy (1862-1918) He studied with Guiraud and others at the Paris Conservatoire and as prizewinner went to Rome, though more important Impressions came from his visits to Bayreuth and from hearing Javaneese music in Paris. Debussy and Impressionism The Impressionist style of painting developed in the late 19th century in France. Although the Impressionist movement did not exclusively consist of French artists, it did start in France and the French painters are among the most well-known. Several earlier artistic movements, such as Classicism and Realism, influenced the Impressionist painters. In 1855, a World Fair was held in Paris, and art was given significant attention. This contributed to Paris’ reputation as the center of the art world and the place to be for aspiring painters, such as the group that would come to be known as the Impressionists. Impressionism is a style borrowed from painting which creates an illusion of light and atmosphere by using colors side by side instead of blending them. The artist avoids realism in favor of conveying impressions. Nocturnes Achille-Claude Debussy, 1862-1918, Nocturnes. Completed December 15, 1899 (at 3 a.m., according to an inscription on the manuscript), first performance October 27, 1901, in Paris. Scored for 3 flutes, 2 oboes, English horn, 2 clarinets, 3 bassoons, 4 horns, 3 trumpets, 3 trombones, tuba, cymbals, snare drums, tympani, 2 harps, female chorus, and strings. 1. Nuages- (Clouds) Debussy pictures the sky with slow and melancholy passages of clouds. The warmth of Nuages recalls a summer love affair. 2. Fetes- (Festivals) is a restrained yet joyous celebration, the sort that generates lifelong memories without ever disturbing the neighbors. 3. Sirenes- (Sirens) builds on a simple two-note motives to seduce the listeners into Debussy’s river, just as dangerously as the mythological beauties who have lured innumerable sailors to their doom over the centuries. The Music of Bela Bartok Bela Bartok (1881-1945), a Hungarian, is considered a famous progressive modern musical composer, a great pianist, teacher and researcher. He was one of the leaders of Hungarian nationalism and made use of the Hungarian folk tunes in his music. Just like Stravinsky, he was one of the composers who belonged to the movement of Neo-Classicism: a return to the simplicity of Classicism and combining of modern sound with classic form. His style is characterized by rhythms which are percussive and intricate because of the influence of the Hungarian dance patterns. He used polyrhythm, which means using two or more different rhythms played at the same time. In some of his compositions like â€Å"Six Dances in Bulgarian Rhythm, no.1†, you will notice the irregular grouping of beats. Polytonality, which is the simultaneous combination of two or more tonalities in a composition, can also be found in Bartok’s compositions. Antonio Molina and Impressionism Dr. Antonio Molina (1894-1980) was one of the 20th century composers who wrote art music. He was considered the â€Å"Claude Debussy of the Philippines† because he was the first to introduce several important devices, technically characteristics of impressionism in music. One of Molina’s popularly known, compositions is â€Å"Hatinggabi†. Another composition of Molina is â€Å"Dancing Fool†. In this composition, he made use of the whole tone scale and used it as a descriptive device. Schoenberg and Expressionism Arnold Schoenberg (1874-1951) Austrian composer, Schoenberg’s development of the twelve-tone method of composition was a turning point in the 20th century music. He was a self taught musician. Another philosophy of art which affected the music of the 20th century is expressionism. It is a style which seeks to express emotion with exaggerations rather than represent the physical world. The followers of the movement believe that this world is full of tension, and people are irrational, rebellious and scared to be alone. Expressionism Many of the 20th music reflects an artistic movement called expressionism, which stress intense and subjective emotion. Painters, writers, and composers explored inner feelings rather than depicting outward appearances. The expressionists rejected conventional prettiness. Arnold Schoenberg was known for the radical sound of his music. In this song cycle, â€Å"Pierrot Lunaire†, he made use of different style of singing which is called Sprechstimme. Pierrot Lunaire calls for unusual style of vocal performance halfway between speaking and singing. Sprechstimme Literally it means speech voice. It is a manner of performing a song which sounds half-sung and half-spoken. Multimeter is identified, by the time signature, a fractional symbol in which the numerator specifies the number of beats per bar, and the denominator specifies the relative note value assigned to one beat. Syncopation (Accent) the suppression of an expected rhythmic accent by the continuation of an accented tone that begins just before it. The Music of Stravinsky Igor Stravinsky (1882-1971) A Russian composer, later of French (1934) and American nationality. Stravinsky was regarded as the world’s greatest composer. His once revolutionary works were modern classics. Like Debussy and Schoenberg, Stravinsky a composer from Russia, was also one of the 20th century composers who established new trends in music, instead of just using the new trends in his music, he combined the traditional and modern trends. Electronic Music Music that requires knowledge or use of electronic devices to produce or manipulate sounds during its composition and performances. With the advancement in technology, many composers are experimenting new sound sources such as electronic, environmental and other non-tonal sound. Traditional instruments are used but in different way. Even computers, cassette tape recorders, and synthesizers are used. Concrete Music Music created by reworking natural sounds recorded on discs or tapes. Filipino Contemporary Composer Nicanor Abelardo (1893-1934)- Our foremost Kundiman composer also showed the elements of modernism in his music. This is heard in his â€Å"Cinderella Overture† and â€Å"Sinfonietta for Strings† Dr. Lucrecia Kasilag (1918-)- Neo-classicist. The music of Kasilag is unique in which she was able to combine the music of the east and west. This is shown in her Tocatta (1958) were she made used of the piano, clarinet, oboe kulintang and turiray. The Kuiliontang is very prominent in her â€Å"Concert Divertisement†. Dr. Jose Maceda (1917-)- is the pioneer and exponent of avant-garde music in our country. When he was in France, he joined the Music Concrete movement. An example of his work is â€Å"Ugnayan†(1974). Most of Maceda’s composition make use of a large number of people and the environment. Dr.Ramon Santos (1941-)- Another way of combining western and non-western materials and structures is shown by Dr. Ramon Santos. He made use of Asian material in his new way of composing. We will hear in his composition new concept and system of composing which he learned from his studies abroad. At present there is a group of young composers who are active in promoting this so called New Music. Some of them are Ryan Cayabyab, Chino Toledo, Laverne Dela Pena, Arlene Chongson,and Jonas Baes.

Be An Anthropologist

1. The concept of descent with modification, or evolution, has a great deal of evidence in its support. Indicate the major types of evidence? The concept or idea that species change and evolve into new and different species was described and was an established concept in Darwin's day this was described as descent with modification. The Concept of descent with modification has major evidence in support, in fact we no longer refer to the this adaption as descent with modification, rather it is now called biological evolution. According to our text species of living things are related in some fashion similar to a branching tree.However the process is not quite that simple adaption relies on several processes and to prove this or the evidence used to confirm this is ecology. Science uses the habitats of living organisms to explain the relationships between the organisms. Secondly scientists uses the concept of niche which is the adaptive response to an environment. In addition to this in formation science uses geological and fossil records to explain the changes and diversity that have happened between species over time,through the concepts of natural selection. Scientists believe each fossil is a piece of evidence about the way species adapted and the changes that took place over a period of time.â€Å"Humans are Old World primates† Humans however have striking similarities as well as differences from that of the chimp or gorilla. For instance vision human vision is the same as any other diurnal primate meaning we clearly see the same as monkeys and apes. Our sense of smell is the same as that of the anthropoid primate or ape. Similarly our behavior patterns are closely resembled of most old world apes, humans live in societies that -are based on collective conscious responses of a group of individuals.However as I mentioned before humans also have significant differences from that of other primates, for instance human growth, maturity, and reproduction is c learly different humans birth twins one out of every two-hundred and fifty births, human babies are born far more helpless than any other primate species. Also non human primates mature much more rapid than that of a human. The human brain is far more larger that that of any other primate human brains are three-times the size predicted against human body weight thus a larger brain indicates human primates are more intelligent than that of other primates like monkeys, or apes.3. Distinguish between members of genus Australopithecus and Paranthropus in terms of time, location, and physical features The earliest known and accepted fossils are categorized as Australopithecus or the southern ape. A well known and famous fossil known as Lucy belongs to this fossil group, fossils of Australopithecus's have been found in areas such as Ethiopia, Kenya, Tanzania, Chad, and South Africa and are dated as far back as 4.2 – 2.3 MYA.These primates are known as bipedal apes meaning they walk ed upright, members of this primate group also had facial features that were apelike, had brains half the size of chimpanzees, and weighed on average of one-hundred and five pounds. It is thought these primates adapted to arboreal and terrestrial environments because dental exams of their teeth indicate a diet rich in vegetables, fruits, and leaves. On the contrary members of the Paranthropus primates have fossils that have also been recognized these fossils have been found in places like: Kenya, Tanzania, and South Africa which are dated as far back as2.8 – 1MYA. This species was thought to have been robust in terms of features relating to eating/chewing. It was discovered this species has a skull features that indicate important chewing muscles, broad dished out faces, and large cheek bones. All traits point to diets that consist largely of vegetables, fruits, and any other foods thought to be found in open areas.4. Explain why variation in skin color is of no use in defini ng human races.In trying to use information that I have learned over the course of the last few days, it would be no use in trying to define the human race based on skin color because all humans have essentially come from the same place meaning we have all developed through evolution. Basically my understanding was that people/ humans ultimately developed stronger or weaker pigment depending on where there lived after the evolved for instance darker people may have come from hotter places where a deeper or darker pigment was needed to protect a person from the sun. Or on the other hand a lighter person assumed lighter pigment because they did not live on a place so hot so their skin or pigment adapted to the area in which they lived.

