Calibration of Volumetric Glassware Essay

Summary In this experiment, The purpose of this experiment is to investigate the measurement of the actual volume contents of volumetric glassware. In the beginning of the experiment, the volumetric glassware should be clean and dry before used. The volumetric glassware, measuring cylinder and pipette should be handled with care and all the precautions were be taken during the experiment was held. This was to ensure to avoid any errors such as parallax error especially while reading water meniscus. This experiment must be repeated three times or more and take the average reading to get more accurate data. By using the formulae, the standard deviation and relative standard deviation could be calculated. As the result, the lower the standard deviation, the higher the consistency of an instrument. Although the instrument may measure a given sample, the value might need to be altered due to various conditions and errors. Objectives The objective of the experiments was to; Calibrate a 10 mL volumetric pipette. Calibrate a 25 mL volumetric pipette. Calibrate a 100 mL volumetric flask. Calibrate a 50 mL measuring cylinder Introduction Volumetric glassware is used to accurately measure volumes. Despite all of the tools and instruments available for the use of measuring values of various data, it is impossible to measure the true value of anything. This experiment is intended to develop a person’s capacity to handle volumetric glassware. One must understand how to handle volumetric glassware to acquire  the best possible data from the equipment used in lab. Although the instrument may measure a given sample, the value might need to be altered due to various conditions. However, with practice and experience, we can reach very close to the true value, gaining the ability to measure with both high accuracy and precision. The objective of this experiment is to calibrate a 10mL burette and other volumetric glassware by calculating their correction values. By doing so, we can correct systematic errors caused by the burette’s or glassware’s values. A systematic error is an error in reading the scale when a physical quantity is being measured. Systematic errors are caused by the instrument, observer and surroundings. Another main type of error is random error. Random error is an error which occurs when the observer is reading the scale on the measuring instrument. Volumetric glassware is used to accurately measure volumes. In any given experiment, students may come across systematic errors or random errors. Random errors are not able to be corrected by a standard mean because they are not consistent. However, systematic errors are consistent and is able to be detected which allows students to correct the error that was found. So, using uncalibrated glassware will cause a systematic error. This error occurs because the volume reading given by the glassware is slightly different than the actual volume that is obtained in the glassware. In order to avoid systematic error, it important to calibrate the measuring instrument so that there is a standard value for zero which allows the measurement to be more accurate. Calibration of volumetric glassware such as burette is carried out by weighing the amount of water delivered. The temperature of the water used in the calibration must be known since the density of water changes. The purpose of this experiment is to investigate the measurement of the actual volume contents of volumetric glassware. If there is a slight variation in this instrument, it would cause systematic error and thus, the accuracy of results of an experiment or investigation would be affected. All volumetric glassware has marking on it. It is either being marked with TD or TC, which brings the meaning of ‘to deliver’ and ‘to contain’ respectively. For example, a pipette has a marking of TD, which means a pipette is marked  as a ‘to deliver’. Whereas, volumetric flask has TC as its marking, meaning it is marked as a ‘to contain’. A volumetric pipette & measuring cylinder can be calibrated by just weighing the water they deliver. As for volumetric flask, the weight of an empty flask is recorded. Next, weigh the flask after filling it with water to the mark. After that, it is crucial to convert the mass to volume. The water density at a t emperature will aid this process. The compliance of the Volume Occupied by 1.000g of Water Weigh in Air table is deemed necessary throughout the comparison. In order to obtain the true volume of volumetric glassware holds, this formula will be used. This experiment shall be repeated twice or more to enhance accuracy of the results obtained. Besides detecting systematic errors, this experiment would aid on the technique and understandings to the correct use of these equipments. Materials Transfer pipette, cleaning solution/detergent, beaker, thermometer, distilled water, top loading balance, 10ml volumetric pipette, 25mlvolumetric pipette, 100ml volumetric flask, 50ml measuring cylinder. Procedure 1) Calibration of a volumetric pipette (10ml and 25ml) a) Transfer pipette was obtained. The pipette was cleaned because distilled water does not drain uniformly. A cleaning solution or detergent was used to clean the pipette. b) An empty beaker was weighted. Then, water was filled in the beaker. The temperature was recorded at uniform intervals. c) The 10ml pipette was filled with distilled water until it reaches the calibration mark. d) Water was drained into another beaker e) The beaker filled with water was then weighted to find the mass of water delivered from the pipette. f) The following equation was used to convert mass to volume : Volume(actual) = (grams of water) x (volume of 1g of water in table1) g) Step a – f was repeated using 25ml pipette. 1) 2) Calibration of volumetric flask (100ml) a) A 100ml volumetric flask was cleaned and dried. b) The flask was weighted. Then, water was filled into the flask. Transfer pipette was used to remove the excess amount of water filled in the flask so that it exactly reach the calibration mark. c) The flask filled with water was weighted to find the mass of water contained in the flask. d) Mass of water was converted to volume using the equation above. 3) Calibration of a measuring cylinder (100ml) a) A 100ml measuring cylinder was cleaned and dried. b) The measuring cylinder was weighted. Then, water was filled into the measuring cylinder until it reached the calibration mark. Transfer pipette was also used to remove the excess water. c) The measuring cylinder filled with water was weighted to find the mass of water contained in the measuring cylinder. d) Mass of water was converted to volume using the same equation. Result and Discussion Result: a) Data 10mL pipette Trial 1 Trial 2 Trial 3 Mass of flask + water (g) 42.64 42.66 42.66 Mass of flask (g) 32.72 32.72 32.72 Mass of water (g) 9.92 9.94 9.94 Temperature (oC) 28 28 28 Actual volume (mL) 9.97 9.99 9.99 Average volume (mL) 9.98 Standard Deviation, 0.012 Relative standard deviation ,/ 0.001202 50mL pipette Trial 1 Trial 2 Trial 3 Mass of flask + water (g) 121.08 121.06 121.04 Mass of flask (g) 96.60 96.60 96.56 Mass of water (g) 24.48 24.46 24.48 Temperature (oC) 28 28 28 Actual volume (mL) 24.60 24.58 24.60 Average volume (mL) 24.59 Standard Deviation, 0.012 Relative standard deviation ,/ 0.00049 10mL pipette Trial 1 Trial 2 Trial 3 Mass of flask + water (g) 158.42 158.44 158.42 Mass of flask (g) 57.18 57.16 57.16 Mass of water (g) 101.24 101.28 101.26 Temperature (oC) 28 27 28 Actual volume (mL) 101.73 101.77 101.75 Average volume (mL) 101.75 Standard Deviation, 0.02 Relative standard deviation ,/ 0.000197 50mL measuring cylinder Trial 1 Trial 2 Trial 3 Mass of flask + water (g) 116.48 116.48 116.48 Mass of flask (g) 68.18 68.17 68.18 Mass of water (g) 48.30 48.31 48.30 Temperature (oC) 28 28 28 Actual volume (mL) 48.53 48.54 48.53 Average volume (mL) 48.53 Standard Deviation, 0.007 Relative standard deviation ,/ 0.000146 Discussion: According to the tables above, when using 10mL pipette, the actual volume delivered is 9.98mL and the standard deviation is 0.012. The lower the standard deviation, the higher the consistency of an instrument based in a physic’s book. Consistent measurements consist of readings that have little or no relative deviation among them. So, when the standard deviation is nearer to zero then this shows that the readings taken are consistent. In order to get a good accuracy, the experiments are done until trial 3. Temperature are remain consistent for all three trial for different glassware that 28 °C. This experiment expectation is that the glassware will be used to measure liquids at room temperature. Since liquids have a tendency to change volume (at the level of precision of calibrated instruments), then we want the liquid to be at the temperature we are most likely to use so that the calibration will have the most accuracy and we used water since it is thermal equilibrium in su rrounding. Another factor that may interrupt the reading is parallax error during the experiment is held. In order to avoid parallax error is the glassware must be weight for another two times. Every scale on the reading instrument must be read properly, it may reduce the fact. The eyes must be perpendicular to the reading scale on the same level as the bottom surface of the water meniscus to avoid parallax error. Besides, the weighing bottles are always being capped to avoid evaporation since it is important precaution. Conclusion Based on this experiment , we can conclude that this experiment are to study the calibration to measure the accuracy of volumetric glassware. This experiment also ensure the accuracy of the volumetric glassware for 10 ml and 25 ml pipette, 100 ml volumetric flask and 50ml measuring cylinder References * http://gula-gulakapassikecik.blogspot.com/2012/04/calibration-of-volumetric-glassware_24.html?m=1 * www.studymode.com * Lim Peng Chew, Lim Ching Chai, Nexus Bestari Physics, Sasbadi Sdn. Bhd. , 2013, Pg 18,19

