One Flew Over the Cuckoo’s Nest and The Shawshank Redemption Essay Example

One Flew Over the Cuckoo’s Nest and The Shawshank Redemption Paper Contrasts in characterisation are employed throughout Kesey’s One Flew Over the Cuckoo’s Nest and Darabont’s The Shawshank Redemption to explore key ideas, as well as fundamental themes of confinement, oppression, and sacrifice. Contrast in characterisation is plainly evident between the protagonists and antagonists of the respective texts, but perhaps more specifically in the contrast that occurs as each author develops their narrators; Kesey’s ‘Bromden’ and Darabont’s ‘Red’. Both narrators experience a profound transformation, which becomes clear when contrasting their characters at the beginning to that of the end of the two texts. Bromden’s mental illness is prominent within the first half of Kesey’s text, but towards the completion of the novel has transformed to a condition of psychological strength with a heightened appreciation for life. Both authors rely heavily on their protagonists in order to provide the inspiration for this change. Kesey makes use of imagery and symbolism, to explore the idea that individuality is a powerful motivator. Darabont utilises a similar catalyst for change as well as repetition; yet as a visual text, he also employs light and sound effects to explore the idea that a leader is a provider of hope. We will write a custom essay sample on One Flew Over the Cuckoo’s Nest and The Shawshank Redemption specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on One Flew Over the Cuckoo’s Nest and The Shawshank Redemption specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on One Flew Over the Cuckoo’s Nest and The Shawshank Redemption specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Red is unwittingly influenced by protagonist Andy Dufresne. Prior to Dufresne’s arrival, Red is presented as both cynical and dry, an institutionalised man unwilling to waste energy on hope; yet finds ‘salvation from within’ in the closing stages of The Shawshank Redemption. Kesey and Darabont use contrasts to explore core themes and ideologies, whilst invoking the audience’s sense of independence and faith. In both texts, the narrators embody changes that gradually augment the reader’s understanding of the resultant effects of oppression. Kesey’s narrator, Bromden, describes the oppression associated with ward life through the use of simile to depict its mechanical nature and lack of individuality. This absence of humanity is the philosophy of Nurse Ratched, a domineering antagonist intent on creating a pure and pallid world for the ‘treatment’ of her patients. ‘The Big Nurse tends to get real put out if something keeps her outfit from running like a smooth, accurate, precision-made machine†¦. ’ However, this routine of maintaining order is shattered upon protagonist, Randall McMurphy’s, committal to the ward. This arrival of individuality instantly brings a vibrant atmosphere to the whitewashed walls of Ratched’s ward. A similar change is evident in The Shawshank Redemption where Darabont utilises voiceovers to convey Red’s initial perception of protagonist, Andy Dufresne, ‘He had a quiet way about him, a walk and a talk that just wasnt normal around here’. The transformation in both Bromden’s and Red’s character is not immediately apparent. Weeks pass before ‘the fog’, symbolic of Bromden’s mental illness begins to clear; and similarly Red remains fearful for years about the likely damage of false hope. Darabont conveys Red’s aversion towards the notion of hope through the use of repetition, ‘Hope? Let me tell you something, my friend. Hope is a dangerous thing. Hope can drive a man insane. It’s got no use on the inside. You better get used to that idea’. Kesey and Darabont both ensure that there is a prolonged contrast in the characterisation of their central characters, allowing the audience to appreciate the subtle but increasing influence over time that the two protagonists have on the narrators. Darabont relies on the use of his narrator, Red, similar to Kesey’s use of Bromden; primarily to explore fundamental ideas and themes of confinement and sacrifice. The audience grapples with the cruel nature of confinement based on Red’s recounts of his and Dufresne’s experiences in Shawshank prison. Additionally, it is conceded by Darabont that Red’s blatant rejection of hope is indicative of Shawshank Prison’s institutionalising effect, ‘These walls are funny, first you hate them, then you start to get used to them. Eventually it gets so you rely on them. That’s institutionalised. ’ Dufresne unintentionally influences Red’s change in persona, which is quite unlike McMurphy’s extroverted behaviour in Kesey’s novel, ‘Nobody’s sure if this barrel-chested man with the scar and the wild grin is play-acting or if he’s crazy enough to be just like he talks†¦Ã¢â‚¬â„¢. Dufresne provides the inmates, but particularly Red, with hope through scenes where he sacrifices himself for the benefit of others; these include the roof tarring and