Efforts to Alleviate Ozone Depletion

Exhaustion of ozone layer is the moderate annihilation of the ozone layer brought about by the gases that are discharged into the climate. The motivation behind the ozone layer is to pad the earth from the hazardous ultra violet beams of the sun in this manner it reflects back these beams. Were it not for this layer the earth couldn't have the option to help any life (Hussen 128).Advertising We will compose a custom research paper test on Efforts to Alleviate Ozone Depletion explicitly for you for just $16.05 $11/page Learn More The ozone layer has its own component of developing and remaking which associates the way toward fixing any openings on its surface. Anyway there are some poisonous substances that are fit for devastating the ozone layer for all time. Dobson contends that these poisons contain chlorofluorocarbons (CFCs) and Bromofluorocarbons (BFCs) which append themselves to the ozone layer. They at that point split the particles of the ozone layer and in light of the fact t hat they are for all time joined to the ozone layer they impede the way toward combining the split atoms along these lines the harm is can't be fixed (1296). That’s why items that contain CFCs have been prohibited in many nations. The ozone layer exists in the stratosphere which is a flimsy layer on the outside of earth surface. Hussein states that since ozone layer goes about as a hindrance between the outside of the earth and the ultra violet radiations from the sun, any disintegration of this layer will permit the ultra violet radiations to influence living animals legitimately thus there would be no life on earth (128). The stratosphere is the most inclined zone to exhaustion. The force of consumption is impacted by temperatures thus territories that have low temperatures experience the most elevated power of exhaustion contrasted with zones that have high temperatures. CFCs were intended to be utilized as a cooling specialist in refrigeration. This clarifies why created nations are reusing old coolers provided that they are not arranged appropriately they could discharge these synthetic substances (Callan Thomas 239). At the point when chlorofluorocarbons show up at the air they are disassembled to separate chlorine iotas which are then used to accelerate the way toward breaking down the enormous main part of ozone into little units. Research has discovered that CFCs can stay in the air for an entire century (National Geographic 1). Ozone at the Antarctic has diminished in the ongoing past on the grounds that the virus atmospheres in that area encourage consumption. This exhaustion is additionally advanced by the nearness of Polar Stratospheric mists when there is winter. The PSCs makes a stage where the consumption of ozone happens (Callan Thomas 240).Advertising Looking for investigate paper on ecological examinations? How about we check whether we can support you! Get your first paper with 15% OFF Learn More During summer the sun assumes a signi ficant job in evading the exhaustion of the ozone layer. The sun beams heat the PSCs to change over them into fluid structure. This procedure deteriorates the iotas of chlorine that were bound in these mists along these lines thwarting the consumption of ozone (National Geographic 1). The decrease in the thickness of ozone layer implies that man and different manifestations will be presented to the ultra violet radiations from the sun. These radiations increment the odds of contracting skin malignant growth. Researchers have likewise discovered that presentation ultra violet radiations may cause cortical waterfalls which if not rewarded can prompt loss of vision (Callan Thomas 10). As indicated by Fears et al., when ozone is on the ground level its viewed as a wellbeing risk to individuals since it is poisonous. This ozone is upgraded by consuming of gases (63). A few nations joined in the ongoing past to authorize an arrangement that would announce the utilization of CFCs in vapori zed splash jars illicit. This arrangement was protested by Europe. At first created nations were hesitant to execute this approach. The major hindrance was legislative issues. As time moved by more countries joined the battle against the utilization of CFCs. In 1983 forty three countries met up on the side of the Montreal convention which was intended as far as possible the utilization of CFCs (Hussen 132). This positive reaction was upgraded by concentrates on the Antarctic which demonstrated that consumption of ozone was brought by long haul utilization of CFCs. In the year 1992 the individuals who had authorized the Montreal convention pushed for additional changes that saw the utilization of CFCs and incandescent lamp totally wiped out with the exception of limited quantities that should have been utilized in the treatment of asthma. The end should be brief however when individuals gathered again in 1992 they deferred the end date (Hussen 133). Maybe the primary explanation that made individuals be hesitant in executing the Montreal convention was the way that the unexpected end of CFCs would ground their separate country’s businesses that depended on these components in their business creations. They needed to purchase more opportunity for their nations to get ready associations that were vigorously reliant on CFCs. As per DeCanio and Norman, Methyl Bromide was additionally included among the substances that encourage ozone consumption. The Montreal convention broadened the period that end should begin which prompted additional time being permitted to underdeveloped nations (378). This exclusion was conceded on the grounds that underdeveloped nations couldn't manage the cost of the ability and innovation just as cash that was essential for the execution of this policy.Advertising We will compose a custom research paper test on Efforts to Alleviate Ozone Depletion explicitly for you for just $16.05 $11/page Learn More Manufacturers needed to search for elective substances that could be utilized rather than CFCs. In certain nations CFCs were subbed with another assortment of CFCs that was seen to be less unsafe. The Montreal convention has demonstrated huge decrease in the exhaustion of ozone layer because of the controlled utilization of CFCs which thus has indicated the chance of fixing the opening that was knowledgeable about the Antarctic (Hussen 133). In this way, it is significant for each country to guarantee that systems, for example, counteraction of air contamination are set up to diminish the exhaustion of the ozone layer Works Cited Callan, Scott and Janet Thomas. Natural Economics Management: hypothesis, strategy, and applications. fourth ed. Canada: Thomson South-Western, 2007. Print. DeCanio, Stephene and Catherine Norman.†Economics of the ‘Critical Use’ of Methyl Bromide under the Montreal Protocol†. Contemporary Economic Policy 23 (3):376-393. July 2005. Dobson, Roger.†Ozone exhau stion will get rise the quantity of cataracts.† BMJ 331(7528):1292. 2005. Fears, Thomas et al.†Average midrange Ultraviolet radiation motion and time outside anticipate melanoma risk.† Cancer Research.62 (14):3992-6. July 2002. Hussen, Ahmed. Standards of Environmental Economics. second ed. New York: Routledge, 2004. Print.Advertising Searching for explore paper on natural investigations? We should check whether we can support you! Get your first paper with 15% OFF Find out More National Geographic. Ozone Depletion †Losing Earth’s Protective Layer. 2010. Web. https://www.nationalgeographic.com/condition/ This exploration paper on Efforts to Alleviate Ozone Depletion was composed and put together by client Maci Kaufman to help you with your own examinations. You are allowed to utilize it for research and reference purposes so as to compose your own paper; nonetheless, you should refer to it as needs be. You can give your paper here.

Research in Practice Essay Example | Topics and Well Written Essays - 3000 words

Research in Practice - Essay Example People can get to information which helps in correspondence and reflection. Research by and by likewise prompts advancement of new data about formulating procedures and methodology that may make incredible commitments in theater and furthermore help other theater specialists, teachers and researchers. Workmanship isn't just viewed as a methods for correspondence yet in addition of preparing, assembling and recognizing new information (Beauchamp, 2010 p 3). This idea has prompted the advancement of another technique for look into where by the issues looked in theater and creative practice are explored utilizing strategies that have been created in the limits of the training itself. This has made workmanship to form into a state of takeoff and it is no longer viewed as an object of research in particular. Advancement of theater look into practically speaking has prompted a developing enthusiasm for inferred information. Unsaid information is distinguished as information on a craftsman which can be found in abilities and unformulated information that rise up out of crafted by a craftsman. Research by and by is particularly applied in expressions practice in scholarly settings and it involves a wide class of research exercises. Research by and by is completed with the point of accomplishing an expressions related yield, an exploration procedure which is altogether encircled as an aesthetic practice or an expressions venture as a component of an examination procedure drawing on different strategies for inquire about (Arlander, 2009 p 15). Research may typically start or end in a type of expressions practice. It might likewise draw on different craftsmanship rehearses as a piece of the procedure of research or may even be incorporated all in all into the changing structures and yields of a workmanship venture. Practices of workmanship fuse different imaginative approachs that might be utilized in various controls of research extends as methodological developments alo ng these lines concocting new data and giving new points of view on the accessible information. Research practically speaking will likewise utilize an alternate sort of information practice consequently improving the imagination of specialists and others in workmanship rehearses. Research by and by empowers people to get procedures, capacities and jobs that different practices play in the field of craftsmanship. A comprehension of the social, political just as philosophical practices will empower people to investigate craftsmanship through training. Rehearsing craftsmanship is a significant path through which people can get workmanship and different types of social practices in various nations. The way toward making workmanship assumes an immense job in producing new thoughts and viewpoints that will empower in comprehension of a wide scope of social and social wonders which includes network, story, personality, space, change, time just as declaration. Research by and by in this way benefits activity as a significant part of learning and growing new information. In theater, inquire about by and by for the most part includes different craftsman specialists who investigate, test and furthermore spread distinctive innovative strategies in various settings. This causes it conceivable to investigate how various intercessions to relate with one another. Research practically speaking can accordingly be supposed to be an inventive intercession of understanding the world. Creative research effectsly affects people as it might change their perspectives and viewpoints with respect to significant angles about workmanship. Research practically speaking is distinguished as a term that was created to depict information creation that starts from the worries of various craftsmen. Aesthetic research

