Money Supply And Trading Volume Finance Essay - Free Essay Example

Sample details Pages: 25 Words: 7464 Downloads: 10 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Stock market plays a significant role in the economic growth of a country. Stock exchange performance has an important role in global economics, because of their impact on economic activity. For example stock exchanges allow firms to acquire capital quickly, due to the effortlessness source of traded. Don’t waste time! Our writers will create an original "Money Supply And Trading Volume Finance Essay" essay for you Create order Stock exchange activity, therefore, plays a significant role in helping to find out the effects of macroeconomic activities. The review of literature has considerable number of studies that look at the stock prices movements. Possibly one significant subject that has inward increasing interest from economists, financial investors and policy makers is on active effects of macroeconomic pointers on stock prices. Macroeconomic forces have regular influences on stock prices by way of their influences on expected future cash flows. Stock exchange prices are extremely sensitive to essential macroeconomic pointers. The effect of different policies on the growth of an economy can be calculated by the increase in stock exchange prices (Abdullah, 1997). TheKarachi Stock Exchangeis astock exchangesituated inKarachi,Pakistan, established on 18 September, 1947 it started with 5 companies with a capital of Rs. 37 million. It is Pakistans biggest and oldest stock exchange, with a lot of Pakistan i as well as overseas listings. Its present premises are placed on Stock Exchange Road, in the heart of Karachis Business District. KSE starts with a 50 shares index. As the market developed a representative index was needed. In poor political condition, social issues, financial and other problems, KSE played a vital role in the economy of Pakistan. KSE 100-index showed a return of 40.19% and became the sixth best markets in the year 2007. It gets a biggest milestone by touching of KSE-100 Index level of 15,000 for the first time in the history of Karachi stock exchange on 20 April, 2008. On the other hand, the raise of 7.4 percent in 2008 build-up the best performer in all the emerging market. As at June 1, 2009 there were 651 companies listed at KSE with market capitalization of US $ 26.48 billion having listed capital of US $ 9.65 billion. The KSE 100TM Index closed at 9645 points on 19 June, 2010. Although by 30th July total market capitalisation of the KSE reached Rs2.95 trilli on, approximately around 35 billion dollars (Safi Ullah Khan and Faisal Rizwan, 2008). Karachi Stock Exchange 100 Index(KSE-100 Index) is astock indexacting as a standard to compare prices on theKarachi Stock Exchange(KSE) over a period of time. In formative representative companies to calculate the index on, companies with the maximummarket capitalizationare selected. On the other hand, to ensure maximum market representation, the company with the maximum market capitalization from each sector is also incorporated. Karachi Stock Exchange is the largest and most liquid exchange in Pakistan. Money balances are merely one of a number of highly liquid assets which the individual may consider as part of his liquidity portfolio evaluated by the sum of financial and real assets. A steady rate of growth in the money stock matched with real growth in economic yield should generate no serious longer-run liquidity. One would expect the demand for liquidity balances to rise as real outpu t and, in return, incomes rises. Under this situation, one may think as to the forces generating general asset price modification. Possibly such alterations would be associated to the economic viewpoint, emotional pressures, and altering inclination amongst investors for financial assets. In addition, these forces would be unlinked to money stock. When the economys money supply rises, investors come across that the money portion of their assets is too huge and effort to regain the wanted portfolio mix by purchasing other assets such as stocks, compelling their prices to increase. The understanding of the stock market has long attracted mutually the academician and the stock trader. Consequently, this area has produced a number of descriptive stock market models ranging from those based upon exact analytic frame works to doubtful intuitive reasoning .Money flow-whether money is flowing into or out of a meticulous security-is supposedly an indication of present excess supply or dem and. That is, if uptick trades are supposed to be the buyer initiate and downtick trades are supposed to be seller initiate, a positive disparity between uptick dollar volume and downtick dollar volume match up to excess demand. Furthermore, proponents of by means of money flow state that existing excess demand (supply) predicts future excess demand (supply) and, as a result, positive (negative) money flow forecasts stock-price raising in a falling trend (Gllent, Rossi, and Tauchen, 1992). A several factors are attributed to the optimistic sentiment in Pakistans stock market throughout the last seven years (2000-07). These factors include: fast privatization practices of government owned enterprises, attract foreign investors in important organizations, like Pakistan Telecommunication Company Limited, Electricity Supply and National Refinery and so