Portfolio Management

A PROJECT REPORT ON PORTFOLIO MANAGEMENT AT SHAREKHAN LTD HYDERABAD A PROJECT REPORT SUBMITTED TO [pic] OSMANIA UNIVERSITY HYDERABAD IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE IN MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY SAFIA MOHAMMADI 1238-11-672-015 VILLA MARIE PG COLLEGE FOR WOMEN SOMAJIGUDA- 82 2011-2013 By DEPARTMENT OF BUSINESS ADMINISTRTIONVILLA MARIE POST GRADUATE COLLEGE, SOMAJIGUDA (Affiliated to Osmania University) 2011-2013 DECLARATION I SAFIA MOHAMMADI student of Master of Business Administration, VILLA MARIE PG COLLEGE FOR WOMEN, hereby declare that the project report entitled â€Å"PORTFOLIO MANAGEMENT† has been carried out at â€Å"SHAREKHAN LTD† and submitted in partial fulfillment for the â€Å"Master’s Degree in Business Administration† in the result of my own work and is original. I have not submitted this project to any other university or college for the award of any other degree or Diploma.SAFIA MOH AMMADI ACKNOWLEDGEMENT A project is never the  work of an individual. It is  moreover a combination of ideas, suggestions, review, contribution and work involving many folks. It cannot be completed without guidelines. I wish to express my gratitude to all those who have made significant contribution to the development and presentation of this project. I express my sense of profound gratitude to the Management of â€Å"SHAREKHAN LTD†, Hyderabad for giving me this opportunity to conduct a study on Portfolio Management in their esteemed organization.My sincere thanks to Mr. DEEPAK, Manager and Ms. SWATHI BASA, Assistant Manager for permitting me to pursue this project and for providing their valuable time, suggestions and support for completing my project work successfully. Their patience and invaluable guidance have proved to be very precious without which this project would not be completed. Acknowledgements are also due to all the other staff members and executives in Sha rekhan Ltd. , for providing information at various points of the project, especially the discussions on the market.I am thankful to our Principal and also I would also like to thank my project guide and all the faculty members of the college for guiding me throughout the process. I also wish to extend my sincere acknowledgement to my parents for their moral and financial support. Lastly, I am indebted to the friends and will-wishers who have extended their support to me during the project. Place: Hyderabad SAFIA MOHAMMADI INDEX | | | |LIST OF CONTENTS |PAGE NO. | | | |CHAPTER-1 | | | | | |INTRODUCTION | | | | | |NEED AND IMPORTANCE OF THE STUDY | | | | | |OBJECTIVE OF THE STUDY | | | | |SCOPE OF THE STUDY | | | | | |DATA COLLECTION METHODS | | | | | |LIMITATIONS OF THE STUDY | | | | | |CHAPTER-2 | | |REVIEW OF LITERATURE | | | | | |CHAPTER-3 | | |COMPANY PROFILE | | | | | |CHAPTER-4 | | |DATA ANALYSIS AND INTERPRETATION | | | | | |CHAPTER-5 | | |CONCLUSION AND SUGGES TIONS | | | | | |QUESTIONNAIRE | | | | | |BIBLIOGRAPHY | | CHAPTER-1 INTRODUCTION PORTFOLIO MANAGEMENT: A portfolio is a collection of assets. The assets may be physical or financial like Shares, Bonds, Debentures, Preference Shares, etc. The individual investor or a fund manager would not like to put all his money in the shares of one company that would amount to great risk.He would therefore, follow the age old maxim that one should not put all the eggs into one basket. By doing so, he can achieve objective to maximize portfolio return and at the same time minimizing the portfolio risk by diversification. Investment may be defined as an activity that commits funds in any financial form in the present with an expectation of receiving additional return in the future. The expectations bring with it a probability that the quantum of return may vary from a minimum to a maximum. This possibility of variation in the actual return is known as investment risk. Thus every investment invo lves a return and risk. Investment is an activity that is undertaken by those who have savings.Savings can be defined as the excess of income over expenditure. An investor earns/expects to earn additional monetary value from the mode of investment that could be in the form of financial assets. The three important characteristics of any financial asset are: †¢ Return-the potential return possible from an asset. †¢ Risk-the variability in returns of the asset form the chances of its value going down/up. †¢ Liquidity-the ease with which an asset can be converted into cash. Investors tend to look at these three characteristics while deciding on their individual preference pattern of investments. Each financial asset will have a certain level of each of these characteristics.An investor invests his funds in portfolio expecting to get a good return consistent with the risk that he has to beat. Portfolio management comprises all the processes involved in the creation & maint enance of an investment portfolio. It deals specifically with Security Analysis, Portfolio Analysis, Selection and Revision & Evaluation. Portfolio Management is a complex process, which tries to make investment activity more rewarding & less risky. ? Portfolio management is the management of various financial assets which comprise the portfolio. ? Portfolio management is a decision – support system that is designed with a view to meet the multi-faced needs of investors.According to Securities and Exchange Board of India Portfolio is defined as: â€Å"portfolio means the total holdings of securities belonging to any person†. ? PORTFOLIO MANAGER means any person who pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or the funds of the client. ? DISCRETIONARY PORTFOLIO MANAGER means a portfol io manager who exercises or may, under a contract relating to portfolio management exercises any degree of discretion as to the investments or management of the portfolio of securities or the funds of the client. Investment avenuesThere are a large number of investment avenues for savers in India. Some of them are marketable and liquid, while others are non-marketable. Some of them are highly risky while some others are almost risk less. Investment avenues can be broadly categorized under the following head. 1. Corporate securities 2. Equity shares. 3. Preference shares. 4. Debentures/Bonds. 5. Derivatives. 6. Others. Joint stock companies in the private sector issue corporate securities. These include equity shares, preference shares, and debentures. Equity shares have variable dividend and hence belong to the high risk-high return category; preference shares and debentures have fixed returns with lower risk.The classification of corporate securities that can be chosen as investmen t avenues can be depicted as shown below: DESIGN OF STUDY NEED AND IMPORTANCE OF THE STUDY †¢ Portfolio management presents the  best investment plan  to the individuals as per their income, budget, age and ability to undertake risks. †¢ Portfolio management  minimizes the risks  involved in investing and also increases the chance of making profits. †¢ Portfolio managers understand the client’s financial needs and suggest the best and unique investment policy for them with minimum risks involved. †¢ It enables the portfolio managers to  provide customized investment solutions  to clients as per their needs and requirements. It also focuses on important aspects like Stability of Income, Capital Growth, Liquidity, Safety, Tax Incentives, etc. †¢ Main goals of Portfolio Management are To Maximize the value of the portfolio, To Seek balance  in the portfolio and To Keep portfolio projects strategically  aligned OBJECTIVES OF THE STUDY: â⠂¬ ¢ To provide the material frame work of Portfolio Management †¢ To understand how to analyze securities †¢ To know how portfolio management is done. †¢ To study the investment pattern and its related risks & returns. †¢ To help the investors to choose wisely between alternative investment. †¢ To understand, analyze and select the best portfolio. To strike balance between costs of funds, risks and returns. †¢ To find out optimal portfolio, which gives optimal return at a minimize risk to the investor. †¢ To see whether the portfolio risk is less than individual risk on whose basis the portfolios are constituted SCOPE OF THE STUDY: †¢ This study covers the Markowitz model. The study covers the calculation of correlations between the different securities in order to find out at what percentage funds should be invested among the companies in the portfolio. Also the study includes the calculation of individual Standard Deviation of securities an d ends at the calculation of weights of individual securities involved in the portfolio.These percentages help in allocating the funds available for investment based on risky portfolios. METHODOLOGY: Sources of Data Collection The Methodology employed in this study data include both the primary and secondary collection methods. Primary collection methods: This method includes the data collected from the personal discussion with the authorized clerks and members of the exchange. Secondary data collection: It includes the following: †¢ Companies Annual Reports †¢ Information From Internet †¢ Publication †¢ Information provided by Stock Exchanges. Period of Study For different companies, financial data has been collected from the year 2007- 2012 Selection of CompaniesCompanies selected for analysis are:- o Wipro o Indian Tobacco Corporation o Dr. Reddy Laboratories o ACC o Bharat Heavy Electricals LIMITATIONS OF THE STUDY: †¢ This study has been conducted purel y to understand portfolio management for investor and is done for requirement of Certificate of MBA. †¢ For study purpose 5 companies have been taken for calculations. †¢ Study is limited to period from 2007-2012. †¢ There was a constraint with regard to time allocated for the research study, period of one and half month. †¢ Study is limited to only first 3 steps of phrases of portfolio management. †¢ Detailed study of the topic was not possible due to limited size of project. The availability of information in the form of annual reports and price fluctuations of the companies was a big constraint to the study. CHAPTER-2 REVIEW OF LITERATURE INTRODUCTION TO PORTFOLIO MANAGEMENT The term Portfolio refers to any collection of financial assets such as stocks, bonds, and cash. Portfolios may be held by individual investors and/or managed by financial professionals, hedge funds, banks and other financial institutions. It is a generally accepted principle that a p ortfolio is designed according to the investor’s risk tolerance, time frame and investment objectives. Portfolio management is all about strengths, weaknesses, opportunities and threats in the choice of debt vs. equity, domestic vs. nternational, growth vs. safety, and many other tradeoffs encountered in the attempt to maximize return at a given appetite for risk. The art and science of making decisions about investment mix and policy, matching investments to objectives, asset allocation for individuals and institutions, and balancing risk against performance is known as Portfolio Management. ? PORTFOLIO MANAGER means any person who pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise) the management or administration of a portfolio of securities or the funds of the client. DISCRETIONARY PORTFOLIO MANAGER means a portfolio manager who exercises or may, under a c ontract relating to portfolio management exercises any degree of discretion as to the investments or management of the portfolio of securities or the funds of the client. FUNCTIONS OF PORTFOLIO MANAGEMENT: ? To frame the investment strategy and select an investment mix to achieve the desired investment objectives ? To provide a balanced portfolio which not only can hedge against the inflation but can also optimize returns with the associated degree of risk ? To make timely buying and selling of securities ? To maximize the after-tax return by investing in various tax saving investment instruments.STRUCTURE / PROCESS OF TYPICAL PORTFOLIO MANAGEMENT In the small firm, the portfolio manager performs the job of security analyst. In the case of medium and large sized organizations, job function of portfolio manager and security analyst are separate. CHARACTERISTICS OF PORTFOLIO MANAGEMENT: Individuals will benefit immensely by taking portfolio management services for the following reason s: ? Whatever may be the status of the capital market, over the long period capital markets have given an excellent return when compared to other forms of investment. The return from bank deposits, units, etc. , is much less than from the stock market. ? The Indian Stock Markets are very complicated.Though there are thousands of companies that are listed only a few hundred which have the necessary liquidity. Even among these, only some have the growth prospects which are conducive for investment. It is impossible for any individual wishing to invest and sit down and analyse all these intricacies of the market unless he does nothing else. ? Even if an investor is able to understand the intricacies of the market and separate chaff from the grain the trading practices in India are so complicated that it is really a difficult task for an investor to trade in all the major exchanges of India, look after his deliveries and payments. TYPES OF PORTFOLIO MANAGEMENT: Discretionary Portfolio M anagement Service(DPMS):In this type of service, the client parts with his money in favour of the manager, who in return, handles all the paper work, makes all the decisions and gives a good return on the investment and charges fee. In the Discretionary Portfolio Management Service, to maximize the yield, almost all portfolio managers park the funds in the money market securities such as overnight market, 18 days treasury bills and 90 days commercial bills. Normally, the return of such investment varies from 14 to 18 percent, depending on the call money rates prevailing at the time of investment. 