Analysis of Documentary ” the End of the Line”

The end of the line The end of the line is a part of a new wave of documentaries that not only seek prizes at Film Festival and wasn’t just primarily made to make money but change the opinions of dozens of people. What is happening to the world fish stocks is an under reported issue and End of the Line seeks to address this problem and make the issue reportable. The film was directed by Rupert Murray and narrated by Ted Danson. But the whole film is based on a book By Charles Clover himself a fisherman who tells us about his happiness when he first caught a big great salmon .Other researchers , scientists and just fishermen travel around the world to get people to pay attention to the problem of factory fishing which has reduced and made some fish species extinct . In many ways this film is like a funeral for fish . The scientists predict that if we continue fishing as we are now , we will see the end of most seafood by 2048 . The film takes us around the fishing world to the places like Alaska , Canada , Senegal and Bahamas . The film presentation is less like an investigation but more about discovering the guilty criminals because of which fish is disappearing .The film defines them and we listen to expert witnesses who explains us about why those people are guilty . The documentary opens on a colourful ecosystem that immerses us into the beauty of the underwater world , shows us how this world swarming with life and how it is full of various kinds of fish . Credits calmly fade in and out of the picture as beautiful fish dart in and out of coral reefs, filling the screen with happiness and vibrancy. The credits finish rolling and the music that has been playing in the background transforms from cheerful to suspenseful and dramatic .Drab, gray colors suddenly replace the bright ones, and short scenes begin to flash in sync with the music. Huge boats charge through the sea like a tank rolling into a battlefield. A fisherman’s silhouette appears an d he brandishes a knife, plunghing it into a flopping fish. Red, vibrant blood squirts everywhere, even splashing onto the screen, and it drips from the knife of the fisherman . Quick cuts , dramatic close-ups , emotional music , and vivid details are all characteristics of this film .Colors and music in this documentary , that were mentiod earlier , are directed to convey a message of hatred and disgust towards anglers , even before a single word is said . The violent shots of fish being hit in the head, nets filled with flopping fish (complete with an unpleasant slapping sound), and knives creating gushing stab wounds in huge tuna are accompanied by slow, dramatic music and music that could be straight from a horror movie. One shot from within an underwater net shows a few fish with panicked faces, eyes wide, and mouths open, lunging toward the camera as if screaming, â€Å"Let me out! . In this film , fish is occasionally personified , making people that are shown in scenes at s ushi restaurants while eating seafood and talking about how they enjoy eating it and how they love fish , in interviews is represented as they are cannibalistic fish murderers . The diction in this film is mostly voice-over and interviewees . The definite attempt of voice-over is to manipulate the emotions of audience . What about the interwiewees , many of them are very passionate about the issues presented in this documentary , and it shows in the word choice that they use .In the interviews what they do is that they are encouraging and persuading people to stop consuming fish in such big amounts as we do now , to stop fishing ilegally or reduce catch of fish , to prevent this tradegy , otherwise we will see the end of seafood . They also represent us the statistics that are intimidating . Those statistics and interwievs create a horrifying atmosphere and mood . The method of this film is to shock audience . This is the great move to engage people , because it is a shock and fear that makes people be more serious and change the way they think and their worldview .And the dramatic music only feeds those feelings . As it was mentioned earlier the film takes part in different parts of the world . For example in Africa the fishing business is very well developed , but as they were asborbing and catching fish in large quantities this led them to a shotage of fish as well as to the loss of jobs . Since fish and fishing itself for them is one of the most important kinds of food and job , many fishermen were forced to go to Europe to infiltrate their families . And this is already one of the examples that the fish is being extincted .Another example that fish is being extincted is that some corporations and fishermen cheat because they can and don’t get caught . In the documentary , a passionate Mielgo described the role of Mitsubishi that’s located in Japan in the decline of bluefin tuna . He believes the company is stockpiling bluefin for the day whe n the species will be extinct and the price of their highly regarded flesh will skyrocket. The bluefin situation demonstrates what multinational corporations, international fishing policy, and consumer demand can do to a wild species.The film gives us a lot of information, using statistics, scientists, fishermen, and people associated with the fishing industry, which makes us feel truthfully about this film and believe it and to take their message and really try to make a difference in the underwater world . All in all the main purpose of this film is to reach people , to make them to imagine an ocean without fish . Imagine their meals without seafood . Imagine the global consequences . To show that this is the future if we do not stop , the purpose is to make people think and act wisely .