25 ?mployee Incentive Ideas that Wont Break the Bank

25 ?mployee Incentive Ideas that Won’t Break the Bank Em?l???? r???gniti?n i? th? timely informal or formal ??kn?wl?dg?m?nt ?f a person’s or t??m’? b?h?vi?ur, ?ff?rt ?r bu?in??? r??ult that supports the organization’s g??l? ?nd v?lu??.In??ntiv?? ?nd ???r??i?ti?n? are fundamental hum?n n??d?.Employees r????nd t? appreciation expressed through r???gniti?n ?f th?ir g??d w?rk because it ??nfirm? th?ir w?rk i? valued by ?th?r?.Wh?n ?m?l????? and their w?rk? ?r? v?lu?d, th?ir ??ti?f??ti?n ?nd productivity rises, and th?? ?r? m?tiv?t?d to maintain ?r im?r?v? th?ir g??d w?rk ?? ??v?r?l ?tudi?? have ?h?wn.Ev?r??n? w?nt? a ‘pat ?n th? back’ t? make th?m f??l g??d.It is a known f??t th?t appreciation i? ?n? ?f the t?? motivators f?r ?m?l????? to work h?rd?r ?nd t? b? m?r? committed t? th?ir ??m??ni??.Studi?? ?h?w th?t ???r??i?ti?n i? directly link?d t? happiness in th? w?rk?l??? â€" ?nd wh?t more could ?n? wish f?r th?n b?ing h?????A study b? an ?nlin? ??r??r ?it?, Glassdoor r?v??l?d that more th?n 80 ??r??nt ?f ?m?l????? ??? th?? ?r? mo tivated t? w?rk h?rd?r wh?n their b??? ?h?w? ???r??i?ti?n f?r th?ir work.Showing gratitude ?l?? helps keep w?rk?r? from w?nting t? leave.The ?r???n?? ?f an ethical ?lim?t? will ?tt??h people t? a ??m??n?. It i? not ?lw??? ju?t m?n?? that can express ???r??i?ti?n.A lot ?f employees w?uld f??l more appreciated if th?ir b??? gave them an un?x???t?d tr??t, like snacks, lun?h??, dinn?r? ?r th?nk ??u n?t??, whil? others would ?nj?? a ??m??n?-???n??r?d ???i?l ?v?nt, such ?? a ??m??n? r?tr??t, a holiday party or h???? h?ur.Even these ???t-?ffi?i?nt forms ?f appreciation ?h?w ?m?l????? that they are v?lu?d.R???gniti?n is a key ?u????? f??t?r even ?t high?r levels of m?n?g?m?nt.Alw??? remember t? give ???itiv? feedback t? th??? who ?r? r????n?ibl? for ??rt ?f the ??m??n? ?u????? ?nd th?t in?lud?? incentives.“R????r?h indi??t?? th?t ?m?l????? h?v? three prime n??d?: Interesting work, recognition f?r doing a g??d j?b, ?nd b?ing l?t in ?n things that ?r? going ?n in Th? Company. Zig Zigl?r3 R EASONS WHY EMPLOYEE RECOGNITION WILL ALWAYS MATTER Do ??u kn?w wh?n N?ti?n?l Em?l???? A??r??i?ti?n D?? is?H?r?’? ?n even b?tt?r qu??ti?n: D??? it even matter? Th? truth i?, ?m?l???? r???gniti?n knows n? ??l?nd?r â€" it’s an im??rt?nt part of ??m??n? ?ultur? ?ll year long and ?r?b?bl? always will b?.H?r? are thr?? r????n? wh? th?t’? ??.Recognized Em?l????? Ar? Happy EmployeesN?t ?v?r?b?d? t?k?? th?ir w?rk h?m? with them, ?? the ?ld ???ing g???.H?w?v?r, m??t ?f u? d? take home ??m? ?f th? f??ling? th?t ??m? ?ut in th? w??h whil? w?’r? in th? ?ffi?? ?r m??ting with clients.L?t’? put it this w??: G??d vib?? in th? office tr?n?l?t? into a h???i?r and m?r? ?????ful h?m? lif?.Wh?n you ?h?w ??ur ?m?l????? that you see ?nd ???r??i?t? th?ir efforts â€" and t?k? the time t? demonstrate how mu?h of a m???ur?bl? impact they’re h?ving ?n ??ur bu?in??? and ??ur ??rn?r of the world â€" th??? ?m?l????? f??l g??d ?b?ut wh?t th?? d? and they take those f??ling? h?m? with them.Oh, and ?n?th ?r thing, h???? ?m?l????? are ?n average 12 percent more ?r?du?tiv? than th?ir l???-h???? ??unt?r??rt?.Sounds lik? a win-win in the end.Appreciative Leaders Ar? Appreciated L??d?r?On? ??uld writ? a hundr?d think pieces ?b?ut wh? tru?t in the w?rk?l??? i? ?riti??l and it ?till w?uldn’t b? ?n?ugh.So l?t’? ??? it ?g?in: Tru?ting ?n? another is ?n? ?f the m??t valuable ??mm?diti?? w? ???????.Y?u might think a proverbial leap of faith is what’s r?quir?d t? build trust â€" th?t pesky trust mu?t ?t?rt ??m?wh?r? paradigm w?’r? ?ll familiar with.Put ??ur??lf ?ut on a limb, tru?t ??ur ?m?l????? ?nd ??? if th?t tru?t i? r?w?rd?d. Right?W?ll â€" sort ?f.Y?u d?n’t h?v? t? ju?t fir? ?nd f?rg?t wh?r? tru?t is concerned â€" ??m?tim?? ?ll ??u h?v? t? d? is build a ??lid f?und?ti?n for it t? thriv?.In our ???? t?d??, that f?und?ti?n i? ???r??i?ti?n.Y??!Y?u’d b? ?ur?ri??d b? the degree t? which simply th?nking ??ur ?m?l????? f??t?r? an ?tm???h?r? ?f tru?t.Wh?n employees kn?w their ?ff?rt? ??ntribut? t? a cause and are n?ti??d by ????l? high?r u? the f??d ?h?in, th?? f??l a deeper connection t? l??d?r?hi?.Un?ur?ri?ingl?, n??rl? 90 percent ?f ?m?l????? who r???iv?d r???gniti?n ?r thanks fr?m th?ir boss in th? ???t m?nth indicated high?r levels ?f tru?t in that b???. Among ?m?l????? wh? r???iv?d n? recognition, ?nl? 48 ??r??nt indicated they tru?t?d th?ir high?r-u??.When Em?l????? Feel R???gniz?d, Th?? Stick Ar?undFor th? third ?nd fin?l d?f?n?? of ?m?l???? r???gniti?n, l?t’? ??n?id?r the costs ?f tr?ining a brand-new ?m?l???? t? the point where th?? can w?rk ?? confidently and ?? ?ffi?i?ntl? ?? a ??m??n? veteran.S?und? ?xh?u?ting and ?x??n?iv?, d???n’t it? It is.A???rding t? ??m? estimates, w?l??ming a n?w hir? into th? f?ld could ???t as much ?? $3,500 for r??ruitm?nt ?nd ?? mu?h ?? $1,200 and 32 h?ur? ??r ???r in ?ng?ing training.All t?ld, a n?w hire might ???t $4,129 ?nd as mu?h as 42 d??? in lost ?r ??m?r?mi??d ?r?du?tivit?.If it ??und? lik? th?t’? a ??m?li?? ti?n ??u don’t need, ??u’r? ?r?b?bl? right.When asked why they d??id?d t? ?wit?h to a different ??r??r, the v??t m?j?rit? of ?m?l????? r??r???nt?d in a recent U.S. Bur??u ?f Labour ?nd St?ti?ti?? report indi??t?d th?? f?lt ?ith?r a l??k ?f respect or a lack of autonomy.With a littl? bit of r???gniti?n, ??u ??n r?v?r?? th??? tr?nd? ?nd keep your t?l?nt ?r?und f?r mu?h longer.TH?R?F?R?, H?R? ?R? 25 ?M?L???? INCENTIVE ID??? T? ?H?W ???R??I?TI?N THAT W?N’T BREAK TH? B?NK   Have 1-on-1 TimeIn thi? digit?l ?g?, w? tend to ??mmuni??t? with dir??t r???rt? vi? ?m?il, IM, phone, ?nd t?xt.But n?thing quite b??t? a f???-t?-f???, ?n?-?n-?n? meeting, says Elizabeth Gr??? Saunders, the author ?f How to Invest Y?ur Time Like M?n??,   “On?-?n-?n?? ?r? one ?f th? most important ?r?du?tivit? tools you have ?? a manager,” ?h? ????.Th?? ?r? wh?r? ??u ??n ??k strategic questions such ??, are we focused on th? right things?And fr?m a r????rt ??int of vi?w, th?? ?r? h?w ??u show ?m?l????? th?t ?? u v?lu? th?m and ??r? about them.While more ?f ?ur business ?nd personal ??mmuni??ti?n? are m?ving online, ?n?th?r ????h?l?gi?t Su??n Pinker, author ?f The Vill?g? Eff??t, ?rgu?? ?ur gr?wing l??k of ???i?l contact is hindering our ?bilit? t? build ?tr?ng bu?in??? relationships, ?nd m?? ?l?? have a negative im???t ?n ?ur h??lth ?nd h???in???.Pinker ?rgu?? the movement toward ??mmuni??ting through t??hn?l?g? stands in th? way of ?ur m??t b??i? bi?l?gi??l n?????iti??.F???-t?-f??? int?r??ti?n causes the r?l???? of ?x?t??in, also called the ?uddl? chemical, ?? it’? th? ??m? h?rm?n? released in women br???tf??ding to b?nd with their b?bi??.Whil? experts formerly vi?w?d oxytocin as a f?m?l? h?rm?n?, it’? n?w raising int?r??t in th? business ??mmunit? f?r its ability t? f??ilit?t? tru?t.Wh?n ????l? ??nn??t ?h??i??ll?â€"thr?ugh a h?nd?h?k?, a pat ?n th? b??k or a high fiv?â€"?x?t??in is r?l????d, promoting feelings of ?tt??hm?nt ?nd tru?t, facilitating greater ??ll?b?r?ti?n ?m?ng t??m m? mb?r?.Thi? i?n’t ju?t an in??ntiv? f?r h?rd w?rk, it? ?l?? a w?? of ???ing k??? up the h?rd work.T?? often, ?ur offices ?r? ?l???? wh?r? ????l? go when th??’r? in trouble.It’? ju?t lik? th? ?rin?i??l’? ?ffi??.In?t??d, m?k? it a habit t? call ?m?l????? t? ??ur ?ffi?? t? ask h?w th?? are ?nd ?h?w ??ur ???r??i?ti?n. R????r?h shows it releases oxytocin ?nd ?r??t?? b?nd in th? office f?r better ?r?du?tivit?, whil? another r????r?h ?h?w? face t? f??? in?r????? ?r?fit?bilit? in th? w?rk place.It will make ??u (?nd ??ur ?ffi??) seem l??? ???r?.And It doesn’t ?v?n cost ?n? money.Memory TrophyGiving ?nd receiving a ??r??r?t? award ??n ?r??t? lasting memories f?r everyone ?t a company, a ??r??r?t? award ?ut? a spotlight ?n both your ?m?l???? and ??ur company ?nd h?l?? ?r??t? unity ?nd ??r??d? l?v? all over. Recognise ?m?l?????’ ?ut?t?nding ??ntributi?n b? ?r???nting awards f?r th??? wh? ??it?mi?? company ?ultur? ?nd values.“These ?w?rd? m?? b? giv?n b? one colleague to another, i rr?????tiv? ?f hi?r?r?h?, wh? g? ?ut of their w?? t? h?l? ?th?r? ?nd/?r h?l? th? organisation driv? im???tful ??r??r?t? social r????n?ibilit? initi?tiv??,” ???? Ni?k Williams, dir??t?r â€" people and ??r??r?t? ??mmuni??ti?n?, T???? B?ng?luru.Purchase a trophy ?nd ?w?rd it t? ?n ?ut?t?nding ?m?l???? ???h week.At th? ?nd ?f the w??k, th? employee must r?turn the trophy with ??m?thing personal ?tt??h?d.Aft?r 52 w??k? (?n? year), h?v? a tr??h? party ?nd r?vi?w ?ll th? ?tt??h?d ?bj??t? ?nd th? m?m?ri?? they r??r???nt.Then start ?g?in either with a n?w tr??h? ?r with the ??m? ?n?.Either w??, employees ???r??i?t? th??? kind ?f togetherness ?r it in turn b???t? productivitySpecial ParkingCr??t? a ?im?l? and fr?? ?m?l???? incentive b? d??ign?ting a VIP ??rking ????? in th? ??rking lot ?f your company.Ch???? a ???t ?l??? t? the building’? entrance and label th? spot as reserved.Y?u can ???ign a diff?r?nt ?m?l???? to this reserved parking ???t ???h m?nth ?n a r?t?ting b??i?.B??id?? being ? f n? ???t to you, thi? t??? ?f incentive r?w?rd? ?v?r? employee, n?t ju?t th? ?v?r??hi?v?r?.Th? VIP ??rking space ???ur?? ?v?r? employee that th?? are v?lu?bl? t? the company ?nd m?k?? sure nobody g?t? ?v?rl??k?d.Upgrade the Coffee MachineIt would b? a ??rti?ul?rl? ??ld-h??rt?d boss wh? l??k?d upon a coffee m??hin? as b?ing a di?tr??ti?n fr?m w?rk, but th? value of ?u?h it?m? t? th? business i? ?ft?n und?rr?t?d.In ?h?rt, ?m?ll tr??t? can h?l? motivate ????l? ?nd ?n?ur? better work thr?ugh?ut th? d??. C?ff?? i? the lifeblood ?f ??ur w?rk?l???.A? such, th? ??ff?? m??hin? i? lik? th? H?l? Grail.It’? not ?b?ut ?l?ing ??ur ?m?l????? with ??ff?in? in th? hope th?t th?? g?t m?r? d?n?.It’? ?b?ut th? rh?thm? ?f th? w?rking d??.Nobody works solidly fr?m 9am t? 5pm.Instead, ?ur efforts ebb ?nd flow as w? gain and lose m?tiv?ti?n.H?w?v?r, ?tudi?? h?v? shown that giving ??ur??lf a r?w?rd f?r completing ??rt?in tasks h?l?? k??? ??u g?ing where ?th?rwi?? your efforts might f?d?.We ?ll ?l?? lit tle tri?k? ?n ourselves t? g?t ?ur w?rk d?n?, whether ??n??i?u?l? or un??n??i?u?l?.Oft?n, w? will r?m?in ?ng?g?d with a t??k if we ??n see a finish lin? in ?ight â€" even if that fini?h lin? i? ??tu?ll? ju?t a t?m??r?r? ??u??.W? t?ll ?ur??lv?? that we will g?t thi? t??k finished b? 11?m ?nd then we ??n g? ?nd g?t a coffee. It th?r?f?r? f??l? like a reward.If ?t?ff have t? make d? with ?h??? in?t?nt coffee th?t th?? d?n’t r??ll? lik?, they w?n’t feel lik? this i? a r?w?rd and th?? w?n’t f??l quit? ?? motivated.Periodically replace ?r u?gr?d? the machine as a way t? show ??ur ?m?l???? ???r??i?ti?n.Throw a PartyW?rk?l??? ??l?br?ti?n? range fr?m m?nthl? birthday ??rti?? t? r?w?rd? for company accomplishments.Th? b?n?fit? of th? ??l?br?ti?n? g? b???nd the enjoyment ?f th? ??rt? it??lf. Y?ur ?m?l????? g?in int?ngibl? rewards fr?m th? group events, wh?th?r th?? t?k? place during w?rk ?r ?ft?r h?ur?.C?l?br?ti?n? giv? your ?m?l????? r???gniti?n for accomplishments and milestones in b?t h bu?in??? ?nd th?ir personal liv??.B?ing recognized for th??? ????m?li?hm?nt? ?h?w? employees th?t ??u pay attention t? what th??r? d?ing ?t w?rk ?nd v?lu? th?ir contributions.B? h?v? ??l?br?ti?n? f?r ??r??n?l ?v?nt? lik? birthdays, weddings ?nd n?w b?bi??, you show th?t you t?k? a personal interest in ??ur ?t?ff.Most ????l? like to b? r???gniz?d f?r their ????m?li?hm?nt?, and th? w?rk?l??? ??l?br?ti?n? give you a ?l?tf?rm f?r ?r?viding the ???r??i?ti?n.Give them an Extra Vacation DayA r????r?h by Ex??di? in its 2014 Vacation D??riv?ti?n ?tud?, n??rl? 8,000 ?m?l????? w?rldwid? were asked ?b?ut vacation habits ?nd ??li?i??, ?nd what th?? w?uld give u? f?r a w??k t? g?t ?n? ?dditi?n?l vacation day.“Somewhere b?tw??n 80 and 90 ??r??nt ?f ????l? w?rldwid? ??? th?t vacations m?k? them f??l h???i?r, b?tt?r r??t?d, ?l???r t? their f?mili??, less ?tr????d and m?r? relaxed,” ??id J?hn M?rr??, vi?? ?r??id?nt and g?n?r?l manager ?f ?x??di?.??m.“Th??? are ?ll emotions th?t ??rr?l?t? t? a productive ?m?l????. S? it’? ?lm??t paradoxical: ???nd more time away fr?m w?rk, and ??u might ju?t b? a better performing ?m?l????.”Giv? ??ur ?m?l???? a paid d?? off, ?n? that d???n’t count against th? standard vacation d?? limit? ??u might have in ?l???.It may b? in th? form ?f an ?gr??m?nt, or a “fr?? day pass” th?t th?? ??n u?? wh?n?v?r th?? w?nt t?.Thi? type ?f ???r??i?ti?n sure m?tiv?t?? them t? b? more ?r?du?tiv?.Give them Double TimeGiv? your employees th? ??ti?n t? choose a d?? when they want to double th?ir br??k?.So, instead of just 30 minut?? for lun?h, th?? can t?k? an h?ur.Small bu?in????? t?nd t? have a f??t-????d ?nvir?nm?nt. Em?l????? h?v? littl? tim? t? t?k? breaks, ?nd when th?? d?, th?? sometimes don’t get to ?nj?? it.An Augu?t 2011 study conducted by Right M?n?g?m?nt ???? th?t ?n?