The UNIFORM CIVIL CODE - Free Essay Example

UNIFORM CIVIL CODE Introduction India is a secular state, worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s largest democracy and second most populous country (1,205,073,612 in 2012) emerged as a major power in the 1990s. It is militarily strong, has major cultural influence and a fast-growing and powerful economy. With its many languages, cultures and religions, India is highly diverse. This is also reflected in its federal political system, whereby power is shared between the central government and 28 states. Religions not only have been serving as the foundation of the culture of India, but have had enormous effect on Indian politics and society. In India, religion is a way of life. It is an integral part of the entire Indian tradition. A vast majority of Indians, (over 93%) associate themselves with a religion. According to the 2001 census 80.5% of the population of India practice Hinduism, Islam (13.4%), Christianity (2.3%), Sikhism (1.9%), Buddhism (0.8%) and Jainism (0.4%) are the other major religions followed by the people of India. There are also numerous minor tribal traditions, though these have been affected by major religions such as Hinduism, Buddhism and Christianity. It is in this diverse context we have to analyze the necessity of Uniform civil code. What is Uniform Civil Code ? Uniform civil codeis in India. It is a debate to replace the personal laws which is based on the scriptures and customs of each major religious community in the country with a common set governing every citizes these laws are distinguished between from publiclawand cover marriage, divorce, inheritance, adoption and maintenance. UNIFORM CIVIL CODE: Uniform civil code was in the India only. It is the debate to replace the personal laws which is based on the scriptures and customs of each major religious community in the country. This code clarified from public law and cover marriage, divorce, inheritance, adoption and specially maintenance. In Article 44 of the India Directive Principles sets the implementation as duty of the state. This has been became secularism in India. This issue has became the most controversial issue during the Shah Bano case in 1985. Then the debate focus on Muslims Personal laws, which is totally based on the sharia law and remains unreformed since 1937, permitting them as a unilateral divorce and polygamy in India. The Bano case has been made totally politicised public issue which is focused on identify politics. Which means attacking specific religious minorities versus protecting its cultural identify. Article 44: There are much as a the Bharatiya Janata Party who would like to introduce a Uniform Civil Code and it confronts several obstacles in bringing this about. Buoyed by the BJPs recent victories in the assembly elections in the Haryana, Jharkhand and Maharashtra, Lok Sabha MP Yogi Adityanath tell by the Parliament that the time had come for the government to enact a common Uniform Civil Code. Agriculture Minister Radha Mohan Singh went a step further by insisting there was no harm in having a debate on both the Uniform Civil Code and on Article 370, which mandates a special status for the Jammu and Kashmir. Would a uniform code act on the personal laws of only one community ? Not at all. The approach that a uniform civil code would necessitate change in only Muslim personal law is not correct. . For instance, the connected to succession among Hindus is unequal in the way it treats men and women. A truly modern ,secular ,non-discriminatory and progressive code would ,therefore ,mean changes in all personal laws .The concept of the à ¢Ã¢â€š ¬Ã…“Hindu undivided familyà ¢Ã¢â€š ¬Ã‚  ,aeast insofar as it pertains to succession ,would also obviously have to undergo a change under uniform civil code. Similarly ,Muslim ,Christian and other personal laws too would have to change. This also explains why historically changes in per sonal law have been resisted not just by one community, but by the ruling doctrine in all of them. It is one of the most controversial topic in the society. The uniform civil code clearly states that à ¢Ã¢â€š ¬Ã…“one country one law à ¢Ã¢â€š ¬Ã…“irrespective of Religion, caste etc. It states that a person has to follow the law given out by the government. No matter what religion he or she is the person has to follow the law. And uniform civil code is required for India. The government can compile the law by taking all the good things from all the religions and make as uniform civil code.As things stand, there are different laws governing these manner for different communities in India. Thus, the laws governing divorce among Hindus would be different, Hindus would be different from those pertaining Muslims or Christians and so on. What is good of one couple of one religion will be good for the couple of another religion. Religion should not play a major part in our day to da y life. The uniform civil code is totally different from religion. Religions like Muslim has personal law in which polygamy still exist. It is one of the major issue in the current scenario. The uniform civil code helps to remove polygamy and such other things in which personal law is wrong. It should come from the constitution right accorded to every citizen and or from any religion or traditional custom. If a law is formed with respect to any particular religion then it would create major problems. The law should be created irrespective of religion or tradition. The uniform civil code is required for the development and patriotism. We follow the law laid down but the constitution of India. This will help us to adapt current requirement and we as an Indian need not follow the old, Ancient and outdated custom and tradition. We should be à ¢Ã¢â€š ¬Ã…“INDIANà ¢Ã¢â€š ¬Ã‚  first and then come the religion, caste or whatever it is. The concept of separate civil law is very harmful f or the country betterment. For example: A Muslim having 4 wives besides the pure violation of all fundamental womenà ¢Ã¢â€š ¬Ã¢â€ž ¢s right. It also wrong thing in the other peopleà ¢Ã¢â€š ¬Ã¢â€ž ¢s view which creates a bad impact in the society. If the men divorces any one of his wives the life of the women gets totally spoiled. It can be also called as SOFT TERRORISM. The population of men and women is nearly equal in Islam. If an Islamic man has more than 2 or 3 wives there will be a shortage of Islamic womenà ¢Ã¢â€š ¬Ã¢â€ž ¢s. This gives extremists among them a big incentive to create a civil war among different religions. According to article 44 laid down n the constitution states that à ¢Ã¢â€š ¬Ã…“The state shall Endeavour to secure for the citizens a uniform civil code throughout territory of Indiaà ¢Ã¢â€š ¬Ã‚ . As article 37 of Indian constitution makes clear that, the directive principlesà ¢Ã¢â€š ¬Ã‚  shall not be enforced by any court of lawà ¢Ã¢â€š ¬Ã‚ . Never theless, they are fundamental governance of the country. Many great people like justice Katju has accepted and strong supporters of uniform civil code. If the government takes strict action and makes it possible the uniform civil code should implied as soon as possible but also it should be dealt in a very proper manner because it is one of the sensitive issue and ità ¢Ã¢â€š ¬Ã¢â€ž ¢s outcomes of people against it can be rebel and war. As a conclusion I would say that a secular India needs a uniform civil code but urgent need to force any uniform civil code on an unwilling population is not necessary.Most people are not ready to adopt truly secular laws separated from religious customs. The Uniform Civil Code can be successfully introduced only after achieving improved levels of literacy, awareness on various socio-political issues, enlightened discussions and increased social mobility. The ultimate aim of reforming uniform civil code should be for ensuring equality, unity an d integrity of the nation and justice both men and women. So, it can be inferred from the above judgments that the Honorable Supreme Court has reiterated about the need of Uniform Civil Code again and again and has settled the controversies and ambiguities which have arisen due to the apparent conflicts in the personal laws. If the Uniform Civil Code would have been implemented for whole of the country then such kind of controversial issues would have been resolved by the statutory enactments only. India is a country of Unity in Diversity having Multi religions and cultures. So, civil matters of the citizens should be taken in the same clutches of law only then the prime constitutional goal of fraternity can be materialized in the real sense otherwise these divisive forces would continue to violate the constitutional spirit. So, in this sense uniform civil code is the need of the hour. A strong political will is required for the same along with the feeling of religious tolerance and mutual respect on part of each and every citizen of India. Though, Art. 37 of the Constitution of India mandates that the provisions contained in this part (Part-IV) shall not be forced by any Court, but the principles therein laid down are nevertheless fundamental in the governance of the Country and it shall be the duty of the State to apply these principles in making of laws , the Parliament has failed to discharge this Constitutional obligation in translating the principle of Art. 44 in to law by taking effective steps in this regard. The subject matters like inheritance, succession, Wills, Gifts, adoptions and maintenance are no longer the subjects having close affinity with religion, rather, these subjects are purely and squarely falling within the domain of Civil Laws. Parliament must, in its utmost wisdom, discriminate between issues touching Constitutional goals and issues pertaining to political end. The paramount objective of unity and integrity of India as resolved by t he People of India in the Preamble and agreed to be obeyed as Fundamental Duty under Art. 51A(c) of the Constitution of India, though not enforceable like directives, could be achieved only when, from out of various measures, directive of Art. 44 is transformed in to enforceable Uniform Civil Code.But single or uniform civil law can strengthen the unity of the nation and forge a country of people known for their acceptance of progressive laws with inbuilt equality between communities and also between both men and women. However, it is a mirage for women. A decision on Article 44 should be the concern of the entire nation in general and of the women in particular. In case it is appliance it will lay the foundation for women to overcome many social evils like dowry system, bigamy etc. which makes a