phonograph incidents. Bright lighting is used as a focal element in order to demonstrate a contrasting, optimistic atmosphere; reflective of the changes occurring within Red. Likewise, McMurphy alters Bromden by demonstrating what true sacrifice is when he undergoes repeated Electro Shock Therapy sessions; allowing Kesey to explore imagery and symbolism associated with the biblical allusion, ‘wearing a crown of thorns’. Both authors present their respective premises successfully through the narrators’ contrast in characterisation, whilst presenting a common belief that freedom requires sacrifice. The pronounced transformation in the narrators is demonstrated through techniques unique to the respective texts, as well as the distinct use of contrasts. Melodic music creates a buoyant atmosphere in the closing scene of The Shawshank Redemption, with the culmination in contrast of Red’s character. The use of repetition is once again featured in order to demonstrate Dufresne’s effect on Red, specifically his newfound ability to hope, ‘I hope I can make it across the border. I hope to see my friend, and shake his hand. I hope the Pacific is as blue as it has been in my dreams. I hope’. Similarly, by the completion of One Flew Over the Cuckoo’s Nest, Kesey makes it clear, through the use of a cliched simile, that McMurphy’s flair for instilling self worth has allowed Bromden to truly live again, and escape the daily drudgery of ward life, â€Å"I felt like I was flying. Free. Nobody bothers coming after an AWOL, I knew†¦Ã¢â‚¬  Contrasting Bromden’s character from beginning to the end of One Flew Over the Cuckoo’s Nest allows the audience to examine Kesey’s idea that individuality is a powerful motivator. Darabont’s ideology that a leader is a provider of hope is portrayed through repetition, sound effects, and the contrast in Red’s character. Kesey and Darabont both present their respective ideas through contrast in characterisation, yet in very different ways. This disparity is primarily due to the difference in text types; resulting in Kesey’s reliance on the literary techniques of imagery and symbolism, and Darabont’s deliberate use of light and sound. Though the narrators are of critical importance in portraying their own transformations, the protagonists instigate the change and consequently develop the author’s ideologies with equal significance. One Flew Over the Cuckoo’s Nest and The Shawshank Redemption share a vast number of similarities in relation to their themes, whilst depicting divergent meaning due to the differing ideologies of the respective authors. Kesey’s and Darabont’s use of contrasts within the narrators supports the ideas present within the texts; allowing the audience to formulate their own beliefs about the importance of individuality and hope.

Research Paper Topics For the 1970s

Research Paper Topics For the 1970sResearch paper topics for 1970s are harder than ever to choose from. It is important to pick topics that are interesting, and of interest to you. The topics should also be based on the research that you want to do. In other words, if you want to research business cycles, then choose a topic that will help you find a pattern in the data.Time management is very important to successful individuals. You must make sure that you find the right way to organize your time for the research papers that you want to write. Time management may include the following things:Time management is also very important when doing research papers in history. You need to choose the appropriate source material so that you can gather the necessary facts. When writing your research paper topics for the past, it is important to check whether the historical event was in fact historic.These tips will help you as you choose research paper topics for the 1970s. You will also have t he chance to experiment with ideas and share your findings through creative writing.When choosing your research paper topics for the 1970s, it is important to choose topics that you really enjoy. Make sure that you find an idea that is interesting and meaningful to you. You need to work with a group of people to help you with your research. Make sure that the research will be exciting and interesting to the audience of your research paper.Research paper topics for the 1970s can include subjects such as political, social, and economic changes in the world. When writing the research paper, you need to take into account the general trends in the world of the 1970s. Your research paper should be able to communicate your research findings.It is important to know what the academic background of the participants of the study is. This can be very helpful in creating more detailed research papers. While writing a research paper, it is very important to stay away from academic jargon and info rmation.Research paper topics for the 1970s should be different from each other and should be based on a particular theme. You should pick topics that are fun and interesting to you. Make sure that the topic is based on your own research.