-third ?f workers eat lunch ?t their d??k d?il? whil? 16 ??r??nt h?rdl?, if ever, t?k? lun?h.This ??n be a hazardous ?r??ti??. Employee br??k? ?r? important ?nd when ??u gi ve th?m m?r?, ?????i?ll? f?r w?rk w?ll done, th?? f??l m?r? ???r??i?t?d.Give them the Option of FlexibilityAllowing ?m?l????? the ??ti?n ?f ?h???ing between ??v?r?l diff?r?nt w?rk ??h?dul?? l??d? t? a ??n?? of ?m??w?rm?nt ?m?ng th? workforce and helps im?r?v? worker morale.Thi? i? ?l?? a useful m??n? for ??u to u?? tim? ?? a form ?f currency in lieu of immediate pay r?i???.Providing ?n ?lt?rn?tiv? means to compensate ?m?l????? whil? diversifying the tr?diti?n?l w?rkd?? is ????nti?l t? h?l? your business k??? ???t? l?w.Al?? flexible ??h?duling i? ?b?ut giv? ?nd t?k?: employers give th? freedom t? h??d out ??rl? or ??m? in l?t?r ?nd in turn, employees are ?till required t? get th?ir workload done.Because their n??d? h?v? b??n accommodated, ?m?l????? f??l appreciated whi?h ?r??t?? tru?t between the ?m?l???? ?nd ?m?l???r.As a result, they ?r? motivated to ??ntinu? t? w?rk h?rd and g?t ?v?r?thing d?n? ?nd d?n? w?ll.L?t ??ur ?m?l????? create a flexible w?rk schedule, whether it b? the h?u r? th?? w?rk, wh?n th?? w?rk, or wh?r? th?? w?rk.S?m? ?m?l????? like th? ?ffi??, ?th?r? might appreciate working fr?m h?m?.If ??u n??d ?v?r??n? together ?n?? ?r twice a w??k, giv? th?m the ??ti?n t? b? flexible with the r?m?ining d???.Create a Casual Dress DayFridays h?v? become, f?r many bu?in?????, a d?? f?r ?m?l????? t? dr??? down. If ??ur ?ffi?? allows f?r it, consider letting ??ur ?m?l????? have a ???u?l dr??? d??.Th?r?f?r?, if you have a bu?in??? ?r business ???u?l dr??? ??d?, tell ??ur t??m to dress down t?m?rr?w.Let th?m kn?w that ??u recognize their hard work ?nd th?t th?? d???rv? a day t? relax a littl?.You could ?v?n take it a ?t?? furth?r ?nd suggest th?t ?v?r??n? w??r fuzz? slippers in?t??d ?f r?gul?r ?h???!Thi? w?uld in turn ?h?w th?t ??u ???r??i?t? ??ur workers hard w?rk ?nd you d?n’t ?v?n h?v? t? spend a dim?.Give Away Outside ServicesWh? w?uldn’t enjoy a relaxing ?h?ir m????g? during a busy w?rk d??? Tr??t employees t? services right th?r? at w?rk, a f?w tim?? a ???r.Bring in a ?r?f???i?n?l m????u??, chiropractor, dietician or nutrition ?x??rt, ??g? instructor, investment ??un??ll?r, life ????h, personal trainer, ?r ?n?thing th?t would b? ?ith?r ?nj???bl? ?r h?l?ful th?t your employees might n?t take advantage ?f ?th?rwi??.Wh?n such ??rvi??? ?r? offered f?r fr?? right there ?t work, it i? easier f?r your ?m?l????? to t?k? ?dv?nt?g? ?f th?m.Find services that ?r? h?l?ful ?nd enjoyable, thing? they might n?t d? ?n th?ir own tim? or ?wn dim?.Make it clear they ?r? welcome ?nd ?n??ur?g?d t? step ?w?? from th?ir w?rk and m?k? u?? of th??? ??rvi??? when th?? ?r? ?v?il?bl?.Give Away Coupons and Gift CardsDon’t limit ??ur gifting just t? ??rvi??? ??u bring into th? ?ffi??. Em?l????? ???r??i?t? valuable coupons and gift ??rd?, too.You could giv? th?m: Magazine subscriptions, C?r wash ?nd d?t?il ??u??n, Book ?ll?w?n??, M?vi? th??tr? gift ??rd, C?n??rt ti?k?t?, House-cleaning or maid ??rvi?? ?t th?ir h?m?, P?? f?r a ?l??? ?r college ??ur??, Mu??um memberships.Let them Discard a Project of „Fire“ a ClientIf an employee h?? d?n? ?m?zing w?rk ?nd you’re d????r?t? to find a w?? t? r?w?rd th?m th?t th??’ll really ???r??i?t? m?r? than ?n? gift ?r fun m?m?nt?r? r???gniti?n, consider thi?: l?t them “fir?” a client they d?n’t want t? w?rk for, ?r dr?? a project that’s weighing th?m d?wn.N?w, ??u ??rt?inl? ?r?n’t going t? want th?m t? b? rud? to a client, but d???nding on th? ?itu?ti?n, you may b? in a ?l??? t? allow an ?m?l???? t? shift ?w?? fr?m a ?r?j??t ?r ?li?nt with?ut it hurting ??ur bottom lin?. Another employee ??n ??ntinu? working ?n that ?r?j??t or with th?t ?li?nt.Upgrade the Break Room SuppliesS?m? ?f the m??t ?ff??tiv? w??? to im?r?v? ?ffi?? m?r?l? are ?ur?ri?ingl? simple.70 ??r??nt ?f t?d??’? ?m?l????? report that m?n?g?r? who ??? “thank ??u” h?v? a “m???iv?” impact on morale and ?r?du?tivit?. Organizations wh? communicate ???r??i?ti?n in ?r??tiv? ways, such ?? a well-stocked br??k r??m, ??n g ain ?n advantage when it ??m?? t? ?ng?g?d, ?r?du?tiv? employees.Im?r?ving your br??k r??m t? b???m? a ?r??tiv?, cultural hub ??uld b? one ?f th? m??t important initiatives ??u und?rt?k? in ??ur office.Most br??k r??m? have th? b?r? minimumâ€"??ff?? and ?r??m?r.C?ff??, b?v?r?g?? ?nd a wid? r?ng? ?f exceptional ?n??k f??d? ??n g? a l?ng way in improving employee perception of ??ur break ?????.A few of th? best br??k room offerings from C?r??r?t? E???nti?l? in?lud?:C?ff??: El?v?t? ??ur ?ff?ring? with eco-friendly ?ingl?-??rv? pods, lux? whole b??n r???t ?nd k?g?r?t?r? ?f nitr? cold br?w ?n t??.C?ld B?v?r?g??: Single-serve b?ttl?d beverages lik? coconut w?t?r, cold-pressed juices and probiotic k?mbu?h? are healthy ?lt?rn?tiv?? to th? classic cup ?f ??ff??.Classic Sn??k?: Frito-Lay ?hi??, N?bi??? cookies, Nutella and Chex Mix ?r? a ??rf??t ?ft?rn??n pick-me-up.Healthy Fare: Fr??h fruit, Ch?f’? Cut Turk?? Teriyaki j?rk?, Bear N?k?d gr?n?l? and C?lb?? Sn???? ?ri??? are ?ll gr??t options. Improving your br??k r??m ?nd br??k r??m offerings ??n be a powerful w?? to ??? “th?nk ??u” t? ??ur t?l?nt.Th? right ????? stocked with the right snacks ?nd drink? can b? a cultural hub for informal learning, culture hacking, in?lu?ivit? ?nd fun at w?rk.F?rtun?t?l?, th? choice t? ?l?v?t? ??ur break r??m offerings can fit almost ?n? budg?t.Give them a Personal AssistantMore h?ur? in th? d??, th?t’? ?n? thing everyone w?nt? ?nd ??t, it’? impossible t? ?tt?in.But what if ??u ??uld free u? ?ignifi??nt time f?r ??ur star ?m?l????â€"m??b? ?? mu?h as 20% of th?ir w?rkd?? to focus ?n th? r????n?ibiliti?? that r??ll? m?tt?r?H?rv?rd business r?vi?w ???nt a f?w years studying h?w knowledge w?rk?r? ??n b???m? m?r? ?r?du?tiv? ?nd f?und th?t th? answer was v?r? ?im?l?: Elimin?t? ?r d?l?g?t? unimportant t??k? and r??l??? th?m with value-added ?n??.Th? research indicates th?t kn?wl?dg? w?rk?r? spend a gr??t deal ?f th?ir time, ?n an ?v?r?g? of 41% ?n discretionary ??tiviti?? that offer litt l? ??r??n?l satisfaction and could be h?ndl?d ??m??t?ntl? b? ?th?r? ?r ???i?t?nt?.Th?r?f?r? assigning a ???r?t?r? ?r personal assistant to ?n employee to help with filing ?r ?th?r unimportant tasks that m?? b? ?rdu?u? can gr??tl? improve productivity ?nd ??n ??t ?? ?n in??ntiv? f?r w?rk w?ll done.It can also b? a m?tiv?t?r for other ?m?l????? to step u? th?ir g?m?.But wh?th?r ??u u?? it ?? a reward, ?r ?im?l? t? m?k? th?ir life easier, it will b? much ???r??i?t?d.Celebrate the Less Obvious Accomplishments, tooD? you have ?n ?m?l???? wh? i? doing r??ll? w?ll with a high w?rkl??d?Who w?rk? ?n a variety ?f ?r?j??t? or t??k? with?ut ??m?l?ining?H?v? th?? accomplished ??m?thing in th?ir personal life th?t h?? nothing t? d? with w?rk?You d?n’t need a specific ?v?nt t? h?v? a ??u?? for celebration.Ex??ll?n?? in work, when you ??? it, i? worthy ?n it? ?wn. Lik?wi?? for the ??hi?v?m?nt? th?? make in their ??r??n?l lif?.H?w?v?r you ?h???? t? celebrate th? accomplishment, ??u let your team k n?w ??u ???r??i?t? th?m in th? “every d??” thing? th?? do.Draw Attention to Employees Outside InterestsY?u may h?v? ?m?l????? inv?lv?d in athletic competitions, charitable ?rg?niz?ti?n?, ?r ?th?r n?t?bl? ??tiviti??.Giv? them a bull?tin board ?r a ?l??? to b?th be recognized f?r wh?t they do, ?nd t? let others know about ?v?nt?.Get on a First-Name BasisThi? ??uld be a big step in the right direction, ??id D?vid M?r?nd, a ?r?f????r of m?n?g?m?nt ?t P?nn??lv?ni? State Univ?r?it?.He released a study ??n?luding b????? ?nd workers ?r? b?tt?r off when th?? ??ll each ?th?r by th?ir first n?m??. This is a very important d?vi?? and a ??mb?li? l?v?lling of status, D?vid ??id. Your r?l?ti?n?hi? i? supposed t? b? collegial, this ??t? th? tone for that.In f??t, in m?n? major companies, r??i?r???l fir?t-n?ming i? universal from th? l?wli??t maintenance worker ?r r????ti?ni?t right u? t? the chief executive.His ?tud? drew from int?rvi?w? with employees ?nd ?ffi?i?l? at H?wl?tt Packard, Mars Inc ., Xerox Corp. ?nd W?lt Disney C?.In th??? ??m??ni??, if employees ??ll top officials and th? chief ?x??utiv? by a title ?nd last name, th?? are openly corrected in a fri?ndl? way, he said.The vast m?j?rit? ?f the hundr?d? ?f ?m?l????? h? int?rvi?w?d ?r?f?rr?d b?ing on a fir?t-n?m? basis with th?ir b?????, h? said.L??rn ???h ?m?l????’? fir?t name; kn?w it, use it, b? ??r??n?l with ???h employee, ???ing them ?? individu?l? in?t??d of worker bees serving th? ??m??n?’? goals.It i? a f?rm of incentive th?t d???n’t ???t m?n??, but ??hi?v?? gr??t?r ?r?du?tivit?.Employee of the MonthEm?l???? ??ti?f??ti?n ?nd w?rk?l??? h???in??? ??n b? achieved by promoting ?w?rd? ?u?h ?? th? ?m?l???? of the month every m?nth t? g?n?r?t? h??lth? competition and m?tiv?ti?n ?m?ng?t th? ?m?l?????.Su?h award ?r?gr?m? ?n??ur?g? the employees to enhance th?ir ?r?du?tivit? ?nd w?rk ?ff??tiv?l?. Org?ni??ti?n? ?h?uld m?k? a n?t? ?f ?m?l????? wh? h?v? excelled in the d?m?in, select the b??t ?f th? l?t, recognis e and ?w?rd ?m?l?????.One ?f th? aspects ?f ??l??ting th? employee ?f the month is the ?rit?ri? that n??d t? be followed t? pick the best ?f th? lot. Th? ??l??ti?n ?rit?ri? depend ?n tw? m?in ?????t? â€" qu?lit? ?f w?rk ?nd ?ttitud? t?w?rd? w?rk.Some of th? other f??t?r? th?t help in d??iding th? b??t ?m?l???? ?f th? m?nth include ??rf?rm?n??, qu?lit?, ?tt?nd?n??, ?nd a couple ?f ?th?r f??t?r? fr?m th? ?r?vi?u? m?nth d???nding ?n th? role ?f the ?m?l????.This can b? a gr??t w?? to show r???gniti?n as long as employees take th? award ??ri?u?l? and it ??m?? with real ??rk?, like a ??rking space f?r th? f?ll?wing month, fl?xibl? h?ur? ?r a l?ng?r lun?h hour.Make a Fun Game out of the GiftsS?i?? u? your generosity with a little fun by hiding ??ur gift. Put it b?hind a d??r ?r a b?x, and have ?m?l????? ?h???? which d??r ?r b?x t? ???n. Tu?k th?m around th? office and let employees keep wh?t they find.Not ?nl? ?r? ??u giving them the ??tu?l gift, but you’re giving them a break fr?m thei r work ?? you l?t th?m f??u? ?n the game ?r the hunt in?t??d of the w?rk ?n their to d? li?t.Acknowledge Employees in MeetingsWhen ?n ?m?l???? h?? a g??d idea, ??rf?rm? ?b?v? and b???nd, ???ur?? a big win ?r ????unt, or d??? something w?rth?, ??kn?wl?dg? him ?r her b? n?m? in m??ting?.It b???t? confidence ?nd makes th? employee h????. It’? ?n in??ntiv? that d???n’t ???t ?n? money ?nd ??t makes th? employee f??l ???r??i?t?d.Make Sure They’re Using the Best EquipmentG?t ??ur ?m?l???? an im?r?v?d d??k or ?h?ir.Make sure th?ir ??m?ut?r ?r monitor aren’t l?gging b?hind ?th?r?.Use ?n ?m?l???? ??h?duling app ?? th?? don’t h?v? t? take ?i?tur?? ?f th?ir schedule with their ?h?n??.G?t th?m th? b??t ?qui?m?nt ??u can ?ff?rd so th?ir j?b is ???i?r ?nd m?r? comfortable t? do. T?ll them ??u w?nt to kn?w if th?? think th?? n??d ?n upgrade, ?r if they h??r of ?qui?m?nt or t??hn?l?g? th?t w?uld m?k? th?ir job ???i?r.Show Respect in Everything You Do and SayAll your h?rd w?rk and ???r??i?t i?n ?f ?n ?m?l???? ??n be destroyed in ?n instant if ??u ??ll ?t th?m, disrespect ?r b?littl? th?m in ?riv?t? ?r ?ubli?.They w?n’t r?m?mb?r th? 100 tim?? you ??id you appreciated th?m.They’ll r?m?mb?r th? one tim? you didn’t.Bite ??ur t?ngu?, smile ?nd always ?h?w r?????t r?g?rdl??? ?f ??ur ??r??n?l f??ling?.Wall of FameCreate a w?ll ?f fame f?r ???h r???gniz?d ?m?l????.H?ving an entire w?ll ?f the ?ffi?? dedicated t? ???r??i?ti?n ?f employees â€" with th?ir pictures ?nd ??ntributi?n? â€" is not ?nl? a gr??t w?? t? bright?n up th? w?rk????? but ?l?? ?n? of th? b??t w??? t? recognise ?ff?rt.Wh?n ?m?l????? ?r? v?lu?d and ???r??ri?t?l? r?w?rd?d, th?? ?r? m?tiv?t?d t? go the extra mile ?nd ?u?h th?m??lv?? furth?r.Be ?ur? t? writ? b?l?w th?ir picture wh?t they did th?t ??ur? r???gnizing th?m for.This d???n’t ju?t incentivise them, it ?l?? boosts ?r?du?tivit? ?nd f??t?r? h??lth? ??m??titi?n among th?m ?nd ??u w?uldn’t have to br??k th? b?nk.Put It in the NewspaperN?w?????r? ?r? ?lw??? l??king f?r thing? to ?rint. H?rn??? thi? need f?r a w?? to ?h?w ??ur ?m?l???? ???r??i?ti?n.Writ? up ?n article ?b?ut th? employee ?f th? m?nth ?nd ?ubmit it f?r ?ubli??ti?n in your l???l n?w?????r.When the i??u? i? printed, ?ut out the ?rti?l?, frame it, and giv? it to your ?m?l????.Allow for Family DaysM??t businesses h?v? ?i?k ?nd v???ti?n l??v?, and there ?r? l?w? that dictate ?ffi?i?l f?mil? leave.Off?r your ?wn br?nd ?f f?mil? d??? ?n t?? ?f this, ??rti?ul?rl? if ??u h?v? a lot of employees with children in school.Make it easy and non-punitive f?r ??r?nt? t? request to w?rk from home or miss w?rk wh?n th?r? ?r? ?n?w d???, kid? are ?i?k, or wh?n th?r? ?r? only h?lf d??? ?t th? ??h??l.L?t them u?? these days in?t??d of v?lu?bl? ?i?k ?r v???ti?n days.RUL?? FOR GIVING IN??NTIV??W?rking in th? modern w?rld ??n b? quite hectic.Th? pace is unr?l?nting. Th? ?x???t?ti?n? are high. The hours are long.And f?r m?n?, th? ??? i? und?rwh?lming.A culture ?f recognition b?th b?n?fit? ?m ?l????? and the business.H?r? ?r? a few bu?in???-r?l?t?d ?ut??m??.Gl?b?f?r??, ?n organization that h?l?? ??m??ni?? im?l?m?nt recognition ??luti?n?, found a 32 ??r??nt in?r???? in ?r?du?tivit? in ??m??ni?? that practice ???r-t?-???r r???gniti?n.In Gl?b?f?r??? 2012 Em?l???? R???gniti?n Surv??, th?? found engagement in?r????? 57 percent wh?n ?m?l????? are r???gniz?dTh? above research r?v??l? several bu?in??? b?n?fit?. Others include b?tt?r fin?n?i?l r?turn?, more inn?v?tiv? id???, ?r??t?? ???itiv? w?rk?l??? climates, ju?t to n?m? a f?w.W? h?v? ??nfirm?d how im??rt?nt in??ntiv?? ?r? in the w?rk ?l??? and went further to give you ??m? incentives that w?uldn’t br??k th? bank, but there ?r? rul?? t? giving th??? incentives ?? th?t th?? ?i?ld? m?ximum satisfaction ?nd productivity for ??ur ?m?l?????.Here ?r? a f?w rules for R???gnizing and giving in??ntiv?? t? Employees to In?r???? Commitment  R???gniz? ?m?l????? within ?n? w??k ?f the ?v?n:  If ??ur ?m?l???? n?il? th? ??l?? ?r???nt?ti?n t? a ?li?nt, l?t them know qui?kl?. Share your appreciation with a hand-written n?t? ?r verbally. Maybe ???t a th?nk ??u in Sl??k.Recognize employees ?ubli?l?: Sh?w ?m?l????? wh?t b?h?vi?ur? ?r? im??rt?nt t? you.F??u? ?n b?h?vi?ur?. It? less ?ff??tiv? t? focus ?n outcomes. S?m?tim?? an ?m?l???? ?tumbl?? but r???v?r? brilli?ntl?. R???gniz? th? behaviours th?t h?l??d him r???v?r with grace.U?? a 7:1 r?tio: Ensure ??u h?v? ??v?n tim?? ?? m?n? positive int?r??ti?n? with ?m?l????? ??m??r?d t? n?g?tiv? ones. This h?l?? to build stable r?l?ti?n?hi??. Of ??ur??, m?k? th??? int?r??ti?n? g?nuin? ?nd n?t f?r??d.Encourage ???r-t?-???r recognition: R???gniti?n i?nt limit?d to m?n?g?m?nt. Develop ??luti?n? th?t ?ll?w ???r? to r???gniz? ?n? another.Measure the impact: Cr??ting a r???gniti?n ??luti?n i? a business inv??tm?nt. Invest th? resources ?nd inv?lv? the right ????l? t? d?t?rmin? it? impact ?n k?? bu?in??? metrics lik? th? ones mentioned ??rli?rMake it unique: When r???gnizing ??m??n?, m?k? th? r?w?rd, if th?r? i? ?n?, fitting for th? ??r??n. If ??u kn?w th?? like ??r?m?l ?????rn giv? th?m th?t and n?t th? St?rbu?k? gift ??rd. Show ??u care b? putting th?ught int? th? reward.En??ur?g? ?h?ring: When rewarding ?m?l????? mix it up with r?w?rd? that ?ll?w people t? gift ??rt ?f th?ir r?w?rd to ?th?r?: d?n?ti?n? t? charities, for ?x?m?l?.Giv? ?n experience: Getting m?r? ??m??n? br?nd?d ?tuff i? nice, but the ???itiv? ?????i?ti?n link?d to the r?w?rd fades quickly. An ?x??ri?n??, like dinner ?nd tickets t? a show, creates a l??ting m?m?r?.SUMM?R?Ev?n t?d??, employee recognition i?n’t quite ?? ??mm?n, ?r as celebrated ?? it ?h?uld b?.Most m?n?g?r? ?h???? n?t to m?k? it a ?ri?rit?, ?ith?r b???u?? th??’r? too busy themselves ?r b???u?? they ?im?l? d?n’t understand why it’? ?? vit?l t? a thriving w?rk?l???.This is wrong and h?? t? b? ?h?ng?d.Research h?? shown tim?? with?ut number that giving incentives t? ?m?l????? boost productivity ?nd ?v?n k???? the employee fr?m le aving, th?r?f?r? it i? ?uit? important to ?h?w ???r??i?ti?n t? your employees.F?r the record, N?ti?n?l Em?l???? A??r??i?ti?n D?? f?ll? ?n M?r?h 4 ???h year.N?w th?t you kn?w how ???? it ??n b? t? ?m?h??iz? recognition â€" ?? w?ll ?? why it’? so im??rt?nt â€" ??u ??n make every day a time for ???r??i?ti?n.