Malunggay can be used as water purifier Essay

Aside from its potential as biofuel feedstock, the seed of moringa, locally known as malunggay, could also be used for treating water, a Filipino scientist said yesterday. Dr. Isidro Sia, a professor of the Department of Pharmacology and Toxicology of the University of the Philippines-Manila, said moringa seeds have been found to be one of the most effective water purifiers, based on international studies. He said the technology is being used in Kenya, Indonesia and Uganda. In the Philippines, he said UP has an ongoing project to study the water-purifying property of the local variety. According to research, moringa seeds treat water on two levels, acting both as a coagulant and an antimicrobial agent. â€Å"It is generally accepted that moringa works as a coagulant due to positively charged, water-soluble proteins which bind with negatively charged particles (silt, clay, bacteria, toxins, etc.) allowing the resulting ‘flocs’ to settle to the bottom or be removed by fil tration. The antimicrobial aspects of moringa continue to be researched,† it said. Solutions of moringa seeds for water treatment may be prepared from seed kernels or from the solid residue left over after oil extraction. Reports said moringa seeds, seed kernels or dried presscake can be stored for long periods but moringa solutions for treating water should be prepared fresh each time. In general, one seed kernel will treat one liter of water. The process of treating the water with moringa seeds would take at least one to two hours. â€Å"This clean water can then be filtered or sterilized to make it completely safe for drinking,† a report said. Moringa is also being promoted as animal feedstock. According to research, moringa has seven times the vitamin C in oranges, four times the calcium in milk, four times the vitamin A in carrots, three times the potassium in bananas, and two times the protein in milk. In addition to nutritional qualities, it has medicinal uses, external and internal. Its oil can also be used for cooking and for cosmetics and lubricants. Medical experts and herbalists attest to the long line of health benefits of Malunggay (scientific name: Moringa oleifera). And the most recent finding by researchers at the Pennsylvania State University (PSU) shows that crushed Malunggay seeds are potent in purifying dirty water. The research has scientifically proven the practice of Filipinos and Egyptians in using crushed malunggay to purify water. The PSU researchers claimed in a paper that the protein in the Malunggay seed kills bacteria by gathering them into clusters that sink into the bottom of a container. The protein fuses the membranes that protect the bacteria, thus destroying them in one fell swoop. The proteins are reportedly potent in their cleaning ability when harvested as mature seeds during the rainy season. Writing for Popular Science on June 11, 2015, Mary Beth Griggs said the role of Malunggay seeds as water purifier would be a boon to hundreds of millions of people with little access to potable water. With Malunggay seeds as alternative, those living in remote communities need not secure nanotech filters and light-based water purifiers. Indian researchers also discovered that Malunggay improves the motility of spermatozoa, making it a favorite among men who want to sire many children. Several years ago, the Department of Agriculture (DA) launched a campaign to popularize the propagation of Malunggay through the Biotechnology Program Office (BPO) then under Dr. Alice Ilaga and consultant Dr. Satunina Halos. It was even suggested that oil from Malunggay seeds could be extracted and used for various pharmaceutical purposes. Malunggay leaves are a good source of calcium, iron, ascorbic acid and phosphorous. Filipino boxing icon and Sarangani Rep. Manny Pacquiao credits soups with Malunggay leaves for boosting his energy during training. Moringa Water Purification In many parts of the world river water which can be highly turbid is used for drinking purposes. This turbidity is conventionally removed by treating the water with expensive chemicals, many of which are imported at great expense. Natural coagulants have been used for centuries in traditional water treatment practices throughout certain areas of the developing world. Crushed Moringa seeds clarify and purify water to suit domestic use and lower the bacterial concentration in the water making it safe for drinking. By  using Moringa seeds people will no longer be depending on expensive means originating from the West. Using Moringa to purify water replaces chemicals such as aluminium sulphate, which are dangerous to people and the environment, and are expensive. Moringa seed powder can be used as a quick and simple method for cleaning dirty river water. Studies showed that this simple method of filtering not only diminishes water pollution, but also harmful bacteria. The moringa powder joins with the solids in the water and sinks to the bottom. This treatment also removes 90-99% of bacteria contained in water. Water from varying sources will need different amounts of Moringa seeds powder because of the impurities present will not be the same. Experiments with a jar will help in working out the correct amount needed. Moringa In addition to food, shelter and clothing, water is one of our basic human needs and lack of potable water is a major cause of death and disease in our world.  