woman feel underneatcase Case :- In the city of Mushirdabad it was found that in one survey 44.83% of parents got their daughters support to marriage. In the popular of these cases, t he daughter were in their teens as young as 10. This is after all India where in order marriages are still common and marriage of undergoing girls is not uncommon. We can see in these cases that the old problem of local custom is simply trumping Islamic law as a problem that has led to the passing of the Sharia law of 1938 in the first place. In the case of dowry not mahr it was found that a majority of the Muslims are also paying dowry in direct abuse of the Muslim law. In the case of mahr it was typically fixed at such a high price that the men were not paying much if any to the wife at the time of marriage. Rather then it was kept as a safety by the husband should divorce take place, the wife could demand her mahr. In the case of divorce it was found that not only were man not to come the require 3 months after pronouncing talaq but that the majority of divorce were taking place in front of local people not Qazis or before the courts DR Syed Abdul hafiz conducted the study of wes t Bengal Muslims by writing divorce removed Muslim women in west Bengal are living a unhappy life. SUGGESTION:- As a suggestion I would say that a secular India needs a uniform Civil Code but urgent need to force any UCCon unwillingly population is notnecessary. Manypeople would not readily accept secular laws separated from religiouscustoms. Itcan be successfully introduced only after achieving improved levels ofliteracy, enlighteddiscussions, increasedsocial mobility awareness on various social-politicalissues. Itsaim should be for ensuringequality, unity Integrity of thenation justicefor both men and women Conclusion:- As a conclusion I would say that a secular India needs a uniform civil code but urgent need to force any uniform civil code on an unwilling population is not necessary. Most people are not ready to adopt truly secular laws separated from religious customs. The Uniform Civil Code can be successfully introduced only after achieving improved le vels of literacy, awareness on various socio-political issues, enlightened discussions and increased social mobility. The ultimate aim of reforming uniform civil code should be for ensuring equality, unity and integrity of the nation and justice both men and women.

Power and Love in Marriage A Comparison of An Ideal Husband and The Canterbury Tales - Literature Essay Samples

Chaucer and Wilde, although writing 500 years apart, both present power as an intrinsic aspect of marital life in Medieval and Victorian patriarchal societies. January sexually dominates May in ‘The Merchant’s Tale’, while in ‘An Ideal Husband’ it is Lady Chiltern who exerts domestic power over her husband. Though May gains independence from January, deceiving him in a manner which conforms to the fabliau tradition, Lady Chiltern’s reconciliation with Robert comes at the price of her marital power and autonomy. In ‘The Merchant’s Tale’, January’s uses the sacrament of marriage as an excuse to exert carnal power over May. Chaucer describes how ‘the bride was broght abedde as stille as stoon’, a use of alliteration and sibilance which emphasizes May’s unresponsive state, portraying her as submissive to January’s advances. This passivity acts in juxtaposition to January’s lusty excitement, especially when he explains how he ‘moot trespace // to yow, my spouse, and yow greetly offende’. Medieval society held the view that once a marriage was consummated it was permanent, a notion which explains January’s haste to sexually dominate May. Indeed, January’s use of the modal verb ‘moot’ suggests that he regards sex as a necessity. This stance is reflective of a 14th century view that a wife’s primary role was to produce an heir who could inherit the family’s fortune through the law of p rimogeniture. However, January anticipates that the experience of sex will be unpleasant for May, a realization which heightens that sense that January ‘seeks to take control of May’s sexuality’ (Fiona Dunlop) for his own personal gain. Certainly, we are never given an insight into May’s thoughts, with Chaucer drawing attention to this fact by exclaiming that ‘God woot what May thought in hir herte’. This statement once again draws attention to May’s compliant nature, highlighting how women were regarded as inferior to men in Medieval society, being expected to remain subservient to their husbands at all times. January’s sense of ownership over May’s body is examined further when requests ‘hire strepen hire al naked’, forcing her to ‘obeyeth, be hire lief or looth’. Chaucer’s use of alliteration throws weight onto how we are never given May’s perspective of events, strengthening the feeling that she is sexually submissive to her husband. Indeed, January’s affection towards his wife seems to be founded in his sexual superiority and control, a revelation which suggests that Medieval marriages were more concerned with power than love. While January exerts sexual power over May in ‘The Merchant’s Tale’, it seems that Lady Chiltern holds the power to influence her husband’s decisions in ‘An Ideal Husband’. At the end of Act 1, Robert tells Lady Chiltern of his plans to support the fraudulent Argentine canal scheme. Gertrude responds to this disclosure in horror, dictating that Robert ‘must never see (Lady Chiltern) again’, and instructing him to ‘write that (he) declines to support this scheme of hers’. Gertrude’s use modal verbs and imperatives suggests that she holds authority over Robert’s actions, forging the feeling that her control over her husband could potentially permeate his political choices. This would have appalled Victorian audiences, especially seeing as wives were expected to confine themselves to the domestic sphere, supporting their husbands in all decisions, and not concerning themselves in the politics of the patriarc hal public sphere. Lady Chiltern’s power over Robert is also explored through her idealization of him. Indeed, Gertrude’s veneration of Robert prompts Sos Elitis to observe that ‘both (Robert’s) marriage and the country’s financial integrity are rendered vulnerable through an insistence upon unrealizable standards of morality’, a realization which accentuates the far-reaching implications of Lady Chiltern’s control over her husband. Gertrude’s domestic power is also examined when Lord Goring implores to her that Robert’s life and love are ‘in your hands’. This phrase is repeated twice, emphasizing how Lady Chiltern has the ability to alter Robert’s future due to the control she wields over him from her position as his wife. Certainly, Gertrude’s marital power seems to govern her marriage to Robert, however there is also a sense that her influence over him would not be possible without a basis of love, thereby suggesting that power and love are inextricably linked within marriage. Just as Lady Chiltern exerts her domestic power over Robert, May is able to control aspects of her marriage to January through various acts of deception. After discovering Damyan’s feelings of courtly love towards her, May ‘taketh him by the hand, and hard him twiste’. This line employs a harsh assonance, enhancing the sense of May’s growing assertiveness. Her actions are cunning and secretive, revealing her duplicitous character, and accentuating her willingness to find a reprieve from her unsatisfying marriage to January. Maurice Hussey comments that May’s quest for independence ‘shows the gradual dominance of the bride, who takes a lover and deceives her old husband until the end of the story’, conforming to the fabliau tradition. However, May’s increasing autonomy and violation of one of the Ten Commandments, ‘Thou shalt not commit adultery’, would have shocked Chaucer’s contemporary readers. On the other h and, modern feminist readers would applaud May for pursuing independence from January, aligning her defiance against Medieval conventions with examples of females exerting power within a patriarchal society. When January catches May having sex with Damyan, she maintains a mask of deceit to disguise her immoral act, thereby demonstrating her shrewd control of the situation. She cunningly tricks January into believing that she ‘dide it in ful good entente’, an excuse which he foolishly believes. Therefore, January’s naà ¯ve acceptance of May’s explanation increases the sense that she has taken control of their loveless marriage. Likewise to May, Wilde depicts Lady Chiltern as exerting power over her husband, however while May’s control grows stronger towards the end of ‘The Merchant’s Tale’, Lady Chiltern’s power is significantly diminished at the conclusion of ‘An Ideal Husband’. Gertrude loss of independence and autonomy is demonstrated when she exclaims that ‘a man’s life is of more value than a woman’s’. This comment is a direct repetition of Lord Goring’s chauvinistic speech which ‘consigns women to a purely domestic and supportive role’ (Sos Eltis), highlighting how Lady Chiltern has submitted to Victorian patriarchal views. While Wilde’s contemporary audiences would have accepted this view of women as inferior and subordinate to men, a modern feminist audience would be outraged at such a comment, seeing it as a tragic loss of Gertrude’s autonomy within her marriage. Certainly, Lady Chiltern seem s to have conformed her role as wife to the Victorian ideal portrayed in Coventry Patmore’s ‘The Angel in the House’, becoming submissive and obedient to her husband. It seems that Gertrude’s compliance is an essential aspect of her reconciliation with Robert. In the play’s final line, Lady Chiltern declares that it is ‘love, and only love’ she feels for her husband, exclaiming that ‘for both of (them) a new life is beginning’. The optimism of their ‘new life’ seems to be inextricably linked to Gertrude’s loss of marital power, suggesting that love cannot survive in a relationship in which the wife has control over her husband, especially within the patriarchy of Victorian society. Overall, power is a fundamental aspect of all the marriages in ‘A Merchant’s Tale’ and ‘An Ideal Husband’. May is originally sexually dominated by January, yet she gradually gains control of her own sexuality, increasing her independence by deceiving her husband and committing adultery, proving the loveless nature of their marriage. However, while Lady Chiltern initially idealizes her husband and holds a significant amount of domestic power over him, this is reversed by the end of the play when Gertrude submits Robert and Victorian patriarchal ideals, allowing for love to flourish.