Professional Abilities Essay

There are several organizations for each professional for example: teachers, social workers, accountants and business owners just to name a few. Then there are sororities and fraternities which consist of all of these professionals in one melting pot. The professional organization which I will describe in the paper is the National Association for the Education of Young Children (NAEYC). As an employee in a Child Care Facility being apart of this organization can help improve my career if I choose to become the director in a few months. The following paragraph describes the history of the organization and what it has done for the early childhood program. As a mother of 5 with 4 attending school in the public school system this organization is in the public eye and moving forward with efforts to improve the early childhood system and help teachers, parents and congress to understand how important our children’s education should be to us. I can join this organization and help to change laws that can have an impact for not only my children but also grandchildren, nieces, nephews and the children that attend my Childcare facility my eyes could be open to new information, meeting people from all aspects of life at the national meetings and even go to Washington DC to help influence them to increase the funding, or make changes to existing policies regarding early childhood education. NAEYC’s mission is to serve and act on behalf of the needs, rights and well-being of all young children with primary focus on the provision of educational and developmental services and resources. National Association for the Education of Young Children has become the nation’s premier organization for early childhood professionals—setting research-based standards and providing resources to improve early childhood program quality, enhance the professional development and working conditions of program staff, and to help families learn about and understand the need for high quality early childhood education. Through position statements, work with other organizations, and its national voluntary accreditation system, NAEYC has been the leader in promoting excellence in early childhood education for all young children from birth through age 8. NAEYC’s roots extend to the 1920s when professional researchers and educators began organizing nursery schools for young children. Concerned about the quality of the proliferating programs, Patty Smith Hill identified a multidisciplinary group of 25 individuals, among them Arnold Gesell, Lois Meek (Stolz), and Abigail Eliot, to consider the need for a new association. A public conference was held in Washington, DC in 1926. By 1929, the group was organized as the National Association for Nursery Education (NANE) and had published its first book—Minimum Essentials for Nursery Education. In 1964, NANE was reorganized as the National Association for the Education of Young Children (NAEYC). Also that year, the federal Head Start program was launched, focusing public attention on preschool education. In the early 1980s, concern about the quality of early childhood services available to the burgeoning numbers of families seeking child care and preschool programs for their young children led NAEYC to begin planning a national voluntary accreditation system for early childhood programs. NAEYC’s work in developing position statements and setting standards for different aspects of early childhood education continued throughout the 1990s. The National Institute for Early Childhood Professional Development focuses attention on improving the quality of preparation and ongoing professional development for teachers of young children by providing a place to learn from researchers about new developments and evaluations of pedagogy, curriculum, assessment, and teacher education. By its 75th anniversary in 2001, the association was engaged in a project to reinvent its accreditation system (scheduled to be fully implemented in 2006). Funding provided by a variety of contributors has been instrumental to the success of this effort. In addition, a comprehensive restructuring of its affiliate groups (most of which successfully re-affiliated in 2004) had also been launched. Interest Forums were established as a membership benefit in 2001 to encourage communities of learning on issues related to the NAEYC mission. Funding provided by the Doris Duke Charitable Foundation enabled NAEYC to establish the Supporting Teachers, Strengthening Families project to prevent child abuse and promote children’s healthy social development by helping teachers better communicate with families on difficult issues. The Association also adopted standards for professional preparation associate degree programs in early childhood education and launched plans to develop an accreditation system for these institutions. This effort has been generously supported by a number of contributors. The results of earlier efforts to build the Association’s policy presence are clearly visible in 2004. Affiliates and members receive training, technical assistance and resources to help them improve the capacity of their efforts to promote good public policies and investments in affordable, high quality early childhood education programs. NAEYC is recognized as a leading voice in Congress and in state capitols on what is needed to help improve early childhood programs and services for all young children and their families, ranging from child care and Head Start, to early elementary grade reading programs and appropriate assessment. Early childhood educators look to NAEYC for journals, books, and other resources that combine a solid research base and information and features that make them highly accessible and useful for practitioners, teacher educators, and policy makers. NAEYC Conferences continue to be the meetings that just can’t be missed, serving a critical convening function for the early childhood profession and providing a valuable professional development opportunity. Approaching its 80th anniversary, NAEYC is proud of its traditions, but also looks to the future. The Association is committed to becoming an ever more high performing inclusive organization that invites all individuals, families, communities and organizations to work together to improve the lives of all young children. They offer an Associate Degree Accreditation Program too many Universities that have programs in Early Childhood to make sure they are preparing their students for their career. They also offer Early Childhood professionals resources to improve their practice through training and professional development. After reading all the above information we should all be apart of this type of organization that cares greatly for the education system that our child (ren) participate in on a daily basis.

Human Behavior and the Environment Seminar UNIT 6 Research Paper

Human Behavior and the Environment Seminar UNIT 6 - Research Paper Example Nevertheless, the risk before such success is very thin. In other words, the study has ended into a conclusion that children with divorced parents stood either in a normal life or in a rebellious life. For example, a child, who had seen his or her parents within a marital conflict, has a tendency to lead a life under financial insecurities, failure in academic aspect, alcohol, cigarettes, and unemployment. Moreover, McLanahan would eventually point out the economic instability of households facing divorce as one of the main contributors of the adjustment deficiency of a child. In other words, the study claims that rebellious children are neither the cause nor reason of marital conflicts; rather, there is a huge possibility that 8 out of 10 rebellious children were products of marital conflicts. With such gravity of the consequences of marital conflicts, teenagers must be given value and a lot of understanding within their family and institutions they are into. Basically, most of their time when classes start was being spent in schools. During summer, holidays, or other vacations, most of their time was being spent together with their family. These times are very crucial and delicate. Hence, these moments must never be put to waste. In other words, these times will be beneficial if parents and institutions will put it in good use. Otherwise, such moments of development will pass by without emotional or psychological positive effects to the children. A lot of resources and studies were made in order to use such delicate time towards the development of each and every child. A lot of experts, such as the APA President Dr. Norine Johnson, have invited every parent to take time in reading various brochures that are full of information. Such information includes topics about adolescence, peers, self-esteem, sexuality, moods, preventing rebellion, and a lot more. These resources must be taken advantage in order to guide teenagers nowadays.

Experience when you have been the victim of the poison of Essay

Experience when you have been the victim of the poison of irresponsible power in your lifetime - Essay Example I remember many instances when he used his power to push people around or to make them do whatever he wanted them to do. As an intern, I was in the unfortunate position of being a workhorse. My boss particularly made sure that I was over worked at all times. I even had to perform some duties that were not mine so that my boss would not get angry and start calling me names. I remember one day I was late for work by five minutes. I had had to sit in traffic for close to three hours before I could get to work. The moment I entered the office, my boss came storming in, and started calling me names. I did not understand why he was in such a bad mood and yet I was only five minutes late. He did not give me a chance to explain myself, instead he went on and on about how lazy and irresponsible I was for neglecting my work. The truth is that I had no pending work for the day and I did not see why my boss had to react the way he did. In any case, I had always come to work early, in most cases, earlier than most of the other employees. That was the only day I was late, and he did not even give me a chance to exp lain myself. I thought that he was being unfair, but I feared him so much, there was nothing I could do to make him understand. In another instance, my boss came to work station and started shouting at me for no apparent reason. He complained that my work was poor and yet he had never companied before. The previous day, my immediate supervisor had commended a report I had done. Therefore, I was surprised that my boss found my work to be unsatisfactory. I had come to notice that it was his habit to pick on one of the junior stuff and berate them for small mistakes or accuse them of things that they had not done. To me, this was a form of bullying and what made it so bad was the fact that it was coming from the boss himself. In my view, it seems that he had no tolerance for other people and that is why he treated

Moral foundations Essay Example | Topics and Well Written Essays - 1000 words

Moral foundations - Essay Example It's easy to see where a moral misstep could be disastrous for any health professional. In order to mitigate these ethical conflicts, health professionals are held to strict codes of conduct and etiquette, as well as general laws about the treatment of patients and the protection of patient rights. However, there are many places where personal beliefs, codes of conduct, and law and policy are in disagreement. Beauchamp and Childress describe two major types of moral dilemmas that occur within the medical profession. The first type of moral dilemma occurs when there exists evidence that a specific action could be considered either right or morally reprehensible, but there isn't enough evidence to make the distinction. Beauchamps and Childress suggested abortion as an example of this type of dilemma; another example would be flag-burning (10). The second type of moral dilemma can arise when there are two possible courses of action for a health care professional. The obligations both ha ve equal moral weight under normal circumstances; however, in emergency situations, a set of obligations that must normally be obeyed can be ignored. The health care professional must choose a single course of action from multiple differing obligations. Because of the equal moral weight of the opinions on the action, whatever choice is used will always seem morally wrong to someone in some way, and seem right to others. (Beauchamp and Childress 10). The second type of moral dilemma given above leads directly to the idea introduced by Beauchamp and Childress that such dilemmas should be examined in order to determine the overriding set of moral actions in a given situation. It is up to the physician to decide the course of action which carries the greater moral weight and dismiss the other. These situations do not require that the physician must perform both actions, because, in many cases, that would be impossible, but they do cause an action that would otherwise be considered moral ly correct to be set aside. These sorts of conflicts between two sets of moral codes can seem impossible to work out if the relative moral weight of the two arguments is the same (Beauchamp and Childress 11). One reason for moral dilemmas in medical practice is the fact that many medical professionals are often given an exception from what would be considered correct behavior under the common morality. A special standard of morality applies to them which is sometimes in direct conflict with the general rules of morality (Beauchamp and Childress 3, 7). This double standard exists at least in part because medical professionals are professionals in a traditional sense, requiring special training and education in subjects that most of the public never receives. . This disagreement between general morality and special morality could cause the general public to believe that a medical professional is acting unethically for allowing some course of action that the public would not be able to also allow. Secondly, this discrepancy could cause a moral dilemma between a health care professional's private ethical and moral convictions, and the behaviors in his or her professional life that may differ from those private opinions. With regards to differences in moral standards for certain types of professionals, it is not that physicians and other health professionals are outside moral rules, but merely that they are held to standards appropriate for their status, also known as role obligations (Beauchamp and

Soviet Military and Nazi Research Paper Example | Topics and Well Written Essays - 3000 words