Moringa oleifera seed contains 40 per cent by weight of oil, with the remaining presscake containing the active ingredients for natural coagulation. The high market value for the oil make the case for promoting the cultivation of the seed a strong one. The growth of Moringa oleifera trees by smallholder farmers should be actively promoted as a means of providing vegetables and raw material for oil extraction in addition to a simple, but effective natural coagulant for turbid river water. Using natural materials to clarify water is a technique that has been practiced for centuries and of all the materials that have been used, seeds of the Moringa have been found to be one of the most effective. Studies have been conducted since the early 1970’s to test the effectiveness of Moringa  seeds for treating water. These studies have confirmed that the seeds are highly effective in removing suspended particles from water with medium to high levels of turbidity (Moringa seeds are less effective at treating water with low levels of turbidity). Moringa Water Purification Theory Moringa oleifera seeds treat water on two levels, acting both as a coagulant and an antimicrobial agent. It is generally accepted that Moringa works as a coagulant due to positively charged, water-soluble proteins, which bind with negatively charged particles (silt, clay, bacteria, toxins, etc) allowing the resulting â€Å"flocs† to settle to the bottom or be removed by filtration. The antimicrobial aspects of Moringa continue to be researched. Findings support recombinant proteins both removing microorganisms by coagulation as well as acting directly as growth inhibitors of the microorganisms. While there is ongoing research being conducted on the nature and characteristics of these components, it is accepted that treatments with Moringa solutions will remove 90-99.9% of the impurities in water. Water Treatment with Moringa Seeds Solutions of Moringa seeds for water treatment may be prepared from seed kernels or from the solid residue left over after oil extraction (presscake). Moringa seeds, seed kernels or dried presscake can be stored for long periods but Moringa solutions for treating water should be prepared fresh each time. In general, 1 seed kernel will treat 1 liter (1.056 qt) of water. Dosage Rates: Low turbidity NTU250 2 seeds per 1 liter (1.056 qt) water INSTRUCTIONS TO CLEAN WATER WITH MORINGA SEEDS 1 Collect mature Moringa oleifera seed pods and remove seeds from pods. 2 Shell seeds (remove seed coat) to obtain clean seed kernels; discard discolored seeds. 3 Determine quantity of kernels needed based on amount and  turbidity of water; in general 1 seed kernel will treat 1 liter (1.056 qt) of water. 4 Crush appropriate number of seed kernels (using grinder, mortar & pestle, etc) to obtain a fine powder and sift the powder through a screen or small mesh. 5 Mix seed powder with a small amount of clean water to form a paste. 6 Mix the paste and 250 ml (1 cup) of clean water into a bottle and shake for 1 minute to activate the coagulant properties and form a solution. 7 Filter this solution through a muslin cloth or fine mesh screen (to remove insoluble materials) and into the water to be treated. 8 Stir treated water rapidly for at least 1 minute then slowly (15-20 rotations per minute) for 5-10 minutes. 9 Let the treated water sit without disturbing for at least 1-2 hours. 10 When the particles and contaminates have settled to the bottom, the clean water can be carefully poured off. 11 This clean water can then be filtered or sterilized to make it completely safe for drinking. DANGERS Secondary Infection: The process of shaking and stirring must be followed closely to activate the coagulant properties; if the flocculation process takes too long, there is a risk of secondary bacteria growth during flocculation. Recontamination: The process of settling is important. The sediment at the bottom contains the impurities so care must be taken to use only the clear water off the top and not allow the sediment to re-contaminate the cleared water. Additional contaminants: Moringa treatment does not remove 100% of water pathogens. Using Moringa oleifera as a replacement coagulant for proprietary coagulants meets the need for water and wastewater technology in developing countries which is simple to use, robust and cheap to both install and maintain. Water purified with oringa seeds, is acceptable for drinking only where people are currently drinking untreated, contaminated water.