Gestalt and Person-Centered Therapy Debate Free Essay Example, 1000 words

Moderator: Dr. Harris do you agree with Dr. Andrew? Dr. Harris: Not at all. I believe the best therapy to give the patient is to allow them to communicate their own feelings without interruption. An individual is able to feel like a unique entity unlike Gestalt’s therapy where the client is not made to feel so important. Dr. Andrew: I don’t agree with my friend on this. This is because as a psychologist I am not allowed to contradict or disagree with my patient. Do you think that is right? That is not the way we should be treating our patients. As the professional here I have the mandate to suggest what is right for my patient and I should not watch them make wrong decisions in the name of person centered therapy. Moderator: Dr. Harris can you respond to that? Dr. Harris: Maybe there is something that my friend here does not understand. The whole process in person centered therapy is aimed at freeing someone from all the obstacles and allows or promotes normal growth and development. During this time the client is supposed to move from more rigid person to a more fluent person (C. We will write a custom essay sample on Gestalt and Person-Centered Therapy Debate or any topic specifically for you Only $17.96 $11.86/pageorder now Rogers). Moderator: What conditions are necessary to make this person less rigid? Dr. Harris: Thank you for that. One of the conditions is that as a therapist I should be congruent. Secondly I must develop a positive unconditional regard for my client and finally I should be able to show empathy for my patient. If all these conditions are present then the process of person centered therapy proceeds without difficulty. Dr. Andrew: You realize that those conditions are very difficult to come across especially with the kind of the world we are living in. It is high demanding and full of hustles. This is the reason I prefer Gestalts therapy because I don’t have to set these conditions for my patient. My process of treatment is experimental based on the patient’s development and I have a chance evaluate my client anytime as opposed to your method where you don’t interrupt. Moderator: Based on what Dr. Andrew has just said in relation to the 3 conditions you have just told us. Don’t you think that person centered is a conditioned process? Dr. Harris: It is a conditioned process that is the truth. I would like to tell you that conditioned processes are some of the most reliable processes of therapy. Let us refer back to the B. F Skinners conditioned experiments. Skinner was able to end up with the same results every time he rang the bell. This is actually what the therapy does and it becomes easy to treat a patient.

Study On The Determinants Of Financial Derivatives - Free Essay Example

Sample details Pages: 21 Words: 6230 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Introduction Our research article is à ¢Ã¢â€š ¬Ã…“Determinants of Financial Derivativesà ¢Ã¢â€š ¬?. Before moving towards the definition of main purpose and significance of our research article, we want to give a brief introduction of the core keywords of our research article which are à ¢Ã¢â€š ¬Ã…“Financial Derivativesà ¢Ã¢â€š ¬?. 1.1. Introduction A derivative is a financial instrument (or more simply, an agreement between two people/two parties) that has a value determined by the future price of something else. Derivatives can be thought of as bets on the price of something. Suppose you bet with your friend on the price of a bushel of corn. If the price in one year is less than $3 your friend pays you $1. If the price is more than $3 you pay your friend $1. Thus, the underlying in the agreement is the price of corn and the value of the agreement to you depends on that underlying.[1] So derivatives are the collective name used for a broad class of financial instruments that derive their value from other financial instruments (known as the underlying), events or conditions. Essentially, a derivative is a contract between two parties where the value of the contract is linked to the price of another financial instrument or by a specified event or condition. Derivatives are usually broadly categorized by the: Relationsh ip between the underlying and the derivative (e.g. forward, option, swap) Type of underlying (e.g. equity derivatives, foreign exchange derivatives, interest rate derivatives, commodity derivatives or credit derivatives) Market in which they trade (e.g., exchange traded or over-the-counter) Pay-off profile (Some derivatives have non-linear payoff diagrams due to embedded optionality) Another arbitrary distinction is between: Vanilla derivatives (simple and more common) and Exotic derivatives (more complicated and specialized) There is no definitive rule for distinguishing one from the other, so the distinction is mostly a matter of custom. Derivatives are used by investors to Provide leverage or gearing, such that a small movement in the underlying value can cause a large difference in the value of the derivative Speculate and to make a profit if the value of the underlying asset moves the way they expect (e.g. moves in a given direction, stays in or ou t of a specified range, reaches a certain level) Hedge or mitigate risk in the underlying, by entering into a derivative contract whose value moves in the opposite direction to their underlying position and cancels part or all of it out Obtain exposure to underlying where it is not possible to trade in the underlying (e.g. weather derivatives) Create optionability where the value of the derivative is linked to a specific condition or event (e.g. the underlying reaching a specific price level) Don’t waste time! Our writers will create an original "Study On The Determinants Of Financial Derivatives" essay for you Create order Uses Hedging Hedging is a technique that attempts to reduce risk. In this respect, derivatives can be considered a form of insurance. Derivatives allow risk about the price of the underlying asset to be transferred from one party to another. For example, a wheat farmer and a miller could sign a futures contract to exchange a specified amount of cash for a specified amount of wheat in the future. Both parties have reduced a future risk: for the wheat farmer, the uncertainty of the price, and for the miller, the availability of wheat. However, there is still the risk that no wheat will be available because of events unspecified by the contract, like the weather, or that one party will renege on the contract. Although a third party, called a clearing house, insures a futures contract, not all derivatives are insured against counter-party risk. From another perspective, the farmer and the miller both reduce a risk and acquire a risk when they sign the futures contract: The farmer reduces the risk that the price of wheat will fall below the price specified in the contract and acquires the risk that the price of wheat will rise above the price specified in the contract (thereby losing additional income that he could have earned). The miller, on the other hand, acquires the risk that the price of wheat will fall below the price specified in the contract (thereby paying more in the future than he otherwise would) and reduces the risk that the price of wheat will rise above the price specified in the contract. In this sense, one party is the insurer (risk taker) for one type of risk, and the counter-party is the insurer (risk taker) for another type of risk. Hedging also occurs when an individual or institution buys an asset (like a commodity, a bond that has coupon payments, a stock that pays dividends, and so on) and sells it using a futures contract. The individual or institution has access to the asset for a specified amount of time, and then can sell it in the future at a specified price according to the futures contract. Of course, this allows the individual or institution the benefit of holding the asset while reducing the risk that the future selling price will deviate unexpectedly from the markets current assessment of the future value of the asset. Derivatives traded at the Chicago Board of Trade. Derivatives serve a legitimate business purpose. For example, a corporation borrows a large sum of money at a specific interest rate.[2] The rate of interest on the loan resets every six months. The corporation is concerned that the rate of interest may be much higher in six months. The corporation could buy a forward rate agreement (FRA). A forward rate agreement is a contract to pay a fixed rate of interest six months after purchases on a notional sum of money.