on, allowing foreign investors to send their funds without any constraint; decrease in the interest rates by the banks; continuous de velopment in economic essentials and higher industrial growth. These aspects are attached with different rules and laws, were introduced mostly for the security of the small investors, and to get efficiency in trade by computerization and restriction insider trading. These methods were taken besides reinforcement the structure of the Security Exchange Commission of Pakistan (SECP). These significant developments and measures have put in to the extraordinary growth in Pakistans equity market throughout the last several years (Safi Ullah Khan and Faisal Rizwan, 2008). The type of the link between money supply and common stock prices can be most defined as if a share of common stock is observed as an asset that produce its profits to the investor over time. When stock returns are linked to these better anticipations of money growth rates prior money terminologies drop practically all importance while present and particularly the next two months money terms persists to show a obvious link to current stock returns. This is a proof that stock returns predicts future monetary disorders by utilizing of information as well as information of current and past growth rates of the money supply (Barro, 1977). This study explored the relationship of Money Supply (M2) and tradingvolume of KSE 100 Index that whether they have the positive or negative relationship among them. Hence following hypothesis is constructed in order to get the desired result. The data used in this research has taken on the monthly basis. Moreover Monthly Money Supply is taken as independent variable and Monthly Trading Volume of KSE 100 Index as a dependent variable. Hypothesis: Money supply (M2) has a significant relationship with trading volume of KSE 100 Index CHAPTER 2: LITERATURE REVIEW Money Flow is assured as the disparity among upward and downward trading degree, has been used as an expertise pointer since the beginning of 1970s. Newly, however, the recognition of the rate has amplified radically. For instance, since October 1998, the Wall Street Journal is covering money flow for 4 main indexes and the 30 companies with the maximum and minimum flows on daily basis (Fama and K. French, 1997) Moreover much cyber investment investigating sites supply money flow statistics. Whether money is curving in or out of a specific security is supposedly a clue of present surplus supply or demand. That is, if upward trades are supposed to be consumer started and downward trades are supposed to be supplier started, an upbeat distinction among upward dollar volume and downward dollar volume relate to excess demand. Likewise, proponents of utilizing money flow state that present excess demand (supply) forecast upcoming excess demand (supply), thus, positive (negative) money fl ow predicts stock-price raise (decline) (Brown and Brooke, 1993). Trades that took place at a top (low) price than the prior trade were categorized as rising (declining) trades. Trades that happened at the same price as the prior trade do not put in to money flow and were deleted. The money flow linked with each lasting trade in the research is the dollar volume of the trade, declared positive if the trade took place on an upward and negative if the trade took place on a downward. These both money flows were aggregated to calculate the day to day money flow for each company. However money flow is also expected to have link to consequent money flow and return. Many reasonable settings are expected to upshot in such money flow determination (Barclay, 1993). Most economists are in agreement today that monetary policy has selected significance in scheming the economy, there is petite agreement as to how vital it is, or which monetary variable is the main variable. Pre-Keynesian ec onomists articulated that there was a conventional connection among the money supply and GNP. If the volume of money is doubled, for instance, for any basis, the interest rate would drop primarily. The abridged interest rate would rouse borrowing, investment and consumption while the reason to keep would be compacted. Total demand for goods and services would thus be raised and with a stable dynamic ability, prices would have to go up. Thus, once prices start to go up, the interest rate would go up again in answer to the equivalent drop in the real money supply. Prices would go up until they were doubled their initial level, thus tumbling purchasing power of the money supply to its earliest value and stability would be reinstated. The interest rate would also go back to its initial level, where saving and investment are alike. Economists first became cynical with this typical monetary theory during the depression for many good causes. For one thing, while the money supply about twic e over between 1933 and 1940, prices risen up only a little and economic doings stayed in the depressions until the huge increase in government war costs lastly drawn the country out of the doldrums (Bollerslev, 1992). In the quarter century since World War II, the reverse happening took place-the economy arouse at more than twice the rate of money supply growth. Most economists finally decided that, opposing earlier views, the link between the money supply and GNP was very floppy. In late 1940s, Keynesians measured money supply to be only one of