2. Non-Discretionary Portfolio Management Service(NDPMS): The manager functions as a counselor, but the investor is free to accept or reject the manager‘s advice; the paper work is also undertaken by manager for a service charge.The manager concentrates on stock market instruments with a portfolio tailor-made to the risk taking ability of the investor. Risk of Portfolio Management The re was a time when portfolio management was an exotic term. The scenario has changed drastically. It is now a familiar term and is widely practiced in India. The theories and concepts relating to portfolio management now find their way to the front pages financial newspapers and the cover pages of investments journals in India. Capital markets have become active. The Indian stock markets are steadily moving towards efficiency, with rapid computerization, increasing higher market transparency, better infrastructure, better customer service etc.The markets are mutual funds have been set up the country since1987. With this development investment in securities has gained considered momentum. Professional portfolio management backed by competent research began to be practiced by mutual funds, investment consultant and big brokers. The Securities Exchange Board of India (SEBI), The Stock Market Regulatory body in India is supervising the whole process. IMPORTANCE OF PORTFOLIO MANAGEMENT: ? Emergence of institutional investing on behalf of individuals. A number of financial institutions, mutual funds and other agencies are undertaking the task of investing money of small investors, on their behalf. Growth in the number and size of investible funds – a large part of household savings is being directed towards financial assets. ? Increased market volatility – risk and return parameters of financial assets are continuously changing because of frequent changes in government‘s industrial and fiscal policies, economic uncertainty and instability. ? Greater use of computers for processing mass of data. ? Professionalization of the field and increasing use of analytical methods (e. g. quantitative techniques) in the investment decision – making ? Larger direct and indirect costs of errors or shortfalls in meeting portfolio objectives – increased competition and greater scrutiny by investors.STEPS IN PORTFOLIO MANAGEMENT: ? Specification and qualification of investor objectives, constraints, and preferences in the form of an investment policy statement. ? Determination and qualification of capital market expectations for the economy, market sectors, industries and individual securities. ? Allocation of assets and determination of appropriate portfolio strategies for each asset class and selection of individual securities. ? Performance measurement and evaluation to ensure attainment of investor objectives. ? Monitoring portfolio factors and responding to changes in investor objectives, constrains and / or capital market expectations. Rebalancing the portfolio when necessary by repeating the asset allocation, portfolio strategy and security selection. CRITERIA FOR PORTFOLIO DECISIONS: †¢ In portfolio management emphasis is put on identifying the collective importance of all investor’s holdings. The emphasis shifts from individual assets selection to a more balanced emphasis on diversification and risk-return interrelationships of individual assets within the portfolio. Individual securities are important only to the extent they affect the aggregate portfolio. In short, all decisions should focus on the impact which the decision will have on the aggregate portfolio of all the assets held. †¢ Portfolio strategy should be molded to the unique needs and characteristics of the portfolio‘s owner. Diversification across securities will reduce a portfolio‘s risk. If the risk and return are lower than the desired level, leverages (borrowing) can be used to achieve the desired level. †¢ Larger portfolio returns come only with larger portfolio risk. The most important decision to make is the amount of risk which is acceptable. †¢ The risk associated with a security type depends on when the investment will be liquidated. Risk is reduced by selecting securities with a payoff close to when the portfolio is to be liquidated. QUALITIES OF PORTFOLIO MANAGER: 1. SOUND GENERAL K NOWLEDGE: Portfolio management is an exciting and challenging job. He has to work in an extremely uncertain and confliction environment.In the stock market every new piece of information affects the value of the securities of different industries in a different way. He must be able to judge and predict the effects of the information he gets. He must have sharp memory, alertness, fast intuition and self-confidence to arrive at quick decisions. 2. ANALYTICAL ABILITY: He must have his own theory to arrive at the intrinsic value of the security. An analysis of the security‘s values, company, etc. is s continuous job of the portfolio manager. A good analyst makes a good financial consultant. The analyst can know the strengths, weaknesses, opportunities of the economy, industry and the company. 3. MARKETING SKILLS: He must be good salesman. He has to convince the clients about the particular security.He has to compete with the stock brokers in the stock market. In this context, the marketing skills help him a lot. 4. EXPERIENCE: In the cyclical behavior of the stock market history is often repeated, therefore the experience of the different phases helps to make rational decisions. The experience of the different types of securities, clients, market trends, etc. , makes a perfect professional manager. PORTFOLIO BUILDING: Portfolio decisions for an individual investor are influenced by a wide variety of factors. Individuals differ greatly in their circumstances and therefore, a financial programme well suited to one individual may be inappropriate for another.Ideally, an individual‘s portfolio should be tailor-made to fit one‘s individual needs. Investor‘s Characteristics: An analysis of an individual‘s investment situation requires a study of personal characteristics such as age, health conditions, personal habits, family responsibilities, business or professional situation, and tax status, all of which affect the investor‘s willin gness to assume risk. Stage in the Life Cycle: One of the most important factors affecting the individual‘s investment objective is his stage in the life cycle. A young person may put greater emphasis on growth and lesser emphasis on liquidity. He can afford to wait for realization of capital gains as his time horizon is large. Family responsibilities:The investor‘s marital status and his responsibilities towards other members of the family can have a large impact on his investment needs and goals. Investor‘s experience: The success of portfolio depends upon the investor‘s knowledge and experience in financial matters. If an investor has an aptitude for financial affairs, he may wish to be more aggressive in his investments. Attitude towards Risk: A person‘s psychological make-up and financial position dictate his ability to assume the risk. Different kinds of securities have different kinds of risks. The higher the risk, the greater the opportunity for higher gain or loss. Liquidity Needs: Liquidity needs vary considerably among individual investors.Investors with regular income from other sources may not worry much about instantaneous liquidity, but individuals who depend heavily upon investment for meeting their general or specific needs, must plan portfolio to match their liquidity needs. Liquidity can be obtained in two ways: 1. by allocating an appropriate percentage of the portfolio to bank deposits, and 2. by requiring that bonds and equities purchased be highly marketable. Tax considerations: Since different individuals, depending upon their incomes, are subjected to different marginal rates of taxes, tax considerations become most important factor in individual‘s portfolio strategy. There are differing tax treatments for investment in various kinds of assets. Time Horizon:In investment planning, time horizon become an important consideration. It is highly variable from individual to individual. Individuals in their young age have long time horizon for planning, they can smooth out and absorb the ups and downs of risky combination. Individuals who are old have smaller time horizon, they generally tend to avoid volatile portfolios. Individual‘s Financial Objectives: In the initial stages, the primary objective of an individual could be to accumulate wealth via regular monthly savings and have an investment programme to achieve long term capital gains. Safety of Principal: The protection of the rupee value of the investment is of prime importance to most investors.The original investment can be recovered only if the security can be readily sold in the market without much loss of value. Assurance of Income: `Different investors have different current income needs. If an individual is dependent of its investment income for current consumption then income received now in the form of dividend and interest payments become primary objective. Investment Risk: All investment decisions revolve arou nd the trade-off between risk and return. All rational investors want a substantial return from their investment. An ability to understand, measure and properly manage investment risk is fundamental to any intelligent investor or a speculator.Frequently, the risk associated with security investment is ignored and only the rewards are emphasized. An investor who does not fully appreciate the risks in security investments will find it difficult to obtain continuing positive results. RISK AND EXPECTED RETURN: There is a positive relationship between the amount of risk and the amount of expected return i. e. , the greater the risk, the larger the expected return and larger the chances of substantial loss. One of the most difficult problems for an investor is to estimate the highest level of risk he is able to assume. [pic] TYPES OF RISKS:- Risk consists of two components. They are 1. Systematic Risk 2. Un-systematic Risk 1. Systematic Risk:Systematic risk is caused by factors external t o the particular company and uncontrollable by the company. The systematic risk affects the market as a whole. Factors affect the systematic risk are ? economic conditions ? political conditions ? sociological changes The systematic risk is unavoidable. Systematic risk is further sub-divided into three types. They are a) Market Risk b) Interest Rate Risk c) Purchasing Power Risk a) Market Risk: One would notice that when the stock market surges up, most stocks post higher price. On the other hand, when the market falls sharply, most common stocks will drop. It is not uncommon to find stock prices falling from time to time while a company‘s earnings are rising and vice-versa.The price of stock may fluctuate widely within a short time even though earnings remain unchanged or relatively stable b) Interest Rate Risk: Interest rate risk is the risk of loss of principal brought about the changes in the interest rate paid on new securities currently being issued. c) Purchasing Power Risk: The typical investor seeks an investment which will give him current income and / or capital appreciation in addition to his original investment. 2. Un-systematic Risk: Un-systematic risk is unique and peculiar to a firm or an industry. The nature and mode of raising finance and paying back the loans, involve the risk element. Financial leverage of the companies that is debt-equity portion of the companies differs from each other.All these factors Factors affect the un-systematic risk and contribute a portion in the total variability of the return. ? Managerial inefficiently ? Technological change in the production process ? Availability of raw materials ? Changes in the consumer preference ? Labour problems The nature and magnitude of the above mentioned factors differ from industry to industry and company to company. They have to be analyzed separately for each industry and firm. Un-systematic risk can be broadly classified into: a) Business Risk b) Financial Risk a. Busines s Risk: Business risk is that portion of the unsystematic risk caused by the operating environment of the business.Business risk arises from the inability of a firm to maintain its competitive edge and growth or stability of the earnings. The volatibility in stock prices due to factors intrinsic to the company itself is known as Business risk. Business risk is concerned with the difference between revenue and earnings before interest and tax. Business risk can be divided into. i) Internal Business Risk Internal business risk is associated with the operational efficiency of the firm. The operational efficiency differs from company to company. The efficiency of operation is reflected on the company‘s achievement of its pre-set goals and the fulfillment of the promises to its investors. ii)External Business RiskExternal business risk is the result of operating conditions imposed on the firm by circumstances beyond its control. The external environments in which it operates exert some pressure on the firm. The external factors are social and regulatory factors, monetary and fiscal policies of the government, business cycle and the general economic environment within which a firm or an industry operates. b. Financial Risk: It refers to the variability of the income to the equity capital due to the debt capital. Financial risk in a company is associated with the capital structure of the company. Capital structure of the company consists of equity funds and borrowed funds. PORTFOLIO ANALYSIS:Various groups of securities when held together behave in a different manner and give interest payments and dividends also, which are different to the analysis of individual securities. A combination of securities held together will give a beneficial result if they are grouped in a manner to secure higher return after taking into consideration the risk element. SELECTION OF PROTFOLIO: The selection of portfolio depends on the various objectives of the investor. The selectio n of portfolio under different objectives are dealt subsequently. Objectives and asset mix: if the main objective is getting adequate amount of current income, sixty per cent of the investment is made on debts and 40 per cent on equities. The proportions of investments on debt and equity differ according to the individual’s preferences.Growth of income and asset mix: Here the investor requires a certain percentage of growth in the income received from his investment. The debt portion of the portfolio may consist of 60 to 100 percent equities and 0 to 40 percent debt instrument. The debt portion of the portfolio may consist of concession regarding tax exemption. Appreciation of principal amount is given third priority. For example computer