Globalization of hospitality industry Essay

A service is an activity which has some element of intangibility associated with it, which involves some interaction with customer. The service is unique component in hospitality which is a universal component with the distinct requirements even in New York or New Delhi. The advent of globalization has created new destinations and opportunities to explore. The new business opportunities like outsourcing business to new regions will provide ample opportunities to the services. Every destination has its won distinct characteristics to deal with. The acceptance of your service depends upon the way the organisation responds in creating the native environment. The important aspects that a guest perceives in hospitality industry are the Ambience, the quality of service, the features on offer. An organisation to internationalize needs a series of factors to look into The custom made services, Location preference, the entry norms and the modes of entry. The more the people move to exploit the business opportunities world wide the more will be the need for services. The hotels and the others related leisure services are essentials for these businessmen moving far. The MNC’s has to know the regions where there is greater movement of population and where there is need to establish the hotel services in view of the international client. The establishment importantly should keep an eye on the local requirements without hurting the native custom. The organizations have to touch a right balance with international quality services with local touch to magnify the uniqueness of the service offered. The new regions will enhance the business proportions, increase the profitability, ease the competitive pressure on the group. The entry norms leverage the hotels group to enter a new destination with ease. The common entry norms are acquisition, jointventures, leasing, franchising and management contracts. The modes enable to retain the clientele base of the target company, helps in understanding the consumer base quickly. The above strategies decrease the settling time as it is more like taking forward the same brand with a new look. Thus the hotel groups should concentrate more on developing strong local brand with international standard. The more you adopt to the market the more will be the returns. Reference: Li Wei, Integration and globalization of hotel industry, viewed on Jan 26, 2007 available at http://fld. dlut. edu. cn/TeachAndReasch/TR_disp. asp? id=220

Minimizing the Impact of a Natural Disaster - The Risk Mitigation Research Paper

Minimizing the Impact of a Natural Disaster - The Risk Mitigation Phase - Research Paper Example While FEMA and other government agencies will aid in the response and recovery phases of the disaster, the planning and initial response will largely be a function of local officials. The need for response and recovery can be greatly reduced by adequate planning and risk mitigation. The emergency planning manager will need to be highly skilled in a wide variety of disciplines to be effective. They will need intense knowledge in fields as diverse as geology, political science, and social theory. The purpose of this paper is to better prepare the disaster manager by examining the steps necessary to implement a risk mitigation program and what role it has in the planning for and responding to a natural disaster. Planning for, and responding to, a natural disaster will differ considerably from a man-made disaster. Natural disasters are somewhat predictable and foreseeable, happen based on natural patterns, and their effects can be anticipated. Typical disaster planning and response include the phases of risk assessment, mitigation, planning, response, and recovery. However, natural disasters tend to be overlooked when budgets are tight, the weather is clear, and there has not been a disaster in recent memory. The type and severity of disaster exposure will vary depending upon the geographical location and time of year. Communities may be exposed to hurricanes, tornadoes, earthquakes, fires, volcanoes, or floods. Recent construction sites may be prone to landslides, erosion, and runoff. These threats are often neglected as "the core concept of risk arising from natural hazards is not a fundamental mode of thinking or discourse for policymaking, and in addition is greatly overshadowed nowadays by the issue of terrorism" (Basher, 2008, p.938).  