Soviet Military and Nazi - Research Paper Example In fact, the survival and prosperity of these countries depended entirely on the outcome of this war. It should be noted that previously, Adolf Hitler had signed a non-aggression pact with Stalin in order to safeguard Germany from a possible invasion from the Soviet Union.1 The Molotov-Ribbentrop Pact was signed in August 1939. This pact was an agreement that the parties were not to attack each other and in case one of the parties was to be attacked by a third party, the other country was to uphold neutrality. Also, this agreement secretly divided Europe into various spheres to suit the interest of Germany and Russia. The aggression of Germany under Adolf Hitler made it to gain control of large parts of Europe. By 1940, Hitler had conquered most of the European countries including France, Denmark, Norway, Luxembourg, Belgium and the Netherlands. In fact, Germany was in control of the entire Europe save for the Soviet Union and the United Kingdom. The Germans had succeeded to dislodge British army from most parts of Europe although they had not succeeded to make the United Kingdom surrender. After these swift victories, the Nazi army had become invincible. Hitler had the opportunity to force the United Kingdom into a peace agreement by putting up a naval and air siege against it. However, Hitler was untrusting of the Soviet Union and thought that Russians would offer assistance to the United Kingdom despite the non-aggression pact. Hitler made plans to wage war against the Russians with an aim of solidifying their power in the entire Europe and weakening any potential resistance from the United Kingdom. Notably, Hitler highly underestimated the military potential of the Soviet Union and he anticipated a quick and comprehensive win.3 The Nazi Army prepared for war against the Russians under the name of Operation Barbarossa in July 21, 1940. The operation was under the supervision of the renowned German military strategist General Frederick Paulus. In the preparat ory stages of the war, Hitler informed his generals that the aim of the war was to destroy any potential hope of support for the United Kingdom. Hitler believed that the destruction of the Soviet Union would inevitably lead to the withdrawal of US support for the United Kingdom. Hence, the United Kingdom would be significantly vulnerable and make it easier for Germans to attack it. Hitler further believed that the military system of Russia was so poor that any Russian response to the invasion would take a very long time. Adding to the fact that the Soviet Union did not have a system for the reinforcement of the combat divisions and activation of the reserves, Hitler believed that the war against the Soviet Union would be won quickly. According to the plan by Hitler, the Russians were going to be defeated in less than three months. Hitler strategized that the ground troops were going to play the main role in the campaign while the air force engaged the United Kingdom in military acti ons. The attack on the Russians was planned to be three pronged, from the North, South and the Center. One of the most important aims of the Nazi army was to capture the main cities of Russia which were Moscow and Leningrad. The capture of these cities would significantly demoralize the Red Army and tilt the scales of victory in favor of the Germans. Moscow was the capital city while Leningrad was the cradle of the Industrial Revolution. By capturing these cities, the Germans would gain control of the largest industrial centers and railway exchanges of the Soviet Union.4 However, after the onset of the war things did not go according to the plan of the Nazi army. As the war raged on, it became clear

Research-Technology in Action Paper Research Example | Topics and Well Written Essays - 3000 words

-Technology in Action - Research Paper Example This concept has made the ever prevalent barriers created by the national and international boundaries become of a relatively smaller relevance and made the world appear like a global village (Beenhakker, 2001). It is driven mostly by the financial flows and trade, information technology, mass media and entertainment. Human factors including cultural exchanges, international tourism and migration have also contributed to globalization to a significant extent. This process with the integration with both communication and information technology has made people co-exist very closely together and has changed people’s lives in regard to how they think and in the other aspects of their lives. As a concept, globalization was thought to have begun after World War II, and has been speeded over the years. It has had many impacts, both positively and negatively, on lives of people, the environment, national governments, cultures and economic development in countries all over the world. Considering the role of information technology in globalization issues, it can be considered as a driving force within the current global economy. The internet and the computer-based technologies have made a vital impact in the area of communication and information technologies. Easy access to such technologies has also increased internet usages and made internet information to spread more. The World Wide Web, www, in particular being a collection of varied documents accessible over the internet, is responsible for easy and reliable access of information by people across the globe (Beenhakker, 2001). The internet too has enabled both people and countries to contact each other constantly, creating an instant connection between them. The communication advancement has been made possible through the use of such items as video calls, emails and chat programs. In addition to the internet and the cyberspace, there   has also been the existence of the global media networks that have

Buying a Computer Term Paper Example | Topics and Well Written Essays - 1000 words

Buying a Computer - Term Paper Example This paper intends to analyze two computers of similar ranges and decide on the best possible option for a particular user. Description of the Chosen Computers The two computers that have been selected to analyze prior to purchase are HP Pavilion p7-1515 Desktop PC and OptiPlex 3010 Desktop by Dell. Both these computers come below the range of US$800 and have certain attractive features in them. Both the personal computers are capable of performing various tasks and are quite user-friendly. Furthermore, both the products come from well known brands and have good brand value. The most important aspect of both the machines is that they will be quite affordable in terms of budget of people as they come at a reasonable price for buyers. Analysis of Both the Computers From the above observation, it has been noted that both the computers i.e. HP Pavilion p7-1515 Desktop PC and OptiPlex 3010 Desktop by Dell have certain attractive features that can draw people quite easily. However, it impo rtant to understand that features of any computer should be capable of fulfilling all the requirements of the users. Thus, it is vital to analyze both the machines and depict whether they would be able to meet the requirements of users or not. ... Furthermore, an in depth analysis of HP Pavilion p7-1515 Desktop PC suggests that the machine is inbuilt with Intel ® Coreâ„ ¢ i5-3470 (3.2 GHz ) and a supporting operating system of Microsoft Windows 8. The speed of the processor is 3.2 GHz which will allow users the opportunity to get work done at a considerable speed. The hard drive of the machine is 1 TB 7200 rpm SATA which is quite impressive for a machine that costs less than US$800. In addition to this, the optical drive of the computer has provides SuperMulti DVD burner that will enable users to perform tasks like reading data and listing to any sort of audio at a rapid speed. Moreover, the user will also get networking feature at 802.11b/g/n along with 4 USB 2.0 which will ensure a better working experience for them. Moreover, USB optical mouse and keyboard are also provided (HP, 2013). Subsequently, the software package that comes with this particular model will catch maximum attraction of people. The inbuilt software with the device includes software package of Norton Internet Security 2013 with an availability of 60-day subscription period among others. Moreover, Amazon Kindle e-reader, CyberLink PhotoDirector, HP Connected Remote along with Photo which is powered by Snapfish, Netflix, CyberLink PowerDVD among others are other pertinent and attractive software offerings. The price of the product is US$669 which is among the vital attractions of the product (HP, 2013). OptiPlex 3010 Desktop by Dell Similar to the above discussed product, OptiPlex 3010 Desktop by Dell also possesses similar sort of features that will attract users. The package can be purchased along with 17 inches Flat Panel monitor of Dell that ensures high quality view to the