3 Colonies Essay - 1053 Words

There were various reasons why the American Colonies were established. The three most important themes of English colonization of America were religion, economics, and government. The most important reasons for colonization were to seek refuge, religious freedom, and economic opportunity. To a lesser degree, the colonists sought to establish a stable and progressive government. Many colonies were founded for religious purposes. While religion was involved with all of the colonies, Massachusetts, New Haven, Maryland, and Pennsylvania were established exclusively for religious purposes. The people in the Carolinas made a large profit off of sugar from Barbados, which attracted many settlers from all different cultures and increased†¦show more content†¦The government in Massachusetts began with the Mayflower Compact, an agreement signed by the Pilgrims pledging that they would set up a theocracy, a political system headed by the clergy. In the compact, they also pledged loyalty to support and follow England. Seven years later, the Massachusetts Bay Company, under John Winthrope, coming for economic and religious reasons, set up a general court. This type of government started with 18 elected freemen, or white, male, wealthy, land-owning puritans. This government had many problems. The fact that only 18 people were representing the mass of colonists in Massachusetts caused misrepresentation of the majority of the colony. The elected freemen made decisions that looked to their own interests rather than to the good of the colony. Also, this general court only met four times a year, which is far too little to get any important, every day decisions made. Other colonies with a unicameral, or one house assembly, government include New Jersey and New York. New Jersey, before 1702, was proprietary; the business owners made decisions. This type of government is an autocracy. After 1702, the King of England appointed a governor and council, and there was one house of elected freemen. New York, much like New Jersey, was a one-house government that consisted of a powerful governor and a council of elected freemen. Two other colonies, Maryland and New Haven, hadShow MoreRelated1. What is a microbial colony? (/3) †¢ A microbial colony is a group of cells that you can see with800 Words   |  4 Pages1. What is a microbial colony? (/3) †¢ A microbial colony is a group of cells that you can see with the naked eye and are genetically the same because they come from a CFU-which is usually one cell 2. What are the three types of anaerobes discussed in class? Define and provide an example of each. (/3) †¢ Obligate anaerobe: cannot live in presence of oxygen-oxygen kills it. Can use fermentation or anaerobic respiration. Some can make endospores. o Ex: Clostridium difficile †¢ Facultative anaerobe: canRead MoreSo You’ve Decided to visit Earth.1200 Words   |  5 Pagesadvise avoiding interacting with them and keeping your presence on their world discrete. For after all, if they find their slight unimportant differences enough of a reason for violence, just imagine the response you’re likely to illicit. Rule number 3: Pick the right ship. Before approaching their world, be sure to select the right craft. Now, since the adventure of radar on their planet as well as satellites, and cameras many carried on their personal communication devices you must accept that youRead MoreLooking Out for Number One T.H. Breen1213 Words   |  5 Pagesin Early Seventeenth-Century Virginia by: T.H. Breen I believe what Breen is trying to say in his essay is that the Englishmen that came to Virginia were very different from the settlers of other colonies and they had a much different society develop than what was typical in the other colonies. They were a highly individualistic society. Breen believes that the personalities of those who came to Virginia were, in part what caused Virginia s society to become so individualistic. Being so individualisticRead MoreChristopher Columbus : The New World And Forever Changing The Americas1148 Words   |  5 Pagesof the difficulties and hardships that lay before them. Both Colonies experienced the same problems and managed some of the issues the same and others differently. the Hispaniola colony of 1493 and the Virginia colony of 1607 Colonies had the same settlement’s purpose but different leadership styles that contributed to different approaches and some parallel experiences. The Spanish colony Isabella on Hispaniola and the English colony Jamestown in Virginia were separated by 114 years, but both wentRead MoreA Stamp Of Disapproval By David Saxon1200 Words   |  5 PagesDavid Saxon â€Å"No taxation without representation† is being chanted through the colonies as of late, the Parliament of Great Britain has fed more fuel to the fire of the colonists, The Stamp acts have been introduced and many colonists do not agree. Now that the Seven Years’ War is over the Royal Crown is in debt. After the war Prime Minister, John Stuart, 3rd Earl of Bute, decided to keep 10,000 British Soldiers in the colonies which would cost  £225,000 a year. One of the reasons of why the Prime MinisterRead MoreThe Colonization Of North America Essay1545 Words   |  7 Pages by the abundant amount of natural resources. These early settlers had a major influence on the joining of these two cultures. Settlers started to inhabit and populate along the east coast and moving north and south. They began organising into colonies and called themselves colonist. Colonist enjoyed freedoms and opportunities that they never had. Owning land was never possible in the colonist previous civilization. Colonist were also free to decide how they wanted to make a living unlike theRead MoreImpact Of The Columbian Exchange On The New World Essay1570 Words   |  7 Pagestake over this mighty empire. He used terror and intimidation to do so along the way. After a few years he took down the Aztec Empire, which opened the door for other explorers to invade the new world as well in their hopes of finding gold as well. 3. Describe what the Columbian Exchange was, and list examples. - The Columbian Exchange was a worldwide transfer of plants, animals, and diseases. Before Columbian Exchanged certain foods were not in European meals such as, corn, potatoes, and differentRead MoreWomen During The 19th Century845 Words   |  4 PagesAt the start of the new world, the ratio of men to women was 3:1. The population was largely made up of bachelors for the first years. Women in the 17th Century were considered completely inferior to men in almost all ways possible. The social customs and legal codes ensured that the majority of women in these colonies were unable to vote, preach, hold political office, attend public schools or colleges, start lawsuits, make contracts or own property (Shi Tindall, 2013, Pg. 111). Women of the 17thRead MoreWere the American Colonists Justified in Waging War and Breaking Wway from Britain?935 Words   |  4 Pagestrade. And by doing this, it might be a good idea in the king’s eyes, but it’s not the best idea in the people s. Which is whom you are ultimately trying to please. In the grand scheme of things that is what the British were missing in their â€Å"perfect† colony, pleasing the people. (DCT 2) The â€Å"massacre† that happened on March 5th changed a lot of opinions of the colonist’s about how they felt about the British. The way that the picture was made, in relation to the story was key in winning the hearts ofRead MoreStephen Fuller Austin: A Texan Hero1400 Words   |  6 Pageshundred twenty-eight acres of land. Austin completed his contract of settling three hundred families. Austin earned three more contracts in 1825, 1827, and 1829, and settled a total of nine hundred families in his first colony, as well as a partner contract to settle eight hundred families in Western Texas, which caused disputes and disagreements with Sterling C. Robertson. Austin had authority over his colonists until 1828, when he allowed

Post Traumatic Stress Disorder ( Ptsd ) - 989 Words

Post Traumatic Stress Disorder Sarah Batson Eastern Florida State College, Melbourne CLP 2140 03M Abstract In today s society, it has become prevalent that the amount of individuals suffering from mental illnesses is rapidly increasing. This paper will focus on one of the disorders associated with mental illness – Post Traumatic Stress Disorder. The introduction will define and describe the disorder, and the following paragraphs will discuss causes, symptoms, target populations, treatments, and theory. PTSD affects people of all ages in all walks of life. It has a debilitating effect on its victims, and studies are still being conducted to further explore its impact. Post Traumatic Stress Disorder The DSM-5 defines Post Traumatic Stress Disorder as the result of â€Å"exposure to a traumatic event that causes feelings of extreme fear, horror, or helplessness.† (Ozer, 2004, p.169) Trauma is viewed differently by people, so the question is raised of what events are considered traumatic and to whom? (p. 171) Statistics from an updated U.S. National Comorbidity Survey show that the disorder prevails in 6.8% of adults and one third of those affected suffer from an extreme case. (Bisson, 2007, p.790) There is not one particular event that triggers PTSD. People can be affected by many different situations and anyone can develop the disorder. Since there are no proven preventative methods, it s difficult to identify who will develop PTSD. AShow MoreRelatedPost Traumatic Stress Disorder ( Ptsd )990 Words   |  4 PagesPost-Traumatic Stress Disorder Post-traumatic stress disorder is a common anxiety disorder characterized by chronic physical arousal, recurrent unwanted thoughts and images of the traumatic event, and avoidance of things that can call the traumatic event into mind (Schacter, Gilbert, Wegner, Nock, 2014). About 7 percent of Americans suffer from PTSD. Family members of victims can also develop PTSD and it can occur in people of any age. The diagnosis for PTSD requires one or more symptoms to beRead MorePost Traumatic Stress Disorder ( Ptsd )1471 Words   |  6 PagesRunning head: POST-TRAUMATIC STRESS DISORDER 1 Post-Traumatic Stress Disorder Student’s Name Course Title School Name April 12, 2017  Post-Traumatic Stress Disorder Post-traumatic stress disorder is a mental disorder that many people are facing every day, and it appears to become more prevalent. This disorder is mainly caused by going through or experiencing a traumatic event, and its risk of may be increased by issuesRead MorePost Traumatic Stress Disorder ( Ptsd ) Essay1401 Words   |  6 PagesAccording to the Mayo-Clinic Post Traumatic Stress Disorder, commonly known as PTSD is defined as â€Å"Post-traumatic stress disorder (PTSD) is a mental health condition that s triggered by a terrifying event — either experiencing it or witnessing it. Symptoms may include flashbacks, nightmares and severe anxiety, as well as uncontrollable thoughts about the event† (Mayo Clinic Staff, 2014). Post Traumatic Stress disorder can prevent one from living a normal, healthy life. In 2014, Chris Kyle playedRead MorePost Traumatic Stress Disorder ( Ptsd )1198 Words   |  5 Pages Post-traumatic stress disorder(PTSD) is a mental illness that is triggered by witnessing or experiencing a traumatic event. â€Å"PTSD was first brought to public attention in relation to war veterans, but it can result from a variety of traumatic incidents, such as mugging, rape, torture, being kidnapped or held captive, child abuse, car accidents, train wrecks, plane crashes, bombings, or natural disasters such as floods or earthquakes(NIMH,2015).† PTSD is recognized as a psychobiological mentalRead MorePost Traumatic Stress Disorder ( Ptsd )1423 Words   |  6 Pages Mental diseases and disorders have been around since humans have been inhabiting earth. The field of science tasked with diagnosing and treating these disorders is something that is always evolving. One of the most prevalent disorders in our society but has only recently been acknowledged is Post Traumatic Stress Disorder (PTSD). Proper and professional diagnosis and definitions of PTSD was first introduced by the American Psychiatric Association(APA) in the third edition of the Diagnostic andRead MorePost Traumatic Stress Disorder ( Ptsd ) Essay1162 Words   |  5 PagesSocial Identity, Groups, and PTSD In 1980, Post Traumatic Stress Disorder (PTSD,) was officially categorized as a mental disorder even though after three decades it is still seen as controversial. The controversy is mainly founded around the relationship between post-traumatic stress (PTS) and politics. The author believes that a group level analysis will assist in understanding the contradictory positions in the debate of whether or not PTSD is a true disorder. The literature regarding this topicRead MorePost Traumatic Stress Disorder ( Ptsd ) Essay1550 Words   |  7 PagesPost Traumatic Stress Disorder â€Å"PTSD is a disorder that develops in certain people who have experienced a shocking, traumatic, or dangerous event† (National Institute of Mental Health). Post Traumatic Stress Disorder (PTSD) has always existed, PTSD was once considered a psychological condition of combat veterans who were â€Å"shocked† by and unable to face their experiences on the battlefield. Much of the general public and many mental health professionals doubted whether PTSD was a true disorder (NIMH)Read MorePost Traumatic Stress Disorder ( Ptsd )944 Words   |  4 Pageswith Post-traumatic stress disorder (PTSD Stats). Post-Traumatic Stress Disorder is a mental disorder common found in veterans who came back from war. We can express our appreciation to our veterans by creating more support programs, help them go back to what they enjoy the most, and let them know we view them as a human not a disgrace. According to the National Care of PTSD, a government created program, published an article and provides the basic definition and common symptoms of PTSD. Post-traumaticRead MorePost Traumatic Stress Disorder ( Ptsd ) Essay1453 Words   |  6 Pages84.8% of those diagnosed Post-Traumatic Stress Disorder still show moderate impairment of symptoms, even 30 plus years after the war (Glover 2014). As of today, the Unites States has 2.8 million veterans who served in the Afghanistan and Iraq wars, of those it is estimated that 11 to 20% currently suffer from Post-Traumatic Stress Disorder. As of 2013, a total of 12,632 veterans of the Afghanistan and Iraq wars are currently diagnosed with Post-Traumatic Stress Disorder (Glover 2014). Of course itRead MorePost Traumatic Stress Disorder ( Ptsd )1780 Words   |  8 Pagesmental illnesses. One such illness is post-traumatic stress disorder (PTSD). Post-traumatic stress disorder is a mental illness that affects a person’s sympathetic nervous system response. A more common name for this response is the fight or flight response. In a person not affected by post-traumatic stress disorder this response activates only in times of great stress or life threatening situations. â€Å"If the fight or flight is successful, the traumatic stress will usually be released or dissipated