[3] If the interest rate after six months is above the contract rate the seller pays the difference to the corporation, or FRA buyer. If the rate is lower the corporation would pay the difference to the seller. The purchase of the FRA would serve to reduce the uncertainty concerning the rate increase and stabilize earnings. Speculation and arbitrage Derivatives can be used to acquire risk, rather than to insure or hedge against risk. Thus, some individuals and institutions will enter into a derivative contract to speculate on the value of the underlying asset, betting that the party seeking insurance will be wrong about the future value of the underlying asset. Speculators will want to be able to buy an asset in the future at a low price according to a derivative contract when the future market price is high, or to sell an asset in the future at a high price according to a derivative contract when the future market price is low. Individuals and institutions may also look for arbitrage opportunities, as when the current buying price of an asset falls below the price specified in a futures contract to sell the asset. Speculative trading in derivatives gained a great deal of notoriety in 1995 when Nick Leeson, a trader at Barings Bank, made poor and unauthorized investments in futures contracts. Through a combination of poo r judgment, lack of oversight by the banks management and by regulators, and unfortunate events like the Kobe earthquake, Leeson incurred a $1.3 billion loss that bankrupted the centuries-old institution. Types of derivatives OTC and Exchange-traded Broadly speaking there are two distinct groups of derivative contracts, which are distinguished by the way they are traded in the market: Over-the-counter (OTC) derivatives are contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary. Products such as swaps, forward rate agreements, and exotic options are almost always traded in this way. The OTC derivative market is the largest market for derivatives, and is largely unregulated with respect to disclosure of information between the parties, since the OTC market is made up of banks and other highly sophisticated parties, such as hedge funds. Reporting of OTC amounts are difficult because trades can occur in private, without activity being visible on any exchange. According to the Bank for International Settlements, the total outstanding notional amount is $684 trillion (as of June 2008).[5] Of this total notional amount, 67% are interest rate contra cts, 8% are credit default swaps (CDS), 9% are foreign exchange contracts, 2% are commodity contracts, 1% are equity contracts, and 12% are other. Because OTC derivatives are not traded on an exchange, there is no central counter-party. Therefore, they are subject to counter-party risk, like an ordinary contract, since each counter-party relies on the other to perform. Exchange-traded derivative contracts (ETD) are those derivatives instruments that are traded via specialized derivatives exchanges or other exchanges. A derivatives exchange is a market where individualsà ¢Ã¢â€š ¬Ã¢â€ž ¢ trade standardized contracts that have been defined by the exchange. A derivatives exchange acts as an intermediary to all related transactions, and takes Initial margin from both sides of the trade to act as a guarantee. The worlds largest derivatives exchanges (by number of transactions) are the Korea Exchange (which lists KOSPI Index Futures Options), Eurex (which lists a wide range of Europea n products such as interest rate index products), and CME Group (made up of the 2007 merger of the Chicago Mercantile Exchange and the Chicago Board of Trade and the 2008 acquisition of the New York Mercantile Exchange). According to BIS, the Scombined turnover in the worlds derivatives exchanges totaled USD 344 trillion during Q4 2005. Some types of derivative instruments also may trade on traditional exchanges. For instance, hybrid instruments such as convertible bonds and/or convertible preferred may be listed on stock or bond exchanges. Also, warrants (or rights) may be listed on equity exchanges. Performance Rights, Cash xPRTs and various other instruments that essentially consist of a complex set of options bundled into a simple package are routinely listed on equity exchanges. Like other derivatives, these publicly traded derivatives provide investors access to risk/reward and volatility characteristics that, while related to an underlying commodity, nonetheless are distinct ive. Common derivative contract types There are three major classes of derivatives: Futures/Forwards are contracts to buy or sell an asset on or before a future date at a price specified today? A futures contract differs from a forward contract in that the futures contract is a standardized contract written by a clearing house that operates an exchange where the contract can be bought and sold, while a forward contract is a non-standardized contract written by the parties themselves. Options are contracts that give the owner the right, but not the obligation, to buy (in the case of a call option) or sell (in the case of a put option) an asset. The price at which the sale takes place is known as the strike price, and is specified at the time the parties enter into the option. The option contract also specifies a maturity date. In the case of a European option, the owner has the right to require the sale to take place on (but not before) the maturity date; in the case of an American option, the owner can require the sale to take place at any time up to the maturi ty date. If the owner of the contract exercises this right, the counter-party has the obligation to carry out the transaction. Swaps are contracts to exchange cash (flows) on or before a specified future date based on the underlying value of currencies/exchange rates, bonds/interest rates, commodities, stocks or other assets. More complex derivatives can be created by combining the elements of these basic types. For example, the holder of a swaption has the right, but not the obligation, to enter into a swap on or before a specified future date. 1.2. PROBLEM STATEMENT: The problem statement on which we are doing research is as follows: What are the Determinants that define the activities towards Financial Derivatives? 1.3. OBJECTIVE OF THE STUDY: The main objective of our research is that which one of this independent variable like Risk, Yield Spread etc affects the financial derivatives the most or which one of the following indicates the most involvement in financial derivative. 1.4. Limitations:- There are few limitations which are as under. The data which we are considering is only from Islamabad stock exchange. Out of numerous variables we have selected only four. 1.5. Plan:- Rest of the thesis is organized as fallows. In chapter II we have produced a literature review. In chapter III Data is collected and statistical tools are applied. In chapter IV the results are interpreted. In chapter V conclusions and recommendations are given. Chapter II Literature Review Credit derivatives and risk aversion in this article author discuss the valuation of credit derivatives in extreme regimes such as when the time-to-maturity is short, or when payoff is contingent upon a large number of defaults, as with senior trenches of collateralized debt obligations. In these cases, risk aversion may play an important role, especially when there is little liquidity, and utility-indifference valuation may apply. Specifically, we analyze how short-term yield spreads from default able bonds in a structural model may be raised due to investor risk aversion. Using derivatives to manage risk this Refers to some well-publicized failures with derivatives, and seeks explanations for these problems; points to the role of the US treasury department as a profit centre, and presents a three-phase risk management framework for the successful use of derivatives risk identification/determination of the desired risk profile, implementation (to include factors such as the rol e of the board in the co-ordination of resources), evaluation/feedback. Shows how three celebrated cases of derivatives fiasco failed in respect of various aspects of this framework (these being Gibson Greetings, Procter Gamble and Metallgesellschaft AG). Petersen and Thiagarajan (2000) Estimates and compares the risk exposure of two firms operating in the gold mining industry. Suggests that the difference between the two firms lies in the risks that they choose to manage and the tools that they use. It presents an extensive analysis of the building blocks underlying the effects of risk management including operating cash flows, taxable income, investment opportunities and equity risk exposure. Shows how one uses adjustments to the quality of ore extracted as a partial hedge against gold price fluctuations, whilst the other uses derivatives to reduce the fluctuations in its revenues and therefore operating cash flows. Comments on the incentives for risk reduction and their effec t on the management of gold price risk, noting that compensation strategies can lead to differing managerial objectives. Argues that the use of alternative forms of risk management is a conscious choice by firms and that the use of derivatives should be seen against the alternative tools available. Alister and Mansfield (1980) states that Derivatives have been an expanding and controversial feature of the financial markets since the late 1980s. They are used by a wide range of manufacturers and investors to manage risk. This paper analyses the role and potential of financial derivatives investment property portfolio management. The limitations and problems of direct investment in commercial property are briefly discussed and the main principles and types of derivatives are analysed and explained. The potential of financial derivatives to mitigate many of the problems associated with direct property investment is examined. The management of foreign currency risk: derivatives us e and the natural hedge of geographic diversification Summer 1999 Notes the lack of evidence of large companies use of foreign exchange derivatives (FXDs), related to the geographical diversification natural hedge, an alternative method of avoiding risk. Builds a model of company behavior, sampling 309 US companies by industry, including FXD, foreign sales, a sales-based Herfindahl index, and market value. Finds a significant and positive relationship between the use of FXDs and the level of foreign exchange exposure; and a negative relationship between geographic dispersion and FXD. Shows that there are economies of scale in FXD use, and that the findings are robust to industry membership and geographic