software, hardware and non-conventional energy producing company shares provides good possibility of growth in dividend. Capital appreciation and asset mix: Capital appreciation means that the valu of the original investment increases over t he years.Investment in real estates like land and house may provide a faster rate of capital appreciation but they lack liquidity. In the capital market, the values of the shares are much higher than their original issue prices. Safety of principal and asset mix: Usually, the risk averse investors are very particular about the stability of principal. According to the life cycle theory, people in the third stage of life also give more importance to the safety of the principal. All the investors have this objective in their mind. No one like to lose his money invested in different assets. Risk and return analysis: The traditional approach to portfolio building has some basic assumptions. First, the individual prefers larger to smaller returns from securities.To achieve this goal, the investor has to take more risk. The ability to achieve higher returns is dependent upon his ability to judge risk and his ability to take specific risks. Diversification: Once the asset mix is determined and the risk and return are analyzed, the final step is the diversification of portfolio. Financial risk can be minimized by commitments to top-quality bonds, but these securities offer poor resistance to inflation. Stocks provide better inflation protection than bonds but are more vulnerable to financial risks. PORTFOLIO CONSTRUCTION: Portfolio is a combination of securities such as stocks, bonds and money market instruments.The process of blending together the broad asset so as to obtain optimum return with minimum risk is called portfolio construction. Diversification of investments helps to spread risk over many assets. A diversification of securities gives the assurance of obtaining the anticipated return on the portfolio. APPROACHES IN PORTFOLIO CONSTRUCTION: There are two approaches in construction of the portfolio of securities. They are ? Traditional approach ? Modern approach TRADITIONAL APPROACH: Traditional approach was based on the fact that risk could be measured on ea ch individual security through the process of finding out the standard deviation and that security should be chosen where the deviation was the lowest.Traditional approach believes that the market is inefficient and the fundamental analyst can take advantage of the situation. Traditional approach is a comprehensive financial plan for the individual. It takes into account the individual needs such as housing, life insurance and pension plans. Traditional approach basically deals with two major decisions. They are a) Determining the objectives of the portfolio b) Selection of securities to be included in the portfolio MODERN APPROACH: Modern approach theory was brought out by Markowitz and Sharpe. It is the combination of securities to get the most efficient portfolio. Combination of securities can be made in many ways. Markowitz developed the theory of diversification through scientific reasoning and method.Modern portfolio theory believes in the maximization of return through a comb ination of securities. The modern approach discusses the relationship between different securities and then draws inter-relationships of risks between them. Markowitz gives more attention to the process of selecting the portfolio. It does not deal with the individual needs. In the modern approach, the final step is asset allocation process that is to choose the portfolio that meets he requirement of the investor. The risk taker i. e. who are willing to accept a higher probability of risk for getting the expected return would choose high risk portfolio. Investor with lower tolerance for risk would choose low level risk portfolio.The risk neutral investor would choose the medium level risk portfolio. MARKOWITZ MODEL: Harry Markowitz opened new vistas to modern portfolio selection by publishing an article in the journal of Finance in March 1952. His publication indicated the importance of correlation among the different stocks reruns in the construction of a stock portfolio. Most peopl e agree that holding two stocks is less risky than holding one stock. For example, holding stocks from textile, banking, and electronic companies is better than investing all the money on the textile company’s stock. But building up the optimal portfolio is very difficult. Markowitz provides an answer to it with the help of risk and return relationship.Markowitz model is a theoretical framework for analysis of risk and return and their relationships. He used statistical analysis for the measurement of risk and mathematical programming for selection of assets in a portfolio in an efficient manner. Markowitz approach determines for the investor the efficient set of portfolio through three important variables i. e. ? Return ? Standard deviation ? Co-efficient of correlation Markowitz model is also called as an â€Å"Full Covariance Modelâ€Å". Through this model the investor can find out the efficient set of portfolio by finding out the tradeoff between risk and return, betwe en the limits of zero and infinity.According to this theory, the effects of one security purchase over the effects of the other security purchase are taken into consideration and then the results are evaluated. Most people agree that holding two stocks is less risky than holding one stock. For example, holding stocks from textile, banking and electronic companies is better than investing all the money on the textile company‘s stock. Markowitz had given up the single stock portfolio and introduced diversification. The single stock portfolio would be preferable if the investor is perfectly certain that his expectation of highest return would turn out to be real. In the world of uncertainty, most of the risk adverse investors would like to join Markowitz rather than keeping a single stock, because diversification reduces the risk. ASSUMPTIONS: All investors would like to earn the maximum rate of return that they can achieve from their investments. ? All investors have the same ex pected single period investment horizon. ? All investors before making any investments have a common goal. This is the avoidance of risk because Investors are risk-averse. ? Investors base their investment decisions on the expected return and standard deviation of returns from a possible investment. ? Perfect markets are assumed (e. g. no taxes and no transaction costs). ? The investor assumes that greater or larger the return that he achieves on his investments, the higher the risk factor surrounds him. On the contrary when risks are low the return can also be expected to be low. The investor can reduce his risk if he adds investments to his portfolio. ? An investor should be able to get higher return for each level of risk â€Å"by determining the efficient set of securitiesâ€Å". ? An individual seller or buyer cannot affect the price of a stock. This assumption is the basic assumption of the perfectly competitive market. ? Investors make their decisions only on the basis of t he expected returns, standard deviation and covariance’s of all pairs of securities. ? Investors are assumed to have homogenous expectations during the decision-making period. ? The investor can lend or borrow any amount of funds at the riskless rate of interest.The riskless rate of interest is the rate of interest offered for the treasury bills or Government securities. ? Investors are risk-averse, so when given a choice between two otherwise identical portfolios, they will choose the one with the lower standard deviation. ? Individual assets are infinitely divisible, meaning that an investor can buy a fraction of a share if he or she so desires. ? There is a risk free rate at which an investor may either lend (i. e. invest) money or borrow money and There is no transaction cost i. e. no cost involved in buying and selling of stocks. ? There is no personal income tax. Hence, the investor is indifferent to the form of return either capital gain or dividend.The Effect Of Combi ning Two Securities: It is believed that holding two securities is less risky than by having only one investment in a person‘s portfolio. When two stocks are taken on a portfolio and if they have negative correlation then risk can be completely reduced because the gain on one can offset the loss on the other. This can be shown with the help of following example: Inter-Active Risk Through Covariance: Covariance of the securities will help in finding out the inter-active risk. When the covariance will be positive then the rates of return of securities move together either upwards or downwards. Alternatively it can also be said that the inter-active risk is positive.Secondly, covariance will be zero on two investments if the rates of return are independent. Holding two securities may reduce the portfolio risk too. The portfolio risk can be calculated with the help of the following formula: CAPITAL ASSET PRICING MODEL (CAPM): Markowitz, William Sharpe, John Lintner and Jan Mossin provided the basic structure for the Capital Asset Pricing Model. It is a model of linear general equilibrium return. In the CAPM theory, the required rate return of an asset is having a linear relationship with asset‘s beta value i. e. undiversifiable or systematic risk (i. e. market related risk) because non market risk can be eliminated by diversification and systematic risk measured by beta.Therefore, the relationship between an assets return and its systematic risk can be expressed by the CAPM, which is also called the Security Market Line. Lending and borrowing:- Here, it is assumed that the investor could borrow or lend any amount of money at riskless rate of interest. When this opportunity is given to the investors, they can mix risk free assets with the risky assets in a portfolio to obtain a desired rate of risk-return combination. Rp =Portfolio return Xf =The proportion of funds invested in risk free assets 1- Xf = The proportion of funds invested in risky assets Rf =Risk free rate of return Rm =Return on risky assets The expected return on the combination of risky and risk free combination is Rp= Rf Xf+ Rm(1- Xf)Formula can be used to calculate the expected returns for different situations, like mixing riskless assets with risky assets, investing only in the risky asset and mixing the borrowing with risky assets. THE CONCEPT: According to CAPM, all investors hold only the market portfolio and risk less securities. The market portfolio is a portfolio comprised of all stocks in the market. Each asset is held in proportion to its market value to the total value of all risky assets. For example, if Reliance Industry share represents 15% of all risky assets, then the market portfolio of the individual investor contains 15% of Satyam Industry shares. At this stage, the investor has the ability to borrow or lend any amount of money at the risk less rate of interest. Eg. assume that borrowing and lending rate to be 12. 5% and the return from the risk y assets to be 20%. There is a tradeoff between the expected return and risk. If an investor invests in risk free assets and risky assets, his risk may be less than what he invests in the risky asset alone. But if he borrows to invest in risky assets, his risk would increase more than he invests his own money in the risky assets. When he borrows to invest, we call it financial leverage. If he invests 50% in risk free assets and 50% in risky assets, his expected return of the portfolio would be Rp= Rf Xf+ Rm(1- Xf) = (12. 5 x 0. 5) + 20 (1-0. 5) = 6. 25 + 10 = 16. 5% if there is a zero investment in risk free asset and 100% in risky asset, the return is Rp= Rf Xf+ Rm(1- Xf) = 0 + 20% i. e. 20% if -0. 5 in risk free asset and 1. 5 in risky asset, the return is Rp= Rf Xf+ Rm(1- Xf) = (12. 5 x -0. 5) + 20 (1. 5) = -6. 25+ 30 = 23. 75% EVALUATION OF PORTFOLIO: Portfolio manager evaluates his portfolio performance and identifies the sources of strengths and weakness. The evaluation of the portfolio provides a feedback about the performance to evolve better management strategy. Even though evaluation of portfolio performance is considered to be the last stage of investment process, it is a continuous process.There are number of situations in which an evaluation becomes necessary and important. i. Self-Valuation: An individual may want to evaluate how well he has done. This is a part of the process of refining his skills and improving his performance over a period of time. ii. Evaluation of Managers: A mutual fund or similar organization might want to evaluate its managers. A mutual fund may have several managers each running a separate fund or sub-fund. It is often necessary to compare the performance of these managers. iii. Evaluation of Mutual Funds: An investor may want to evaluate the various mutual funds operating in the country to decide which, if any, of these should be chosen for investment.A similar need arises in the case of individuals or organizations who engage external agencies for portfolio advisory services. iv. Evaluation of Groups: Academics or researchers may want to evaluate the performance of a whole group of investors and compare it with another group of investors who use different techniques or who have different skills or access to different information. NEED FOR EVALUATION OF PORTFOLIO: ? We can try to evaluate every transaction. Whenever a security is brought or sold, we can attempt to assess whether the decision was correct and profitable. ? We can try to evaluate the performance of a specific security in the portfolio to determine whether it has been worthwhile to include it in our portfolio. We can try to evaluate the performance of portfolio as a whole during the period without examining the performance of individual securities within the portfolio. Portfolio management has emerged as a separate academic discipline in India. Portfolio theory that deals with the rational investment decision-making process has now be come an integral part of financial literature. Investing in securities such as shares, debentures & bonds is profitable well as exciting. It is indeed rewarding but involves a great deal of risk & need artistic skill. Investing in financial securities is now considered to be one of the most risky avenues of investment. It is rare to