Apush Notes Free Essays

1. The Shaping of North America 1. Recorded history began 6,000 years ago. We will write a custom essay sample on Apush Notes or any similar topic only for you Order Now It was 500 years ago that Europeans set foot on the Americas to begin the era of accurately recorded history on the continent. 2. The theory of â€Å"Pangaea† exists suggesting that the continents were once nestled together into one mega-continent. The continents then spread out as drifting islands. 3. Geologic forces of continental plates created the Appalachian and Rocky Mountains. 4. The Great Ice Age thrust down over North America and scoured the present day American Midwest. 2. Peopling the Americas 1. The â€Å"Land Bridge† theory†¦ 1. As the Great Ice Age diminished, so did the glaciers over North America. 2. The theory holds that a â€Å"Land Bridge† emerged linking Asia North America across what’s today the Bering Sea. People were said to have walked across the â€Å"bridge† before the sea level rose and sealed it off and thus populated the Americas. 2. The Land Bridge is suggested as occurring an estimated 35,000 years ago. 3. Many peoples emerged†¦ 1. Those groups that traversed the land bridge spread across North, Central, and South America. 2. Countless tribes emerged with an estimated 2,000 languages. Notably†¦ 1. Incas – Peru, with elaborate network of roads and bridges linking their empire. 2. Mayas – Yucatan Peninsula, with their step pyramids. 3. Aztecs – Mexico, with step pyramids and huge sacrifices of conquered peoples. 3. The Earliest Americans 1. Development of corn or â€Å"maize† around 5,000 B. C. in Mexico was revolutionary in that†¦ 1. Then, people didn’t have to be hunter-gatherers, they could settle down and be farmers. 2. This fact gave rise to towns and then cities. 3. Corn arrived in the present day U. S. around 1,200 B. C. 2. Pueblo Indians 1. The Pueblos were the 1st American corn growers. 2. They lived in adobe houses (dried mud) and pueblos (â€Å"villages† in Spanish). Pueblos are villages of cubicle shaped adobe houses, stacked one on top the other and often beneath cliffs. 3. They had elaborate irrigation systems to draw water away from rivers to grown corn. 3. Mound Builders 1. These people built huge ceremonial and burial mounds and were located in the Ohio Valley. 2. Cahokia, near East St. Louis today, held 40,000 people. 4. Eastern Indians 1. Eastern Indians grew corn, beans, and squash in â€Å"three sister† farming†¦ 1. Corn grew in a stalk providing a trellis for beans, beans grew up the stalk, squash’s broad leaves kept the sun off the ground and thus kept the moisture in the soil. 2. This group likely had the best (most diverse) diet of all North American Indians and is typified by the Cherokee, Creek, Choctaw (South) and Iroquois (North). 5. Iroquois Confederation 1. Hiawatha was the legendary leader of the group. 2. The Iroquois Confederation was a group of 5 tribes in New York state. 3. They were matrilineal as authority and possessions passed down through the female line. 4. Each tribe kept their independence, but met occasionally to discuss matters of common interest, like war/defense. 5. This was not the norm. Usually, Indians were scattered and separated (and thus weak). 6. Native Americans had a very different view of things as compared to Europeans. 1. Native Americans felt no man owned the land, the tribe died. (Europeans liked private property) 2. Indians felt nature was mixed with many spirits. (Europeans were Christian and monotheistic) 3. Indians felt nature was sacred. (Europeans believed nature and land was given to man by God in Genesis to be subdued and put to use). . Indians had little or no concept or interest in money. (Europeans loved money or gold) 4. Indirect Discoverers of the New World 1. The 1st Europeans to come to America were the Norse (Vikings from Norway). 1. Around 1,000 A. D. , the Vikings landed, led by Erik the Red and Leif Erikson. 2. They landed in â€Å"Newfoundland† or â€Å"Vinland† (due to all of the vines). 3. However, these men left America and left no written record and therefore didn’t get the credit. 4. The only record is found in Viking sagas or songs. 2. The Christian Crusaders of Middle Ages fought in Palestine to regain the Holy Land from Muslims. This mixing of East and West created a sweet-tooth where Europeans wanted the spices of the exotic East. 5. Europeans Enter Africa This content copyright  © 2010 by WikiNotes. wikidot. com 1. Marco Polo traveled to China and stirred up a storm of European interest. 2. Mixed with desire for spices, an East to West (Asia to Europe) trade flourished but had to be overland, at least in part. This initiated new exploration down around Africa in hopes of an easier (all water) route. 3. Portugal literally started a sailing school to find better ways to get to the â€Å"Spice Islands,† eventually rounding Africa’s southern Cape of Good Hope. . New developments emerged†¦ 1. caravel – a ship with triangular sail that could better tack (zig-zag) ahead into the wind and thus return to Europe from the Africa coast. 2. compass – to determine direction. 3. astrolabe – a sextant gizmo that could tell a ship’s latitude. 5. Slave trade begins 1. Slavery was initially race-independent. A slave was whoever lost in battle. Usually, slaves came from the Slavic regions of Europe, hence the name. 2. The first African slave trade was across the Sahara Desert. 3. Later, it was along the West African coast. Slave traders purposely busted up tribes and families in order to squelch any possible uprising. 4. Slaves wound up on sugar plantations the Portuguese had set up on the tropical islands off of Africa’s coast. 5. Spain watched Portugal’s success with exploration and slaving with envy and wanted a piece of the pie. 6. Columbus Comes upon a New World 1. Columbus convinced Isabella and Ferdinand to fund his expedition. 2. His goal was to reach the East (East Indies) by sailing west, thus bypassing the around-Africa route that Portugal monopolized. 3. He misjudged the size of the Earth though, thinking it 1/3 the size of what it was. 4. So, after 30 days or so at sea, when he struck land, he assumed he’d made it to the East Indies and therefore mistook the people as â€Å"Indians. † 5. This spawned the following system†¦ 1. Europe would provide the market, capital, technology. 2. Africa would provide the labor. 3. The New World would provide the raw materials of gold, soil, and lumber. 7. When Worlds Collide 1. Of huge importance was the biological flip-flop of Old and New Worlds. Simply put, it was a trade of life such as plants, foods, animals, germs. . From the New World (America) to the Old 1. corn, potatoes, tobacco, beans, peppers, manioc, pumpkin, squash, tomato, wild rice, etc. 2. also, syphilis 3. From Old World to the New 1. cows, pigs, horses, wheat, sugar cane, apples, cabbage, citrus, carrots, Kentucky bluegrass, etc. 2. devastating diseases – smallpox, yellow fever, malaria as Indians had no immunities. 1. The Indians had no immunities in their systems built up over generations. 2. An estimated 90% of all pre-Columbus Indians died, mostly due to disease. 8. The Spanish Conquistadores 1. Treaty of Tordesillas, 1494 – Portugal and Spain feuded over who got what land. The Pope drew this line as he was respected by both. 1. The line ran North-South, and chopped off the Brazilian coast of South America 2. Portugal got everything east of the line (Brazil and land around/under Africa) 3. Spain got everything west of the line (which turned out to be much more, though they didn’t know it at the time) 2. Conquistadores is Spanish â€Å"conquerors†. 1. Vasco Balboa – â€Å"discovered† the Pacific Ocean across the isthmus of Panama. 2. Ferdinand Magellan – circumnavigated the globe (he was the first to do so). . Ponce de Leon – touches and names Florida looking for legendary â€Å"Fountain of Youth†. 4. Hernando Cortes – enters Florida, travels up into present day Southeastern U. S. , dies and is â€Å"buried† in Mississippi River, 5. Francisco Pizarro – conquers Incan Empire of Peru and begins shipping tons of gold/silver back to Spain. This huge influx of precious metals made European prices skyrocket (inflation). 6. Francisco Coronado – ventured into current Southwest U. S. looking for legendary Cibola, city of gold. He found the Pueblo Indians. 3. Encomienda system established 1. Indians were â€Å"commended† or given to Spanish landlords 2. The idealistic theory of the encomienda was that Indians would work on the farm and be converted to Christianity. But it was basically just slavery on a sugar plantation guised as missionary work. 9. The Conquest of Mexico 1. Hernando Cortez conquered the Aztecs at Tenochtitlan. 2. Cortez went from Cuba to present day Vera Cruz, then marched over mountains to the Aztec capital. 3. Montezuma, the Aztec king, thought Cortez might be the god Quetzalcoatl who was due to re-appear that very year. Montezuma welcomed Cortez into Tenochtitlan. . The Spanish lust for gold led Montezuma to attack on the noche triste, sad night. Cortez and men fought their way out, but it was smallpox that eventually beat the Indians. 5. The Spanish then destroyed Tenochtitlan, building the Spanish capital (Mexico City) exactly on top of the Aztec city. 6. A new race of people emerged, mestizos, a mix of Spanish and Indian blood. 10. The Spre ad of Spanish America 1. Spanish society quickly spread through Peru and Mexico 2. A threat came from neighbors†¦ 1. English – John Cabot (an Italian who sailed for England) touched the coast of the current U. S. 2. Italy – Giovanni de Verrazano also touched on the North American seaboard. 3. France – Jacques Cartier went into mouth of St. Lawrence River (Canada). 3. To oppose this, Spain set up forts (presidios) all over the California coast. Also cities, like St. Augustine in Florid # 4. Don Juan de Onate followed Coronado’s old path into present day New Mexico. He conquered the Indians ruthlessly, maiming them by cutting off one foot of survivors just so they’d remember. 5. Despite mission efforts, the Pueblo Indians revolted in Pope’s Rebellion. 6. Robert de LaSalle sailed down the Mississippi River for France claiming the whole region for their King Louis and naming the area â€Å"Louisiana† after his king. This started a slew of place-names for that area, from LaSalle, Illinois to â€Å"Louisville† and then on down to New Orleans (the American counter of Joan of Arc’s famous victory at Orleans). 7. â€Å"Black Legend† – The Black Legend was the notion that Spaniards only brought bad things (murder, disease, slavery); though true, they also brought good things such as law systems, architecture, Christianity, language, and civilization, so that the Black Legend is partly, but not entirely, accurate. How to cite Apush Notes, Papers

The Heart of Darkness an Example of the Topic Literature Essays by

The Heart of Darkness Introduction The Heart of Darkness treats the darkness in its various forms of representation during the Victorian Age. Conrad used it to symbolize the unknown, the uncivilized, the dark motives of civilization and Imperialism, and even the dark inclinations of men. The story uses the character of Kurtz to reflect these dark inclinations of men; first unknown to him and continues to persists when it is already known. Need essay sample on "The Heart of Darkness" topic? We will write a custom essay sample specifically for you Proceed One of the most important symbolisms discussed in the story, as the title itself suggests, is the symbolism of darkness. Indeed, darkness had been used in the story, both literally and symbolically, to reveal Conrads view of the world. But most especially, the symbol was used to represent human understanding. Kurtz final words: The horror! The horror! has also something to do with the storys theme of darkness. The horror which Kurtz is referring to is mans failure to recognize what really is, in contrast to what he believes is supposed to. It was darkness when one believes he is doing the right thing, but has instead, without him noticing it, succumbed to the greed and other acts which are contrary to morality. Marlow gave us a hint to this. He said about these words: this was the expression of some sort of belief; it had candour, it had conviction, it had a vibrating note of revolt in its whisper, it had the appalling face of a glimpsed truththe strange commingling of desire and hat e (Part 3). Kurtz was first introduced to be mad. However, as the reader goes on the story, we are presented that he is a man of many talents. We learn, among others, that he is a gifted musician, a fine painter, an eloquent writer, and a character full of charisma able to lead men. Marlow is presented to us as very eager to meet with the man. Kurtz is a legend not only among the natives, but even with his fellow white men. Nevertheless, he was led to his own downfall of his own doings. In this light, he is presented as highly gifted but degenerate. His fraternizing with the natives incurred the hatred of his fellow white men. In the story, we are told that Marlow is supposed to get Kurtz back to civilization. The natives, however, attacked Marlows ship in an attempt to prevent Kurtz from being taken. As soon as Marlow understands the man, he begins to ponder as to the real sanity of Kurtz. Marlow refers to him as hollow, yet he refers to him as a remarkable man. Bottom line is that we are prese nted with a Kurtz that is neither entirely good nor entirely evil. It was clearly presented to us that Kurtz displayed greed. In the words of Marlow: My Intended, my ivory, my station, my river, my-- everything belonged to him (Part 2). Here we are also presented how many powers of darkness claimed him for their own (Part 2). Marlow claimed it to be caused by Kurtz utter solitude by way of utter silence where no warning voice of a kind neighbor can be heard whispering of public opinion (Part 2). He further described Kurtz as having the power to charm or frighten rudimentary souls into an aggravated witch-dance in his honour; he could also fill the small souls of the pilgrims with bitter misgivings (Part 2). Yet, with all those negative characteristics Kurtz have been attributed, Marlow nonetheless recognized the good in him; that while Kurtz had filled souls with misgivings, there is one he had conquered that was neither rudimentary nor tainted with self-seeking. Marlow had also appreciated Kurtz writings, describing it as luminous and terrifying. Furthermore, Marlow contemplated that Kurtz sometimes display childishness by desiring to have kings meet him on his return from some Nowhere where he intended to accomplish great things. Kurtz, himself, was liable for his reputation of having good character and of self-seeking. He mentioned once that You show that you have in you something that is really profitable, and then there will be no limits to the recognition of your ability Of course you must take care of the motivesright motives--always (Part 3). We are compelled to think that Kurtz knew of his wrongdoings. He said: I had immense plansAnd now for this scoundrel-- (Part 3). He was unable to finish, but the message is clear: he realized his mistake and is worrying, if it was for his future or for his impending death does not matter. Marlow emphasizes on it saying: No eloquence could have been so withering to ones belief in mankind as his final burst of sincerity I saw the inconceivable mystery of a soul that knew no restraint, no faith, and no fear, yet struggling blindly by itself (Part 3). The horror! The horror is an expression of strange commingling of desire and hate because a person desires to do what he believes, hate because he realizes the wrongness of it. Conclusion The final words of Kurtz as he died reflected only his acknowledgement of his own misguided life and despicable acts. The horror is a description of his inner darkness; a darkness that comes from the struggle against the realized the mistakes and the personal interest. That while one may have good intentions, he may come to realize that it is not for the better; or it may be that while one have already recognized his mistakes from wrong assumptions, he may be tempted to ignore it for the sake of self-interest. Works Cited Conrad, Joseph. Heart of Darkness.

A Brief History of Cameroon, Africa

A Brief History of Cameroon, Africa The earliest inhabitants of Cameroon were likely the Bakas- or pygmies. They still inhabit the forests of the south and east provinces. Bantu speakers originating in the Cameroonian highlands were among the first groups to move out before other invaders. During the late 1770s and early 1800s, the Fulani- a pastoral Islamic people of the western Sahel- conquered most of what is now northern Cameroon, subjugating or displacing its largely non-Muslim inhabitants. Arrival of the Europeans Although the Portuguese arrived on Cameroons coast in the 1500s, malaria prevented significant European settlement and conquest of the interior until the late 1870s, when large supplies of the malaria suppressant, quinine, became available. The early European presence in Cameroon was primarily devoted to coastal trade and the acquisition of slaves. The northern part of Cameroon was an important part of the Muslim slave trade network. The slave trade was largely suppressed by the mid-19th century. Christian missions established a presence in the late 19th century and continue to play a role in Cameroonian life. From German Colony to League of Nation Mandates Beginning in 1884, all of present-day Cameroon and parts of several of its neighbors became the German colony of Kamerun, with a capital first at Buea and later at Yaounde. After World War I, this colony was partitioned between Britain and France under a June 28, 1919, League of Nations mandate. France gained the larger geographical share, transferred outlying regions to neighboring French colonies, and ruled the rest from Yaounde. Britains territory- a strip bordering Nigeria from the sea to Lake Chad, with an equal population- was ruled from Lagos. Struggle for Independence In 1955, the outlawed Union of the Peoples of Cameroon (UPC), based largely among the Bamileke and Bassa ethnic groups, began an armed struggle for independence in French Cameroon. This rebellion continued, with diminishing intensity, even after independence. Estimates of death from this conflict vary from tens of thousands to hundreds of thousands. French Cameroon achieved independence in 1960 as the Republic of Cameroon. The following year the largely Muslim northern two-thirds of British Cameroon voted to join Nigeria; the largely Christian southern third voted to join with the Republic of Cameroon to form the Federal Republic of Cameroon. The formerly French and British regions each maintained substantial autonomy. A One Party State Ahmadou Ahidjo, a French-educated Fulani, was chosen President of the federation in 1961. Ahidjo, relying on a pervasive internal security apparatus, outlawed all political parties but his own in 1966. He successfully suppressed the UPC rebellion, capturing the last important rebel leader in 1970. In 1972, a new constitution replaced the federation with a unitary state. The Road to Multi-Party Democracy Ahidjo resigned as President in 1982 and was constitutionally succeeded by his Prime Minister, Paul Biya, a career official from the Bulu-Beti ethnic group. Ahidjo later regretted his choice of successors, but his supporters failed to overthrow Biya in a 1984 coup. Biya won single-candidate elections in 1984 and 1988 and flawed multiparty elections in 1992 and 1997. His Cameroon Peoples Democratic Movement (CPDM) party holds a sizeable majority in the legislature following 2002 elections- 149 deputies out of a total of 180. Source Public Domain material, US Department of State Background Notes.

Atmospheric Stability and Instability

Atmospheric Stability and Instability Stability (or atmospheric stability) refers to airs tendency to either rise and create storms (instability), or to resist vertical movement (stability). The simplest way to understand how stability works is to imagine a parcel of air having a thin, flexible cover that allows it to expand but prevents the air inside from mixing with the surrounding air- as is true of a party balloon. Next, imagine that we take the balloon and force it up into the atmosphere. Since air pressure decreases with altitude, the balloon will relax and expand, and its temperature will therefore decrease. If the parcel were cooler than the surrounding air, it would be heavier (since cool air is denser than warm air); and if allowed to do so, it would sink back down to the ground. Air of this type is said to be stable. On the other hand, if we lifted our imaginary balloon and the air within it was warmer, and hence, less dense than its surrounding air, it would continue to rise until it reached a point where its temperature and that of its surroundings were equal. This type of air is classified as unstable. Lapse Rates: A Measure of Stability But meteorologists dont have to watch a balloons behavior every time they want to know atmospheric stability. They can arrive at the same answer simply by measuring the actual air temperature at various heights; this measure is called the environmental lapse rate (the term lapse having to do with temperatures decline). If the environmental lapse rate is steep- as is true when the air near the ground is significantly warmer than the air aloft- then one knows the atmosphere is unstable. But if the lapse rate is small, meaning theres relatively little change in temperature, its a good indication of a stable atmosphere. The most stable conditions occur during a temperature inversion when temperature increases (rather than decreases) with height. The easiest way to determine atmospheric stability at a glance is by using an atmospheric sounding. Edited by Tiffany Means.