Reflection on Impact of Emerging Markets Essay Example for Free

Reflection on Impact of Emerging Markets Essay The world of business has changed in recent years. Usually, the firms of developed countries dominated the globe and developed countries’ markets were the most attractive. However, new attractive markets and new players have emerged from areas outside the developed world. These new markets such as the BRICs and the MISTs have large populations, high economic growth and increasing demands for goods. Also, they are expected to surpass the developed economies by 2050 (Goldman Sachs, 2003). According to Jagdish N. Sheth, the emerging markets have impacted both the theory and the practice of marketing. The reason is very simple; marketing is a discipline that was developed in the concept of industrialized (developed) markets meaning that most of the marketing tools are designed to work specifically in industrialized markets (Sheth, 2011). Therefore, adapting most of what is known about marketing is necessary to succeed in new markets and new marketing research approaches need to be taken. The article Impact of Emerging Markets on Marketing: Rethinking Existing Perspectives and Practices covers some of the most important characteristics of these markets such as their growth, market heterogeneity, sociopolitical governance and comparative advantages. Also, the author suggests some changes that need to be made to the existing marketing theory, marketing strategy, marketing policy and marketing practice. Moreover, Sheth argues that companies (from developed countries as well as from the emerging countries) who succeed in the mentioned markets are becoming global competitors. The reason is that these firms have to innovate to overcome challenges such as shortages of resources, inadequate infrastructure and unbranded competition. As a result, innovation makes these firms more efficient as well as it creates a competitive advantage which allows them to compete globally. Having grown up in Mexico, one of the so called MISTs, I can relate many of Sheth’s marketing suggestions with some strategies used by Mexican companies. Some of these companies are already global players such as Grupo Bimbo, Cemex and America Movil (Inter-American Developing Bank, 2008). They are strong competitors in the bakery industry, building materials industry and telecom industry respectively. However, there is another rising player named Coppel S.A. de C.V. that already started to expand to other emerging markets outside Mexico, aiming to become a global competitor in the retail business. Coppel is family owned business with 1,000 stores and 80,000 employees in Mexico. Also, it has eight stores in Argentina and eight in Brazil. I will like to focus on Coppel, 2011’s biggest retailer in Mexico (El Economista, 2012), and how this company has already applied some of Sheth’s suggestions to marketing perspectives and practices. Even though the article mentioned many good points to succeed in emerging markets, the most important are purpose driven marketing, resource improvisation, and market development. Purpose driven marketing According to Sheth, purpose driven marketing is going beyond highlighting the benefits of a product or service, creating a lifetime value among the customers, employees and other stakeholders. Coppel wins its customers’ hearts with the slogan â€Å"Coppel Mejora tu vida† which translates to â€Å"Coppel improves your life†. Along with the slogan, Coppel offers a range of products such as clothes, furniture, electronic appliances and financial services to the 68 percent of the Mexican population whose monthly income is less than 2,743 pesos, close to 165 EUR (DigitalPersona, 2012). Most of the products sold by Coppel are products that fulfill the customers’ needs. At Coppel’s stores, it would be difficult to find expensive shoes or clothes. Also, Coppel guarantees all the furniture and any electronic product regardless of the brand sold at their stores up to 2 years; while most manufacturers only guarantee the first year. This warranty is very important to the customers since a washing machine or refrigerator can be equivalent to ten or eleven months of salary. In the financial services part, Coppel offers credit to buy goods in the store and cash loans up 1,000 EUR (loyal customers who have been Coppel’s clients for more than a year). Coppel is not as strict as many of the different financial institutions in Mexico which would never lend a single peso to any of Coppel’s customers. In other words, Coppel has a marketing policy of inclusive growth which means including in their policies those markets that marketers would have left out. In addition, Coppel extends its marketing to its stakeholders such as the community, employees, channel partners and suppliers. For the employees and their children, Coppel offers to pay half of their school tuition up to the master degree level as well as provide school supplies for them. Also, Coppel encourages its employees to get married by giving employees up to two months’ salary as a wedding present. Marriage is seen as a very important tradition in a conservative country such as Mexico. As a result, Coppel does improve the life of its customers as well as their stakeholders. It focuses on creating a lasting value to position itself as a company that offers more than just quality products and services. For this reason, Coppel has better financial performance than its competitors. Resource improvisation. â€Å"If necessity is the mother of invention, then resource shortage is the father of innovation† (Sheth 2011). For that reason, firms operating in emerging markets gain advantage by improvising with scarce resources, making them more innovative relative to their competitors. Coppel’s most innovative process is the use of a fingerprint biometrics in the point of sale (POS) and in all operating systems (DigitalPersona 2012). This system has helped to improve the verification process of purchases for 20.6 million customers since a customer can buy on credit (in the store) using just his or her fingerprint without using any type of identification. As mentioned, Coppel has close to 20 million registered customers’ fingerprints in their database. That represents almost 20 percent of the entire Mexican population, which allows Coppel to generate a reliable source of information about its customers. Reliable information about customers is not easy to have in emerging markets. For that reason, Coppel has an advantage over its competitors since it can use that information to create new marketing strategies to target a specific customer behavior. Also, the fingerprint system has reduced the possibility of fraud since every single customers information is linked to his or her fingerprint. This system has proved very useful in Argentina and Brazil where most customers (low income class) hardly carry an ID with them. Another innovating process is Coppel’s distribution system. The reason is that Coppel has 19 warehouses with 127 distribution centers to supply all its stores in 337 different cities in Mexico (DigitalPersona 2012). The distribution system is in-house designed which means that Coppel can modify it whenever is needed without having aid from an external provider. This decreases the response time when a challenge is raised. Also, Coppel’s system updates in real time. This means that the company knows exactly what products are being sold at any given time and what products are on the delivery trucks. In addition, Coppel daily supplies all the stores just with the right amount of goods that were sold the day before using small trucks with low gasoline consumption or pressured gas to keep down the cost. It also offers free delivery to its customers. This is a competitive advantage since other competitors do not offer it free of charge and almost half of the Mexican population does not have cars. Moreover, the distribution system is very efficient that some other retailers like Wal-Mart Mexico have tried to replicate it. In Mexico, Coppel is known as an innovative firm due to its distribution and fingerprint systems. Market development. While developed markets’ firms target customers’ needs using market intelligence, firms in emerging markets such as Coppel create customers’ needs by shaping customer expectations. In other words, create a â€Å"Field of Dreams† and customers will come. â€Å"Coppel mejora tu vida† is a statement that brings the customers to that â€Å"Field of Dreams†. Since customers in emerging markets are seeking to improve their life condition within their limited economic capacity, Coppel offers accessible and affordable products and services. Coppel has created and developed its own market over the last 70 years. The firm took care of the expectations of the poorest segment in Mexico and that segment has become Coppel’s most loyal customers. Therefore, developing a market brings more financial benefits than market orientation since the firm that develops a market gets the advantage and creates barriers for new entrants. Huawei in China and Avon in Brazil used marketing development to shape the customers’ expectations to positioning themselves in those markets. Nowadays, both of them are strong global competitors. Conclusion Coppel has the widest profit margin of any major Latin American retailer (Bloomberg 2012) because its strategies are based on purpose driven marketing, resource improvisation, and market development. Also, Coppel has developed a market as a result of a lifetime value that is attractive to all the stakeholders while innovating to overcome the challenges generated by the characteristics of operating in an emerging market. As mentioned by Sheth, new ideas from the emerging markets are impacting what we know about marketing. In the 1980s there was the belief that â€Å"The products and methods of the industrialized world play a single tune for all the world, and the world eagerly dances to it† which was written in the 1983’s article The Globalization of Markets by Theodore Levitt. This statement suggests that no adaptation was needed to Marketing practice and theory. On the other hand, Sheth says â€Å"the rise of emerging market is inevitable and it will have a disruptive impact on the marketing practice and theory† in 2011. Sheth’s article creates the bases of what is going to be new approaches for marketing research. The emerging markets will become the focus of the next generations of marketers and firms such as Coppel will be an example of how the emerging firms are shaped by their surroundings. References Sheth, J.N. (2011). Impact of emerging markets on marketing: Rethinking existing perspectives and practices. Journal of Marketing, 75 (July), 166-1 Levitt, T. (1983). The globalization of markets. Harvard Business Review, 61 (May/June), 92-102 Goldman Sachs (2003). Dreaming with BRICs: The Path to 2050. Goldman Sachs. N.p., n.d. Web. 11 Dec. 2012. http://www.goldmansachs.com/our-thinking/topics/brics/brics-reports-pdfs/brics-dream.pdf Inter-American Development Bank (2008). From Multilatinas to Global Latinas The New Latin American Multinationals. Http://www.iadb.org. N.p., 2008. Web. 11 Dec. 2012. http://www.iadb.org/intal/intalcdi/pe/2009/03415.pdf El Economista (2011). â€Å"En El 2011, Coppel â€Å"abaratà ³Ã¢â‚¬  a Liverpool†. En El 2011, Coppel abaratà ³ a Liverpool. N.p., 15 Mar. 2012. Web. 11 Dec. 2012. . Coppel. Coppel. N.p., n.d. Web. 11 Dec. 2012. . DigitalPersona (2012). Coppel Corporation Uses DigitalPersona Fingerprint Biometrics for Customer and Employee Security and Convenience. Coppel Corporation Uses DigitalPersona Fingerprint Biometrics for Customer and Employee Security and Convenience. N.p., 21 Sept. 2012. Web. 12 Dec. 2012. Bloomberg News (2012). â€Å"Mexico’s Coppel Brothers Emerge With $16 Billion Fortune.† BusinessWeek. N.p., 15 Nov. 2012. Web. 17 Dec. 2012.