Current Essay Topics

Current Essay TopicsCurrent essay topics can be varied and include class assignments, hobby topics, and even writing for non-academic areas. No matter what the topic is, it will help you write an essay that will meet your needs. This essay topic can range from something as basic as math problems to complex problems.Your current essay topics will help you in several ways. First, it will keep you motivated and get you in the mood to begin the actual writing process. This is because writing for an assignment can sometimes be tiring and draining.You will have specific instructions on how to complete the assignment, however, you might not know where to start or what to do. This is why having a list of current essay topics will be very helpful. Also, it can be a great way to determine which topics to cover when it comes time to write.List your current essay topics in the order that you would like to complete them. Usually, the order will be based on topic. It may seem a little odd to do th is, but it can help to keep you focused and maintain your focus throughout the entire writing process.This is how you will get started with your assignment; you will start with one of your current essay topics. This will then allow you to brainstorm ideas that can use for your topic. As you research, you may find that there are many different solutions to the problems that you are facing. All you need to do is look up the solution and then write a simple paragraph about it.Next, you will then need to begin writing about your topic. You will be able to take notes while you are writing about your topic. Using this information, you will be able to fully research the topic and create a much better essay than you could with just a few sentences. Now, all you need to do is rewrite your idea and add the information that you researched.One thing that is very important to remember when you use your current essay topics is that it is important to write from your own point of view. Try to not include any negative opinions on any of the other people. If you need help finding these essays, you should try your local library or bookstore.You may also be able to find some free information on current essay topics through your local newspaper. The best way to find the perfect topic is to brainstorm a bit and start writing. You will then be able to achieve the perfect level of writing for your topic.

Professional Heading College Application Essay Help

Professional Heading College Application Essay HelpThe first essay questions that you need to tackle for your college application can be answered best by a professional heading college application essay help. A professional heading college application essay can help you answer all of the questions that are directed towards you and answer them well.The last essay in a particular class in college must be one that is prepared and conducted with the best of preparation. With your essay in hand, make sure that you get all of the answers that you need from your answers for your essay and then double check them all over again. Make sure that you understand the text so that you can use it properly on your college application essay.It can be a challenge, but if you prepare and essay correctly and well then you will have nothing to worry about. The first step is to prepare all of the proper information for your essay and then you can use this information in order to create a good structure for your essay.If you do not have a college curriculum outline or the resources to put together an effective essay then you should hire a professional heading college application essay writer to help you out. This writer will help you come up with a good structure for your essay and you can expect to write a well thought out essay that is designed to impress admissions officers at your college.The job of a professional heading college application essay writer is to gather all of the facts that are relevant to your essay and create a structure that is correct for your college essay. Then you should write an outline and then let the professional heading college application essay writer create a structure that will answer the questions you have for your essay. You need to spend time checking the grammar and spelling errors, spelling and grammatical problems, and making sure that you know all of the right punctuation and grammar rules.When you are looking for professional heading college a pplication essay help youwill want to look for a writer who will write the essay for you and not you write the essay for the writer. Professional heading college application essay help should be able to guide you through the process of writing your essay from start to finish and give you a structure for your essay that you can use throughout your college career.If you want to make your college application essay stand out you need to be able to do it yourself and you need to be able to do it correctly. So do not waste your time trying to write an essay yourself, instead look for a professional heading college application essay help. They will help you answer all of the questions that you will have to ask for your college application and then you can use these answers to give your college application a unique structure that you can use throughout your college career.