find investors investing their entire savings in a single security. Instead, they tend to invest in a group of securities.Such group of securities is called as PORTFOLIO. Creation of portfolio helps to reduce risk without sacrificing returns. Portfolio management deals with the analysis of individual securities as well as with the theory & practice of optimally combining securities into portfolios. The modern theory is of the view that by diversification, risk can be reduced. The investor can make diversification either by having a large number of shares of companies in different regions, in different industries or those producing different types of prod uct lines. Modern theory believes in the perspective of combinations of securities under constraints of risk and return.PORTFOLIO REVISION: The portfolio which is once selected has to be continuously reviewed over a period of time and then revised depending on the objectives of the investor. The care taken in construction of portfolio should be extended to the review and revision of the portfolio. Fluctuations that occur in the equity prices cause substantial gain or loss to the investors. The investor should have competence and skill in the revision of the portfolio. The portfolio management process needs frequent changes in the composition of stocks and bonds. In securities, the type of securities to be held should be revised according to the portfolio policy.An investor purchases stock according to his objectives and return risk framework. The prices of stock that he purchases fluctuate, each stock having its own cycle of fluctuations. These price fluctuations may be related to e conomic activity in a country or due to other changed circumstances in the market. If an investor is able to forecast these changes by developing a framework for the future through careful analysis of the behavior and movement of stock prices is in a position to make higher profit than if he was to simply buy securities and hold them through the process of diversification. Mechanical methods are adopted to earn better profit through proper timing.The investor uses formula plans to help him in making decisions for the future by exploiting the fluctuations in prices. PASSIVE MANAGEMENT: Passive management is a process of holding a well diversified portfolio for a long term with the buy and hold approach. Passive management refers to the investor’s attempt to construct a portfolio that resembles the overall market returns. The simplest form of passive management is holding the index fund that is designed to replicate a good and well defined index of the common stock such as BSE- sensex or NSE-Nifty. ACTIVE MANAGEMENT: Active management is holding securities based on gthe forecast about the future.The portfolio managers who pursue active strategy with respect to market components are called ‘market timers’. The portfolio managers vary their cash position or beta of the equity portion of the portfolio based on the market forecast. The managers may indulge in ‘ group rotation’s. here, the group rotation means changing the investment in different industries’ stocks depending on the assessed expectations regarding their future performance. FORMULA PLANS: The formula plans provide the basic rules and regulations for the purchase and sale of securities. The amount to be spent on the different types of securities is fixed. The amount may be fixed either in constant or variable ratio. This depends on the investor‘s attitude towards risk and return.The commonly used formula plans are i. Average Rupee Plan ii. Constant Rupee Plan iii. Constant Ratio Plan iv. Variable Ratio Plan ADVANTAGES: ? Basic rules and regulations for the purchase and sale of securities are provided. ? The rules and regulations are rigid and help to overcome human emotion. ? The investor can earn higher profits by adopting the plans. ? A course of action is formulated according to the investor‘s objectives. ? It controls the buying and selling of securities by the investor. ? It is useful for taking decisions on the timing of investments. DISADVANTAGES: ? The formula plan does not help the selection of the security.The selection of the security has to be done either on the basis of the fundamental or technical analysis. ? It is strict and not flexible with the inherent problem of adjustment. ? The formula plans should be applied for long periods, otherwise the transaction cost may be high. ? Even if the investor adopts the formula plan, he needs forecasting. Market forecasting helps him to identify the best stocks. CHAPTER-3 COMP ANY PROFILE SHAREKHAN LTD Sharekhan Ltd. is one of the leading retail stock broking house of SSKI Group which is running successfully since 1922 in the country. It is the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business.Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc. The firm’s online trading and investment site – www. sharekhan. com- was launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over one lakh customers. The content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed tec hnology and superior market information.The objective has been to let customers make informed decisions and to simplify the process of investing in stocks. On April 17, 2002 Sharekhan launched Speed Trade, a net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months Speed Trade has become a de facto standard for the Day Trading community over the net. Sharekhan’s ground network includes over 640 centers in 280 cities in India which provide a host of trading related services. Sharekhan has always believed in investing in technology to build its business.The company has used some of the best-known names in the IT industry, like Sun  Microsystems,  Oracle,  Microsoft,  Cambridge  Technologies,  Nex genix, Vignette, Verisign Financial Technologies India Ltd, Spider Sof tware Pvt Ltd. To build its trading engine and content. The Morakhiya family holds a majority stake in the company. HSBC, Intel &  Carlyle are the other investors. With a legacy of more than 80 years in the stock markets, the SSKI groupventured  into  institutional  broking  and  corporate  finance  18  years  ago. Presently  SSKI  is  one  of  the  leading  players  in  institutional  broking  andcorporate finance activities. SSKI holds a sizeable portion of the market in each of these segments.SSKI’s institutional broking arm accountsfo7%of  the  market  for  Foreign  Institutional  portfolio  investment  and  5%  of  allDomestic  Institutional  portfolio  investment  in  the  country. It  has  60institutional  clients  spread  over  India,  Far  East,  UK  and  US. ForeignInstitutional Investors generate about 65% of the organization’s revenue, with a daily turnover of over US$ 2 million. The Corporate Finance section has a listof very prestigious clients and has many ‘firsts’ to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 1 billion in private equity deals. PROFILE OF THE COMPANY: Name of the company : Sharekhan ltd.Year of Establishment : 1925 Headquarter : ShareKhan SSKI A-206 Phoenix House Phoenix Mills Compound Lower Parel, Mumbai – Maharashtra, INDIA- 400013 Nature of Business : Service Provider Services : Depository Services, Online Services and Technical Research. Number of Employees : Over 3500 Website : www. sharekhan. com Slogan : Your guide to the financial jungle Vision To be the best  retail brokering Brand in the retail business of stock market. MissionTo educate and empower the individual investor to make better investmentdecisions through quality advice and  superior service Sharekhan is infact: †¢ Among the top 3 branded retail service providers †¢ No . 1 player in online business †¢ Largest network of branded broking outlets in the country serving more than7, 00,000 clients Sharekhan's management team is one of the strongest in the sector and has positioned Sharekhan to take advantage of the growing consumer demand for financial services products in India through investments in research, pan-Indian branch network and an outstanding technology platform. Further, Sharekhan's lineage and relationship with SSKI Group provide it a unique position to understand and leverage the growth of the financial services sector.SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank with strong research-driven focus. Their team members are widely respected for their commitment to transactions and their specialized knowledge in their areas of strength ITA CORE SERVICES ARE: ? Equities, and Derivatives trading on the National Stock Exchange of India Ltd. (NSE), and Bombay Stock Exchange Ltd. (BSE), ? Commodities trading on National Commodity and Derivatives Exchange India(NCDEX) and Multi Commodity Exchange of India Ltd. (MCX), ? Depository services, ? Online trading services, ? IPO Services, ? Dial-n-Trade ? Portfolio management services, Fundamental and Technical Research services, ? In addition to this they also provide advisory services and  distributions for  mutual funds. ? Sharekhan ValueLine (a monthly publication with  reviews of recommendations,stocks to watch out for etc. ) ? Daily research reports and market review (High Noon &  Eagle Eye) ? Pre-market Report ? Daily trading calls based on Technical Analysis ? Cool trading products (Daring Derivatives and Market Strategy) REASONS TO CHOOSE SHAREKHAN: ? Experience : SSKI has more than eight decades of trust and credibility in the Indian Stock Market. In the Asia Money Broker’s Poll held recently, SSKI won the ‘India’s Best broking house for 2004’ award.Ever since it launched Sharekhan as its re tail broking division in February in 2000, it has been providing institutional-level research and broking services to individual investors. ? Technology: With their Online Trading account one can buy and sell shares in an instant from any PC with an internet connection. Customers get access to the powerful online trading tools that will help them to take complete control over their investments in shares. ? Accessibility: Sharekhan provides Advice, Education, Tools and Education services for investors. These services are accessible through many centers across the country (over 650 locations in 150 cities), over the internet (through the website www. sharekhan. ltd) as well as over the voice tool. ? Knowledge:In a business where the right information at the right time can translate into direct profits investors get access to a wide range of information on the content rich portal www. sharekhan. com. Investors will also get a useful set of knowledge-based tools that will empower them t o take informed decisions ? Convenience: One can call Sharekhan’s Dial-N-Trade number to get investment advice and execute his/her transactions. They have a dedicated call-center to provide this service via a Toll Free Number 1800 22-7500 & 39707500 from anywhere in India. ? Customer Service: Its customer service team assist their customer for any help that they need relating to transactions, billing, demat and other queries.Their customer service can be contacted via a toll-free number, email or live chat on www. sharekhan. com. ? Investment Advice: Sharekhan has dedicated research teams of more than 30 people for fundamental and technical research. Their analysts constantly track the pulse of the market and provide timelyinvestment advice to customer in the form of daily research emails, online chat, printed reports etc. SHAREKHAN LIMITED’S MANAGEMENT TEAM †¢ Dinesh  Murikya   :   Owner  of  the  company †¢   Tarun  Shah   :   CEO  ofà ‚  the  company †¢ Shankar  Vailaya   :   Director  (Operations) †¢   Jaideep  Arora :   Director  (Products  &  Technology) †¢ Pathik  Gandotra :   Head  of  Research Rishi  Kohli   :   Vice  President  of  Equity  Derivatives †¢ Nikhil  Vora :   Vice  President  of  Research BENEFITS †¢ Free Depository A/c †¢ Instant Cash Transfer †¢ Multiple Bank Option. †¢ Secure Order by Voice Tool Dial-n-Trade. †¢ Automated Portfolio to keep track of the value of your actual purchases. †¢ 24*7 Voice Tool access to your trading account. †¢ Personalized Price and Account Alerts delivered instantly to your mobile phone †¢ Live chat facility with Relationship manager on Yahoo Messenger. †¢ Special Personal inbox for order and trade confirmations. †¢ On-line customer service via web chat. †¢ Enjoy automated Portfolio. Buy or sell even single share. †¢ Anytime orderin g. Sharekhan provides 4 in 1 account: *Demat a/c *Bank a/c: for fund transfer *Dial and Trade: for query relating trading *Trading a/c: for cash calculation DEMAT ACCOUNT: Sharekhan  is  a  depository  participant. This  means  that  we  can  keep  the  shares  in dematerialized form  in  Sharekhan. But  for  this  one  has  to  the  demat  account  in Sharekhan. Dematerialization is the process by which a client can get physical certificates converted into electronic balances maintained in his account with the DP. In Sharekhan, under demat account there are two types of terminals Classic and Trade Tiger. ACCOUNT OPENING:Opening a DP account with Sharekhan-One can open a Depository Participant (DP) account, either through a Sharekhan branch or through a Sharekhan Franchisee center. There is no fee for opening DP accounts with Sharekhan. However a nominal deposit (refundable) is charged towards services which will be adjusted against all future billings. All investors have to submit their proof of identity and proof of address along with the  prescribed account opening form. CLASSICAL ACCOUNT: This is a user friendly product which allow the client to trade through website www. sharekhan. com and is suitable for all the retial investors who is risk averse and hence prefers to invest in stocks or who does not trade too frequently Features Online trading account for investing in equity and derivatives via www. sharekhan. com †¢ Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE. †¢ Integration of On-line trading, Saving Bank and Demat Account. †¢ Instant cash transfer facility against purchase & sale of shares. †¢ Competitive transaction charges. †¢ Instant order and trade confirmation by E-mail. †¢ Streaming Quotes (Cash & Derivatives). †¢ Personalized market watch. †¢ Single screen interface for Cash and derivatives and more. †¢ Provision to enter price trigge r and view the same online in market watch. SPEEDTRADE SPEEDTRADE is an internet-based software application that enables you to buy and sell inan instant.