Stock Market Volatility Around Market Shock 2005-09

Stock Market Volatility Around Market Shock 2005-09 Stock Market Volatility around market shocks event analysis during 2005-2009 ACKNOWLEDGEMENT The Project titled Stock Market volatility around market shock event analysis during 2005-09 is an effort to throw light on Performance Analysis. I have completed this project based on research, under the guidance of name of faculty, my faculty guide. I owe enormous intellectual debt to her as she augmented my knowledge in the field of volatility around market shocks and helped me learn about the topic and gave me valuable insight into the subject matter. My increased spectrum of knowledge in this field is the result of her constant supervision and direction that has helped me to absorb relevant and high quality information. I would like to express my profound gratitude towards COLLEGE NAME for giving me the opportunity to undertake the above research. Last but not the least, I feel indebted to all those persons and organizations which have helped me directly or indirectly in successful completion of this study. DECLARATION I Ghayasuddin a student of MBA of College Name respectively hereby declare that the Project Report on Stock Market volatility around market shock event analysis during 2005-09 is the outcome of my own work and the same has not been submitted to any other University/Institute for the award of any degree or any Professional diploma. OBJECTIVE OF THE STUDY To find out the stock market volatility. To analyze the volatility measure To understand the stock market and its importance To find out the reasons behind the downfall. EXECUTIVE SUMMARY A common problem plaguing the low and slow growth of small developing economies is the swallow financial sector. Financial markets play an important role in the process of economic growth and development by facilitating savings and channeling funds from savers to investors. While there have been numerous attempts to develop the financial sector, small island economies are also facing the problem of high volatility in numerous fronts including volatility of its financial sector. Volatility may impair the smooth functioning of the financial system and adversely affect economic performance. Similarly, stock market volatility also has a number of negative implications. One of the ways in which it affects the economy is through its effect on consumer spending (Campbell, 1996; Starr-McCluer, 1998; Ludvigson and Steindel 1999 and Poterba 2000). The impact of stock market volatility on consumer spending is related via the wealth effect. Increased wealth will drive up consumer spending. However, a fall in stock market will weaken consumer confidence and thus drive down consumer spending. Stock market volatility may also affect business investment (Zuliu, 1995) and economic growth directly (Levine and Zervos, 1996 and Arestis et al 2001). A rise in stock market Volatility can be interpreted as a rise in risk of equity investment and thus a shift of funds to less risky assets. This move could lead to a rise in cost of funds to firms and thus new firms might bear this effect as investors will turn to purchase of stock in larger, well known firms. While there is a general consensus on what constitutes stock market volatility and, to a lesser extent, on how to measure it, there is far less agreement on the causes of changes in stock market volatility. Some economists see the causes of volatility in the arrival of new, unanticipated information that alters expected returns on a stock (Engle and Ng, 1993). Thus, changes in market volatility would merely reflect changes in the local or global economic environment. Others claim that volatility is caused mainly by changes in trading volume, practices or patterns, which in turn are driven by factors such as modifications in macroeconomic policies, shifts in investor tolerance of risk and increased un certainty. The degree of stock market volatility can help forecasters predict the path of an economys growth and the structure of volatility can imply thatinvestors now need to hold more stocks in their portfolio to achieve diversification(Krainer, J, 2002:1). This case is more serious for small developing economies like Fiji who is attempting to deepen its financial sector by developing its stock market. Unlike mature stock markets of advanced economies, the stock markets of less developed economies like Fiji began to develop rapidly only in the last two decades and are sensitive to factors such as changes in the levels of economic activities, changes in the political and international economic environment and also related to the changes in the macro economic variables. Therefore, in this paper, we examine if Fijis Stock market is volatile and if so, then what is the role of interest rate being one of the most important macroeconomic variables on the volatility of stock returns. This article benefits from developments in the measurement of volatility through econometric techniques. Here, the regime-switching- ARCH model introduced by Engle (1982) and its extension, the GARCH model, (Bollerslev, 1986) is used to estimate the conditional va riance of Fijis daily stock return from January 2001 to December 2005. This method allows for an objective determination of the presence of volatility. The results of estimates of stock return volatility is then related to changes in the interest rates. The second section of the paper provides an overview of Fijis stock market. The third section of the paper provides an exposition of the methodology used in this study. The fourth section provides a summary of the results and its discussion. The last section provides a summary and conclusion. INTRODUCTION TO THE INDIAN ECONOMY India has struggled financially since independence, experiencing slow economic growth and economic setbacks due to climatic extremes or political disturbances. The country has been gradually transforming its economic base from agrarian to industrial and commercial. Under British rule in the 19th century, Indias cottage industries and thriving trade were virtually destroyed to make way for European manufactured goods, paid for by exports of agricultural products such as cotton, opium, and tea. Beginning in the late 19th century a modern industrial sector and an extensive infrastructure of railways and irrigation works were slowly built with British and Indian capital. Nevertheless, Indias economy stagnated during the last 30 or so years of British rule. At independence in 1947 India was desperately poor, with an aging textile industry as its only major industrial sector. Economic policy after independence emphasized central planning, with the government setting goals for and closely regulating private industry. Self-sufficiency was promoted in order to foster domestic industry and reduce dependence on foreign trade. These efforts produced steady economic growth in the 1950s, but less positive results in the two succeeding decades. By the early 1970s India had achieved its goal of self-sufficiency in food production, although this food was not equally available to all Indians due to skewed distribution and occasional shortfalls in the harvest. In the late 1970s the government began to reduce state control of the economy, making slow progress toward this goal. By 1991, however, the government still regulated or ran many industries, including mining and quarrying, banking and insurance, transportation and communications, and manufacturing and construction. Economic growth improved during this period, at least partially as a result of development projects funded by foreign loans. Indias low average growth rate up to 1980 was derisively referred to as the Hindu rate of growth, because of the contrasting high growth rates in other Asian countries, especially the East Asian Tigers. The economic reforms that surged economic growth in India after 1980 can be attributed to two stages of reforms. The pro-business reform of 1980 initiated by Indira Gandhi and carried on by Rajiv Gandhi, eased restrictions on capacity expansion for incumbents, removed price controls and reduced corporate taxes. The economic liberalisation of 1991, initiated by then Indian prime minister P. V. Narasimha Rao and his finance minister Manmohan Singh in response to a macroeconomic crisis did away with the Licence Raj (investment, industrial and import licensing) and ended public sector monopoly in many sectors, thereby allowing automatic approval of foreign direct investment in many sectors. Since then, the overall direction of liberalisation has remained the same, irrespective of the ruli ng party at the centre, although no party has yet tried to take on powerful lobbies like the trade unions and farmers, or contentious issues like labour reforms and cutting down agricultural subsidies. Liberalization in India paved the way for lots of foreign companies to come and setup heir base in India and for investors across the globe to invest money in Indian stock Market. Buoyant Indian Economy really raised eyebrows of many and investment in India keeps on surging high year after year touching new height. Since liberalization the foreign investors are on a spree of investment in India both in the form of FDI and FII. Stock Exchange being the only route for FIIs to come into India has been has been spearheading the task of giving investors a bright picture of the economy leading to brining more and more investment into the state. Hence, the vital role of Stock Exchange and the association of Stock Exchange with Foreign Investment can not be undermined. In the later part of the study, we will look into the details of how the Stock Exchange is associated with FIIs and vice versa.   ABOUT STOCK MARKET AND STOCK EXCHANGES A stock exchange or bourse is a corporation or mutual organization which provides the facilities for stock brokers to trade company stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities, as well as other financial instruments and capital events including the payment of income and dividends. In other words, Stock Exchanges are an organised marketplace, either corporation or mutual organisation, where members of the organisation gather to trade company stocks and other securities. The members may act either as agents for their customers, or as principals for their own accounts. Stock exchanges also facilitates for the issue and redemption of securities and other financial instruments including the payment of income and dividends. The record keeping is central but trade is linked to such physical place because modern markets are computerised. The trade on an exchange is only by members and stock broker do have a seat on the exchange. The securities traded on a stock exchange include shares issued by companies, unit trusts and other pooled investment products as well as bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only; a stock broker is said to have a seat on the exchange. A stock exchange is often the most important component of a stock market. There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that bonds are traded. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. Increasingly all stock exchanges are part of a global market for securities. 200 years ago in front of Trinity church in East Manhattan in U.S oldest stock exchange called New York stock exchange emerged, when there were no paper money changing hands and there was not even the idea of stock, people trade silver for papers saying they owned shares in cargo .The trade flourished. During American Revolution, the colonial government needed money to fund its wartime operations. By selling bonds they did this. Bonds are pieces of paper a person buys for a set price, knowing that after a certain period of time; they can exchange their bonds for a profit. Along with bonds, the first of the nations bank started to sell parts or shares of their own company to people in order to raise money. Thus they sell the part of the company to whoever wanted to buy it. This led to the emergence of the modern day stock market. The concept of stock markets came to India in 1875, when Bombay Stock Exchange (BSE) was established as The Native Share and Stockbrokers Association, a voluntary non-profit making association. BSE is the oldest in Asia. Presently India has about 10,000 listed companies, the largest number of listed companies in the world. Stock exchanges in India can be categorized as: 1) Voluntary Associations such as Bombay, Indore and Ahmedabad, 2) Public limited companies such as Calcutta and Delhi, and 3) Guarantee companies such as Hyderabad, Madras and Bangalore. Besides BSE, Indias other major stock exchange is National Stock Exchange (NSE) that was promoted by leading financial institutions and was established in April 1993. Today, these global stock exchanges have become premier institutions and are highly efficient, computerized organizations that have fostered the growth of an open, global securities market. Today India boasts 23 regional Stock Exchanges along with BSE and NSE. RESEARCH METHODOLOGY The research has been done by selecting the companies which are the representative of a particular sector on the basis of overall market capitalization, stocks having the highest liquidity and turnover both on the NSE and BSE. A caution was thus taken and by thorough approach the best companies were selected so as to portray a genuine picture of the sector. With the help of SPSS Package and using the quantitative techniques, the statistical analysis has been done. The following analysis has been done for all the 8 companies: Fundamental analysis. Future growth and earnings analysis. Statistical analysis. Technical analysis. ROLE OF STOCK EXCHANGES IN THE ECONOMY The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public. Mobilising Savings for Investment When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilised and redirected to promote commerce and industry. Redistribution of Wealth By giving a wide spectrum of people a chance to buy shares and therefore become part-owners of profitable enterprises, the stock market helps to reduce large income inequalities because many people get a chance to share in the profits of business that were set up by other people. Improving Corporate Governance By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders. It is evident that generally, public companies tend to have better management records than private companies. Creates Investment Opportunities for Small Investors As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides an extra source of income to small savers. Government Raises Capital for Development Projects The Government and even local authorities like municipalities may decide to borrow money in order to finance huge infrastructure projects such as sewerage and water treatment works or housing estates by selling another category of shares known as Bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them. When