Business report about Mountain West Health Plans Inc Essay

Business report about Mountain West Health Plans Inc - Essay Example This had become a problem to the management because it was labor intensive and consumed two thirds of the annual budget. Therefore, the company’s management had been yearning for Evelyn Gustafson’s replacement so that they could curb the increasing labor costs. Evelyn Gustafson had a long history with the company because she had worked there for a long time. She started her career as a customer service staff until she was promoted to being the director of customer service. Her leadership style was centered on putting oneself in the position of the subordinates. She used this style due to her experience in working in that department, and she understood what the employees went through. In her leadership style, she focused on involving the employees in the tasks by making them understand the company products and policies. She also focused on the quality of service that the subordinates offered to customers. In addition, Evelyn emphasized on employee training on the product s, problem solving and customer service techniques, which helped to ensure customer satisfaction. Her relationship oriented leadership style also involved ensuring the comfort of employees when performing their tasks by allowing them flexible schedules and breaks. However, her leadership style was not was not appealing to the top management, and they endeavored to change it after her retirement by appointing Erick Rasmussen to the post of director of customer service. Erik Rasmussen is a fresh college graduate in business administration, and therefore, he has no experience in the post. He sought to embrace a leadership style that ensured that the top management objectives of lowering costs of operation were achieved. He used a no-nonsense bureaucratic approach in directing and controlling the employees. He introduced the use of performance measurement standards to measure efficiency and performance of employees. This method measures employee performance based on the number of calls or customers that they handle per hour. This approach emphasizes on working speeds of subordinates, and requires them to handle as many customers as possible during their working time. This method would help to reduce the number of employees being employed in the department. His method also introduced a regulation requiring employees to work in monitored schedules. He ensured that employees spent minimal time on each customer they attend to with an objective of reducing call hold time. This method was completely different from the previously used method, which the employees were used to. Through Rasmussen’s method, the company achieved its objective of efficiency and non-flexible scheduling and cutting back on costs associated with employees. A leader should focus on being in charge of command, organizing and directing, setting processes in motion, and being the reason for others to act or change (Scouler and Chapman, 2012). Leadership styles are classifications of the leader ’s behavior in performance of their duties, during our study of the Mountain West Health Plans Inc’s customer service department; we identified several leadership issues, which are highlighted below. Firstly, there is no connection between the leader and the employees (Hendricks, n.d). We found that the leader does not understand the needs

Violated human dignity Research Paper Example | Topics and Well Written Essays - 500 words

Violated human dignity - Research Paper Example Technology† (Headrick, Daniel) However, the movie Idiocracy shows us a fiction of future in opposite direction that is going to decrease the quality of human life, less concerns toward intelligent and beautiful terms, and increase the number of social problems such as abandoning trash, poor security system, and hiring improper employees in extremely important field such as medical field and political field. As the movie Idiocracy sarcastically reveals the problems, we cannot deny that the problems listed above exist today. The problems can be summarized in four issues such as changes in human life style, cultural decline, corruption of morality, and materialism. The serious story begins with changes in human life style. â€Å"Lifestyle theory is composed of three interlocking models: the structural model, the functional model, and the change model.† (Walters, Glenn, P.1) A long time ago, human struggling in poor status with starvation, disease, and war has been seek for something intelligent and progressive to enhance the quality of their life. Nonetheless, people started to be interested in the opposite way, looking for satisfaction based on basic instinct when their life became wealthy and convenient. We can see the sarcastic warning from the director of Idiocracy that people could forget to develop intelligence progressive ideas; moreover, those areas would stop growing and would be even decline. To tell the truth, poetry, literature, and art were popular and developed a lot back in the day, and they really enjoyed and longed for them. Nevertheless, this generation is tamed for entertaining program, show, and unhealthy program fro m the dumping mass media. For the reason, people just want amusement and time-killing more than beautiful and intelligent delight. The changes in the future humans in Idiocracy life style caused a cultural decline. The major interests of most people would be focused on money, sex, and silly

The Notebook Essay -- Film Movie Notebook Essays Movies

  Ã‚  Ã‚  Ã‚  Ã‚  The Notebook is a phenomenal film with incredible performances and many heartfelt moments from beginning to end. It is a love story that many of us fantasize of living someday. The story unfolds in recent times at a Nursing home with the introduction of an elderly lady (Gena Rowlands) who is being visited by an old man, known as Duke (James Garner), who also resides in the nursing home, and he's there to read her a story. He begins to read about a young girl named Allie (Rachel McAdams) who was visiting a cousin one summer in the late 1940s. Allie was a beautiful teenage girl who eventually caught the eye of Noah (Ryan Gosling), her cousin's boyfriend's best friend. Initially, she showed no interest in Noah, considering the fact that she was a well rounded rich girl, and Noah, a poo...