Types of friends to have

The last thing you want to be described as is someone who's stuck in their own ways. If everyone had a friend from a different culture, the world would be a much better place. Being in a cross-cultural friendship allows you to explore customs, values, and traditions outside of your own culture. Sometimes you might even adopt new ways to do things. Be careful; don't befriend someone Just because they're from a different culture. No one likes to be a token friend.Instead, keep your mind open, and if you come across someone you click with who Just so happens to be from a different culture, make the effort to learn about their customs, values, and traditions while getting to know the person on a personal level. A Wise Mentor Jesse Jackson once said, â€Å"Never look down on someone unless you're helping them up. † If you have someone smart, inspiring, and admirable in your life who practices this philosophy, you're extremely lucky. We all need a friend who inspires us to be otter people without making us feel inadequate.Plus, being around such a person will challenge us to better ourselves every day. The wise mentor in your life doesn't have to be someone who shares the same occupation or hobbies with you. It's simply someone who's a few steps ahead of you in life and has enough wisdom and patience to guide you in the right direction. It can be anyone -? a colleague, a friend who's beyond their years, or an older neighbor -? as long as you look up to this person and want to be more like them. A Loyal Best FriendSometimes a loyal best friend is the only thing you need to stay sane. Everyone needs a non-judgmental friend who will support them no matter what. This is the kind of friend who lets you be a hot mess and knows all of your deepest and darkest secrets, but still loves you all the same. A Work Pal Did you know that with a full-time Job, you spend at least 50% of your waking hours at work? Not only that, but you spend some more time commuting to work, t hinking about work, working overtime, and furthering your career on your personal time.Depressing, isn't it? Statistics show that the more isolated you are at work, the more depressed you get. That's why it makes sense to get a work pal to chat with at the water cooler and to help you get through the week. You spend 50% of your waking hours at work, and so does your work pal. You'll find it much easier to shoot the breeze and complain about work with someone who can relate to you than eating lunch alone every day. Your work pal doesn't have to be your best friend outside of work.They Just need to be someone you click with on some level, and if you two hit it if exceptionally well, you can always start hanging out with them outside of the office. With a loyal best friend, a fearless adventurer, a brutally honest confidant, a wise mentor, a friend from a different culture, a polar opposite, a friendly neighbor, and a work pal in your life, you're bound to live a long and happy! A Frie ndly Neighbor These days, a lot of people don't know their own neighbors. It's a shame, because some neighbors can be the nicest and most helpful people ever.

The modern project management approach Essay Example | Topics and Well Written Essays - 4750 words

The modern project management approach - Essay Example Formal project management techniques were developed in USA in the 1960's as part of the early missile programmes. These techniques have since been used in almost every area of society, from government agencies to non-profit organisations, and from engineering companies to service industries (Wikipedia). The early project management phase began in the 1950s in the United States where, from an ad-hoc-basis use of 'Gantt Charts' and informal techniques and tools, it graduated to the use of two mathematical 'project management models' known as: (1) the "Program Evaluation and Review Technique" or PERT, developed as part of the United States Navy's Polaris missile submarine programme; and (2) the "Critical Path Method" (CPM) developed in a joint venture by both DuPont Corporation and Remington Rand Corporation for managing plant maintenance projects. These mathematical techniques quickly spread into many private enterprises. In 1969, the Project Management Institute (PMI) was established to help the project management industry to perform better. The PMI has been of the view that the tools and techniques of project management are common for all applications in projects from the software industry to the traditional construction industry. In 1981, the PMI brought out The Guide to the Proje ct Management Body of Knowledge, containing the standards and guidelines of practice that are widely used throughout the profession (Wikipedia). Generally, project management is distinguished from the general management of corporations by the mission-oriented nature of a project. A project organisation will generally be terminated when the mission is accomplished. According to the Project Management Institute, the discipline of project management can be defined as follows: 'Project management is the art of directing and coordinating human and material resources throughout the life of a project by

The Evolution of E-Marketing Tools Research Paper

The Evolution of E-Marketing Tools - Research Paper Example E-Marketers can also use other media such as phones for purposes of advertising their products. There is also the installation of electronic billboards installed on public places and bus stations. E-Kiosks have also emerged, and are used in large malls for purposes of advertising the products of a company. It is also possible for markers to create video brochures, and insert them in feature films, just for purposes of targeting their intended customers (Belch and Belch, 2012). The internet is the most dominant form of e-marketing. Companies use the social media like face book, and twitter to advertise their products. These social media advertisements have the capability of reaching a wide audience of people. It is also a very fast way of sending a message to a wide audience of people. Companies also use their websites, and Google search engine technologies to advertise their products. Google has a pay per click advertisement policy where advertisers pay for their products, once an in dividual clicks on a link that take them to their advertising pages (Juon and Greiling, 2012) . The major challenge in using the internet as a tool of marketing is the inability of the company under consideration to drive traffic to their websites, and create content awareness. ... The social media is a very effective method of conducting a marketing campaign; however, most marketers are unable to use it to their advantage. This is because they are unable to understand the various needs of their target customers. The pioneer of early marketing system is Johannes Gutenberg, with his invention of the printing press that had a replaceable wooden or metal letters (Jones, 2012). This machine had a capability of typing and printing letters in a very effective manner. For example, he managed to use this machine and his printing press to create the Gutenberg Bible in 1455. As a result of this innovation, the use of printing machines spread rapidly in Europe. The Gutenberg press led to the revolution in the manner in which information was passed to the masses. This is because it was now possible to print a mass of brochures and flyers. The Gutenberg Bible is the first written material produced by the use of this technology. This printing press technology remained the st andard until the 20th century, when the evolution of computers emerged (Jones, 2012). Another technology that shaped early marketing is the development and evolution of the telegraph. The telegraph involves a long distance transmission of a message, without the physical presence of the person disseminating the information. The telegraph was invented by Samuel Morse in 1837. Through a series of experiments, Samuel Morse concluded that the telegraph was able to record and transmits messages over a long distance. The telegraph was able to transmit mass messages, and hence it made it possible for markers to use it in marketing their products. In 1922, a new concept of advertisement began, and was referred to as radio-advertising (Jones, 2012). This was a concept whereby companies bought air

Top Female Leaders Around the World Article Example | Topics and Well Written Essays - 500 words

Top Female Leaders Around the World - Article Example According to the research findings, it can, therefore, be said that Gordon Ramsay is one of the strictest yet swanky leaders on earth. He is a master chef and his students learn and follow his leadership. His demeanor tells that he answers to no one and always defines his own set of parameters. There would hardly anyone who would argue that this man doesn’t possess leadership abilities. If someone can swear his kitchen staff on BBC television. then what else do one need to know if has leadership qualities or not? A black African American woman, who earns $200 million every year and has a net worth of over $2 billion, these credentials speak for themselves. Oprah is the queen of female celebrities, her show is one of the most popular shows on US national television. Without her leadership abilities, she would never have been able to cut through the male dominant society. She has her own production house and runs many charities, she is one great leader.  The CEO of Apple Inc., Tim Cook holds the throne to the biggest corporations on this planet. However, his leadership is under question. He has leadership qualities there is no doubt about it but to be able to lead the likes of a tech giant like Apple, it requires more than just leadership, it requires Jobs’ like leadership which many believe that Tim Cook lacks in. if he truly is a wrong choice for Apple Inc. only time will tell but at the moment, Apple Inc. in the hands of Tim Cook is facing serious criticism. Sarah Palin was the 11th governor of the state of Alaska. Although she is a successful politician there were some lacking in the leadership department. When she ran for the presidential elections in 2008, she received the lowest vote of confidence from the public.

Historical Essay Example | Topics and Well Written Essays - 250 words

Historical - Essay Example The evidence of this is in the effect of the cultural integration into the original arts of these communities. Before the arrival of Babylonians and Assyrians, Sumerian art was mainly based on clay writings. Their original art, cuneiform writing, involved writing on clay, metal, or wood using a stylus shaped like a wedge. Sumerians used cuneiform to write or draw their most important cultural and religious figures mainly the gods and goddesses. The cuneiforms mainly represented objects and was not used for scholarly purposes in the original form. Diagram 1 below shows an example of a female head carved in limestone and wood. However, when the Babylonians arrived, they introduced their culture to the Sumerians. The effect of this was the Babylonian cultural influence on original Sumerian art. Sumerian art started featuring war themes, which was not common before the arrival of the Babylonians. The Babylonian culture influenced the original art of the Sumerians by introducing concepts of war. As illustrated in diagram 2 below, Inanna-Ishtar represents this cultural influence on original Sumerian art. The art sculpture combines the original elements of Sumerian art (goddess of fertility) and the Babylonian war culture (semitic goddess of

General Project Description - Technology Research Paper

General Project Description - Technology - Research Paper Example They cannot compete with others to excel in academics if they do not learn the use of computer and its programs and softwares. Even the vast majority of tests they are required to pass to prove their eligibility for higher studies are computer-based. The contemporary business is heavily dependent upon technology (Martinez). Be it planning, scheduling, accountancy, auditing, progress-tracking, management of product distribution channels, or advertisement of the product or service, everything is accomplished with the help of softwares, online or broadcasted programs on the television and/or the Internet. The positive impacts of society’s dependence upon technology include improved efficiency, improved performance (Carte), improved communication, and reduction of time in the accomplishment of tasks in all fields. The negative impacts of society’s dependence upon technology include increased violence, new ways of bullying and blackmailing, reduced safety and security, and increased exposure to risk (â€Å"We Are Detrimentally†). In the contemporary age, one who is not well-versed with the use of technology is outdated and lacks competence to compete with the rest of the world. Apart from the aforementioned uses of technology in the academia and industry, society’s dependent on technology in other fields including traveling and recreation cannot be overemphasized. Dependence on technology has yielded both positive and negative results for the society. A research conducted by CourseSmart and Wakefield Research suggests that students have become very dependent on technology. Use of E-books, laptops, and mobile phones for educational purposes has increased a lot. The positive outcome of this is increased awareness of the students regarding their performance in the class. Despite the immense usefulness of technology in business, the importance of sustaining old practices and processes cannot be overlooked since these

Principles of Economics Gross Domestic Product Essay

Principles of Economics Gross Domestic Product - Essay Example During the base year nominal and real GDP are equal. Therefore real GDP reflects both prices and quantities of goods and services produced by an economy, whereas nominal GDP reflects the produced quantities only. GDP does not reflect accurately the nation's productivity. There are products that GDP excludes, because it is difficult to measure them. For one thing, GDP includes all items produced and sold legally in the market. This means that products that are produced and sold illegally cannot be traced and measured by the GDP. Additionally, GDP does not include products and services that are actually produced by households but never enter the market. These are, for example, home grown fruit or vegetables that are used within the households that cultivate them. Also, GDP excludes other immeasurable variables like the quality of the environment or leisure time and does not reflect the distribution of income within an economy.