the Government or Municipal Council gets this alternative source of funds, it no longer has the need to overtax the people in order to finance development. Barometer of the Economy At the Stock Exchange, share prices rise and fall depending, largely, on market forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability. Therefore the movement of share prices can be an indicator of the general trend in the economy. With countries moving away from socialistic approach and towards globalization of their economies, the role and importance of Stock Exchanges has gone up considerably. Today Stock Exchanges   depict the financial position of the economy of a country. INVESTMENST SCENAREO In closed economies only the Govt. has the sole responsibility and discretion of investment in various projects in the country. No private parties were allowed to invest in any venture. However, countries where mixed economy exist are liberal to the extent of giving permission to some private parties for investment in some selected sectors. However, countries which adopted globalization made their policies liberal enough to give private players permission to invest and run in any sector of their wish. Globalization has made the world boundary less where free flow of labour, capital exists among member countries. Interdependence among countries has given the drive a real momentum. Seeing the robust growth that some of the Asian countries registered really stunned the other nations which had closed economy. These nations which adopted globalization being the first runners were termed as Asian Tigers. Many followed the suit. Few countries followed the path of economic reforms with an anticipation of the prospective growth while the others due to some economic compulsions. A few countries like India were in real soup with acute financial crisis and were not in a position of running the socialistic approach anymore. A balance of payments crisis at the time opened the way for an International Monetary Fund (IMF) program that led to the adoption of a major reform package. It went ahead with globalization and reform process in a step by step approach. Countries realizing that only domestic investments and resources can not be relied upon for rapid growth in industrialization and economy, red carpet treatment was given to foreign investors. Opening up of economies unseals the doors to the investors from other countries to invest in each others countries. These investments come in two forms, i.e, FDI (Foreign Direct Investment) and FII (Foreign Institutional Investment. FII (Foreign Institutional Investor) is an investor or investment fundthatis from or registered in a country outside of the one in which it is currentlyinvesting. Institutional investorsinclude hedge funds, insurance companies, pension funds and mutual funds. They invest in various companies through Stock Exchange. The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies. Sub-account includes those foreign corporates, foreign individuals, and institutions, funds or portfolios established or incorporated outside India on whose behalf investments are proposed to be made in India by a FII. Where as FDI (Foreign Direct Investment) is a component of a countrys national financial accounts. Foreign direct investment is investment of foreign assets into domestic structures, equipment, and organizations. It does not include foreign investment into the stock markets. Foreign direct investment is thought to be more useful to a country than investments in the equity of its companies because equity investments are potentially hot money which can leave at the first sign of trouble, whereas FDI is durable and generally useful whether things go well or badly. Foreign Investors always prefer FII route than FDI route since, the route of investing in stocks is easy and more liquid with less risk involved. Investors can take away their money as and when they need by making short term bucks. If we see from govts perspective, FII means incoming of a lot of foreign exchange into the country which boosts the Forex reserve. Where as Govt. is inclined to get more FDI than FII as FDI helps setting up manufacturing or service industry thereby bringing foreign exchange, employing people, business by ancillary industries and tax to govt treasury. Countries across the globe are formulating policies to attract more FDI and FII. Countries like India have modified its investment policies to make it conducive for foreign investment. REGULATORY MECHANISM FOR FII INVOLVEMENT Following entities / funds are eligible to get registered as FII: Pension Funds Mutual Funds Insurance Companies Investment Trusts Banks University Funds Endowments Foundations Charitable Trusts / Charitable Societies Further, following entities proposing to invest on behalf of broad based funds, are also eligible to be registered as FIIs: Asset Management Companies Institutional Portfolio Managers Trustees Power of Attorney Holders The parameters on which SEBI decides FII applicants eligibility. Applicants track record, professional competence, financial soundness, experience, general reputation of fairness and integrity. (The applicant should have been in existence for at least one year) whether the applicant is registered with and regulated by an appropriate Foreign Regulatory Authority in the same capacity in which the application is filed with SEBI Whether the applicant is a fit proper person. As the FIIs take the route of investing in Stocks etc through stock exchange, they have to be abide by the SEBI guidelines. SEBI generally takes seven working days in granting FII registration. However, in cases where the information furnished by the applicants is incomplete, seven days shall be counted from the days when all necessary information sought, reaches SEBI. In cases where the applicant is bank and subsidiary of a bank, SEBI seeks comments from the Reserve Bank of India (RBI). In such cases, 7 working days would be counted from the day no objection is received from RBI. Which financial Instruments are available for FII investment Securities in primary and secondary markets including shares, debentures and warrants of companies, unlisted, listed or to be listed on a recognized stock exchange in India; Units of mutual funds; Dated Government Securities; Derivatives traded on a recognized stock exchange; Commercial papers. MACROECONOMIC FACTORS Economic growth and GDP: The countrys GDP at current market prices is projected at Rs. 46, 93,602 crore in 2007-08 by the Central Statistical Organization (CSO). Thus, in the current fiscal year, the size of the Indian economy at market exchange rate will cross US$ 1 trillion. At the nominal exchange rate (average of April-December 2007) GDP is projected to be US$ 1.16 trillion in 2007-08. Per capita income at nominal exchange rate is estimated at US$ 1,021. According to the World Bank system of classification of countries as low income, middle income and high income, India is still in the category of low income countries. The (per capita) GDP at purchasing power parity is conceptually a better indicator of the relative size of the economy than the (per capita)GDP at market exchange rates. There are, however, practical difficulties in deriving GDP at PPP, and we now have two different estimates of the PPP conversion factor for 2005. Indias GDP at PPP is estimated at US$ 5.16 trillion or US$ 3.19 trillion depending on whether the old or new conversion factor is used. In the former case, India is the third largest economy in the world after the United States and China, while in the latter it is the fifth largest (behind Japan and Germany).   GDP at factor cost at constant 1999-2000 prices is projected by the CSO to grow at 8.5 per cent in 2008-09. This represents a deceleration from the unexpectedly high growth of 9.4 per cent, 9.6 per cent and 8.7 per cent respectively, in the previous three years. With the economy modernizing, globalizing and growing rapidly, some degree of cyclical fluctuation is to be expected. Per capita income and consumption: Economic growth, and in particular the growth in per capita income, is a broad quantitative indicator of the progress made in improving public welfare. Per capita consumptionis another quantitative indicator that is useful for judging welfare improvement.The pace of economic improvement has moved up considerably during the last five years (including 2007-08). Since 2003, there has been a sharp acceleration in the growth of per capita income, almost doubling to an average of 7.2 per cent per annum (2003-04 to 2007-08).This means that average income would now double in a decade, well within one generation, instead of after a generation (two decades). The growth rate of per capita income in 2007-08 is projected to be 7.2 per cent, the same as the average of the five years to the current year. Per capita private final consumption expenditure has increased in line with per capita income. The growth rate has almost doubled to 5.1 per cent per year from 2003-04 to 2007-08, with the current years growth expected to be 5.3 per cent, marginally higher than the five year average. The average growth of consumption is slower than the average growth of income, primarily because of rising saving rates, though rising tax collection rates can also widen the gap (during some periods). Year to year changes in consumption also suggest that the rise in consumption is a more gradual and steady process, as any sharp changes in income tend to get adjusted in the saving rate. Per capita income and consumption (in 1999-2000 prices): Year Income Consumption 2007-08 Rs. Growth (%) Rs. Growth (%) 29,786 7.2 17,145 5.3 Income is taken as GDP at market prices. Consumption is PFCE. Per capita is obtained by dividing these by population. MARKET EFFICIENCY However, market efficiency -championed in the efficient market hypothesis (EMH) formulated by Eugene Fama in 1970, suggests that at any given time, prices fully reflect all available information on a particular stock and/or market. Thus, according to the EMH, no investor has an advantage in predicting a return on a stock pricebecause no one has access to information not already available to everyone else. (To read more on behavioral finance. The Effect of Efficiency: Non-Predictability The nature of information does not have to be limited to financial news and research alone; indeed, information about political, economic and social events, combined with how investors perceive such information, whether true or rumored, will be reflected in the stock price. According to EMH,as prices respond only to information available in the market, and, because all market participants are privy to the same information, no one will have the ability to out-profit anyone else. In efficient markets, prices become not predictable but random, so no investment pattern can be discerned. A planned approach to investment, therefore, cannot be successful. This random walk of prices, commonly spoken aboutin the EMH school of thought, results in the failure of any investment strategy that aims to beat the market consistently. In fact, the EMH suggests that given the transaction costs involved in portfolio management, it would be more profitable for an investor to put his or her money into an index fund. Anomalies: The Challenge to Efficiency In the real world of investment, however, there are obvious arguments against the EMH. There are investors who have beaten the market Warren Buffett, whose investment strategy focuses onundervalued stocks, made millions and set an example for numerous followers. There are portfolio managerswho have better track records than others, and there are investment houses with more renowned research analysis than others. So how can performance be random when people are clearly profiting from and beating the market? Counter arguments to the EMH state that consistent patterns are present. Here are some examples of some of the predictable anomalies thrown in the face of the EMH:the January effectis a patternthat shows higher returns tend to be earned in the first month of the year; blue Monday on Wall Street isasaying that discourages buying on Friday afternoon and Monday morning because of the weekend effect, the tendency for prices to be higher on the day before and after the weekend than during the rest of the week. Studies in behavioral finance, which look into the effects of investor psychology on stock prices, also reveal that there are some predictable patterns in the stock market. Investors tend to buy undervalued stocks and sell overvalued stocks and, in a market of many participants, the result can be anything but efficient. Paul Krugman, MIT economics professor, suggests that because of the mass mentality of the trendy, short-term shareholder, investors pull in and out of the latest and hottest stocks. This results in stock prices being distorted and the market being inefficient. Soprices no longer reflect all available information in the market. Prices areinstead beingmanipulated by profit seekers. The EMH Response The EMH does not dismiss the possibility of anomalies in the market that result in the generation of superior profits. In fact, market efficiency does not require prices to be equal tofair value all of the time. Prices may be over- or undervalued only in random occurrences, so they eventually revert back to their mean values. As such, because the deviations from a stocks fair price are in themselves random, investment strategies that result in beating the market cannot be consistent phenomena. Furthermore, the hypothesis argues that an investor who outperforms the market does so not out of skill but out of luck. EMH followers say this is due to the laws of probability: at any given time in a market with a large number of investors, some will outperform while other will remain average. How Doesa Market Become Efficient? In order for a market to become efficient, investors must perceive that a market is inefficient and possible to beat. Ironically, investment strategies intended to take advantage of inefficiencies are actually the fuel that keeps a market efficient. A market has to be large and liquid. Information has to be widely available in terms of accessibility and cost and released to investors at more or less the same time. Transaction costs have to be cheaper than the expected profits of an investment strategy. Investorsmust also have enough funds to take adva Stock Market Volatility Around Market Shock 2005-09 Stock Market Volatility Around Market Shock 2005-09 Stock Market Volatility around market shocks event analysis during 2005-2009 ACKNOWLEDGEMENT The Project titled Stock Market volatility around market shock event analysis during 2005-09 is an effort to throw light on Performance Analysis. I have completed this project based on research, under the guidance of name of faculty, my faculty guide. I owe enormous intellectual debt to her