the many factors which control the economy (Hossain, 1990). Fiscal policy is deemed to be of little significance in scheming the economy, principally in contrast to money supply. In contemporary years, the Economics Department of the University of Chicago has become the core of a new quantity theory, alike the old one, but that the Chicago School analyze that money supply straightly influence spending, apart from the trend in interest rates. Both sides see eye to eye that a more quick monetary growth, with any given fiscal policy will arouse the economy. The variation is that Keynesians see the money supply as being a more inactive factor in the inflationary illustration. Both schools of thought have a same mind that at least in the short process, a rise in bank reserves will be liable to lower interest rates since the supply of loan able funds is risen up. The new monetary theorists analyze that the increase in the money supply is so accelerated to the economy and the demand for loan able funds that in the long process interest rates certainly go up to higher levels. The cost of capital relies upon stock revenue, interest rates and certain tax changes such as the 7% investment tax credit. The main source of short-term fluctuations in personal wealth, that is wealth effect, is the oscillations in the stock market. They found credit rationing to be significant mainly for housing expenditures. When stock prices dr op sharply, consumers reduce their spending because of the cut back in their personal wealth (Chan and Lakonishok, 1995). The negative returns over weekends to transfer in the brokers shareholder balance in decision to buy sell. During the week, investors, too busy to do their personal research, tend to follow the advice of their brokers, advice that are skewed to the buy side. On the other hand, on weekends investors, free from their personal work as well as from brokers, do their personal research and tend to reach decisions to sell. The outcome is an internet excess supply at Mondays opening. It is supported by proof showing that brokers do tend to make buy recommendation, by proof that odd-lot dealings tend to be net sales, and by data showing that odd-lot volume is mainly high and institutional volume is mainly low on Mondays. Thus, individual investors tend to sell on Mondays when the shortage of institutional trading decrease liquidity. An additional explanation for the n egative weekend effect is that share prices close â€Å"too high† on Fridays or â€Å"too low† on Mondays. One alternative attributes uncommonly high Friday closing prices to settlement delay. The delay among the trade date and the settlement date charge an interest-free loan until settlement. Friday buyers get two additional days of free credit, creating an encouragement to buy on Fridays and pushing Friday prices up. The decline over the weekend reflects the removal of this incentive. Friday is the day with the best volume and with the mainly positive stock returns. KSE is termed as high-risk high return market where investors seek high-risk premium. During early nineties the non-informational factors apply greater pressure on stock market activity in Pakistan (Hossain, 1990). The primary cause for stock market declining with tight money and high interest rates, apart from the final effect on corporate earnings, is the fact that all financial assets are substitutes, at least to some extent. All the other things being alike, Increase in interest rates will give some investors opportunity to sell stocks and buy fixed income securities. The function of the stock market, in put out modifications in monetary policy to the real variables in the economy, is becoming broadly acknowledged among economists of both schools of thought. It is a concept worth deliberating in shaping investment timing strategy (Barclay and Warner, 1993). The variations in the rates of expansion of the private sectors stock of money may affect that sectors want to exchange money balances for other financial assets. This exchange, in return, may cause pressures heading to variations in the prices of these financial assets. Given these links, two common situations can be found: (1) Raise in the rate of expansion of the money stock may cause liquidity surplus. This imbalance may stimulate the private sector to exchange excess money balances for small liquid financial assets such as corporate stocks. This exchange may head to increase buying pressures on these small liquid financial assets. Strengthened buying pressures, in return, may provoke price level rising up with respect to these specific assets. (2) A drop in the rate of growth of the money stock may cause a shortfall liquidity situation. This imbalance may cause a transmission from less liquid financial assets into money. The conclusion of the private sectors effort to acquire liquidity balance may cause selling pressures on these less liquid financial assets which may generate general price dropdown (Granger, 1996). Conversion of money into near money holdings will not alter the private sectors money stock. Movements of funds into such nonbank financial intermediaries as Savings and Loan Associations just transfer the holdings of money balances i.e., from individuals to nonbank institutions-but do not modify the dollar amount exceptions. It should be observed, however, that currency wit h-drawls (transfer from demand deposits into currency) by