Raising Capital in the Financial Markets Essays

Raising Capital in the Financial Markets Essays Raising Capital in the Financial Markets Essay Raising Capital in the Financial Markets Essay CHAPTER 14 Raising Capital in the Financial Markets CHAPTER ORIENTATION This chapter considers the market environment in which long-term capital is raised. The underlying rationale for the existence of security markets is presented, investment banking services and procedures are detailed, private placements are discussed, and security market regulation is reviewed. CHAPTER OUTLINE I. The mix of corporate securities sold in the capital market. A. When corporations raise cash in the capital market, what type of financing vehicle is most favored? The answer to this question is corporate bonds. The corporate debt markets clearly dominate the corporate equity markets when new (external) funds are being raised. B. From our discussion on the cost of capital, we understand that the U. S. tax system inherently favors debt as a means of raising capital. During the 1999-2001 period, bonds and notes accounted for about 76. 9 percent of new corporate securities sold for cash. II. Why financial markets exist A. Financial markets consist of institutions and procedures that facilitate transactions in all types of financial claims. B. Some economic units spend more than they earn during a given period of time. Some economic units spend less than they earn. Accordingly, a mechanism is needed to facilitate the transfer of savings from those economic units that have a savings surplus to those that have a savings deficit. Financial markets provide such a mechanism. C. The function of financial markets then is to allocate savings in an economy to the ultimate demander (user) of the savings. D. If there were no financial markets, the wealth of an economy would be lessened. Savings could not be transferred to economic units, such as business firms, which are most in need of those funds. III. Financing business: The movement of funds through the economy. A. In a normal year the household sector is the largest net supplier of funds to the financial markets. We call the household sector then a savings-surplus sector. 1. The household sector can also be a savings-deficit sector. 2. From 1995 – 1999, the household sector was a net user of financial capital as a result of taking advantage of low interest rate mortgages. B. In contrast, the nonfinancial business sector is typically a savings-deficit sector. 1. The nonfinancial business sector can also be a savings-surplus sector. . Economic conditions and corporate profitability influence the ability of this sector to provide funds to the financial market. C. In recent years, the foreign sector has become a major savings-surplus sector. D. Within the domestic economy, the nonfinancial business sector is dependent on the household sector to finance its investment needs. E. The movement of savings through the economy occur s in three distinct ways: 1. The direct transfer of funds 2. Indirect transfer using the investment banker 3. Indirect transfer using the financial intermediary IV. Components of the U. S. financial market system A. Public offerings can be distinguished from private placements. 1. The public (financial) market is an impersonal market in which both individual and institutional investors have the opportunity to acquire securities. a. A public offering takes place in the public market. b. The security-issuing firm does not meet (face-to-face) the actual investors in the securities. 2. In a private placement of securities, only a limited number of investors have the opportunity to purchase a portion of the issue. a. The market for private placements is more personal than its public counterpart. b. The specific details of the issue may actually be developed on a face-to-face basis among the potential investors and the issuer. c. Venture capital (1)Start-up firms often turn to venture capitalists to raise funds. (a)Broader public markets find these firms too risky. (b)Venture capitalists are willing to accept the risks because of an expectation of higher returns. (1)Venture capital firms that acquire equity in a start-up firm manage risk by sitting on the firm’s board of directors r actively monitoring management’s activities. (2)Venture capital is often provided by established non-venture-capitalist firms that take a minority investment position in an emerging firm or create a separate venture capital subsidiary. (a)The investment approach allows the established firm to gain access to new technology and to create strategic alliances. (b)The subsidiary approach allows the established firm to retain human and intellectual capital. B. Primary markets can be distinguished from secondary markets. 1. Securities are first offered for sale in a primary market. For example, the sale of a new bond issue, preferred stock issue, or common stock issue takes place in the primary market. These transactions increase the total stock of financial assets in existence in the economy. 2. Trading in currently existing securities takes place in the secondary market. The total stock of financial assets is unaffected by such transactions. C. The money market can be distinguished from the capital market. 1. The money market consists of the institutions and procedures that provide for transactions in short-term debt instruments which are generally issued by borrowers who have very high credit ratings. . Short-term means that the securities traded in the money market have maturity periods of not more than 1 year. b. Equity instruments are not traded in the money market. c. Typical examples of money market instruments are (l) U. S. Treasury bills, (2) federal agency securities, (3) bankers acceptances, (4) negotiable certificates of deposit, and (5) commercial paper. 