diversification. Emory presents evidence consistent with managers using derivatives and discretionary accruals as partial substitutes for smoothing earnings. Using 1994-1996 data for a sample of Fortune5 00 firms, I estimate a set of simultaneous equations that captures managers incentives to maintain a desired level of earnings volatility through hedging and accrual management. These incentives include increasing managerial compensation and wealth, reducing corporate income taxes and debt financing costs, avoiding underinvestment and earnings surprises, and mitigating volatility caused by low diversification. After controlling for such incentives, I find a significant negative association between derivatives notional amounts and proxies for the magnitude of discretionary accruals. Gay and Nam analyzed the underinvestment problem as a determinant of corporate hedging policy. We find evidence of a positive relation between a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s derivatives use and its growth opportunities, as proxied by several alternative measures. For firms with enhanced investment opportunities, derivatives use is greater when they also have relatively low cash stocks. Firms whose investment expenditures are positively correlated with internal cash flows tend to have smaller derivatives positions, which suggest potential natural hedges. Our findings support the argument that firmsà ¢Ã¢â€š ¬Ã¢â€ž ¢ derivatives use may partly be driven by the need to avoid potential underinvestment problems. Patil (2008) states that the Reserve Bank of Indias Working Group on Rupee Derivatives has, interalia, recommended introduction of exchange traded derivatives to supplement OTC derivatives. But before we introduce exchange traded interest rates futures it is necessary to be fully aware of the ground realities. The basic issue is the healthy development of the market and abolition of the regulations that artificially protect the interests of a set of intermediaries whose role and functions have got significantly reduced with massive induction of IT applications into the capital and financial markets. Regulatory reforms should facilitate continuous reduction in transaction costs and up gradation of transactional efficiency across different segments of the market. A regulatory regime that ends up protecting the role of certain players merely because they played a useful role in the past in the development of some segments of the markets would be doing a disservice Hentschel and Kothari makes Public discussion about corporate use of derivatives focuses on whether firms use derivatives to reduce or increase firm risk. In contrast, empirical academic studies of corporate derivatives use take it for granted that firms hedge with derivatives. Using data from financial statements of 425 large U.S. corporations, we investigate whether firms systematically reduce or increase their riskiness with derivatives. We find that many firms manage their exposures with large derivatives positions. Nonetheless, compared to firms that do not use financial derivatives, firms that use derivatives display few, if any, measurable differences in risk that are associated with the use of derivatives. Brinson, Randolph Hood and Beebower (1986), states that in order to delineate investment responsibility and measure performance contribution, pension plan sponsors and investment managers need a clear and relevant method of attributing returns to those activities that compose the investment management process- investment policy, market timing and security selection. The authors provide a simple framework based on a passive, benchmark portfolio representing the plans long-term asset classes, weighted by their long-term allocations. Returns on this investment policy portfolio are compared with the actual returns resulting from the combination of investment policy plus market timing (over or underweighting asset classes relative to the plan benchmark) and security selection (active selection within an asset class). Data from 91 large U.S. pension plans over the 1974-83 period indicate that investment policy dominates investment strategy (market timing and security selection), explaining on average 93.6 per cent of the variation in tota l plan return. The actual mean average total return on the portfolio over the period was 9.01 per cent, versus 10.11 per cent for the benchmark portfolio. Active management cost the average plan 1.10 per cent per year, although its effects on individual plans varied greatly, adding as much as 3.69 per cent per year. Although investment strategy can result in significant returns, these are dwarfed by the return contribution from investment policy-the selection of asset classes and their normal weights. Markides (1995) concluded that there is increasing evidence (especially in the business press) that over the past decade, many U.S. corporations have restructured. For example, Lewis (1990: 43) estimates that nearly half of large U.S. corporations have restructured in the 1980s. Similarly, a special report on corporate restructuring published in the Wall Street Journal (1985: 1) found that out of the 850 of North Americas largest corporations, 398 (47%) of them restructured. A major problem with many of these studies on restructuring is that they do not define exactly what is meant by restructuring. Corporate actions such as share repurchasing, refocusing, alliances, consolidations and leveraged recapitalizations can all fall under the general term restructuring; therefore, a researcher needs to look at these forms of restructuring separately if any generalizations are to be made. In this study, we focus on one specific type of restructuring, namely corporate refocusing. By this we mean the voluntary or involuntary reduction in the diversification of U.S. firms-usually, but not necessarily, achieved through major divestitures-what Bhagat, Shleifer, and Vishny (1990) call the return to corporate specialization. We focus on this type of restructuring because according to the existing evidence it is by far the most common and most beneficial form of restructuring undertaken by firms (e.g., Lewis, 1990; Wall Street Journal, 1985). According to existing evidence , a significant proportion of major diversified firms in the U.S. have reduced their diversification in the 1980s by refocusing on their core businesses (for statistical evidence, see Lichtenberg, 1990; Mark- ides, 1990; Porter, 1987; Williams, Paez and Sanders, 1988). For example, Markides (1993) reported that at least 20 percent and as many as 50 percent of the Fortune 500 firms refocused in the period 1981-87. He also found that refocusing is a 1980s phenomenon: using the Rumelt (1974) strategic categories of diversification, he reported that whereas only 1 percent of the Fortune 500 firms were refocusing in the 1960s, more than 20 percent were doing so in the 1980s. Other studies have shown that these refocusing firms are characterized by high diversification and poor profitability relative to their industry counter- parts, and that refocusing is associated ex-ante with improved stockmarket value (e.g., Comment and Jarrell, 1991; Markides, 1992a,b; Montgom- ery and Wilson, 1986) . Yet, as Shleifer and Vishny (1991: 54) argue, there is very little ex- post evidence that refocusing is associated with profitability improvements. Doukas and Lang In this study they present evidence that geographic diversification increases shareholder value and improves long-term performance when firms engage in core-related foreign direct (greenfield) investments. Non-core-related foreign investments are found to be associated with both short-term and long-term losses. Our results suggest that the synergy gains stemming from the internalization of markets are rooted in the core business of the firm. Geographic diversification outside the core business of the firm bears strongly against the prediction of the internalization hypothesis. The analysis also shows that, regardless of the industrial structure of the firm (that is, number of segments), foreign direct investments outside the core business of the firm are associated with a loss in shareholder value, whereas core-relat ed (focused) foreign direct investments are found to be value increasing. Unrelated international diversification, however, is less harmful for diversified (multi- segment) than specialized (single-segment) firms. The larger gains to diversified firms suggest that operational and internal capital market efficiency gains are considerably greater in multi-segment than single-segment firms when both expand their core business overseas. James and Finkelshtain (1965) said the effects of multivariate risk are examined in a model of portfolio choice. The conditions under which portfolio choices are separable from consumption decisions are derived. Unless the appropriate restrictions hold on investors preferences or on the probability distribution of risks, the optimal portfolio is affected by other risks. This requires generalizing the usual measures of risk aversion. With one risky asset, matrix measures of risk aversion are used to generalize the results of Arrow (1965) and Pratt (196 4) concerning the effects of risk aversion and wealth on the optimal portfolio. With two risky assets, the choices made by two investors coincide if and only if their generalized risk-aversion measures are identical. Rosss notion of stronger risk aversion is then used to characterize the effect of risk aversion on the level of investment in the riskier asset. Browne (2000) tells us that Active portfolio management is concerned with objectives related to the out performance of the return of a target benchmark portfolio. In this paper, we consider a dynamic active portfolio management problem where the objective is related to the tradeoff between the achievement of performance goals and the risk of a shortfall. Specifically, we consider an objective that relates the probability of achieving a given performance objective to the time it takes to achieve the objective. This allows a new direct quantitative analysis of the risk/return tradeoff, with risk defined directly in terms of pr obability of shortfall relative to the bench- mark, and return defined in terms of the expected time to reach investment goals relative to the benchmark. The resulting optimal policy is a state-dependent policy that provides new insights. As a special case, our analysis includes the case where the investor wants to minimize the expected time until a given performance goal is reached subject to a constraint on the shortfall probability. On the basis of this literature review we have developed the following Theoretical framework. 