Traders- Risk, Decisions and Management

70+ DVD’s FOR SALE & EXCHANGE www. traders-software. com www. forex-warez. com www. trading-software-collection. com www. tradestation-download-free. com Contacts [email  protected] com [email  protected] ru Skype: andreybbrv TRADERS This page intentionally left blank TRADERS Risks, Decisions, and Management in Financial Markets Mark Fenton-O’Creevy Nigel Nicholson Emma Soane Paul Willman 1 Great Clarendon Street, Oxford ox2 6dp Oxford University Press is a department of the University of Oxford.It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide in Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan South Korea Poland Portugal Singapore Switzerland Thailand Turkey Ukraine Vietnam Oxford is a r egistered trade mark of Oxford University Press in the UK and in certain other countries Published in the United States by Oxford University Press Inc. New York  © Oxford University Press 2005 The moral rights of the author have been asserted Database right Oxford University Press (maker) First published 2005 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, or under terms agreed with the appropriate reprographics rights organization.Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above. You must not circulate this book in any other binding or cover and you must impose this same condition on any acquirer. British Library Cataloguing in Publication Data Data available Library of Congress Catalo ging in Publication Data Data available ISBN 0–19–926948–3 3 5 7 9 10 8 6 4 2 Typeset by Newgen Imaging Systems (P) Ltd. , Chennai, India Printed in Great Britain on acid-free paper by Biddles Ltd. King’s Lynn, Norfolk Acknowledgements We gratefully acknowledge the help of the investment banks which cooperated in this research and provided ? nancial support, and the Economic and Social Research Council which provided funding as part of the Risk and Human Behaviour Programme (grant number L211252056). We are especially grateful to the traders and managers who gave us their time and shared their understanding. This page intentionally left blank Contents List of Figures List of Tables viii ix 1INTRODUCTION Traders, Markets, and Social Science 1 10 2 THE GROWTH OF FINANCIAL MARKETS AND THE ROLE OF TRADERS 3 ECONOMIC, PSYCHOLOGICAL, AND SOCIAL EXPLANATIONS OF MARKET BEHAVIOUR 4 TRADERS AND THEIR THEORIES 5 A FRAMEWORK FOR UNDERSTANDING TRADER PSYCHOLOGY 6 RISK TAKERS Pro? ling Traders 28 51 74 110 145 178 197 212 221 237 7 8 9 10 BECOMING A TRADER MANAGING TRADERS CONCLUSIONS APPENDIX The Study References Index List of Figures 2. 1 2. 2 2. 3 3. 1 3. 2 4. 1 4. 2 5. 1 5. 2 6. 1 6. 2 6. 3 6. 4Post-war UK equity market growth Post-war US equity market growth Global growth in OTC derivatives Expected utility theory Prospect theory The relationship between risk and return Idealized trader risk pro? les RAT Screenshot Distribution of traders’ illusion of control scores A model of individual risk behaviour Comparisons of personality scores by occupational group Risk propensity, risks taken—now and past Comparisons of risk propensity scores by occupational group 7. 1 Career mobility to date 7. 2 Likelihood of a career change in the next 5 years 8. Introducing incentive and monitoring effects to prospect theory description of risk behaviour 14 15 16 40 41 55 63 104 106 117 132 136 138 174 175 194 List of Tables 6. 1 Risk taking index 6. 2 Personality facets—signi? cant differences between occupational groups 6. 3 Relationships between RTI and Big Five personality factors 6. 4 Relationships between RTI and Big Five personality subscales 6. 5 Regression on total remuneration 8. 1 Controls and incentives associated with framing effects—empirical ? ndings 10. A1 Investment bank sample pro? le 10.A2 Personality and risk propensity sample pro? le 10. A3 Frequencies of self-ratings of performance 131 133 138 140 143 193 214 215 218 This page intentionally left blank Chapter 1 INTRODUCTION Traders, Markets, and Social Science I grew up in a small town in Florida and none of this stuff really exists like stocks and bonds and things like that. No one I ever knew growing up did this sort of thing and to me it all seems like a fantasy world sometimes and it’s very abstract. You know, I explain to my mother what I do and I can’t, you can’t put it into words, it just doesn’t make any sense. You can read also Portfolio Management QuizzesI am so removed from the daily life of the average person that I think at some point this has got to come to an end. Whether I really believe that or not I don’t know but in my head I kind of think this is all fantasy land and one day I’m going to wake up and I’m going to say I had the most amazing dream, I’ve been working on some place called Wall Street, that paid me lots of money and I just sat around and looked at computers all day and put these pieces together and everything worked out and it was all a lot of fun. So in my mind that’s kind of what I think.Derivatives Trader, ? rm B We live in a world that is shaped by ? nancial markets and we are all profoundly affected by their operation. Our employment prospects, Introduction our ? nancial security, our pensions, the stability of political systems and nature of the society we live in are all greatly in? uenced by the operation of these markets. Th e role and importance of international ?nancial markets and the traders who inhabit them has grown dramatically in the past few decades. The level of ? nancial ? ows in these markets can rise to quite staggering levels.For example, in the day before the setting of entry exchange rates to the Euro, trades in currencies entering the Euro totalled about ten times World gross domestic product (GDP). At any one time, outstanding derivatives contracts have a total value of around four times World GDP. Professional traders ? gure prominently in media accounts of the workings of ? nancial markets and the economy. Television news bulletins on the economy or stock market frequently include interviews with senior traders, or footage of a trading ? oor. Stories about ‘rogue’ traders are big news.The decisions of individual traders are often seen as having the potential to move markets and affect national economies. Yet, the role of the professional trader is largely absent from mai nstream ? nancial economic accounts of markets. Professional traders, we argue, inhabit a borderland in markets where some of the orthodox assumptions of ef? cient, instantaneously adjusting prices break-down. They are often well placed to exploit market imperfections, by virtue of lower transaction costs, access to privileged information, critical mass, or proprietary knowledge and models.However, at the same time, they work in a fast-moving landscape of noise, rumour, unreliable information, and uncertainty. Thus, it is often dif? cult to tell whether an opportunity is real or illusory. This is a book about professional traders in this noisy borderland: what they do, the kind of people they are, how they perceive the world they inhabit, how they make decisions and take risks. This is also a book about how traders are managed and the institutions they inhabit: ? rms, markets, cultures, and theories of how the world works. Our approach to writing this book is explicitly interdiscipl inary.We draw on psychology, sociology, and economics in order to illuminate the work of traders and their world. Our focus is traders and the ? rms they work in. It is not the purpose of this book to mount an extensive critique of the dominant rational–economic account of ? nancial markets, nor 2 Introduction is ‘markets’ our central focus. We are concerned principally with understanding the world of the professional trader. However, we do believe our work is relevant to an understanding of ? nancial markets. First, in order to understand the role and work of the trader, it is important to understand that the neoclassical paradigm of ef? ient markets and rational pricing breaks down at the margins and that professional traders both bene? t from and contribute to this departure from orthodox ? nancial economic theory. Second, the ef? cient markets paradigm rests on the assumption that in the absence of uniformly rational investors, there is a suf? cient group of rational investors who are able to drive out pricing anomalies through arbitrage. 1 Professional traders in investment banks seem good candidates to play this role. Hence, the evidence that we present on the ways in which traders can deviate signi? antly from rational– economic norms of behaviour may be fruitful in helping to explain market phenomena. 1. 1 Our Work and How It Informs the Book This book is based on a study of traders in ? nancial instruments in four large investment banks operating in the City of London. Over the course of 1997 and 1998, we carried out interviews with 118 traders and trader managers in four large City of London investment banks and collected qualitative and quantitative data on their roles, behaviour, performance, and psychological pro? les. We carried out followup interviews in 2002. We use detailed quotations from the interviews throughout the book. Where we use these quotes they are presented verbatim. We had three main concerns. First, we came to the study with a strong interest in decisionmaking and risk. While all business is concerned to some extent with risk, investment banks and ? nancial traders are almost unique in the extent to which their work is founded on the management of risk and the extent to which they must make decisions about risk. Second, in the vast literature on ? nancial markets relatively little attention has been paid to the role of ? ance professionals in these markets and we wanted to redress this. 3 Introduction Third, we observed that the large literature on markets and the (somewhat slimmer) literature on traders are marked by very different approaches and paradigms in three branches of the social sciences: economics, sociology, and cognitive and social psychology. We wanted to bring together the insights of these different disciplines. Throughout the book we draw both on the data we gathered in this study and on the insights of prior research and literature in ? nancial economics, psychol ogy, and the sociology of markets.We turn now to those literatures. 1. 2 Traders in the Social Science Literature Neoclassical Financial Economics Financial economics is a relatively young discipline. The origins of modern (neoclassical) ? nancial economics are often located in the early 1950s in the work by Markowitz (1952) on portfolio theory. During this period, ? nance moved from a concern with describing the activities of actors in ? nancial markets to the construction of parsimonious models of markets founded on assumptions of rational investor behaviour. The central organizing idea of neoclassical ? nancial economics is the ef? ient markets hypothesis, which holds that price changes are essentially a random walk. All new information relevant to prices is incorporated into prices instantaneously (Fama, 1970). This central proposition and much of the theory which springs from it is founded on the idea that any asset which is not ‘rationally priced’ provides opportu nities for pro? t, which will be instantly taken up and cause prices to converge to the ‘rational’ level (i. e. arbitrage). This assumption is both illustrated and lampooned in the ? nance joke about two ef? cient market theorists who pass a $50 bill lying in the street.They leave it untouched and congratulate each other on realizing that if it presented an opportunity for pro? t someone else would have picked it up already. Even the strongest proponents of the ef? cient markets hypothesis do not claim that it represents a good description of the behaviour of individuals in markets. Rather it is claimed to be a good enough description, which should be judged on its predictions rather than its assumptions. 4 Introduction Fama (1970), who set out an early comprehensive account of the ef? cient markets paradigm, has more recently suggested that: Like all models, market ef? iency (the hypothesis that prices fully re? ect available information) is a faulty description of pri ce formation. Following the standard scienti? c rule, however, market ef? ciency can only be replaced by a better speci? c model of price formation, itself potentially rejectable by empirical tests. (Fama, 1998: 284) The ? nance professional is largely absent from orthodox ? nancial economic accounts of markets. The assumption of ef? cient markets, with no privileged information held by any investor, leaves little room for an account of how professional investors might make better than market returns.However, more recently, there has been an increasing interest within ? nancial economics in explaining empirically observed departures from the predictions of the ef? cient markets hypothesis and rational–economic pricing theories. Many of these fall in the emerging ? eld of behavioural ? nance. What has allowed consideration of the role different types of investor might play in markets is the growing recognition that perfectly ef? cient markets are not an automatic consequence o f the existence of arbitragers: an idea that has been captured eloquently by Lee (2001: 284).I submit that moving from the mechanics of arbitrage to the [ef? cient markets hypothesis] involves an enormous leap of faith. It is akin to believing that the ocean is ? at, simply because we have observed the forces of gravity at work on a glass of water. No one questions the effect of gravity, or the fact that water is always seeking its own level. But it is a stretch to infer from this observation that oceans should look like millponds on a still summer night. If oceans were ? at, how do we explain predictable patterns, such as tides and currents? How can we account for the existence of waves, and of surfers?More to the point, if we are in the business of training surfers, does it make sense to begin by assuming that waves, in theory, do not exist? A more measured, and more descriptive, statement is that the ocean is constantly trying to become ? at. In reality, market prices are buffete d by a continuous ? ow of information, or rumours and innuendos disguised as information. Individuals reacting to these signals, or pseudo-signals, cannot fully calibrate the extent to which their own signal is already 5 Introduction re? ected in price. Prices move as they trade on the basis of their imperfect informational endowments.Eventually, through trial and error, the aggregation process is completed and prices adjust to fully reveal the impact of a particular signal. But by that time, many new signals have arrived, causing new turbulence. As a result, the ocean is in a constant state of restlessness. The market is in a continuous state of adjustment. Lee argues that the relationship between inef? cient pricing and arbitragers may be like predator–prey dynamics. In equilibrium there must be both predator and prey. Similarly, in equilibrium there will be both arbitragers and arbitrage opportunities in the market place.There is another important way in which ? nancial ma rkets are widely accepted as departing from the ef? cient markets paradigm. Investors trade much more often than the theory suggests they should. More recent ? nancial economics accounts often distinguish two types of investors: ‘noise traders’ and ‘smart traders’ (a recent example is Daniel, Hirshleifer, and Teoh, 2002). Noise trading is trading on the basis of information that is either irrelevant to price or has already been discounted by the market. ‘Smart’ traders are those who act rationally, trading only on the basis of genuinely new and relevant information.This distinction is sometimes taken to map on to the difference between naive investors and trained professional investors (e. g. Ross, 1999; Shapira and Venezia, 2001). Behavioural Finance There has been increasing interest within the ? eld of ? nancial economics in using what is known about persistent biases in human cognition to explain departures of market behaviour from the pred ictions of ef? cient markets theory. Collectively known as behavioural ? nance, these models and empirical studies generally seek to explain market behaviour that departs from the predictions of orthodox ? ancial economics by reference to systematic cognitive bias among investors or important subgroups of investors. 3 Behavioural ? nance draws heavily on work from behavioural decision-making, a branch of psychology concerned with modelling human decision-making processes. While, in the main, this literature does not distinguish between professional traders and other investors, there have been 6 Introduction some attempts to compare the susceptibility to biases of ? nance professionals to that of the wider population.For example, Shapira and Venezia (2001) found professional brokers less susceptible than independent investors to one common bias, the disposition effect (a bias towards selling stocks more readily to realize gains than to realize losses), although they were not immune t o the bias. In an experimental study Anderson and Sunder (1995) compared the behaviour of laboratory markets populated by experienced commodity and stock traders with the behaviour of markets populated by MBA student traders. They found the amount of trading experience to be an important determinant of how well market outcomes approximated (ef? ient market) equilibrium predictions. Student traders’ markets exhibited departures from rational prices founded in common cognitive biases while bias levels in markets with experienced traders were substantially lower. However, as we explore in Chapter 5, our own research offers evidence that professional traders are just as susceptible as other groups to some forms of bias, with important consequences for their behaviour and performance. Sociology of Markets Sociologists interested in markets have paid rather more attention to the role of professionals than have ? ancial economists. Unlike ? nancial economists who take markets to be naturally occurring, sociologists tend to stress the ‘social embeddedness’ of markets and the ways in which they are sustained as social institutions through active intervention and regulation. One important strand of work is concerned with the social networks that operate within markets and in particular the ways in which professionals within markets act through these social networks and exercise informal sanctions over participants departing from accepted norms of behaviour (e. g.Baker, 1984a; Abola? a, 1996). Research by ? nancial economists also demonstrates the signi? cant effect the detailed structure and organisation of markets4 can have on the ? ow of information, liquidity, and prices (e. g. Amihud, Mendelson, and Lauterback, 1997; Lipson, 2003). Others have been concerned with the nature and consequences of ? nancial economic theory. Traders, from this perspective, do not simply inhabit markets; they enact them. That is, the beliefs they hold 7 Introduction ab out the nature of markets affect those markets in non-trivial ways.MacKenzie (2002), for example, describes how the adoption of the Black–Scholes equation for option pricing by traders did not simply enable more effective pricing of options, but helped to bring about conditions that better ? tted the assumptions on which it was based. The close empirical ? t between the predictions of the equation and options prices was bought about, at least in part, by the use of the equation to identify arbitrage opportunities. The empirical ? t has deteriorated subsequently as beliefs have changed to incorporate, inter alia, changed beliefs about the likelihood of market crashes.We pick up this theme of the re? exive relationship between beliefs and markets in Chapter 4. 1. 3 Overview of Book Chapters 2 and 3 set the context for our study and exploration of the role of traders. Chapter 2, ‘The Growth of Financial Markets and The Role of Traders’, considers the growth of inter national ? nancial markets in a historical context and outlines the role investment banks and professional traders have come to play. In Chapter 3, ‘Economic, Psychological, and Social Explanations of Market Behaviour’, we take a more detailed look at differing economic, psychological, and social explanations of market behaviour.Chapter 4, ‘Traders and Their Theories’, considers the nature of traders’ knowledge and the interplay between their subscriptions to theories of the ‘way the world works’ founded in neoclassical ? nancial economics and their more particularist and idiosyncratic theories of ‘how to work the world’. Chapter 5, ‘A Framework for Understanding Trader Psychology’, starts by outlining a psychological model of the trader founded in a selfregulation framework. It draws on the qualitative and quantitative evidence that we have about trader decision-making and bias. It challenges the ? ancial econo mics dichotomy between rational and non-rational and explains the different rationalities that arise as a consequence of internal goal states. We also present evidence on the vulnerability of traders to control illusions and the consequences for their performance. 8 Introduction Chapter 6, ‘Risk Takers: Pro? ling Traders’ presents a new model of risk taking that shows how trader behaviour emerges from a web of circumstantial and individual causes. The remainder of the chapter explores these individual differences in greater depth, especially how personality impacts different kinds of risk taking and decision-making.The chapter explores what kinds of people traders are, focusing particularly on personality and risk propensity, but also drawing on what we know about their demographics and background. Chapter 7, ‘Becoming a Trader’, uses a career transitions framework and a model of social learning to frame trader development and entry into a community of trad ing practice. We examine the ways in which they both learn and construct knowledge about the process of trading. In Chapter 8, ‘Managing Traders’, we explore the ways in which traders are monitored and managed within investment banks.We highlight the fact that traders are often not ‘managed’ at all, so much as monitored. Our concluding chapter (Chapter 9) draws together the implications of our ? ndings for traders, their management and regulation, and for further research. Notes 1. Arbitrage: purchasing currencies, securities, or commodities in one market for resale in others in order to pro? t from price differences. The effect of arbitrage is to act as a mechanism to bring about convergence of prices in different locations and markets or between equivalent securities. . A more detailed account of the sample and methods is given in the appendix. 3. We give a more detailed treatment of behavioural ? nance arguments in Chapter 3. 4. Often referred to as the institutional microstructure. 9 Chapter 2 THE GROWTH OF FINANCIAL MARKETS AND THE ROLE OF TRADERS Hardly a day passes without newspapers and television carrying a story about ? nancial markets and their impact on our lives. Even a casual perusal of these news stories makes it apparent that the activities of ? ancial institutions and markets have come to play a central role in our economic well-being and security: whether through their direct impact on individual investments and pensions or through their pervasive impact on the level of economic activity within nations and across the globe. The last decade of the twentieth century was marked by a series of international ? nancial crises. These underlined both the interdependence of national economies and ? nancial markets and the global scope of those markets. Financial crises in Latin America, the Asian Tiger economies, and Russia highlighted the speed at which capital can ? e Growth of Financial Markets countries in which investors have lost con? dence and the impotence of national governments to control such out? ows. The impact around the world of these crises on economies and ? nancial institutions demonstrated the highly interconnected nature of ? nancial markets. In the same period a number of ? nancial institutions suffered very signi? cant ? nancial losses as a consequence of the actions of single traders. One of the best publicized of these was Nick Leeson’s role in bringing about the collapse of Barings Brothers, in 1995.The collapse of Barings caused Alan Greenspan of the US Federal Reserve to comment that It is probably fair to say that the very ef? ciency of global ? nancial markets, engendered by the rapid proliferation of ? nancial products, also has the capability of transmitting mistakes at a far faster pace throughout the ? nancial system in ways that were unknown a generation ago . . . Certainly, the recent Barings Brothers episode shows that large losses can be created quite ef? cien tly. Today’s technology enables single individuals to initiate massive transactions with very rapid execution.Clearly, not only has the productivity of global ? nance increased markedly, but so, obviously, has the ability to generate losses at a previously inconceivable rate. Moreover, increasing global ? nancial ef? ciency, by creating the mechanisms for mistakes to ricochet throughout the global ? nancial system, has patently increased the potential for systemic risk. (Greenspan, 1995) While the behaviour of individual traders has at times seriously damaged the ? rms they work for, individual ? nancial institutions have also shown the capacity to endanger the stability and operation of ? nancial markets around the world.In 1998, the collapse of Long Term Capital Management, a hedge fund holding positions in ? nancial derivatives with a notional value of $1,250 billion seriously endangered the stability of the world’s ? nancial systems. How could a single trader bring down a bank? How could a single hedge fund threaten the stability of the world’s ? nancial systems? The answer lies in the way in which ‘derivatives’ allow for the multiplication of market risks (and returns). The very features that make derivatives1 so useful as a tool for managing risk provide for the possibility of massively increasing risks.In this chapter, we argue that the role of ? nancial markets, in both world and national economies, has increased dramatically. 11 Growth of Financial Markets The potential, and sometimes actual, impact of individual traders on ? rms, markets, and economies is enormous. In the following chapters we show that ? nancial markets are neither as rational nor as natural as ? nancial economists paint them and that we need to bring a wider range of social science theory to bear on understanding traders, their ? rms, and the markets they operate in.As we show below, the current globalization of ? nancial markets is not new but sim ply the latest of several cycles of international ? nancial integration over two millennia. In particular, the recent growth in international ? nancial markets could be seen as a return to levels of international ? nancial integration seen at the end of the nineteenth century and interrupted by a period, which included two world wars and the Great Depression. However, the depth and scale of these markets does seem to be different this time and the emergence of new forms of ? ancial instruments, derivatives, capable of massively multiplying possible risks and returns has led to a qualitative difference in the potential impact of individual actions on institutions, markets, and economies. 2. 1 A Brief History of Financial Markets International ? nancial markets are not a purely modern phenomenon. Basic forms of ? nancial exchange can be found throughout recorded history and international ? nancial systems are known to have existed two millennia ago. Historical evidence suggests that t here have been a series of cycles of international ? nancial integration (Lothian, 2002).In the three centuries following the collapse of the Roman Empire, currencies were very unstable and constantly debased. However, in the fourth-century AD, the Emperor Constantine introduced a stable gold coinage, the bezant (also known as the nomisa or solidus). This became widely used throughout the Mediterranean region. It was produced in Byzantium till the thirteenth century and kept more or less the same gold content through till the eleventh century. Until the introduction of the dinar in the Muslim world in the seventh century, it had no competitors as an international medium of exchange.While records are patchy, it is clear that the existence of a stable medium of international 12 Growth of Financial Markets exchange during the period between the fourth and eleventh centuries allowed quite sophisticated ? nancial transactions to take place (Lopez, 1986; Lothian, 2002). The thirteenth cen tury was another period of growth in international trade, both within Europe and between Europe and other parts of the world. Much of this was organized around regular international trade fairs (most notably at Champagne and Brie).This period was marked by the growth of an extensive and sophisticated banking system and by the development of ? nancial instruments such as bills of exchange (which acted jointly as a credit and foreign exchange transaction). It is clear from the records of the dominant northern Italian banks of the time that not only were there quite sophisticated foreign exchange markets, but also that arbitrage was a common activity (Lothian, 2002). During the fourteenth century the importance of these trade fairs and the Italian banks declined. By the ? fteenth century, Amsterdam was the more important centre of ? ancial activity. The sixteenth century saw the development, in Amsterdam, of negotiable ? nancial instruments such as discounting commercial paper and, by the seventeenth century, the development of perpetual bonds, futures contracts, selling short, and other such ? nancial instruments and techniques that would be easily recognized in modern ? nancial markets (Homer and Sylla, 1996; Lothian, 2002). By the start of the eighteenth century, the Amsterdam Exchange, the centre of Dutch trading, had become a world market in which a wide range of commodities and securities were traded.During this period, London took on increasing importance as a centre for international ? nancial trade. With the establishment of the Bank of England and the London Stock Exchange and the intervention of the Napoleonic wars, London came to eclipse Amsterdam as a ? nancial centre by the start of the nineteenth century. The nineteenth century saw a marked expansion of international trade and further development of ? nancial markets. The growth of the US economy drove much of this expansion. The New York Stock Exchange was established in 1817 and by the end of 188 6 it hit its ? st day on which more than a million shares were traded. By the late 1920s New York had overtaken London as a world ? nancial centre. However, the early twentieth century, a period that included two world wars and the Great Depression, saw the collapse of international 13 Growth of Financial Markets trade and the rise of national regulation and controls on international ? ows of capital, which effectively unwound the integration of international ? nancial markets. Rajan and Zingales (2003) show that on a range of indicators of ? nancial development including stock market capitalization as a proportion of GDP, world ? ancial markets did not regain their pre-war (1913) levels until the late 1980s. The second half of the twentieth century once again saw a very substantial increase in international ? nancial integration. As we have seen, there is historical evidence that the current period of globalization of ? nancial markets is not a new phenomenon. Rather there have bee n cycles of high international integration of markets interspersed with periods of low integration throughout the last two millennia. However, it is also clear that with each new cycle the nature and depth of those markets has been changing. Changes in the sophistication of ? ancial instruments and technologies, and changes in communications and information technologies have all been important factors in? uencing the scale and complexity of ? nancial markets. The period since the 1970s has seen a very substantial increase in the size of ? nancial markets. Figure 2. 