Discussion of Chinese women Coursework Example | Topics and Well Written Essays - 500 words

Discussion of Chinese women - Coursework Example The Chinese government has identified the need to equip women with skills to engage in economic development and leadership. The website explores the challenges faced by women in their efforts to be liberated. It clearly displays the role of education on involving women in development (Hinsch 97). Education gives women a chance to engagement in various professions such medical, journalism, teaching and many others. Educated women can be influence in ensuring justice for all. For instance, Shi Liang, a renowned lawyer and Chinese first justice minister in the 1930s pushed equal rights for both women and men. Going by history, leadership in China has assumed the aspect of masculinity. The cultural constructions limit the participation of women in leadership. Liberation of women from these cultural chains is an issue of concern. The few women who have been apportioned leadership responsibilities in government have display outstanding performances. This has raised an alarm for the government to rethink on women and leadership. The website display’s the communists’ party efforts to deal with women’s issues as aggressive. For instance, Women’s reproductive freedom remains abused under the china’s family planning regulation, heavy fines are imposed on those who go against the rule. In the traditional Chinese culture women had little or no priority in healthcare, healthcare was designed to focus on men. Despite the aggressiveness, the government has endorsed polices that give equal healthcare to men and women. Women receive scholarships to study medicine outside china. For example in the 1980s a batch of female Chinese students went to study in America. The communist government has raised employment of women in good paying labor force. Of the total working population, 43% is women. The increased participation of women in the labor force has increased the women contribution to family income. Women form a

Pragmatics of Computer-Mediated Communication Case Study

Pragmatics of Computer-Mediated Communication - Case Study Example As a partner in the exploratory activities at Nabila, my company has tried to do all it can to ensure that our working relationship is not compromised by this financial problem. However, lack of correspondence and cooperation from your firm has left me with no choice but to communicate to you directly. As the VP of PTI, I am solely responsible for this deal and the subsequent amount spent in installing the gas lift system, and so my job could be on the line here. I request that you take this matter into your stride and address it as professionally as possible because my company views this is grossly unethical and would be forced to take measures in case correspondence is not forthcoming. Please note that we are as willing as ever to continue working with you, but we have to do it on clear terms. Currently, the situation inhibits our cooperation and I believe that we could both benefit from clarity on this issue. Having tried, unsuccessfully, to contact Congoil on the abovementioned issue, I am left with no choice but to ask for your assistance on this matter. Congoil has so far indicated an unwillingness to cooperate with my company through correspondence or payment of the money duly owed to us. I believe that you have a good understanding of how things work in this region. I also believe that you have a good understanding of how communication should be conducted in this region. Kindly find it in you to talk to Congoil through Mr Rugeiro or any other Congoil official on how to resolve this matter. I am counting on you as a friend and a professional in the industry, and someone who could possibly understand how Congoil operates. I also have a strong hunch that maybe we are not using the right channels of communication in trying to find a solution to this mess.   I have heard that the culture here is high-context, polychromic, risk and uncertainty averting, and high power distance.     Ã‚  