2.2. THEORATICAL FRAMEWORK: The importance of: Risk_ Response Index Yield Spread_ Response Index Liquidity_ Response Index Geographical Diversification_ Response Index Financial Derivatives (Swap, Option, Future and Forward Contracts) For 2.3 Hypothesis: H0:  µ 3.5 H1:  µ à ¢Ã¢â‚¬ °Ã‚ ¥ 3.5 If the mean respondent is 3.5 or above it means the factor is important because at the rating scale 1 is for strongly disagree and 5 is for strongly agree. Chapter III Data and Methodology 3.1. NATURE OF STUDY: This study was descriptive in nature and will describe the Risk, Yield spread, Liquidity, Geographical diversification in the term of determinants of Financial Derivatives. The study setting for this study is non-contrived in nature i.e. it was conducted in the normal work place and routine working conditions. 3.2. PRIMARY DATA COLLECTION: Data for this study was collected from the participants of the Islamabad Stock Exchange. These people were working or participating in the stock exchange where the people had knowledge about risk, yield spread, liquidity and geographical diversification. That is why; it was easier for us to conduct our research in Islamabad Stock Exchange to conclude our results that which one of the following factors like risk, yield spread, liquidity, and geographical diversification shows the maximum involvement in the determining of financial derivatives. 3.3. RESPONDENTS OF RESEARCH: Data were collected from 100 participants. Participants were asked to fill the questionnaire which was helpful to lead us towards the result and conclusion of our research. All participants were asked to write down on the questionnaire their gender and age. 3.4. RESEARCH INSTRUMENT: Questionnaire is an efficient data collection mechanism where we know exactly what is required and measures the variables of interest. Questionnaires were made with enough number of questions covering all the related areas. This helped us to conclude our result by measuring the affect of determinants on financial derivatives. Questionnaires were personally handed over to the participants by us. All surveys were completed during working hours. Respondents were guaranteed that their data would remain confidential. Respondents were instructed to indicate their opinions about the questions to rate on a Likert Scale. This scale was designed to examine how strongly respondents agree or disagree with statements on a 5-points scale with the following anchors; 1 2 3 4 5 Strongly Disagree Disagree Neutral Agree Strongly Agree 3.5. DATA INTERPRETATION: Statistical tools were used for the interpretation of data. These tools included t-test, correlation and descriptive statistics to find the involvement of independent variables in determining the financial derivatives. In other words, statistical tool of correlation were applied to interpret the relationship between the indexes of independent variables and t-test was used to determine the involvement of independent variable in determining the financial derivatives. The total data was divided into two halves: Participants Below median age (39 and below) Participants above median age (above 39) We have applied sample mean test at  µ=3.5. Chapter IV Findings R1: Risky nature of instrument is not a matter of concern for me. R2: Since high risk means high return therefore I will shift to the risky securities. R3: Would you shift from one stock to another to reduce risk at the cost of return? R4: It is feasible to add a percentage of low risk securities to a portfolio. L1: Is a highly liquid security attractive to an investor L2: The stocks in which you trade are relatively liquid which attracts you towards them. L3: Liquidity reflects the performance of a firm therefore for diversification it is important Y1: Yield spread helps the investor to determine which security would be the better investment. Y2: Change in demand supply of the securities effect the yield spread change therefore I shift towards low yield spread. Y3: The market is forecasting a greater risk of default which implies a slowing economy (narrowing of spreads between bonds of different risk ratings) G1: Geographical diversification increase s the potential return on your investment / portfolio. G2: Geographical diversification allows combining a diversification across domestic and foreign securities. JUNIOR: Risk:  R1 R2 R3 R4 T cal -3.21 -0.77 -3.24 -2.12 T tab 2 2 2 2 Mean 2.96 3.38 3.1 3.2 Standard deviation 1.18 1.09 0.86 0.99 In case of R1, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of R2, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of R3, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of R4, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. Liquidity:  L1 L2 L3 T cal 1.94 -0.69 -0.28 T tab 2 2 2 Mean 3.76 3.42 3.46 Standard deviation 0.94 0.81 0.99 In case of L1, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of L2, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of L3, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. Yield spread:  Y1 Y2 Y3 T cal 0.13 -1.19 -2.60 T tab 2 2 2 Mean 3.52 3.32 3.14 Standard deviation 1.05 1.06 0.97 In case of Y1, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of Y2, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of Y3, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. Geographical Diversification:  G1 G2 T cal 0.32 -0.92 T tab 2 2 Mean 3.54 3.36 Standard deviation 0.89 0.92 In case of G1, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of G2, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. SENIOR: Risk:  R1 R2 R3 R4 T cal -3.44 -2.68 0 5.06 T tab 2 2 2 2 Mean 2.56 3.02 3.5 4.2 Standard deviation 1.51 1.25 1.02 0.97 In case of R1, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of R2, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of R3, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of R4, H0 is rejected it implies people consider this factor as important determinant of financial derivative. Liquidity:  L1 L2 L3 T cal 3.95 3.59 1.78 T tab 2 2 2 Mean 4.08 3.98 3.74 Standard deviation 1.03 0.94 0.94 In case of L1, H0 is rejected it implies people consider this factor as important determinant of financial derivative. In case of L2, H0 is rejected it implies people consider this factor as important determinant of financial derivative. In case of L3, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. Yield spread:  Y1 Y2 Y3 T cal 3.94 -3.16 -0.92 T tab 2 2 2 Mean 3.86 3.1 3.34 Standard deviation 0.64 0.89 1.22 In case of Y1, H0 is rejected it implies people consider this factor as important determinant of financial derivative. In case of Y2, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of Y3, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. Geographical Diversification:  G1 G2 T cal 1.75 5.56 T tab 2 2 Mean 3.72 4.02 Standard deviation 0.88 0.65 In case of G1, H0 is accepted it implies people do not consider this factor as important determinant of financial derivative. In case of G2, H0 is rejected it implies people consider this factor as important determinant of financial derivative. Junior: Correlations R_Index L_Index Y_Index G_Index R_Index Pearson Correlation 1 .310* .002 .163 Sig. (2-tailed) .029 .991 .257 N 50 50 50 50 L_Index Pearson Correlation .310* 1 .366** .326* Sig. (2-tailed) .029 .009 .021 N 50 50 50 50 Y_Index Pearson Correlation .002 .366** 1 .616** Sig. (2-tailed) .991 .009 .000 N 50 50 50 50 G_Index Pearson Correlation .163 .326* .616** 1 Sig. (2-tailed) .257 .021 .000 N 50 50 50 50 *. Correlation is significant at the 0.05 level (2-tailed). In this table above: Association between R_Index and L_Index is 31% which shows a medium relationship. Association between R_Index and Y_Index is 2% which shoes a weak relationship. Association between R_Index and G_Index is 16% which shows a weak relationship Association between L_Index and Y_Index is 36% which shows a medium relationship. Association between L_Index and G_ndex is 32% which shows a medium relationship. Association between Y_Index and G_Index is 61% which shows relatively significant relationship. Senior: Correlations R_Index L_Index Y_Index G_Index R_Index Pearson Correlation 1 .605** .240 .423** Sig. (2-tailed) .000 .093 .002 N 50 50 50 50 L_Index Pearson Correlation .605** 1 .219 .689** Sig. (2-tailed) .000 .126 .000 N 50 50 50 50 Y_Index Pearson Correlation .240 .219 1 .068 Sig. (2-tailed) .093 .126 .640 N 50 50 50 50 G_Index Pearson Correlation .423** .689** .068 1 Sig. (2-tailed) .002 .000 .640 N 50 50 50 50 *. Correlation is significant at the 0.05 level (2-tailed). In this table above: Association between