2. The capital market consists of the institutions and procedures that provide for transactions in long-term financial instruments. This market encompasses those securities that have maturity periods extending beyond 1 year. D. Organized security exchanges can be distinguished from over-the-counter markets. 1. Organized security exchanges are tangible entities whose activities are governed by a set of bylaws. Security exchanges physically occupy space and financial instruments are traded on such premises. a. Major stock exchanges must comply with a strict set of reporting requirements established by the Securities and Exchange Commission (SEC). These exchanges are said to be registered. b. Organized security exchanges provide several benefits to both corporations and investors. They (l) provide a continuous market, (2) establish and publicize fair security prices, and (3) help businesses raise new financial capital. c. A corporation must take steps to have its securities listed on an exchange in order to directly receive the benefits noted above. Listing criteria differ from exchange to exchange. 2. Over-the-counter markets include all security markets except the organized exchanges. The money market is a prominent example. Most corporate bonds are traded over-the-counter. . NASDAQ, a telecommunication system providing an information link among brokers and dealers in the OTC markets, accounted for 43% of the national exchange equity market trading in the U. S. , measured in dollar volume for the year 1998. Nasdaq Stock Market, Inc. trades securities of over 3,600 public companies as of 2002. V. The Investment Banker A. The investment banker is a financial specialist wh o acts as an intermediary in the selling of securities. The investment banker works for an investment banking house (firm). B. Three basic functions are provided by the investment banker: 1. The investment banker assumes the risk of selling a new security issue at a satisfactory (profitable) price. This is called underwriting. Typically, the investment banking house, along with the underwriting syndicate, actually buys the new issue from the corporation that is raising funds. The syndicate (group of investment banking firms) then sells the issue to the investing public at a higher (hopefully) price than it paid for it. 2. The investment banker provides for the distribution of the securities to the investing public. 3. The investment banker advises firms on the details of selling securities. C. Several distribution methods are available for placing new securities into the hands of final investors. The investment bankers role is different in each case. 1. In a negotiated purchase, the firm in need of funds contacts an investment banker and begins the sequence of steps leading to the final distribution of the securities that will be offered. The price that the investment banker pays for the securities is negotiated with the issuing firm. 2. In a competitive-bid purchase, the investment banker and underwriting syndicate are selected by an auction process. The syndicate willing to pay the greatest dollar amount per new security to the issuing firm wins the competitive bid. This means that it will underwrite and distribute the issue. In this situation, the price paid to the issuer is not negotiated; instead, it is determined by a sealed-bid process much on the order of construction bids. 3. In a commission (or best-efforts), offering the investment banker does not act as an underwriter but rather attempts to sell the issue in return for a fixed commission on each security that is actually sold. Unsold securities are simply returned to the firm hoping to raise funds. . In a privileged subscription, the new issue is not offered to the investing public. It is sold to a definite and limited group of investors. Current stockholders are often the privileged group. 5. In a direct sale, the issuing firm sells the securities to the investing public without involving an investment banker in the process. This is not a typical procedure. VI. More o n Private placements: The Debt Side A. Each year billions of dollars of new securities are privately (directly) placed with final investors. In a private placement, a small number of investors purchase the entire security offering. Most private placements involve debt instruments. B. Large financial institutions are the major investors in private placements. These include (l) life insurance firms, (2) state and local retirement funds, and (3) private pension funds. C. The advantages and disadvantages of private placements as opposed to public offerings must be carefully evaluated by management. 1. The advantages include (a) greater speed than a public offering in actually obtaining the needed funds, (b) lower flotation costs than are associated with a public issue, and (c) increased flexibility in the financing contract. 2. The disadvantages include (a) higher interest costs than are ordinarily associated with a comparable public issue, (b) the imposition of restrictive covenants in the financing contract, and (c) the possibility that the security may have to be registered some time in the future at the lenders option. VII. Flotation costs A. The firm raising long-term capital typically incurs two types of flotation costs: (l) the underwriters spread and (2) issuing costs. The former is typically the larger. 1. The underwriters spread is the difference between the gross and net proceeds from a specific security issue. This absolute dollar difference is usually expressed as a percent of the gross proceeds. 