individuals will trim the reserve base of commercial banks and thus restricting their offering capacity. If no counter policy is commenced by the Federal Reserve System, the capacity of commercial banks to make loans and, in return, increase the nations money supply, will be diminished (Chan and Lakonishok, 1995). Money balances are merely one of a number of highly liquid assets which the individual may consider as part of his liquidity portfolio evaluated by the sum of financial and real assets. A steady rate of growth in the money stock matched with real growth in economic yield should generate no serious longer-run liquidity. One would expect the demand for liquidity balances to rise as real output and, in return, incomes rises. Under this situation, one may think as to the forces generating general asset price modification. Possibly such alterations would be associated to the economic viewpoint, emotional pressures, an d altering inclination amongst investors for financial assets. In addition, these forces would be unlinked to money stock (and liquidity) changes (Berkman, 1978). Some proposals about the stock market are broadly accepted, most of members of the financial community possibly agree that alterations in Federal Reserve Board monetary policy tightly affect changes in stock prices. Since past 10 years, the significance of the rate of money supply expansion to the economy and to the stock market has been increasingly acknowledged. For many stock market analysts, money supply movements are now handed as advanced indicators of trends in central bank monetary policy and are regularly deduce as proposing updates about future stock price movements. Margin requirements, the discount rate, federal funds rates, reserve requirements and statements by Fed officials are broadly conveyed in the financial press and are recognized indicators of whether monetary policy is tapering or slackening, with the anticipation that a tighter monetary policy will be linked with falling stock prices and a simpler monetary policy with increasing stock prices. Business cycle turning points are linked with previous alterations in the rate of growth of the money stock (Rosa, 1999). Predictive form of the monetary portfolio model describes how modifications in growth rates of monetary accumulates heading changes in the prices of stocks (and financial assets) and lead amendments in prices of consumer goods and services. The monetary portfolio model sees investors as holding portfolios of such assets as stocks, bonds, durable goods and money. Investors decide the fraction of wealth they desire to hold in the form of money. When the economys money supply rises, investors come across that the money portion of their assets is too huge and effort to regain the wanted portfolio mix by purchasing other assets such as stocks, compelling their prices to increase (Karpoff, 1987). Sprinkle outlooks this chain as consuming enough time that one can foretell stock price alterations given information of precedent money supply movements. His main propositions are that as an indicator, the money supply sequence heads stock prices and that the sharp investor can avail this leading indicator to gain above-average profits in stock market investment. These statements have gone greatly unbeaten. Certainly, though that monetary change leads to stock price change using money data which they state is more returnable than a corresponding-risk, naive policy of buying-and-holding stocks. Thus there is a upright body of view that consider the money supply as an indicator by which movements in stock prices can be predicted (Michael, 1974). The capable market model also offer a clarification for the markdown of future proceedings by the stock market. If information goes up in current that has implications for future stock prices, investor activity will change the current price level so that the pre dicted proceeding is marked down in todays price. Since discounting can happen with respect to uncirculated as well as circulated information, the stock market can be competent with respect to uncirculated information; that is, prices may wholly show uncirculated as well as circulated information. In the occurrence of money supply movements, a situation can simply be pictured in which knowledge (published and unpublished) becomes accessible which permits investors to predict (correctly) preceding money growth rates. Thus, in a competent market, it would not be at all shocking to uncover that stock prices alteration in prediction of money supply changes if investors bring into play the substitute sources of information to estimate the heading course of the money supply. Also, market onlookers may extract implications about future money supply growth by viewing money market rates and present and predicted Treasury financings (Bollerslev, 1996). If investors deem money supply data t o be positive for stock prices and if the stock market is competent, then struggle by investors aiming to use stated information about alterations in the money supply will upshot in a level of stock prices. A statistical technique that beats these problems and offers a potent test of the power of money supply modifications on stock prices is linear regression. This scheme gives a clear measure of the fraction of the change in stock prices linked with prior changes in money growth rates. Moreover, with this statistical technique, a