WESTERN CIVILIZATION Essay Example | Topics and Well Written Essays - 500 words

WESTERN CIVILIZATION - Essay Example The peasants were made to pay land tax, war tax, and an extraordinary number of dues were imposed on them such as, cloth dues, salt dues, bread dues, while the clergy and the nobility were exempt from paying taxes. Resentment and anger were fuming among the exploited poor peasants. These form the long time social background, which caused French Revolution. The administrative failure in France and her bankruptcy in the later part of the 18th century forced Louis XVI to call a general meeting of the Estates General. But differences ensued among the representatives regarding voting rights. On June 10, 1789 the Third Estate, consisting of the bourgeoisie, the peasants, and the liberal minded representatives from the members of the nobility declared itself the National Assembly. Louis XVI failed to disband the group. On July 14th commoners in Paris stormed the Bastille. French Revolution brought new hope and light to all other European states. As the age-old feudal system was demolished the new age upheld the high ideals of Enlightenment. New institutions came up which were based on reason and justice. Man broke the shackles of superstition, prejudice, oppression and cruelty of a fellow human being. New terms such as freedom, liberty, equality and brotherhood filled the hearts of men. For that generation, human rights came within sight; forces of oppression, tyranny and misery were identified. â€Å"So 1789 stands as the pivotal year- a watershed- in which these forces came to their abrupt and necessary

Iron Triangle Essay Example | Topics and Well Written Essays - 500 words

Iron Triangle - Essay Example roup always has the potential of creating a situation in which through lobbying, they go an extra mile in having undue influence on the government of the day. For instance, The National Rifle Association can strategically lobby in order to block proposed gun control measures. The iron triangle concept can come into play in such a scenario the politicians in any of the two congresses bow to the lobbyists then in turn block initiatives like the universal background checks. This would happen even if majority of the voters support the proposed gun control measures. The congress forms another corner of the Iron Triangle. In many instances, the congress with the long term scheme of winning elections exchanges what can be called friendly legislations to government agencies and bureaucrats. This can always happen in two ways. Firstly, the bureaucrats receive less oversight from the congress which enables them to execute policy more freely.Secondly, agencies, special interest groups and bureaucrats receive lowered regulation and special favours.As an example, a congress person in the Agricultural Committee representing Midwest in the House representatives may lobby from the ethanol industry to support factual evidence on why its beneficial to use corn in producing ethanol. If the ethanol industry sees the congressman’s policies to be beneficial, then they play a great part in lobbying selling the representative as a bet for corn farmers. This would in turn raise chances for reelection. Government Agencies and bureaucracies form the third corner of the triangle. They have the main responsibility to implement the procedures and policies passed by the congress. Since congress is their key source of funding, they in some instances implement decisions which are in favor of the congress even if those decisions are unpopular with the citizens. For instance, Amtrack can apply dubious tactic of convincing the congress to reduce truck regulations although this has a long time

Ethical behavior in an organization Essay Example | Topics and Well Written Essays - 500 words

Ethical behavior in an organization - Essay Example In other words it acts as the road map or set of guidelines to help the firm in acting and conducting itself in a socially and commercially acceptable manner. A well designed code of ethics will help highlight the resources available to achieve various goals set at the personal and corporate levels. A good code of ethics document will inspire confidence in all associates – like suppliers, clients and employees. Equally important is liaising with regulators, which is often overlooked amidst other pressing priorities. It is understood that a regulatory atmosphere conducive to fair and competitive business can help raise ethical standards of all parties involved. It is important that the code of ethics document exhibits a keen awareness of this reality. This would imply foresight and visionary thinking on part of its planners. (Blackburn, 2001) But it is crucial to understand that the entrenched profit-motive of many business organizations make ethical behavior hard to implement. A case in point is the Public Relations industry which offers its services to other manufacturing and service industries. The concept of marketing commodities in a consumer market had long drawn the criticism of ethicists. On a broader perspective, the inherently weak moral imperative of capitalist culture makes this outcome inevitable.