2. Many components comprise issue costs. The two most significant are (l) printing and engraving and (2) legal fees. For comparison purposes, these are usually expressed as a percent of the issues gross proceeds. B. SEC data reveal two relationships about flotation costs. 1. Issue costs (as a percent of gross proceeds) for common stock exceed those of preferred stock, which exceed those of bonds. 2. Total flotation costs per dollar raised decrease as the dollar size of the security issue increases. VIII. Regulation A. The primary market is governed by the Securities Act of 1933. 1. The intent of this federal regulation is to provide potential investors with accurate and truthful disclosure about the firm and the new securities being sold. 2. Unless exempted, the corporation selling securities to the public must register the securities with the SEC. 3. Exemptions allow follow for a variety of conditions. For example, if the size of the offering is small enough (less than $1. 5 million), the offering does not have to be registered. If the issue is already regulated or controlled by some other federal agency, registration with the SEC is not required. Railroad issues and public utility issues are examples. 4. If not exempted, a registration statement is filed with the SEC containing particulars about the security-issuing firm and the new security. 5. A copy of the prospectus, a summary registration statement, is also filed. It will not yet have the selling price of the security printed on it; it is referred to as a red herring and called that until approved by the SEC. 6. If the information in the registration statement and prospectus is satisfactory to the SEC, the firm can proceed to sell the new issue. If the information is not satisfactory, a stop order is issued which prevents the immediate sale of the issue. Deficiencies have to be corrected to the satisfaction of the SEC before the firm can sell the securities. 7. The SEC does not evaluate the investment quality of any issue. It is concerned instead with the presentation of complete and accurate information upon which the potential investor can act. B. The secondary market is regulated by the Securities Exchange Act of 1934. This federal act created the SEC. It has many aspects. 1. Major security exchanges must register with the SEC. 2. Insider trading must be reported to the SEC. 3. Manipulative trading that affects security prices is prohibited. 4. Proxy procedures are controlled by the SEC. 5. The Federal Reserve Board has the responsibility of setting margin requirements. This affects the proportion of a security purchase that can be made via credit. C. The Securities Acts Amendments of 1975 touched on three important issues. 1. Congress mandated the creation of a national market system (NMS). Implementation details of the NMS were left to the SEC. Agreement on the final form of the NMS is yet to come. 2. Fixed commissions (also called fixed brokerage rates) on public transactions in securities were eliminated. 3. Financial institutions, like commercial banks and insurance firms, were prohibited from acquiring membership on stock exchanges where their purpose in so doing might be to reduce or save commissions on their own trades. D. In March 1982, the SEC adopted Rule 415. This process is now known as a shelf registration or a shelf offering. . This allows the firm to avoid the lengthy, full registration process each time a public offering of securities is desired. 2. In effect, a master registration statement that covers the financing plans of the firm over the coming two years is filed with the SEC. After approval, the securities are sold to the investing public in a piecemeal fashion or off the shelf. 3. Prior to each specific offering, a short statement about the iss ue is filed with the SEC. E. Congress passed in July 2002 the Public Company Accounting Reform and Investor Protection Act. The short name for the act became the Sarbanes-Oxley Act of 2002. 1. The Sarbanes-Oxley Act was passed as the result of a large series of corporate indiscretions. 2. The act contains 11 â€Å"titles† which tightened significantly the latitudes given to corporate advisors (like accountants, lawyers, company officers, and boards of directors) who have access to or influence company decisions. 3. The initial title of the act created the Public Company Accounting Oversight Board. This board’s purpose is to regulate the accounting industry relative to public companies that they audit. Members are appointed by the SEC. . As recently June of 2003, the oversight board itself published a set of ethics rules to police its own set of activities. IX. The Multinational Firm: Efficient Financial Markets and Intercountry Risk A. The United States’ highly developed, complex and competitive financial markets facilitate the transfer of savings from the saving-surplus sector to the saving-deficit sector. B. Multinational firms are reluctant to invest in countries with ineffective financial systems. 1. Financial and political systems lacking integrity will often be rejected for direct investment by multinational firms. . Countries that experience significant devaluation of its currency may also be considered too risky for investment. ANSWERS TO END-OF-CHAPTER QUESTIONS 14-1. Financial markets are institutions and procedures that facilitate transactions in all types of financial claims. Financial markets perform the function of allocating savings in the economy to the ultimate demander(s) of the savings. Without these financial markets, the total wealth of the economy would be lessened. Financial markets aid the rate of capital formation in the economy. 