Corperate strategy of TCL Multimedia Assignment

Corperate strategy of TCL Multimedia - Assignment Example This company was founded in 1982. It started its business as an audiotape manufacturing company. Its co- founders, Li Dongsheng gradually moved this company forward in the business of consumer electronics product. TCL got good reputation by the production of handsets for fixed-line telephones. This product established a trust in consumers. In the next decade TCL started producing audio equipment made in a joint venture. TCL also invested in the research and development (R&D) and focused on new product development and efficient production. TCL also developed a distribution and marketing network across China. The management was quite progressive and they were not satisfied with the performance of the state owned distributors and private marketing organizations. The dynamic and rapidly growing Chinese economy greatly owe its rapid growth to the Chinese companies. These companies not only come in contact with foreigners as a source of technology or assets, but also as a market for there own products. They are quite ambitious also, many companies aim to build global brands. The leading Chinese electrical appliance company Haier has 13 sites overseas, including factories. TCL is considered China's second biggest television maker has also invested in television manufacture outside China. Various model and methods have been evolved by scholars of management and corporate field for analyzing the external and internal environment of the company. It seems quite appropriate to use the PEST and SWOT models for analyzing TCL external and internal environment. 2.1 PEST Analysis PEST Analysis is used for analyzing macro environment of company. Four factors Political , Economic , Social , Technological is considered during this type of analysis. Assessment of the impact of all these factors plays an important role in evaluating the environment of a company. Political Factors World is virtually being ruled by multi-nationals. These multi-nationals are powerful enough to influence the decision making process of world's leading powers directly or indirectly. These multi-nationals are getting bigger and bigger by mergers and acquisitions. In such scenario Chinese companies are also playing very effective role. They are very successfully competing with European companies and US. In past it Chinese economy was considered closed and state owned economy. But now it is gradually opening and private companies are playing their role in the changed political atmosphere. TCL is one of such companies that is expanding and has been successful in getting good market share in TV market. Economic Factors TCL 's results of 2004-2005 show that its position in the market is continuously improving. TCL is a leading consumer electronics manufacturer within China. The company has begun to enter in international television markets by using majority-owned joint ventures techniques.

Coursework Questions Scholarship Essay Example | Topics and Well Written Essays - 2000 words

Coursework Questions - Scholarship Essay Example To rate the credibility of an opinion, it should be measured in terms of how it conform to its subject or object. Any opinion should be evaluated both objectively and subjectively so that we could identify if opinion is in coherence with reality. No, it is because truth does not easily change. But knowledge changes as a product of observations. The continuing evolution of knowledge itself leads to the discoveries of truth. Knowledge is what has been discovered, but the real truth is yet to be discovered. It does not mean that any opinion is right, but any opinion is to be accepted for the purpose of arriving to conclusion about any arguments. Everybody has the freedom to express their own opinion but should be corrected if their opinion does not conform to the reality. The right to express an opinion should not be abused by just letting anybody claim any faulty opinion as a right opinion. Philosophy is a branch of science itself. Philosophy deals with deeper understanding of any subject or object of its study by looking at it both subjectively and objectively. It is defined as a love of wisdom. It is not just observing the visible qualities of an object, but also looking at its inner nature, its relationship to the things around it, the reason of its existence. Philosophy is more deeper than other branches of science. During these levels of study, one has to de... It is not just observing the visible qualities of an object, but also looking at its inner nature, its relationship to the things around it, the reason of its existence. Philosophy is more deeper than other branches of science. What are the basic skills one is suppose to develop in school, that is, in kindergarten through the twelfth grade During these levels of study, one has to develop basic communication and analytical skills. Everyone should learn how to communicate effectively with the persons around them, learn the different forms of communication, and basic problem solving skills. What is the basic purpose of education The basic purpose of education is to educate everybody on how to deal properly with the different situations in life. Theories of different situations that commonly encountered by man are introduced for them to have a firm background or understanding of what, when, where, how these situation will likely occurs and the common ways of dealing with it properly. Giving sufficient education helps prevents problems from getting worst, or be prevented from happening itself. What is a right What are the two sources of all right Right is the legal or moral entitlement to do or refrain from doing something or to obtain or refrain from obtaining an action, thing or recognition in civil society1. Under what conditions would you be persuaded to change your mind about anything Explain your answer. Our decisions are greatly affected by things that we perceive on an actual experience. We deal with different decision making phase by making decision which we believe is right for us at the given situation. Sometimes decisions were made promptly as caused by panic, which comes out from our subjective evaluation of the situation. The impact of any

History of Sport Essay Example for Free

History of Sport Essay The effect of sports on today’s world, particularly in the United States, is indeed profound. The history of sport has the potential to teach us a great deal about social changes and the nature of sport itself. Over the past twenty-five years or so, the field of history has expanded, embracing a broader view of historical topics and going far beyond political and military history in refiguring the historical paths of this and other nations (Nelson). Throughout the many years during the Pre-Colonial era, Colonial era, Industrial Revolution, Post Civil War, and the Twentieth Century, the sports industry was created with several factors affecting its formation. The Pre-Colonial era consisted of the time prior to 1500’s. During this time in North America, the land had been consumed by the Native Americans and their culture. Population was spreading widely across the continent. The people of this era were found to be genuine and quiet. Daily activities such as hunting, farming, running, and warfare slowly turned into more of physical activity and competitive games for leisure. Recreational play was seen as an outlet. Physical activity and games, more often than not, were linked to spiritual beliefs. Staying â€Å"fit† was essential. Common sports known during pre-colonial time were lacrosse, archery, and running. Colonial America started with the Puritans bombarding America during 1600-1800 A. D. to break away from the churches, religions, and beliefs. The Puritans were found to be extremely hard working which was a result from the motivation of staying alive. The Puritans were also widely known (and still to this day) of being very religiously involved. Games were considered to be â€Å"wicked† or sinful; such as gambling and drinking. Aside from the Puritans, sport marketing started to make an appearance during the Colonial era, leading to the growth of interest and participation in sports. Tavern owners were the first known sport marketers on record. Taverns would announce games and sport through posters and word of mouth. During this time the common sports were found to fit the lifestyle and culture; such as horse racing, running, arm wrestling, rifle, cockfighting, and boxing. Colonial America was the start to our sporting industry. The Technological Industrial Revolution occurred along with the Post Civil War era during 1800-1900. Throughout these one hundred years the sport industry was growing rapidly along with technology, factories, immigration, companies, and educational systems. Due to the growth in technology and factories, citizens had more time and more money; therefore recreation was used to fill downtime causing our sport industry to grow further. Faster modes of travel started to develop and be more convenient, helping organized sports form. Immigrants added to the industry by introducing their sports to America as well. Modern spectator sports were on a rise such as boxing, running, and horse racing. However, the Civil War era negatively affected sports by slowing sport activities due to the lack of men and overall population in society. Once men started leaving for war more and more women took jobs that had once belonged to men, which was a huge impact on society as this was the first sign of equality between men and women (Nelson). The working structure was seen as â€Å"feminizing† society, sports helped to â€Å"masculine† society. Wealth was on the rise after the war forcing sports to become very class specific, and the upper class tried to exclude lower classes; Class and race were a deciding factor for accepted participation in sports. The first known organized sports team; New York Knickerbockers’ were a baseball club created in the 1840’s and Intercollegiate Athletics first event occurred in 1852, Harvard and Yale competed in a rowing contest. Society was soon hooked on sports. The era of Twentieth Century made the most dramatic century of growth yet for the sports industry. Sports became part of our educational system as organizations formed to work together creating codifications for different sports, improving equipment, and increasing social involvement. Sports were taken to a very serious level in the early 1900’s. In 1904 the NCAA was founded to hold conferences, regulate rules along with player eligibility, and made coaches from educators. Competitive sports led to changes in our educational system when it established physical education positions. These positions forced research into sports because of the need for better and newer physical education curriculum. At first, Females were allowed to be involved in sports at a noncompetitive level or to promote health. The participation of women in sports grew over time however, with society being the critical factor. Upper-class and middle-class women were absolutely restricted from playing sports as it was thought to not be â€Å"proper. † The National Football League was created in 1911 which turned out to be a major step in the development of sports as entertainment. In 1941 society’s values of class, sex, and race was evident when Joe Namath signed a contract for $400,000 while Curt Flood, a slave had a salary of nothing. In 1972, Title Nine was put into act guaranteeing no discrimination regarding sex for sport institutions. Transportation was even more advanced helping organized sports teams compete against one another. Television and newspapers impacted sports by airing sporting events, criticizing and critiquing each play, as well as displaying the opinion of the program broadcasters. The most popular, known, and leading sports network ESPN aired its first national NFL broadcast in 1987 (Giordano). ESPN started offering magazines, national sports radio, and satellite radio in 1992 in attempt to curve the educational desire of the sporting society. ESPN changed the culture of sports. The history of sport is most likely as old as the existence of man. Physical activity, games, and daily activities contributed to the creation of organized sports with codification. Throughout the many years during the Pre-Colonial era, Colonial era, Industrial Revolution, Post Civil War, and the Twentieth Century, the sports industry has proved several, very different, and unexpected factors affecting its formation. The sports industry is continuing to grow rapidly year after year, changing with society’s values and lifestyle. Works Citied Giordano , Peter. The Evolution of ESPN. SOP: News, Interviews, More.. (2007): n. page. Web. 14 Sep. 2011. http://thesop. org/story/sports/2007/04/29/the-evolution-of-espn. php. Kindred. Century is over get the lights. Sporting News 224. 1 (2000): 63. Academic Search Complete. EBSCO. Web. 14 Sept. 2011. McClung, Lisa R. , and Nancy E. Spencer. Women and Sport in the 1990s: Reflections on Embracing Stars, Ignoring Players. . Journal of Sport Management 15. 4 (2001): 318. Academic Search Complete. EBSCO. Web. 14 Sept. 2011. Nelson, Murry. Sports History as a Vehicle for Social and Cultural Understanding in American History. Social Studies 96. 3 (2005): 118-125. Academic Search Complete. EBSCO. Web. 13 Sept. 2011.