testimony can be made of the probably that any pattern shown in the data could have happened by chance (Brown and B. Brooke, 1993), The short of a association among stock returns and prior money data is at first glimpse an upsetting outcome for monetarists (those economists who have emphasis the main role that the money supply plays in changing the price level). Though, the similar linear regression method that shows the trivia of prior changes in the m oney supply to stock prices demonstrate that the current or consecutive money supply change is fairly important. The monthly money data in the phase since World War II, for example, can reveal about 4 to 10 per cent of the change in stock returns once the current money data is considered. Variations in monetary growth rates are solidly linked to the stock market once the current changes are taken account for, a outcome that pact with the monetarist view of Sprinkle and that monetary policy have impact on markets. But there is no proof of long delays in stock market response, therefore, of any possibility of returnable expecting stock prices, using variations in monetary policy; prior data has been wholly showed in stock prices of past periods, So cannot help to guess future movements. In addition, a non-expected form of the monetary portfolio models appears to turn the facts while a predictive form does not. That information may be accessible to the stock market that allows an precise review of upcoming money supply growth and that current stock prices reveals this information. At a minimum, if past money supply growth offers a sign of future money growth, the inference of past money growth for upcoming money growth would be marked down in a capable market (Wang, 1990) Further than, present data on the monetary base, money market situations, etc., may offer a foundation for consistent foretells of future money growth. If the stock market unfailingly and precisely predicts upcoming monetary growth, it is anticipated to one look a link among current price changes and future recognized money supply variations. To examine for this link, we summed up upcoming variations in money growth rates to the present and prior terms by now present in the linear regression explaining present stock returns. On a monthly footing, in all periods and sub periods and with numerous meanings of money, the outcome is a remarkable and progress in the relationship between stock returns and variations in money supply growth. In the era of 1960s, for example, the influence of the money terminologies to describe stock returns leaped from about two to 16 per cent once we add up upcoming money changes. This numerically important link reveals that a significant fraction of the changes viewed in present stock prices can be associated to following variations in monetary growth rates. The link is also a positive one; more than usual stock price rises are linked with subsequent more than usual money growth rates (Karpoff, 1987). The conduct of stock price varies over changes in money growth rates is 1 to 2 months. The escort of stock returns over future monetary growth continues under some different money supply meanings and utilizing some forms of data weekly, monthly or quarterly. It can be revealed to continue under a more precise test. If a test is held for the accessible sequence of comments of money growth rates, it can be viewed (using regression methods) that when money growth is bothered from its normal track, the disturbance continues for additional months (Gllent, Rossi, and Tauchen, 1992). Therefore a higher (lower) growth rate of the money supply noted today foreshadows a higher (lower) growth rate for the upcoming months. This propensity for monetary disturbances to continue defines that information of prior money supply growth assists to anticipate future money supply growth. Probably stock returns seem to predict future money growth rates as stock prices bend to the current growth rate and the disorder in the current growth rate is predicted to continue to test this speculation constructed new methods of future unpredicted growth rates that considered the inclinations for monetary disorders to continue (Chan and Lakonishok, 1995). When stock returns are linked to these better anticipations of money growth rates prior money terminologies drop practically all importance while present and particularly the next two months money terms persists to show a obvious link to current stock returns. This is a proof that stock returns predicts future monetary disorders by utilizing of information as well as information of current and past growth rates of the money supply. Not only is the money supply a bad indicator of upcoming variation in security prices, the current movement of stock prices offers information on upcoming money supply movements (Fama and K French, 1997). This link of money and stock prices, which is the overturn of what money supply observers have been led to anticipate, under-scores the uselessness of making effort to expect stock price movements with money supply info. It provides more evidence of a proficient stock market for which money seems to matter, though the link process in an unanticipated way. The movement of stock prices prior to money supply varies may be considered as proof that the monetary concerns are responding to prior stock price movements. This analysis is accurate with the viewed association