Renaissance and Baroque Artists and Musicians Assignment

Renaissance and Baroque Artists and Musicians - Assignment Example Leonardo Da Vinci, who is one of the greatest celebrated artists of the Renaissance, was also a sculpture, architect, scientist and engineer. He was born in a small town of Vinci, near Florence. During 1940’s his family settled in Florence and he was given â€Å"the best education that Florence, the intellectual and artistic center of Italy, could offer†. His influences from other artists are not very defined, yet, his sound interest in science and â€Å"his in-depth study of human anatomy aided him in mastering the realist art form† (Leonardo Da Vinci's Life). While all other works of arts seem to be static arts, Vinci always tried to create movements in his works and all his works are considered examples of accuracy and perfection. His exposure to his father’s scholarly texts and his apprentice under Andrea del Verrochio in Florence boosted his talents. His most famous works included â€Å"The Last Supper, The Mona Lisa and Vitruvian Man: The Proportion s of the Human Figure†. He died in Cloux, France and legends reveal that â€Å"King Francis was at his side when he died, cradling Leonardo's head in his arms. prestigious St. Michael's School in Là ¼neburg and â€Å"it is almost certain that while in Là ¼neburg, young Bach would have visited the Johanniskirche and heard (and possibly played) the church's famous organ†.. Among many others, his major works that he is famous for includes â€Å"the Brandenburg concertos, the Goldberg Variations, the Partitas, The Well-Tempered Clavier, the Mass in B Minor, the St Matthew Passion†.

Silence of The Lambs Research Essay Example | Topics and Well Written Essays - 2500 words

Silence of The Lambs Research - Essay Example However, this involves a greater effort and hard work from the whole team working at the project, as the technique of writing a novel is very different from the usual movie scripts, and directors have to be very careful about handling the story. It is a dangerous gamble, and very risky. More than often a movie fails just because the director did not provide that flow to it that should keep the audience on the edge of their seats, a very important factor in the success of any movie, or because the proper treatment was not given to the storyline. The genres that have proven to be the most grossing at the box office have been horror and thrillers_ action, suspense, and mystery inclusive, as they provide that crucial adrenaline shots to the audiences and find a common pulse with them, giving them a chance to escape into the world of fantasy and reel life, and an opportunity to unwind. A recent addition to this genre is the concept of psychological thrillers. For long film makers have relied on camera tricks and special effects, and costumes and scary background score when it comes to horror movies as the sole technique of being true to this category. Sometimes, theological themes and fantasized versions of mystical stories are woven into the plot to make it sound more believable and so more scary. The exorcist was and still is to this day the pinnacle of success in this regard, and still stands out to be the top most name in the list of scary movies of all times. But psychological thrillers bring in something more to horror than just the monsters; they bring to it the human factor. Audience worldwide have the tendency to relate to stories that are more in synch with their emotions, thinking patterns and psychology, and touch upon the matters of the human soul and spiritual development of people. Movies that explore this aspect hold a special place in the history of cinema. Weave it together with the essence of horror and suspense, and you have the perfect blend of cinematic taste that will be intensely savored by the audience, given that it is handled very sensitively and extremely carefully, for as much as it is the formula of success, if negligence be a part of it, it can fall flat on its face in the box office. Case in point of an all time success is the movie The Silence of the Lambs. In the winter of 1991 came a movie that went on to be nominated for scores of awards and claimed many accolades, a proof of its tremendous success. The distributors were the Orion Pictures, and the director was Jonathan Demme. The cast was an impressive combination of