14-2. A financial intermediary issues its own type of security which is called an indirect security. It does this to attract funds. Once the funds are attracted, the intermediary purchases the financial claims of other economic units in order to generate a return on the invested funds. A life insurance company, for example, issues life insurance policies (its indirect security) and buys corporate bonds in large quantities. 14-3. The money market consists of all institutions and procedures that accomplish transactions in short-term debt instruments issued by borrowers with (typically) high credit ratings. Examples of securities traded in the money market include U. S. Treasury Bills, bankers’ acceptances, and commercial paper. Notice that all of these are debt instruments. Equity securities are not traded in the money market. It is entirely an over-the-counter market. On the other hand, the capital market provides for transactions in long-term financial claims (those claims with maturity periods extending beyond one year). Trades in the capital market can take place on organized security exchanges or over-the-counter markets. 14-4. Organized stock exchanges provide for: (1)A continuous market. This means a series of continuous security prices is generated. Price changes between trades are dampened, reducing price volatility, and enhancing the liquidity of securities. (2)Establishing and publicizing fair security prices. Prices on an organized exchange are determined in the manner of an auction. Moreover, the prices are published in widely available media like newspapers. (3)An aftermarket to aid businesses in the flotation of new security issues. The continuous pricing mechanism provided by the exchanges facilitates the determination of offering prices in new flotations. The initial buyer of the new issue has a ready market in which he can sell the security should he need liquidity rather than a financial asset. 14-5. The criteria for listing can be labeled as follows: (1) profitability; (2) size; (3) market value; (4) public ownership. 14-6. Most bonds are traded among very large financial institutions. Life insurance companies and pension funds are typical examples. These institutions deal in large quantities (blocks) of securities. An over-the-counter bond dealer can easily bring together a few buyers and sellers of these large quantities of bonds. By comparison, common stocks are owned by millions of investors. The organized exchanges are necessary to accomplish the fragmented trading in equities. 14-7. The investment banker is a middleman involved in the channeling of savings into long-term investment. He performs the functions of: (1) underwriting; (2) distributing; (3) advising. By assuming underwriting risk, the investment banker and his syndicate purchase the securities from the issuer and hope to sell them at a higher price. Distributing the securities means getting those financial claims into the hands of the ultimate investor. This is accomplished through the syndicates selling group. Finally, the investment banker can provide the corporate client with sound advice on which type of security to issue, when to issue it, and how to price it. 14-8. In a negotiated purchase, the corporate security issuer and the managing investment banker negotiate the price that the investment banker will pay the issuer for the new offering of securities. In a competitive-bid situation, the price paid to the corporate security issuer is determined by competitive (sealed) bids, which are submitted by several nvestment banking syndicates hoping to win the right to underwrite the offering. 14-9. Investment banking syndicates are established for three key reasons: (1) the investment banker who originates the business probably cannot afford to purchase the entire new issue himself; (2) to spread the risk of loss among several underwriters; (3) to widen the distribution network. 14-10. Several positive benefits are associated with p rivate placements. The first is speed. Funds can be obtained quickly, primarily due to the absence of a required registration with the SEC. Second, flotation costs are lower as compared to public offerings of the same dollar size. Third, greater financing flexibility is associated with the private placement. All of the funds, for example, need not be borrowed at once. They can be taken over a period of time. Elements of the debt contract can also be renegotiated during the life of the loan. 14-11. As a percent of gross proceeds, flotation costs are inversely related to the dollar size of the new issue. Additionally, common stock is more expensive to issue than preferred stock, which is more expensive to issue than debt. 4-12. The answer on this is clear. The corporate debt markets dominate the corporate equity markets when new funds are raised. The tax system of the U. S. economy favors debt financing by making interest expense deductible from income when computing the firms federal tax liability. Consider all corporate securities offered for cash over the period 1999-2001. The percentage of the total represented by bond s and notes was 76. 9 percent compared to 23. 1 percent equity. 14-13. The household sector is the largest net supplier of savings to the financial markets. Foreign financial investors have recently been net suppliers of savings to the financial markets. On the other hand, the nonfinancial corporate business sector is most often a savings-deficit sector. The U. S. Government sector too is a deficit sector in most years. 14-14. First, there may be a direct transfer of savings from the investor to the borrower. Second, there may be an indirect transfer that used the services provided by an investment banker. Third, there may be an indirect transfer that uses the services of a financial intermediary. Private pension funds and life insurance companies are prominent examples of the latter case.