Referendums: Arguments For and Against

Referendums: Arguments For and Against What are the arguments for and against the holding of popular referendums? Under what circumstances, if any, should they be held? The referendum has its origins in direct democracy, and can therefore be dated back to the 5th Century BC in the Greek city state of Athens. The concept of a referendum has changed and developed in line with democracy and can now be found in a number of differing forms throughout the developed world. A referendum is broadly defined by the Oxford English Dictionary as â€Å"a general vote by the electorate on a single political question†; however this definition fails to make distinctions between the many types of referendum which exist, or the modern day importance of referendums. In an initial classification there are three types of referendum as defined by the Britannica Concise Encyclopaedia. Obligatory referendums; which are required by law, optional referendums; which are put on the ballot when a sufficient number of voters sign a petition demanding that a law passed by the legislature be ratified by the people, and voluntary referendums; when legislatures submit to voter s to decide an issue or to test public opinion. There are a number of widely credited arguments both for and against the holding of popular referendums, however, there are only a few key ideas encapsulated in these arguments. Those in favour of referendums generally tend to point out that they; promote political participation and increase voter knowledge on issues as well as helping to strengthen democracy and further legitimate the government. Whilst arguments against referendums concentrate on ideas; that the public are ill equipped to make important political decisions, and that the information they do have is distorted through media influence, that referendums only provide an idea of public opinion at that one point in time, and that referendums weaken and remove power from the representative institutions elected by the public. The holding of popular referendums is key in a democratic system where the people are becoming, not only disengaged but disinterested in the political process as a whole. The use of referendums can help to counter this affect, provided that clear guidelines are set for when a referendum should take place. The word democracy comes from the Latin demos meaning the people and kratos meaning power or rule (OED); rule by the people. The practicalities of this literal definition, often referred to as direct democracy, are almost impossible in our world today, where in the UK in 2005 there were 44,245,939 people registered to vote (www.idea.int)[1]. However, representative democracy is a â€Å"limited and indirect form of democracy† (Heywood 2007:74) which relies on, in most cases, an electoral mandate for legitimacy. This electoral mandate has been called into question on a number of occasions in modern political history, most notably in the US presidential election of 2005 between George W Bush and Al Gore, and again in the UK General Election of 2005. Referendums could be seen in a modern political context as a stepping stone between direct and representative democracy. It is fair to say that in the majority of developed political societies people have the opportunity to vote into office representatives whom they believe to share policy views with. However, it would be impossible for any political party to represent all the views of its members and supporters, as a result parties may include certain policy promises in their manifestos that their voters do not want to see implemented (Caramani 2008:254). This, along with the fact that people vote for parties for such a wide range of reasons, mean that it is not possible to conclude that peoples policy preferences are the same as the party they vote for (Setala 1999: 14-16). Therefore, a referendum allows the public to show a direct opinion on a specific policy matter they would otherwise be impossible. Linked to the idea that referendums strengthen democracy with regards to policy decisions, there is also the theory that they legitimate government between elections. The period between major governmental elections is, in many countries, several years. In this time period governments can, for the most part, make decisions without any public consultation. There is therefore a danger that although these officials are elected as representatives, it is only the opposition parties and the checks and balances outlined in constitutions that prevent them from deviating from their original promises. Referendums allow the government to not only gauge public opinion on policy but also to make clear that the decisions they are making are in line with public attitude on issues concerning them, therefore providing another check against the power of government. Opponents to referendums argue that instead of strengthening democracy and legitimising government they in fact weaken the political system by removing power from elected bodies. Representative democracy is founded on the principle that elected officials represent the views of the people and make decisions on their behalf; therefore a referendum undermines this principle. Sir Patrick Nairne observed that â€Å"if Members of Parliament are elected to settle national issues of major policy brought before them by the Government, is it right to throw such issues back to the voters to settle† (Qvotrup 2005:23). This argument concerning the weakening of bodies is, although worth acknowledging, very limited in its view on referendums. It concentrates for the most part on the idea that referendums remove decision making power from elected bodies and would therefore render them both less effective and less powerful. However, this is an extreme view that fails to recognise that referend ums can be used to aid governments as well as the people, and provide a vital link between the two, as has already been argued. In the majority of political systems across the world we are witnessing a worrying downward trend in voter turnout. This can be attributed to a number of causes including; partisan dealignment, disenchantment with the political system and indifference to politics. Referendums can be used to help promote political participation by enabling the electorate to become better educated and informed and therefore reduce the feeling of alienation (Heywood 2007:250). By providing people with the opportunity to participate in referendums they are presented with the opportunity to educate and inform themselves on political issues. There is clearly a link between an informed electorate and higher levels of political participation, as Verba, Schlozman and Brady (1995) argue. This correlation arises from the fact that a more politically educated electorate is able understand the workings of government, and the issues affecting them; therefore seek to bring about change. Switzerland was one of the f irst countries to introduce referendums to make decisions on proposed legislation. Although turnout figures in Switzerland are not very high, around 45% (www.idea.int)[2], it can be argued that the Swiss people are more politically active than turnout figures show due to the fact that there is such a large number of referendums not everyone votes in all of them, and also that they are more involved with political parties and in other ways than most other countries. Aside from elections there are very few ways in which citizens can directly influence political decisions. There are provisions in most democratic countries for the electorate to have some personal contact with their representative, however for the most part people do not make use of this tool because they believe it to be ineffectual; issues raised in these arenas rarely have an effect on the outcome of policy. People are also able to join political parties yet; again, they are faced with the same problems of ineffectuality. A referendum therefore provides an answer to increasing ways for the electorate to positively participate in politics. A binding referendum permits the public to make the final decision on a specific policy, although these types of referendums are not widely used, it is rare for a government to go against the public even in a non-binding referendum. In 1975 the UK, both electorate and government, was divided over whether or not it should continue its membership in the European Economic Community. The overwhelming â€Å"Yes† vote to stay in Europe was upheld by the Labour government of the time, although it was not a binding referendum, and was hailed as a â€Å"historic decision† by Prime Minister Harold Wilson (www.bbc.co.uk/news)[3]. The counter arguments to increased political participation and voter knowledge through referendums are that; in fact, referendums can cause voter fatigue and decrease participation, and that the public are ill equipped to make important political decisions. The first of these arguments relies on the premise that the public would be able to vote on all or a large number of policies. However, this move back to direct democracy is not desirable for the public or the government; presenting the public with such a large number of opportunities to vote could indeed cause voting fatigue. There is a compromise to be found between allowing the public to vote on all policy and not allowing them to vote on it at all. The latter of these criticisms on referendums concern voter knowledge. It is ignorant to assume that the electorate are either not informed, or are unable, to educate themselves on political issues put to them in referendums. If people are able to vote and presumably make an informed decision on which political party they wish to represent them they are equally able to do so in a referendum. Critics argue that information is distorted through the media prior to referendums, and this is a problem worth considering. During the first referendum on the Lisbon Treaty in Ireland two of Rupert Murdochs biggest selling newspapers The Irish Sun and The Sunday Times were seen as going â€Å"hell for leather on a No vote† (www.guardian.co.uk)[4]; similarly the media coverage on the 1975 Common Market Referendum was heavily biased to the â€Å"Yes† campaign, it has been estimated that twenty times the amount of money was available to this campaign than to the â€Å"No† campa ign (www.europeansinglecurrency.com/referendum)[5]. Although in these instances the media seemed to have an influence on the final outcome there are other, more fundamental, factors which influence peoples decisions, the American political scientist John Zaller encapsulates this idea; â€Å"Every opinion is a marriage of information and predisposition† (Zaller 1992:6). For referendums to be used effectively it is important that the circumstances in which they should be held are clearly defined and upheld by law. When considering this point one must take into account that referendums should not used in a way that, as many opponents argue, undermines the authority of the elected bodies in a representative democracy. An answer to this is that referendums should only be used in matters of constitutional importance and not for other policy decisions. It is, after all, constitutions which safeguard the fundamental rights of the electorate as well as preventing the misuse of power by elected bodies (Dahl 2000: 124-127). However, only allowing people to vote on constitutional changes is very limiting, especially if the issue directly influences the way in which they live, and there may also be instances in which the government wishes to hold a referendum on another issue, therefore a wider definition for circumstances must be found. It would be almost impo ssible to define exactly which policy areas the electorate should be able to vote on in referendums. There are obviously issues on which it would be inappropriate to have a referendum, taxes are an obvious example; there are complex issues on which the public would probably not have the time or adequate resources to inform themselves on and which have no real affect on them, for example defence policies. Therefore the best course of action would probably be to allow the elected body to decide in these instances which policies it is sensible to put to a referendum. Australia, in fact follows these basic guidelines for holding referendums to great success. Compulsory national referendums are â€Å"held to approve government-proposed changes to the Australian Constitution†, the constitution specifies this; furthermore the government can also conduct optional referendums or ‘plebiscites to decide on matters outside of the constitution (www.wikipedia.org)[6]. This system of conducting referendums is ideal because the electorate are guaranteed a vote on constitutional issues as well as being given the opportunity, when appropriate, to vote on other policy matters. Referendums provide a vital direct link between government and the electorate which is otherwise unseen in representative democracies. They can help to promote political participation as well as creating a better informed electorate; they also strengthen democracy in modern society. Yet referendums, despite all of this are often criticised for the way in which they weaken elected bodies and do not provide a true gauge on public opinion, largely due to media influence. However, as has been argued none of these arguments hold much weight, especially in the face of a system where the use of referendums have clear guidelines, as in Australia, to be used for constitutional amendments and wherever else is seen as fit by the elected bodies in power. Referendums are a tool which should be used more widely in todays political systems of democracy as they are a manageable and positive step towards a hybrid political system which effectively combines representative and direct democracy. Bibliography Britannica Concise Encyclopaedia (2007) (London: Britannica Concise Encyclopaedia, Inc.) Caramani, Daniele (2008) Comparative Politics (Oxford: Oxford University Press) Dahl, Robert. A. (2000) On Democracy (Yale: Yale University Press) Heywood, Andrew (2007) Politics third edition (Basingstoke: Palgrave Macmillan) Oxford Dictionary of English (2005) 2nd edition revised (Oxford: Oxford University Press) Setala, Maija (1999) Referendums and Democratic Government: Normative Theory and the Analysis of Institutions (Basingstoke: Macmillan) Verba, Sidney, Kay Lehman, Schlozman and Henry Brady (1995) Voice and Equality: Civic Voluntarism in American Politics (Cambridge: Harvard University Press) Zaller, John (1992) The Nature and Origins of Mass Opinion (Cambridge: Cambridge University Press) [1] â€Å"United Kingdom of Great Britain and Northern Ireland Voter Turnout International† Institute for Democracy and Electoral Assistance 2005 < http://www.idea.int/vt/country_view.cfm?country=GB> (13 Nov. 2009) [2] â€Å"Swiss Confederation Voter Turnout† International Institute for Democracy and Electoral Assistance 2007 < http://www.idea.int/vt/country_view.cfm?id=42> (13 Nov. 2009) [3] â€Å"1975: UK embraces Europe on Referendum† 1975 < http://news.bbc.co.uk/onthisday/hi/dates/stories/june/6/newsid_2499000/2499297.stm> (13 Nov. 2009) [4] â€Å"NI votes NO in Irish referendum† 2009 < http://www.guardian.co.uk/commentisfree/2009/oct/01/ireland-referendum-rupert-murdoch> (13 Nov 2009) [5] â€Å"Was the 1975 Referendum Conducted Fairley† A British Referendum 2003 < http://www.europeansinglecurrency.com/referendum.htm> (13 Nov 2009) [6] â€Å"Federal Referendums† Referendums in Australia 2009 < http://en.wikipedia.org/wiki/Referendums_in_Australia> (13 Nov 2009)