as she augmented my knowledge in the field of volatility around market shocks and helped me learn about the topic and gave me valuable insight into the subject matter. My increased spectrum of knowledge in this field is the result of her constant supervision and direction that has helped me to absorb relevant and high quality information. I would like to express my profound gratitude towards COLLEGE NAME for giving me the opportunity to undertake the above research. Last but not the least, I feel indebted to all those persons and organizations which have helped me directly or indirectly in successful completion of this study. DECLARATION I Ghayasuddin a student of MBA of College Name respectively hereby declare that the Project Report on Stock Market volatility around market shock event analysis during 2005-09 is the outcome of my own work and the same has not been submitted to any other University/Institute for the award of any degree or any Professional diploma. OBJECTIVE OF THE STUDY To find out the stock market volatility. To analyze the volatility measure To understand the stock market and its importance To find out the reasons behind the downfall. EXECUTIVE SUMMARY A common problem plaguing the low and slow growth of small developing economies is the swallow financial sector. Financial markets play an important role in the process of economic growth and development by facilitating savings and channeling funds from savers to investors. While there have been numerous attempts to develop the financial sector, small island economies are also facing the problem of high volatility in numerous fronts including volatility of its financial sector. Volatility may impair the smooth functioning of the financial system and adversely affect economic performance. Similarly, stock market volatility also has a number of negative implications. One of the ways in which it affects the economy is through its effect on consumer spending (Campbell, 1996; Starr-McCluer, 1998; Ludvigson and Steindel 1999 and Poterba 2000). The impact of stock market volatility on consumer spending is related via the wealth effect. Increased wealth will drive up consumer spending. However, a fall in stock market will weaken consumer confidence and thus drive down consumer spending. Stock market volatility may also affect business investment (Zuliu, 1995) and economic growth directly (Levine and Zervos, 1996 and Arestis et al 2001). A rise in stock market Volatility can be interpreted as a rise in risk of equity investment and thus a shift of funds to less risky assets. This move could lead to a rise in cost of funds to firms and thus new firms might bear this effect as investors will turn to purchase of stock in larger, well known firms. While there is a general consensus on what constitutes stock market volatility and, to a lesser extent, on how to measure it, there is far less agreement on the causes of changes in stock market volatility. Some economists see the causes of volatility in the arrival of new, unanticipated information that alters expected returns on a stock (Engle and Ng, 1993). Thus, changes in market volatility would merely reflect changes in the local or global economic environment. Others claim that volatility is caused mainly by changes in trading volume, practices or patterns, which in turn are driven by factors such as modifications in macroeconomic policies, shifts in investor tolerance of risk and increased un certainty. The degree of stock market volatility can help forecasters predict the path of an economys growth and the structure of volatility can imply thatinvestors now need to hold more stocks in their portfolio to achieve diversification(Krainer, J, 2002:1). This case is more serious for small developing economies like Fiji who is attempting to deepen its financial sector by developing its stock market. Unlike mature stock markets of advanced economies, the stock markets of less developed economies like Fiji began to develop rapidly only in the last two decades and are sensitive to factors such as changes in the levels of economic activities, changes in the political and international economic environment and also related to the changes in the macro economic variables. Therefore, in this paper, we examine if Fijis Stock market is volatile and if so, then what is the role of interest rate being one of the most important macroeconomic variables on the volatility of stock returns. This article benefits from developments in the measurement of volatility through econometric techniques. Here, the regime-switching- ARCH model introduced by Engle (1982) and its extension, the GARCH model, (Bollerslev, 1986) is used to estimate the conditional va riance of Fijis daily stock return from January 2001 to December 2005. This method allows for an objective determination of the presence of volatility. The results of estimates of stock return volatility is then related to changes in the interest rates. The second section of the paper provides an overview of Fijis stock market. The third section of the paper provides an exposition of the methodology used in this study. The fourth section provides a summary of the results and its discussion. The last section provides a summary and conclusion. INTRODUCTION TO THE INDIAN ECONOMY India has struggled financially since independence, experiencing slow economic growth and economic setbacks due to climatic extremes or political disturbances. The country has been gradually transforming its economic base from agrarian to industrial and commercial. Under British rule in the 19th century, Indias cottage industries and thriving trade were virtually destroyed to make way for European manufactured goods, paid for by exports of agricultural products such as cotton, opium, and tea. Beginning in the late 19th century a modern industrial sector and an extensive infrastructure of railways and irrigation works were slowly built with British and Indian capital. Nevertheless, Indias economy stagnated during the last 30 or so years of British rule. At independence in 1947 India was desperately poor, with an aging textile industry as its only major industrial sector. Economic policy after independence emphasized central planning, with the government setting goals for and closely regulating private industry. Self-sufficiency was promoted in order to foster domestic industry and reduce dependence on foreign trade. These efforts produced steady economic growth in the 1950s, but less positive results in the two succeeding decades. By the early 1970s India had achieved its goal of self-sufficiency in food production, although this food was not equally available to all Indians due to skewed distribution and occasional shortfalls in the harvest. In the late 1970s the government began to reduce state control of the economy, making slow progress toward this goal. By 1991, however, the government still regulated or ran many industries, including mining and quarrying, banking and insurance, transportation and communications, and manufacturing and construction. Economic growth improved during this period, at least partially as a result of development projects funded by foreign loans. Indias low average growth rate up to 1980 was derisively referred to as the Hindu rate of growth, because of the contrasting high growth rates in other Asian countries, especially the East Asian Tigers. The economic reforms that surged economic growth in India after 1980 can be attributed to two stages of reforms. The pro-business reform of 1980 initiated by Indira Gandhi and carried on by Rajiv Gandhi, eased restrictions on capacity expansion for incumbents, removed price controls and reduced corporate taxes. The economic liberalisation of 1991, initiated by then Indian prime minister P. V. Narasimha Rao and his finance minister Manmohan Singh in response to a macroeconomic crisis did away with the Licence Raj (investment, industrial and import licensing) and ended public sector monopoly in many sectors, thereby allowing automatic approval of foreign direct investment in many sectors. Since then, the overall direction of liberalisation has remained the same, irrespective of the ruli ng party at the centre, although no party has yet tried to take on powerful lobbies like the trade unions and farmers, or contentious issues like labour reforms and cutting down agricultural subsidies. Liberalization in India paved the way for lots of foreign companies to come and setup heir base in India and for investors across the globe to invest money in Indian stock Market. Buoyant Indian Economy really raised eyebrows of many and investment in India keeps on surging high year after year touching new height. Since liberalization the foreign investors are on a spree of investment in India both in the form of FDI and FII. Stock Exchange being the only route for FIIs to come into India has been has been spearheading the task of giving investors a bright picture of the economy leading to brining more and more investment into the state. Hence, the vital role of Stock Exchange and the association of Stock Exchange with Foreign Investment can not be undermined. In the later part of the study, we will look into the details of how the Stock Exchange is associated with FIIs and vice versa.   ABOUT STOCK MARKET AND STOCK EXCHANGES A stock exchange or bourse is a corporation or mutual organization which provides the facilities for stock brokers to trade company stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities, as well as other financial instruments and capital events including the payment of income and dividends. In other words, Stock Exchanges are an organised marketplace, either corporation or mutual organisation, where members of the organisation gather to trade company stocks and other securities. The members may act either as agents for their customers, or as principals for their own accounts. Stock exchanges also facilitates for the issue and redemption of securities and other financial instruments including the payment of income and dividends. The record keeping is central but trade is linked to such physical place because modern markets are computerised. The trade on an exchange is only by members and stock broker do have a seat on the exchange. The securities traded on a stock exchange include shares issued by companies, unit trusts and other pooled investment products as well as bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are electronic networks, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only; a stock broker is said to have a seat on the exchange. A stock exchange is often the most important component of a stock market. There is usually no compulsion to issue stock via the stock exchange itself, nor must stock be subsequently traded on the exchange. Such trading is said to be off exchange or over-the-counter. This is the usual way that bonds are traded. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. Increasingly all stock exchanges are part of a global market for securities. 200 years ago in front of Trinity church in East Manhattan in U.S oldest stock exchange called New York stock exchange emerged, when there were no paper money changing hands and there was not even the idea of stock, people trade silver for papers saying they owned shares in cargo .The trade flourished. During American Revolution, the colonial government needed money to fund its wartime operations. By selling bonds they did this. Bonds are pieces of paper a person buys for a set price, knowing that after a certain period of time; they can exchange their bonds for a profit. Along with bonds, the first of the nations bank started to sell parts or shares of their own company to people in order to raise money. Thus they sell the part of the company to whoever wanted to buy it. This led to the emergence of the modern day stock market. The concept of stock markets came to India in 1875, when Bombay Stock Exchange (BSE) was established as The Native Share and Stockbrokers Association, a voluntary non-profit making association. BSE is the oldest in Asia. Presently India has about 10,000 listed companies, the largest number of listed companies in the world. Stock exchanges in India can be categorized as: 1) Voluntary Associations such as Bombay, Indore and Ahmedabad, 2) Public limited companies such as Calcutta and Delhi, and 3) Guarantee companies such as Hyderabad, Madras and Bangalore. Besides BSE, Indias other major stock exchange is National Stock Exchange (NSE) that was promoted by leading financial institutions and was established in April 1993. Today, these global stock exchanges have become premier institutions and are highly efficient, computerized organizations that have fostered the growth of an open, global securities market. Today India boasts 23 regional Stock Exchanges along with BSE and NSE. RESEARCH METHODOLOGY The research has been done by selecting the companies which are the representative of a particular sector on the basis of overall market capitalization, stocks having the highest liquidity and turnover both on the NSE and BSE. A caution was thus taken and by thorough approach the best companies were selected so as to portray a genuine picture of the sector. With the help of SPSS Package and using the quantitative techniques, the statistical analysis has been done. The following analysis has been done for all the 8 companies: Fundamental analysis. Future growth and earnings analysis. Statistical analysis. Technical analysis. ROLE OF STOCK EXCHANGES IN THE ECONOMY The Stock Exchange provides companies with the facility to raise capital for expansion through selling shares to the investing public. Mobilising Savings for Investment When people draw their savings and invest in shares, it leads to a more rational allocation of resources because funds, which could have been consumed, or kept in idle deposits with banks, are mobilised and redirected to promote commerce and industry. Redistribution of Wealth By giving a wide spectrum of people a chance to buy shares and therefore become part-owners of profitable enterprises, the stock market helps to reduce large income inequalities because many people get a chance to share in the profits of business that were set up by other people. Improving Corporate Governance By having a wide and varied scope of owners, companies generally tend to improve on their management standards and efficiency in order to satisfy the demands of these shareholders. It is evident that generally, public companies tend to have better management records than private companies. Creates Investment Opportunities for Small Investors As opposed to other businesses that require huge capital outlay, investing in shares is open to both the large and small investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides an extra source of income to small savers. Government Raises Capital for Development Projects The Government and even local authorities like municipalities may decide to borrow