R_Index and L_Index is 60% which shows a medium relationship. Association between R_Index and Y_Index is 24% which shows weak relationship. Association between R_Index and G_Index is 42% which shows a medium relationship. Association between L_Index and Y_Index is 21% which shows weak relationship. Association between L_Index and G_ndex is 68% which shows relatively significant relationship. Association between Y_Index and G_Index is 6% which shows relatively significant relationship. Descriptive Statistics: (junior) Descriptive Statistics N Minimum Maximum Mean Std. Deviation R_Index 50 2 4 3.16 .584 L_Index 50 2 5 3.55 .689 Y_Index 50 1 5 3.33 .812 G_Index 50 1 5 3.45 .835 Valid N (listwise) 50 Descriptive Statistics: (Senior) Descriptive Statistics N Minimum Maximum Mean Std. Deviation R_Index 50 2 5 3.57 .530 L_Index 50 2 5 3.93 .765 Y_Index 50 2 5 3.43 .664 G_Index 50 2 5 3.87 .596 Valid N (listwise) 50 Chapter V Conclusion and Recommendations: Conclusion: This research was mainly conducted to assess the indication of the involvement of Risk, Yield Spread, Liquidity and Geographical Diversification on Financial Derivatives. The influence of these four independent variables was examined. Data was collected by questionnaires which were given or distributed in the Islamabad Stock Exchange participants. We have used the sample mean test (t-test) to find the major influence of these four Risk, Yield Spread, Liquidity and Geographical Diversification on Financial Derivatives. From this study we can conclude that in case of juniors none of these four factors affects majorly in the determination of financial derivatives. While in the case of seniors not fully but partially all factors are important in the determination of financial derivatives. That means the senior investors just look the factors in determining or doing diversification. In Pakistani market these factors play some role because here the market is manipulated my big investo rs, the market rates or index is influenced by the speculations in the market. So by this we concluded that the seniors do consider these factors the reason for diversification in Pakistani Market. It might be due to their age they are frightened of loss. This means that we should improve our trade relations with our neighboring countries or countries located geographically near to us. Thus, to make our research more purposeful, we have made some recommendations which are as follows. Recommendations: Awareness should be increased amongst the investors regarding the risk factor of each stock. A standard should be developed to identify the risk factor attached with every stock and this information should be made public. Investors should be educated about the calculations of yield spread of every stock. A standard should be developed to identify the liquidity factor attached with every stock and this information should be made public. Investors should be educated about how to decrease risk factor by using various diversification techniques. REFERENCES: Markides, Constantinos C. (1995), à ¢Ã¢â€š ¬Ã…“Diversification, Restructuring and Economic Performanceà ¢Ã¢â€š ¬?, Strategic Management Journal, Vol. 16, No. 2 (Feb., 1995), pp. 101-118. Gay, Gerald D. and Nam, Jouahn (1998) . The Underinvestment Problem and Corporate Derivatives Useà ¢Ã¢â€š ¬?, Financial Management, Vol. 27, No. 4, Winter 1998, pages 53 69 Brinson, Gary P. Randolph Hood, Beebower, Gilbert L. (1986), à ¢Ã¢â€š ¬Ã…“Determinants of Portfolio Performanceà ¢Ã¢â€š ¬?, Financial Analysts Journal, Vol. 42, No. 4 (Jul. Aug., 1986), pp. 39-44 Finkelshtain, Israel and Chalfant, James A ( 1993), à ¢Ã¢â€š ¬Ã…“Portfolio Choices in the Presence of Other Risksà ¢Ã¢â€š ¬?, Management Science, Vol. 39, No. 8 (Aug., 1993), pp. 925-936 Doukas, John A. and Lang, L. H. P. (2003), à ¢Ã¢â€š ¬Ã…“Foreign Direct Investment, Diversification and Firm Performanceà ¢Ã¢â€š ¬?, Journal of International Business Studies, Vol. 34, No. 2, Focused Issue: The Future of Mu ltinational Enterprise: 25 Years Later (Mar., 2003), pp. 153-172. Ludger Hentschel and S. P. Kothari Source: The Journal (2001).à ¢Ã¢â€š ¬? Are Corporations Reducing or Taking Risks with Derivatives?à ¢Ã¢â€š ¬?, The Journal of Financial and Quantitative Analysis, Vol. 36, No. 1 (Mar., 2001), pp. 93- 118. Patrick MC Alister and Jhon R Mansfield. Investment property portfolio management and financial derivatives, Petersen M A and Thiagarajan SR (2000). Risk measurement and hedging: with and without derivatives, Patil, R H (2003), à ¢Ã¢â€š ¬Ã…“Exchange traded interest rate derivativesà ¢Ã¢â€š ¬?. Economic and Political Weekly, Vol. 38, No. 8, Money, Banking and Finance (Feb. 22-28, 2003), pp. 755-756+758-760 Browne Sid (2000),à ¢Ã¢â€š ¬?Risk-Constrained Dynamic Active Portfolio Managementà ¢Ã¢â€š ¬?, Management Science, Vol. 46, No. 9, Stochastic Models and Simulation (Sep., 2000), pp. 1188-1199.

Zero Tolerance In Schools - 1295 Words

Many Americans do not realize what children in the middle and high school level go through on a daily basis while in school. According to the National Center for Educational Statistics, 2016 more than one out of every five students report being bullied at school. An intimidating physical threat at times involving aggression towards another, actions including hitting, pushing, punching, threatening, and teasing – bullying. One way to reduce bullying would be zero tolerance. This is a policy of not allowing any violations of a rule or law, which will lead to suspension or expulsion. For this reason, reports of bullying toward the 2 boys who caused the terrible school shooting at Columbine High School, in 1999. Many psychologists, school†¦show more content†¦The girls continued to torment her they would tease, give her dirty looks, snub her, shooing her away from their lunch table (Schmidt). The parents tried to speak to school administrators, teachers, counselors and even the 2 girl’s parents regarding the complaints of bullying. The day Mallory decided to take her own life her parents were at the school trying to file a Harassment Intimidation, and Bullying report but unfortunately it was too late. What is alarming is the numbers of students have felt sad or hopeless almost every day for two or more weeks in a row that they stop doing their normal activities. According to the CDC, 2014 29.9% of students nationwide felt sad or hopeless and 17% of students had seriously considered attempting suicide (Brewer 44). In another case the student by the name of Gabriel Taye he was only an 8 year old and committed suicide after being bullied at school. The parents are currently suing the school district, former superintendent, principal, and assistant principal for negligence regarding the bullying. 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While the exact wording is different from school to school, basically a zero tolerance policy means that a student is immediately suspended, asked to attend an alternative school, or expelled if they are suspected or caught doing certain things. These policies are in place to hopefully deter students from doing drugs or being violent, but the ethics behind them are questionableRead MoreUse and Application of the Zero Tolerance Policy in American Schools1773 Words   |  8 Pages In an effort to maintain peace, safety and a disciplined environment conducive to effective teaching and learning, many schools have adopted the zero tolerance policy. This philosophy was originally created in the 1990’s as an approach towards drug enforcement to address the rampant use, possession and sales of drugs in schools (Jones, 2013). Today, this policy is used to mandate the application of pre-determined consequences of violation of stated rules. 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Because of this policy, minority students have shown the tendency to be academically unsuccessful and are more prone to engage in misbehaviors that could lead to suspension or expulsion from school. It is for the sake of all of the children in American school districts that administrators, educators, and parents work together in order to determine the exact causeRead MoreCriminalization at School: Zero-Tolerance Discipline Policies Might Be Damaging to Students1309 Words   |  6 Pagesindefinite suspension with a recommendation for expulsion because his school administrators believed he flashed a gang sign although he was simply putting up three fingers to represent his football jersey number. (NPR Isensee, 2014). This kind of criminalization of young people contributes to suspension, dropout, and incarceration, and too often pushes students into what is refer red to by many education scholars and activists as the â€Å"school-to-prison pipeline,† a term that refers to â€Å"the policies and practices

Marriage And Family Play Essential Roles - 1567 Words