12 shows the increase in annual 2500 Value of annual turnover (? billion) 2000 30 1500 25 20 1000 15 10 5 0 1965 0 1970 1975 1980 1985 Year 1990 1995 2000 40 Number of bargains (million) 35 Value Reported trades 500 Fig. 2. 1 Post-war UK equity market growth—UK equity turnover 1965–2002 Source: London Stock Exchange. 4 Growth of Financial Markets Value of annual turnover ($ billion) 12000 10000 8000 6000 400 0 2000 0 1967 Value Reported trades 600 500 400 300 200 100 0 2002 Number of bargains (million) 1972 1977 1982 1987 Year 1992 1997 Fig. 2. 2 Post-war US equity market growth—New York Stock Exchange equity turnover 1967–2002 Source: New York Stock Exchange. value of shares traded on the London Stock Exchange between 1965 and 2002. Figure 2. 2 shows the change in annual number of shares traded on the New York Stock Exchange between 1960 and 2002 and the annual value of shares traded from 1985.Both markets show exponential growth over the period, but the real story over the last decade is the growth in derivatives trading. By 2002, outstanding over-the-counter derivatives3 (OTC) contracts had a notional value of $128 trillion, around four times greater than total world GDP. Figure 2. 3 shows the growth in number of active contracts between 1992 and 2002. Much of the recent concern about systemic risks in markets has centred on the role of derivatives. All ? nancial invest ments carry risk. However, there is a difference of degree with derivative trading.They involve contracts which are contingent on the price of underlying assets and because of the way in which trades are regulated, derivatives4 enable investors to speculate on the price of an asset while only depositing a small proportion of the underlying asset price (margin requirements) (Zhang, 1995). In other words, the ? nancial risk borne in an options trade may be many times the money actually deposited to make the trade. Financial ? rms which do not have sophisticated control mechanisms to manage their exposure to derivatives risk may 15 Growth of Financial Markets 000 Gross market value ($ billion) Gross market value 6000 5000 4000 3000 2000 1000 0 92 93 94 95 96 97 98 99 00 01 19 19 19 19 19 19 19 19 20 20 20 02 160 000 Notional amounts 120 000 100 000 80 000 60 000 40 000 20 000 0 Notional amounts ($ billion) 140 000 Fig. 2. 3 Global growth in OTC derivatives—global value of outsta nding contracts Source: 2000–2, Bank for International Settlements; 1994–9, Swaps Monitor publications Inc. unwittingly ? nd themselves exposed to potential losses greater than the total ? rm assets. Such risks can emerge very rapidly in the course of trading and require analysis of the whole ? m’s current portfolio of trading assets in real time to identify potential overexposure to market risk. Of course, the leveraging effect of derivatives does not only affect market risk but also ampli? es risk in the other categories. For example, since derivatives typically have greater volatility than the underlying asset, even a short period in which a ? rm is unable to trade (say due to computer failure) could result in signi? cant risk exposure. The complexity of some derivatives may mean that managers are ill-equipped to understand the trades dealers are engaging in, increasing behavioural risk (Chorafas, 1995: 16).In evidence given to the US House of Representatives , George Soros, a highly successful ? nancial speculator, said of derivative instruments: There are many of them, and some of them are so esoteric, that the risks involved may not be properly understood by even the most sophisticated of investors. Some of these instruments appear to be 16 Growth of Financial Markets speci? cally designed to enable institutional investors to take gambles which they would otherwise not be permitted to take. For example, some bond funds have invested in synthetic bond issues that carry a 10 or 20-fold multiple of the risk within de? ed limits. And some other instruments offer exceptional returns because they carry the seeds of a total wipe out. (Soros, 1995: 312) 2. 2 The Role of Investment Banks in Financial Markets To understand the role of modern investment banks it is necessary to understand how world ? nancial markets have come to be dominated by an American model of ? nance. Much as Byzantium, Lombardy, Amsterdam, and London have been the dominan t centres of ? nancial innovation and power in previous eras, US ? nancial markets and institutions are today.The central feature of the US model that emerged in the post-war years was the decline of relationship banking and the increasing commoditization of ? nancial products and services. The roots of this system lie in the unintended consequences of anti-trust and banking legislation passed in the United States during the 1930s. The segregation of commercial and investment banking in the United States laid the foundation for the development of a strong investmentbanking sector. The fragmentation of the banking industry, imposed by legislation, created conditions in which ? ancial transactions were more readily managed through markets than within large banks. The elimination of ? xed commissions for broking ? nancial instruments in 1975 provided a further impetus for competition. More and more, ? rms seeking to raise ? nance looked to impersonal markets rather than relationships w ith banking institutions. Progressively more transparent and liquid markets in both corporate debt and equity and the corresponding increased competition in these markets served as a signi? cant stimulus to ? nancial innovation.As these markets developed it became apparent to market participants and to the government that effective market operation could only be maintained through active intervention and regulation. A series of waves of external and self-regulation, often in response to market crises, led to the development of regulations and supervisory arrangements designed to contain insider manipulation of markets and ensure free 17 Growth of Financial Markets ? ow of information. On the demand side, the expansion of institutional investment (insurance, pensions, and mutual funds) stimulated and was stimulated by the growth of these ? ancial markets. The slower growth of ? nancial markets and institutions in other parts of the world meant that, as other countries began to follow the United States in opening up competition, US ? nancial institutions were well placed to play a major role. In the wake of the major changes in market regulation in 1986, the long-established London merchant banks were swept away by the US-based investment banks and non-US owned European investment banks have increasingly adopted US approaches. The principal competitive advantage of American ? rms lay in their expertise in managing risk (Steinherr, 2000: 49).Investment banks manage risk in four main ways: they absorb risk for clients, they act as intermediaries for the diversi? cation of risk, they advise on the management of risk and they engage in proprietary trading—taking risk on their own account in the pursuit of returns (Casserley, 1991). Absorbing Risk Investment banks absorb risk for clients in a number of different ways. For example, when they act on behalf of a client they absorb credit risk (the risk the client will default on payment for the transaction and th ey are unable to unwind the transaction at a favourable price).They underwrite issues of securities (e. g. commercial paper5 to cover shortterm ? nancing needs), guaranteeing to buy from the client at a ? xed price should the security fail to achieve its expected price in the open market. They also play an important risk absorption role in trading markets. In some of these the bank will act as a market-maker,6 providing liquidity in a particular ? nancial instrument. The bank ? xes prices at which it will buy or sell a ? nancial instrument and stands ready to buy or sell at those prices even if there is no party to pass the transaction on to immediately.In return for the spread between these prices the bank absorbs the risk of the market moving against them. Risk Intermediation In other cases the bank will act as an intermediary for the diversi? cation of clients’ risk. This may be by acting as an intermediary in trading 18 Growth of Financial Markets markets or by putting to gether complex OTC deals that rely on aggregating (or disaggregating) ? nancial instruments provided by third parties. The banks bene? t from this intermediation work in two principal ways. First, they charge commission and second, they have access via their customers to information about order ? ws in the markets in which they operate. Such ? ow information provides opportunities to exploit temporary market imperfections and pro? t through trading on their own account. Risk Advice The risk advice role overlays risk absorption and risk intermediation. For example, the bank may play an important advisory role related to underwriting activities or in putting together a complex OTC deal. The role of the bank in providing risk advice to clients rests not just on technical skills and experience in managing risk, but also in a (sometimes) greater overview of the markets in which they operate.An important issue here is the tension between the bank’s desire to make pro? ts on its own account and to earn a return through providing effective advice and services to customers. This tension is re? ected to some extent in tensions which emerge in most banks between trading and sales desks. As we will see later in the book, banks vary in the priority they give to serving customer needs versus seeking opportunities for returns through trading on their own account. 7 Proprietary Trading In providing services to customers, investment banks build up information on order ? ws, they develop expertise in valuing particular securities or in economic fundamentals in particular sectors or countries, they build proprietary models of price behaviour and they build up data on historic behaviour of prices and relationships between them. This can place them in a better position to judge risks and returns than other market participants and opens up the possibility of earning good returns on their own account. This activity typically takes two forms: short-term (often intra-day) trade s designed to exploit knowledge of temporary price ? ctuations linked to ? ows of orders in the market and longerterm trades, often based on arbitrage (exploiting pricing inconsistencies between different securities, markets, or time periods). 19 Growth of Financial Markets 2. 3 The Role Played by Traders The work of traders can be divided into three broad categories: trading on behalf of customers, market-making, and proprietary trading. 8 Traders acting on behalf of customers take the least risk on behalf of the bank, while proprietary trading potentially involves the greatest risk.However, in practice, the three spheres of activity often overlap. For example, a trading desk acting on behalf of clients may also have authority to take intra-day positions to bene? t from short-term price movements in the markets they operate in. Alternatively, in some circumstances, while not strictly acting as a market-maker, they may stand ready to create liquidity for important clients by buying or selling to those clients when they cannot ? nd a counterparty for their trades. As one senior trader told us: We are paid to be on the wrong side of the market for our customers.If we have an institution that pays us thirty million dollars a year in commissions, we will, on occasion at their request, be a buyer for them when there are only sellers on the market or be a seller for them when there are only buyers. When they’re in a more normal market environment where there is plenty of liquidity and good two-way ? ow, they don’t necessarily need our capital. In fact they prefer not to use our capital because all that does then is create another buyer or another seller in the market with them.But when the market is heavily tilted in one direction than the other, even the market’s selling off, there are much more sellers than buyers or a very strong market where there are much more buyers than sellers. That’s when they need us to step in and serve as that intermediary to facilitate the execution of their order. 9 Alternatively, a trading desk operating as a market-maker may combine this with some proprietary trading. One trader described the activity of his desk: We have a P&L [pro? t and loss], budget of about $20m a year through plain vanilla market making with customers.However, we make about half the money in proprietary trading using the ? ow and information from customers—putting it on our book instead of putting it back into the market. For the ? rst half of this year we were number one for turnover in our niche with between 10% and 15% of the market. The 20 Growth of Financial Markets more that number increases, the better information we would have for proprietary trading, but we would probably start losing money from the market making function because prices would have to be so keen, so there is a balance.Equally, traders mostly engaged in proprietary trading will seek opportunities to generate customer business: I d o proprietary business and I’m supposed to be doing proprietary but I interface with the ? ow desk so I would be looking at customer business trying to generate customer business. My slant is proprietary but I’m always trying to emphasise customer business using my positions. 2. 4 How do Traders Make Pro? ts? If, in ef? cient markets, price changes are essentially a random walk and all new information relevant to prices is incorporated into prices instantaneously (Fama, 1970), then how do traders make money? The ? st answer is that they charge commission for their intermediation and advisory role. By aggregating customer orders they can reduce transaction costs. However, as we will explore in Chapter 3, in practice, markets are not completely ef? cient and information asymmetries exist. Traders essentially earn economic rents10 by exploiting information advantages. These may come from a number of sources, including information on asset ? ows within markets (e. g. from having a large customer base); privileged information on the economic basis for an asset price; proprietary databases allowing more accurate calculation of probabilities (e. . historical asset volatility for pricing options); models of the relationship between prices and economic fundamentals; models for extracting the information inherent in historical price changes of an asset and other related assets; and effective understanding of the ‘sentiment’ and likely behaviour of other market actors. All of these information advantages are potentially short-lived. The very act of trading may reveal information to other parties. Others may emulate models. Others may access the same sources of information.New information may wipe out the utility of earlier information. At the same time markets are in practice very ‘noisy’. That is to say, there is a lot of trading going on that is not based on information 21 Growth of Financial Markets genuinely relevant to the und erlying value of an asset. Black (1986) noted in his presidential address to the American Finance Association that Traders can never be sure that they are trading on information rather than noise. What if the information they have is already re? ected in prices? Trading on that kind of information will be just like trading on noise.Traders can only earn above market returns, on average, over time, if they are genuinely trading on new and relevant information. However, on any individual trade it will be dif? cult to tell whether a positive outcome is the result of trading on information or of essentially unpredictable market movements (as a result of noise trading in the market, changes in sentiment, or new unexpected events). Similarly, for any individual trade it is dif? cult to determine whether a negative outcome is the result of trading on noise rather than information or the result of unforeseeable market movements.So it will often be the case that trading outcomes are not cont ingent on the trader’s strategy or information. Further, it will often be dif? cult to determine once an outcome is achieved whether the outcome was indeed contingent on a trader’s information and skill. While trading is a skilful activity, many trading outcomes are not contingent on skill. At the same time traders are highly motivated to establish causal relationships between information they hold and prices, since a signi? cant source of rent for any trader is the capacity to establish contingent relationships before others observe them.This problem of determining the links between behaviour and outcome for traders is one we will return to repeatedly in the book. While the detail of different trading strategies is not our principal focus, we describe some common trading approaches to set the stage for our later discussions. In order for traders to achieve better than average market returns, it is not suf? cient that markets are imperfect; it is also necessary they ha ve some competitive advantage relative to others who seek to exploit those imperfections.Within this fast-moving and uncertain world, traders adopt a variety of strategies to exploit the information and expertise to which they have access. These can be divided into four main categories: insider strategies, technical strategies, fundamental strategies, and ? ow strategies. 22 Growth of Financial Markets Insider Strategies Insider strategies involve achieving advantage by exploiting privileged access to information (Casserley, 1991). Of course, some such strategies are illegal. It is, for example, illegal to exploit privileged access to advanced knowledge of company earnings news or potential takeovers.However, most of these strategies are concerned with perfectly legitimate attempts to build an information advantage over rivals. The extent to which it is possible to achieve such information advantages varies signi? cantly from market to market. For example, in relatively undeveloped markets such as the ‘emerging markets’ there may be frequent and persistent information asymmetries. In these circumstances, traders who are able to establish good personal networks may build an advantage, which enables them to anticipate price movements. However, in mainstream equities markets, the speed and ef? iency of information dissemination may make such advantages dif? cult to achieve. Insider strategies can improve a trader’s ability to anticipate market movements. However, as we noted earlier, it is often dif? cult or impossible for a trader to determine whether they have a genuine information advantage or whether their information is simply noise, already discounted by the market. Technical Strategies If markets are perfectly ef? cient, then historic prices contain no information that can be used to infer future price movements. However, many traders claim to do just that.They seek to exploit market imperfections through the analysis of past price info rmation. One form of technical trade concerns using patterns in price data to identify likely turning points in price trends (charting). Traders seek to identify trends early, buy into those trends and exit before the trend breaks. Many traders consider these patterns and trends in market prices to be driven by underlying investor sentiment. While there is some evidence that supports the existence of exploitable patterns in market prices (e. g. Kwon and Kish, 2002), many ? ancial economists are sceptical of their existence. Fama (1970) dismissed technical analysis as a futile undertaking on the grounds that historical prices have no predictive validity. However, more recent arguments against technical 23 Growth of Financial Markets trading strategies take a weaker position: that while there is some predictability in market movements, exploiting these does not, on average, make returns in excess of transaction costs (e. g. Allen and Karjalainen, 1999). A second important technical st rategy requires the analysis of historical price relationships between different ? ancial instruments. Traders scan markets looking for discrepancies in pricing relative to these relationships on the assumption that they will move back to the historical pattern. Often the gains on technical trades will be small and over short time periods, thus these trades often depend on an ability to identify opportunities rapidly and frequently. This allows the trader to make large numbers of such trades each making a small pro? t. To bene? t from such trading strategies requires the ability to trade at low transaction costs, frequently, with considerable IT support.Many traders use technical strategies to supplement other approaches. For example, a trader having established a trade on the basis of customer ? ow information may use technical information on trend behaviour to determine the precise point at which to take pro? ts or cut losses. Others, while fundamentally sceptical about strategies relying on historical trend data, assume prices will be driven to some extent by investors using such models. For example, one trader told us: A lot of traders are chartists and a lot of people here don’t like you looking at charts, they don’t believe in them.However, I look at a chart if I am putting on a large position, or looking for something to trade because if there are people out there who use charts as a model to trade, this will affect how things trade in the markets whether I believe in it or not. Fundamental Strategies Technical strategies are purely concerned with anticipating trends and pay no attention to the underlying economic basis for evaluation of the security being traded. By contrast, fundamental strategies are concerned with the fundamental relationship between economic value of the underlying asset and market price.Traders following these strategies essentially seek to use expertise and information in the accurate valuation of securities, on the assumption that market values will 24 Growth of Financial Markets converge to theoretical values. To the extent that traders can establish an advantage in valuation of securities, they may be able to earn pro? ts from identifying securities that are undervalued or overvalued by the market. One highly successful trader told us: I tend to take positions that depend a lot on central bank decisions e. g. nterest rates, so depend on macro economic position of the country, the judgement about how the Bank of England is going to behave and how the market is going to proceed. I try to put myself in Eddie George’s11 feet and try to understand. We have been building a model of Bank of England reactions to economic events. I have lunches with people who decide our interest rates and try to understand how they think . . . It all comes down to focus and completely immersing myself in an area. However, as with insider strategies it can be genuinely dif? cult for a trader to understand whe ther they have a genuine advantage in valuation.Further, as we will see in Chapter 3, trading on valuation advantage depends on the market converging to a value in a time scale over which you can ? nance a trade. Flow Strategies This strategy predicts prices as a function of demand and supply for securities in the market. Particularly for securities in which there is not much liquidity,12 large trades can shift prices signi? cantly. Where a bank has a large customer base in a particular niche, this can give them access to valuable market information, in particular, information on trading ? ows.These kinds of advantage are more readily achieved in OTC markets, which lack the transparency of trades organized through exchanges. However, in any given market niche, there will be a very limited number of ? rms that can capture suf? cient order ? ow information to give them a genuine advantage. Feldman and Stephenson (1988) studied the use of ? ow information in the US treasury bonds marke t. They suggest that through the use of informal information trading with customers, a ? rm with a 3–4 per cent share in trading may have a good sense of what is going on in 30 per cent or more of the market.However, they also show that medium sized players in these markets are often unable to exploit their customer relationships effectively. They argue that large players systematically 25 Growth of Financial Markets shut medium sized players out of information networks while providing good market information to smaller players who they mostly relate to as customers rather than competitors. As we have seen, ? nancial markets have a long history and have been through multiple cycles of global ? nancial integration over the last two millennia, but their development into domains of such immense complexity and global in? ence has occurred only within the last 50 years. The volume of trading and of traders has no historical precedent, nor has the complexity and variety of the inst ruments traded. Within this context, the activities of traders within investment banks are important not just to their customers, but also at the level of national and international economies. Naturally, these phenomena have attracted the attention of academics and commentators, from a variety of disciplines, who have, as we shall show in the next chapter, different and sometimes competing explanations of what in? uences and explains behaviour within global ? ancial markets. Notes 1. Derivatives are ? nancial products, which depend on or derive from other assets. 2. Values in all ? gures are nominal (non-in? ation-adjusted). 3. OTC derivatives are not traded in an exchange but are contracted directly between the two contracting parties. 4. Exchange requirements generally only require traders selling options to deposit a proportion of the potential claim. Further, speculation using derivatives is often highly leveraged (funded through borrowed funds). 5. Market traded short-term corp orate debt. 6. Market-makers stand ready to buy or sell an asset or class of assets.Typically a market-maker quotes a buy (bid) and sell (offer) price to a client before the client declares whether they wish to buy or sell. The spread between bid and offer both provides a return and some protection against market movements in the time taken for the marketmaker to readjust their holdings after a trade. 7. There are also important differences between the United States and the United Kingdom in how this tension is regulated. UK banks face fewer constraints on the relationship between customer business and proprietary trading. 26 Growth of Financial Markets 8. The types of ? ancial instruments dealt in by traders cut across these categories. Some traders specialize by a particular type of instrument (e. g. equities or bonds in a particular sector), others deal in a range of instruments related to a particular geographical region or sector. 9. See also Abola? a (1996) for a description o f such market stabilizing behaviour by market-makers. 10. Returns in excess of the market risk premium. 11. Eddie George was Governor of the Bank of England at the time of interview. 12. Liquidity: the availability of parties willing to buy or sell a security at any given time. 27 Chapter 3ECONOMIC, PSYCHOLOGICAL, AND SOCIAL EXPLANATIONS OF MARKET BEHAVIOUR For at least forty years psychologists have amassed evidence that economic man is very unlike a real man and that reason—for now, de? ned by the principles that underlie expected utility theory, Bayesian learning and rational expectations—is not an adequate basis for a descriptive theory of decision making. De Bondt, 1998 I am in fundamental disagreement with the prevailing wisdom. The generally accepted theory is that ? nancial markets tend towards equilibrium and, on the whole, discount the future correctly. I operate using a different theory, according to which ? ancial markets Market Behaviour cannot possibly di scount the future correctly because they do not merely discount the future; they help to shape it. Soros, 1995: 111 If we are to understand traders, we have to ? rst understand the markets they inhabit. Neoclassical economics has been extraordinarily successful in explaining most market behaviour in the aggregate. However, it has two principal weaknesses for our purposes. The ? rst concerns what it does not address and the second concerns some important failures at the margins. Neoclassical ? nancial economics treats markets as a given, or naturally arising.Investor preferences and risk appetites are treated as external to the model but predictably ordered and distributed. Markets are modelled as adjusting instantaneously with little attention to the detail of how such adjustments come about. While neoclassical ? nancial economic models effectively explain a great deal of market behaviour, there are some important failures at the margins. There is a wide range of anomalies which are dif? cult to explain within this paradigm. If markets instantaneously adjust and are perfectly ef? cient, then the only role for professional traders is as intermediaries who cannot earn above market returns, but ssentially earn commission as intermediaries. There is nothing to be earned by arbitrage activities or speculation. Indeed, it is not even clear within neoclassical accounts of markets that there is a role for intermediation. However, if we assume markets to be only nearly perfect and ‘sticky’, the trader’s role as someone with privileged expertise, tacit knowledge, and access to private information (within limits) makes more sense. Here, traders are the oil in the market machine; they are on