money in order to finance huge infrastructure projects such as sewerage and water treatment works or housing estates by selling another category of shares known as Bonds. These bonds can be raised through the Stock Exchange whereby members of the public buy them. When the Government or Municipal Council gets this alternative source of funds, it no longer has the need to overtax the people in order to finance development. Barometer of the Economy At the Stock Exchange, share prices rise and fall depending, largely, on market forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability. Therefore the movement of share prices can be an indicator of the general trend in the economy. With countries moving away from socialistic approach and towards globalization of their economies, the role and importance of Stock Exchanges has gone up considerably. Today Stock Exchanges   depict the financial position of the economy of a country. INVESTMENST SCENAREO In closed economies only the Govt. has the sole responsibility and discretion of investment in various projects in the country. No private parties were allowed to invest in any venture. However, countries where mixed economy exist are liberal to the extent of giving permission to some private parties for investment in some selected sectors. However, countries which adopted globalization made their policies liberal enough to give private players permission to invest and run in any sector of their wish. Globalization has made the world boundary less where free flow of labour, capital exists among member countries. Interdependence among countries has given the drive a real momentum. Seeing the robust growth that some of the Asian countries registered really stunned the other nations which had closed economy. These nations which adopted globalization being the first runners were termed as Asian Tigers. Many followed the suit. Few countries followed the path of economic reforms with an anticipation of the prospective growth while the others due to some economic compulsions. A few countries like India were in real soup with acute financial crisis and were not in a position of running the socialistic approach anymore. A balance of payments crisis at the time opened the way for an International Monetary Fund (IMF) program that led to the adoption of a major reform package. It went ahead with globalization and reform process in a step by step approach. Countries realizing that only domestic investments and resources can not be relied upon for rapid growth in industrialization and economy, red carpet treatment was given to foreign investors. Opening up of economies unseals the doors to the investors from other countries to invest in each others countries. These investments come in two forms, i.e, FDI (Foreign Direct Investment) and FII (Foreign Institutional Investment. FII (Foreign Institutional Investor) is an investor or investment fundthatis from or registered in a country outside of the one in which it is currentlyinvesting. Institutional investorsinclude hedge funds, insurance companies, pension funds and mutual funds. They invest in various companies through Stock Exchange. The term is used most commonly in India to refer to outside companies investing in the financial markets of India. International institutional investors must register with the Securities and Exchange Board of India to participate in the market. One of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies. Sub-account includes those foreign corporates, foreign individuals, and institutions, funds or portfolios established or incorporated outside India on whose behalf investments are proposed to be made in India by a FII. Where as FDI (Foreign Direct Investment) is a component of a countrys national financial accounts. Foreign direct investment is investment of foreign assets into domestic structures, equipment, and organizations. It does not include foreign investment into the stock markets. Foreign direct investment is thought to be more useful to a country than investments in the equity of its companies because equity investments are potentially hot money which can leave at the first sign of trouble, whereas FDI is durable and generally useful whether things go well or badly. Foreign Investors always prefer FII route than FDI route since, the route of investing in stocks is easy and more liquid with less risk involved. Investors can take away their money as and when they need by making short term bucks. If we see from govts perspective, FII means incoming of a lot of foreign exchange into the country which boosts the Forex reserve. Where as Govt. is inclined to get more FDI than FII as FDI helps setting up manufacturing or service industry thereby bringing foreign exchange, employing people, business by ancillary industries and tax to govt treasury. Countries across the globe are formulating policies to attract more FDI and FII. Countries like India have modified its investment policies to make it conducive for foreign investment. REGULATORY MECHANISM FOR FII INVOLVEMENT Following entities / funds are eligible to get registered as FII: Pension Funds Mutual Funds Insurance Companies Investment Trusts Banks University Funds Endowments Foundations Charitable Trusts / Charitable Societies Further, following entities proposing to invest on behalf of broad based funds, are also eligible to be registered as FIIs: Asset Management Companies Institutional Portfolio Managers Trustees Power of Attorney Holders The parameters on which SEBI decides FII applicants eligibility. Applicants track record, professional competence, financial soundness, experience, general reputation of fairness and integrity. (The applicant should have been in existence for at least one year) whether the applicant is registered with and regulated by an appropriate Foreign Regulatory Authority in the same capacity in which the application is filed with SEBI Whether the applicant is a fit proper person. As the FIIs take the route of investing in Stocks etc through stock exchange, they have to be abide by the SEBI guidelines. SEBI generally takes seven working days in granting FII registration. However, in cases where the information furnished by the applicants is incomplete, seven days shall be counted from the days when all necessary information sought, reaches SEBI. In cases where the applicant is bank and subsidiary of a bank, SEBI seeks comments from the Reserve Bank of India (RBI). In such cases, 7 working days would be counted from the day no objection is received from RBI. Which financial Instruments are available for FII investment Securities in primary and secondary markets including shares, debentures and warrants of companies, unlisted, listed or to be listed on a recognized stock exchange in India; Units of mutual funds; Dated Government Securities; Derivatives traded on a recognized stock exchange; Commercial papers. MACROECONOMIC FACTORS Economic growth and GDP: The countrys GDP at current market prices is projected at Rs. 46, 93,602 crore in 2007-08 by the Central Statistical Organization (CSO). Thus, in the current fiscal year, the size of the Indian economy at market exchange rate will cross US$ 1 trillion. At the nominal exchange rate (average of April-December 2007) GDP is projected to be US$ 1.16 trillion in 2007-08. Per capita income at nominal exchange rate is estimated at US$ 1,021. According to the World Bank system of classification of countries as low income, middle income and high income, India is still in the category of low income countries. The (per capita) GDP at purchasing power parity is conceptually a better indicator of the relative size of the economy than the (per capita)GDP at market exchange rates. There are, however, practical difficulties in deriving GDP at PPP, and we now have two different estimates of the PPP conversion factor for 2005. Indias GDP at PPP is estimated at US$ 5.16 trillion or US$ 3.19 trillion depending on whether the old or new conversion factor is used. In the former case, India is the third largest economy in the world after the United States and China, while in the latter it is the fifth largest (behind Japan and Germany).   GDP at factor cost at constant 1999-2000 prices is projected by the CSO to grow at 8.5 per cent in 2008-09. This represents a deceleration from the unexpectedly high growth of 9.4 per cent, 9.6 per cent and 8.7 per cent respectively, in the previous three years. With the economy modernizing, globalizing and growing rapidly, some degree of cyclical fluctuation is to be expected. Per capita income and consumption: Economic growth, and in particular the growth in per capita income, is a broad quantitative indicator of the progress made in improving public welfare. Per capita consumptionis another quantitative indicator that is useful for judging welfare improvement.The pace of economic improvement has moved up considerably during the last five years (including 2007-08). Since 2003, there has been a sharp acceleration in the growth of per capita income, almost doubling to an average of 7.2 per cent per annum (2003-04 to 2007-08).This means that average income would now double in a decade, well within one generation, instead of after a generation (two decades). The growth rate of per capita income in 2007-08 is projected to be 7.2 per cent, the same as the average of the five years to the current year. Per capita private final consumption expenditure has increased in line with per capita income. The growth rate has almost doubled to 5.1 per cent per year from 2003-04 to 2007-08, with the current years growth expected to be 5.3 per cent, marginally higher than the five year average. The average growth of consumption is slower than the average growth of income, primarily because of rising saving rates, though rising tax collection rates can also widen the gap (during some periods). Year to year changes in consumption also suggest that the rise in consumption is a more gradual and steady process, as any sharp changes in income tend to get adjusted in the saving rate. Per capita income and consumption (in 1999-2000 prices): Year Income Consumption 2007-08 Rs. Growth (%) Rs. Growth (%) 29,786 7.2 17,145 5.3 Income is taken as GDP at market prices. Consumption is PFCE. Per capita is obtained by dividing these by population. MARKET EFFICIENCY However, market efficiency -championed in the efficient market hypothesis (EMH) formulated by Eugene Fama in 1970, suggests that at any given time, prices fully reflect all available information on a particular stock and/or market. Thus, according to the EMH, no investor has an advantage in predicting a return on a stock pricebecause no one has access to information not already available to everyone else. (To read more on behavioral finance. The Effect of Efficiency: Non-Predictability The nature of information does not have to be limited to financial news and research alone; indeed, information about political, economic and social events, combined with how investors perceive such information, whether true or rumored, will be reflected in the stock price. According to EMH,as prices respond only to information available in the market, and, because all market participants are privy to the same information, no one will have the ability to out-profit anyone else. In efficient markets, prices become not predictable but random, so no investment pattern can be discerned. A planned approach to investment, therefore, cannot be successful. This random walk of prices, commonly spoken aboutin the EMH school of thought, results in the failure of any investment strategy that aims to beat the market consistently. In fact, the EMH suggests that given the transaction costs involved in portfolio management, it would be more profitable for an investor to put his or her money into an index fund. Anomalies: The Challenge to Efficiency In the real world of investment, however, there are obvious arguments against the EMH. There are investors who have beaten the market Warren Buffett, whose investment strategy focuses onundervalued stocks, made millions and set an example for numerous followers. There are portfolio managerswho have better track records than others, and there are investment houses with more renowned research analysis than others. So how can performance be random when people are clearly profiting from and beating the market? Counter arguments to the EMH state that consistent patterns are present. Here are some examples of some of the predictable anomalies thrown in the face of the EMH:the January effectis a patternthat shows higher returns tend to be earned in the first month of the year; blue Monday on Wall Street isasaying that discourages buying on Friday afternoon and Monday morning because of the weekend effect, the tendency for prices to be higher on the day before and after the weekend than during the rest of the week. Studies in behavioral finance, which look into the effects of investor psychology on stock prices, also reveal that there are some predictable patterns in the stock market. Investors tend to buy undervalued stocks and sell overvalued stocks and, in a market of many participants, the result can be anything but efficient. Paul Krugman, MIT economics professor, suggests that because of the mass mentality of the trendy, short-term shareholder, investors pull in and out of the latest and hottest stocks. This results in stock prices being distorted and the market being inefficient. Soprices no longer reflect all available information in the market. Prices areinstead beingmanipulated by profit seekers. The EMH Response The EMH does not dismiss the possibility of anomalies in the market that result in the generation of superior profits. In fact, market efficiency does not require prices to be equal tofair value all of the time. Prices may be over- or undervalued only in random occurrences, so they eventually revert back to their mean values. As such, because the deviations from a stocks fair price are in themselves random, investment strategies that result in beating the market cannot be consistent phenomena. Furthermore, the hypothesis argues that an investor who outperforms the market does so not out of skill but out of luck. EMH followers say this is due to the laws of probability: at any given time in a market with a large number of investors, some will outperform while other will remain average. How Doesa Market Become Efficient? In order for a market to become efficient, investors must perceive that a market is inefficient and possible to beat. Ironically, investment strategies intended to take advantage of inefficiencies are actually the fuel that keeps a market efficient. A market has to be large and liquid. Information has to be widely available in terms of accessibility and cost and released to investors at more or less the same time. Transaction costs have to be cheaper than the expected profits of an investment strategy. Investorsmust also have enough funds to take adva