Jiakai Di English 101 Professor. Sangha 21 June, 2016 Back Then Marriage and family play essential roles in society, because wisdom is always passed to offsprings so that humen keep getting improved. Human are special because they think with reasons, although some are convincible some are not. In â€Å"What We Really Miss About the 1950s†, Coontz explained why people have nostalgia for 1950s however not really want to go back. In â€Å"From Marriage Market: How Inequality is Remaking the American Family†, Cahn and Carbone how women in nowadays are more free than those in old days. Present years in facts are not better times for children to grow up in because of lackness of standards, rampant and materialism. In 1950s, there were rules to be followed. Men should make living and carry the family, and women should take care of children, stay in the house and be obedient. Unlike people with â€Å"unbroken free† will now, each one was expect to do what they supposed to do instead of what they simply want to do. As result, people suffered from standards. â€Å"When Judith Wallerstein recently interviewed 100 spouses in ‘happy’ marriages, she found that only five ‘wanted a marriage like their parents’.’ The husbands ‘consciously rejected the role models provided by their fathers. The women said they could never be happy living as their mother did.† (Coontz 33) Apparently, the cage is gone, and people enjoy living in the way they like rather than the fixed way. However, as the result, freedom didn’tShow MoreRelatedThe Ultimate Goal Of Romantic Relationships978 Words   |  4 Pagesultimate goal of romantic relationships is to establish a long-term relationship culminating into marriage† (Gala Kapadia 2014). This is the belief that was instilled in me since I was a child. When I started dating, I had a few relationships that ended after a few months. My parents would continuously ask me â€Å"Why date someone if you have no intention of marrying that person?† However, I was young, marriage was the last thing on my mind. My reasoning was that if I liked the boy, and the boy liked meRead MoreShould parents assume equal responsibilities when raising a child?1330 Words   |  6 Pagesofficially be the partner of someone is through marriage. People have practiced marriage for thousands of years. Many cultures see marriage as the best method to celebrate the love of a couple until death tears them apart. â€Å"Marriage establishes and maintains family, creates and sustains the ties of kinship, and is the basis of community† (Rowe 2). Marriage is a concept bigger than ones happiness and it is the ba sic for creating a peaceful home for the family. According to Rowe, â€Å"This sense of home requiresRead MoreEssay on Peer Marriage 638 Words   |  3 PagesPeer Marriage Throughout the past generations, including my parents the family was defined as a traditional (patriarchal) relationship, where the male was the breadwinner and the female was the caretaker of the home and family. My generation has seen the materialization of what Pepper Schwartz describes a peer marriage. Peer marriage is different from the traditional marriage in four key ways: men and women regard each other as full social equals, they both have careers, the partners shareRead MoreShould Parents Assume Equal Responsibility When Raising a Child?1582 Words   |  7 Pagesofficially be the partner of someone is through marriage. People have practiced marriage for thousands of years. Many cultures see marriage as the best method to celebrate the love of a couple until death tears them apart. â€Å"Marriage establishes and maintains family, creates and sustains the ties of kinship, and is the basis of community† (Rowe 2). Marriage is a concept bigger than ones happiness and i t is the basic for creating a peaceful home for the family. â€Å"This sense of home requires the dynamic participationRead MoreEssay on The Significance of Family and Kinship671 Words   |  3 PagesThe Significance of Family and Kinship One of the most important and essential things that everyone must have in order to live a great and joyful life is family. One must follow values to be successful in life, and one must also support their family to keep that success advancing toward the future. In David W. McCurdy’s article, â€Å"Family and Kinship in Village India,† it discusses the significance of how a successful family is formed by tradition, preparation, and patience. The article describesRead MoreHow Marriage And Family Concepts Relationship Between Hinduism And Christianity Are Influenced By Laws Of Manu And Writings1679 Words   |  7 PagesI am going to talk about how marriage and family concepts or relationship in Hinduism and Christianity are influenced by Laws of Manu and Writings of Martin Luther. Martin Luther, a German monk, priest and theologian, is a great reformer in western church history. He focused his study on the necessity for salvation and stated that the rightness of God is the strong faith believers have. His writings hold against the corruption of Catholicism and at the meantime, describe his perspective in the RadicalRead MoreDivorce And Its Effect On Children902 Words   |  4 PagesIntroduction The concept of divorce is entrenched in the very idea of marriage. The possibility of marriages breaking down has increased considerably with some statistics placing the rate at 50% of all marriages. Divorce is a legal term that represents the separation of two people who had previously entered into a marriage agreement. While the prevalence of divorce is astonishing, the effect these instances have on families is critical. Many of the people who are divorced have children, whom theRead MoreMarriage Is A Life And Social Family Affair845 Words   |  4 PagesMarriage Marriages are suppose to be a lifetime of commitment towards love and care amongst people, yet most marriages seem to be falling apart due to the increasing numbers of problems within the relationship whether it is lack of communication, rushing into the marriage, or focusing on the glitz and the glam of planning the perfect wedding. Does marriage always mean love? When two people make a binding commitment to spend the rest of their lives together does it always last? Marriage is a unionRead MoreThe Video, Ewe Women1708 Words   |  7 Pageson the role of women and women’s challenges in the Dzodze society. She points out that women are the primary providers for the children. Men are unreliable because of polygamy and poor finances. There is huge participation in trade by women where they sell food, clothes, handicrafts and canned goods. Each day, women cook, sweep, fetch water and wash clothes. Women rear the children whilst men play very little role. Thus, women play a very huge role in the society. Despite playing a major role, womenRead MoreThe Main Sel ling Point Of Marriage Essay1549 Words   |  7 Pages Since ancient times ,marriage has been a way of life. Throughout the centuries, men used marriage as a token of peace to stop or prevent wars as well as the only viable option for women to prosper and survive in a male dominated society. Currently, it is no longer necessary for women to marry for survival and thus the marriage is losing its appeal. Hence, the non-traditional family structures are on a rise which goes against the ingrained teachings of past generations. Therefore, old school politicians

Turner Test Prep Co. free essay sample

1. Assuming the fixed costs are borne by the Turner Test Prep Company on an annual basis regardless of the fact that CPA exam preparatory sessions are held only two times a year, the detailed costs expenses can be categorized into fixed and variable costs as follows: For the break even analysis, the business operation should generate just enough revenue to cover the operating expenses (without any loss or profits). The case states $1,100 per student as the fee schedule. In this case, breakeven point can be expressed as: Fixed Costs + Variable Costs = Revenue. Thus, 139200 + 600X = 1100X Solving for X, X = 139200/500 - 278. students annually or 140 students/session for biannual session schedule. So, Jessica Turner’s breakeven point considering $1,100 in fees per student is at least 140 students/session or 280 students annually to cover for the business expenses without making any profit or incurring a loss. 2. Turner test prep’s competitive advantage lies in offering the following services: †¢Live classroom sessions along with audiotapes of the lectures for later review †¢One-on-one feedback sessions with Jessica Turner on a bi-weekly basis to track progress The result of these services provided a 100%, 70% and 80% pass rate for the last three sessions. We will write a custom essay sample on Turner Test Prep Co. or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page NTC program boasted a 75% pass rate. Turner test prep company should continue with the services mentioned above. The focus going forward should be to improve marketing and promote the higher passing rate. NTC has been around for a longer time and unless Turner Test Prep Company advertises its strong unique points, it would be difficult to sway customers away from NTC. 3. To achieve greater market share, Jessica Turner needs to improve the quality of the services considering customer’s profile and possibly expanding the geographical market to include additional areas in addition to the bay area. MARKETING EFFORTS EXPANSION: Higher passing rate should be a stronger ‘sell’ point. A survey system can be established to collect the feedback from the past students and gather additional information on previous attempts at the CPA exam. This would help to get a better understanding of the CPA exam passing rate for past students. Testimonials from these surveys can be also be used to market the company better. A reward system based on referrals from current and past students would help in promoting the Turner Testing Prep Company better. Knowing the break-even point and the competitive fees that can be charged to the students, Jessica can now plan on the profits and the number of students required to get there. This would probably necessitate expanding the business to other areas as well in addition to capturing students from the competition. †¢SERVICES IMPROVEMENT: As described in the case, Jessica was already thinking about offering some flexibility in the comprehensive program. Tailoring the program offerings to the customer’s requirements would enhance the students’ performance at the CPA exam.