ECONOMIC INDICATORS Essay Example | Topics and Well Written Essays - 1000 words

ECONOMIC INDICATORS - Essay Example Thus, intermediate goods are those which are traded from one industry to another either for reproduction of a final good or for the resale of the value added goods. Since GDP calculated the final value of all the goods and services in a year so, intermediate goods are not accounted for calculating GDP (SURI, 2013). Final Goods: Final goods as term justifies refer to finished product which are available in the market for consumption purposes by individuals or for investment purposes to yield profit. Unlike intermediate goods, final goods are solemnly produced for their own sake because final goods are the ultimate output of all factor implied for production. Final good is the product which is calculated in Gross Domestic Product of the country. Final goods can further be classified into two categories which are consumer goods and producer goods. Final good become consumer goods when it is bought by a customer for his/her domestic usage, this customer good can be durable, semi-durable and sometimes perishable but final goods which serve purpose of reproduction are called capital goods and they are solemnly durable and in turn adds to country’s capital stock. Capital goods comprise of machines, vehicles, building material, electronics and refrigerators etc. so, all such capital goods can be further used for capital accumulation while consumer goods only give utility (Varun, 2013). Intermediate goods and final goods can be distinguished easily. A commodity can be both intermediate and final at the same but its distinction rely upon its usage. Suppose if meat is used by a household then it’s a final good but if meat is used for making meat burger then it is an intermediate good. 2. True/False Statements. Indicate if the statement below is â€Å"True or False†. You must support your answer with a few sentences for each statement. a. Government expenditure is the largest single category of GDP. It is evident from theory that GDP includes Consumpti on, Government Spending, Investments and Net Exports (GDP= C+G+I+Xn). While increase in government spending leads consumption as demand increases with income, consequently investments increases and trade take place. So, it is true that government expenditure is the largest category of GDP. b. Nominal GDP uses current market prices and real GDP measures GDP using base-year prices. Above statement is true because nominal GDP includes all of the changes in market prices that have occurred during the current year due to inflation or deflation. Real GDP is evaluated at the market prices of some base year to analyses the actual growth of economy. c. GDP increases if you purchase General Motors stock. True because any purchase from the domestic industry adds to the sum of goods produced within the border of the country and thus the GDP increases. 3. Define the natural rate of unemployment. Identify three factors that may cause the natural rate to change over time. Natural Rate of Unemploym ent exhibits the equilibrium between aggregate supply of labor with the aggregate demand of labor. It is the point of unemployment where real wages equate the free market level and employment beyond this point is not possible. Natural rate of unemployed is said to be the point where all individuals willing to work are employed at the prevailing real market wage rate (Riley, 2012). In other words NRU is assumed to be the lowest rate of unemployment that an economy can withstand in the long run besides at this point

Examples of Abstract For Research Papers

Examples of Abstract For Research PapersWhen trying to come up with examples of abstract for research papers, you can use many different styles of writing. When making your abstract, the purpose is to explain your research in a way that the reader will understand and enjoy reading. It's not just the style of writing that matters, but the message you are sending to your reader.How do you come up with examples of abstract for research papers? You should always consider what would make your readers feel good and what makes them read your article. Remember that the first impression you make is the most lasting impression. Try to find different examples of abstract for research papers from different areas of science. These articles can also be free online at places like the Elsevier website or the Science Direct website.What makes this kind of abstract special is that it provides a concise description of the research. It does not give away all the details of the research. The key here is to make sure the reader knows everything they need to know to understand your paper. As long as you show them what is going on in the paper, they will know it and enjoy the article.One thing to remember when writing an abstract is to keep the main ideas in simple and direct. They don't have to be technical terms. They can be just a short statement about the main idea of the research.Examples of abstract for research papers can include a physical example or a logical example. The logical example describes a phenomenon or the interaction between two systems. It describes the main idea of the paper.The physical example describes a situation where the main idea is being tested. This example will have many steps to follow to get the experiment to work. The steps are described in a linear format to keep the reader interested. In both cases, the main point of the paper is what you hope to achieve from the research.As long as you provide examples of abstract for research papers, they will h elp the reader understand your article. The best way to come up with examples of abstract for research papers is to start with the main idea and then go through the steps. There are many ways to come up with abstracts. There are some suggestions here to help you get started.