Marcel Duchamp and Dadaism Essay Example for Free

Marcel Duchamp and Dadaism Essay The art of Dadaism had its roots as an anti-art movement. The period of time in Art History Dadaism represents was approximately period of time from 1916 to 1924. Dadaism rejected the way art was appreciated and the way art was generally being defined in contemporary art scenes at that time (Tomkins, 1985). Dadism art movement was a response to World War I and was founded in Zurich, Switzerland. There weren’t any unifying aesthetic characteristics in Dada art; however, the Dadaists did share an extremely skeptical attitude towards what were at the time, the expectations of artists and writers. The word â€Å"Dadaism† was chosen for its naive sound (Gale, 1997). After originating in Zurich, the Dadaism art movement continued to spread to places like Berlin, Cologne, Hanover, Paris, Russia and New York City (Gale, 1997). Many of the original Dadaist would gather at a nightclub in Zurich, Switzerland called Hugo Ball’s Cabaret Voltaire, to express their ideas (Tomkins, 1985). As far as the United States, the central locations for Dada art were Alfred Steiglitz’s gallery â€Å"291,† a studio at 291 Fifth Avenue, along with the studio of the Walter Arensbergs, a Harvard-educated U. S. resident and art collector (Tomkins, 1985). Because Switzerland was neutral to both WWI and WWII, objectors to the war, those avoiding military service and those who just wanted to find a place for free expression gravitated to Switzerland. Integral to the Dada movement was the attempt not to categorize the art work using any association with any reference to analyzing the art intellectually. Dada was also a reaction the bourgeois Victoria values of the late 19th and early 20th centuries. Dadaism was considered â€Å"absurb and playful† but at the same time it was considered to be â€Å"intuitive and cryptic† (Art, 2006). The methods used in producing this Dada art were not conventional and they used what they referred to at the time as â€Å"the chance technique and found objects† (Art, 2006). The Dadaists were trying to make their statement on the â€Å"social values and cultural trends of a contemporary world facing a devastating period of war† (Art, 2006). One of the artists associated with Dada and Surrealism was French artist Marcel Duchamp. However, according to some of my various readings, Duchamp’s actual participation in Surrealism was mostly behind the scenes. Most readings on Duchamp states that once he became involved in New York Dada, he seldom ever participated in Paris Dada. One of the reasons Marcel Duchamp is viewed as an enigma is that he is regarded as having produced one of the most diverse collections of masterpieces in the shortest amount of time. Some of the work Duchamp is most noted for are his oil on canvas â€Å"Nude Descending a Staircase,† â€Å"The Bride Stripped Bare by her Bachelors,† and his â€Å"ready-mades† which include the â€Å"Bicycle Wheel† and the porcelain urinal â€Å"Fountain† (Tomkins, 1985). In one source it was noted about Duchamp’s short creative period, â€Å"Duchamp was content to let others develop the themes he had originated; his pervasive influence was crucial to the development of surrealism, Dada and pop art† (Marcel, 2007). Upon viewing Duchamp’s various art pieces in the research I did for this paper, my personal thoughts are that Duchamp could have even felt that he was even using his Dadaism art in making fun of those who admired it, purchased prints of it and highly regarded it in any way. For example, in claiming a ready-made porcelain urinal and attaching a ready-made bicycle wheel to a ready-made stool, lacked pretty much any originality and even if it Dada was considered anti-art, he could have been fooling his audience. In one of my readings it noted that he was extremely surprised that he already had a large â€Å"fan base† in the United States upon arriving here. It could be that he thought he was â€Å"fooling† less people than he realized with some of the pieces he chose to present as â€Å"his† art. In one of the readings it stated that Duchamp â€Å"retained a sharp sense of humor in all circumstances—even to his death. Through humor, Duchamp abolished the difference between that which possesses and aesthetic quality and that which doesn’t† (Kuenzli). So it could be said that possibly Duchamp was just testing â€Å"us† to see at what if we got his Dadaism joke. While the Dadaist movement eventually declined in its popularity in the 1920’s, many artists who were before practicing Dadaism began practicing Surrealism. There was noted a Dadaism revival which occurred in New York in the mid 1950’s. Many feel this reaffirmed that Dada art was an important artistic movement in the world of arts. References Art History: Dadaism. World Wide. 2006. World Wide Arts Resources. 14 May 2007 http://wwar. com/masters/movements/dadaism. html. Gale, Matthew. Dada Surrealism. Art ideas. London: Phaidon, 1997. Kuenzli, Rudolf. Marcel Duchamp: Artist of the Century. Cambridge, Massachusetts: MIT Press, 1989. Masheck, Joseph. Marcel Duchamp in Perspective. Englewood Cliffs, New Jersey: Prentice-Hall, 1975. Tomkins, Calvin. The World of Marcel Duchamp. Amsterdam: Time-Life,1985.

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