but does increase the hard question why the Fed would drop monetary growth after viewing draping stock returns and vice versa-a policy which, in the usual view, would entail still lower stock prices. A second probable understanding is that stock prices and Federal Reserve concerns responds to the similar information but with stock prices responding more rapidly than the Fed. Growing interest rates, for example, are escorted by dropping stock prices, other things similar. Increasing interest rates are also on average followed by lower monetary growth rates though the link is a poor one. Joint associations with variables such as interest rates may define why stock prices of prior periods, hence cannot assist to anticipate future movements. In addition, a non-predictive form of the monetary portfolio model seems to suit the facts while a predictive form does not (Rosa, 1999). Though economic methods have been practiced with a level of success in studies of control lers of individual common stock prices, fairly little attentions has been given to the use of these methods in foretelling shorts run movements in collective indices of common stock prices. This deficiency of attentions is not shocking since precise forecasts of the average degree stock prices are of clear and practical importance for knowing the timing of stock markts investment ideas. In aaddition, econometric forecasting methods have the significant advantage that they produce upshots that are objective and quantitative and be constantly imitated (Berkman, 1978). It remain authentic, that the practise of economic methods to stock market foretelling is hard. The main difficulty is that any supposed link between stock prices and economic variables must rely strictly on predicted factors. Hence, given the restricted success econometicians have had in clarifying the establishment of predictions, it is obvious that a whole structural requirement of the determinants of stock prices is not promising at this time. On the other hand, this dilemma need not introduce the cradle of partial links between economice variables and a stock index. As a result, it seems valuableat this time to assume at least an research study of the significance of economic methods foretelling the average degree of stock prices (Richard, 1974). The type of the link between money supply and common stock prices can be most defined as if a share of common stock is observed as an asset that produce its profits to the investor over time. When stock returns are linked to these better anticipations of money growth rates prior money terminologies drop practically all importance while present and particularly the next two months money terms persists to show a obvious link to current stock returns. This is a proof that stock returns predicts future monetary disorders by utilizing of information as well as information of current and past growth rates of the money supply (Barro, 1977). The main reason for the affect of money supply on dividends functions through the firms present and predicted earnings. Provided the demand for money, a drop in the supply of money will increase interest rates and decrease interest precise expenditures like capital investment. The drop down in expenditures, together with the recognized multiplier, will then set off a decrease in firms sales and thus reduce in its earning. The period of the effect of the reduced earnings on dividends may rely on the firms cash flow and liquidity position, but eventually the whole effect must be a reduce in dividends. Though the current price of the common stock share will drop if current dividends are dropped, the important point of leverage for result of the money supply is on the predicted growth rate of dividends .For this reason, the predicted results of the money supply on dividends are as significant as any other actual short run results in knowing the reactions of the share price (Michael, 1974). T he affect of the money supply on thesafe interest rate elements of the investors cut down rate is a direct function of the effect of the money supply on market interest rates. The open increase in market interest rates due to risen monetary tightness may, in addition, be praticed by credit rationing in the loan market. The deteriorating situation of law and order and making up political uncertainity dangerously influenced the stock prices. A vast part of capital inflow in stock market was because of portfolio investment. the inflow and out flow of capital relies on the political and economic situation of the country. It is also created excessive fluctuation in stock market. In this situation, monetary tightness will increase the discount rate by an amount larger than would or may b indicated by the degree of market interest rates alone.as the effect of dividends on money supply, it should be emphasized that the main impact of the money supply on the safe interest rate is in terms of the variations in the predicted readings for upcoming levels of this rate relatively than in the original variation in the current value (Diamond, 1981). Though the main channels for the impact of the money supply on the price of common stock shares can be differetiated in the heading way, a plain form for the links must be mentioned if the link is to be assumed and utilized for forecasting. By having thses turning points in a stock prices index compared with the turning points in the groth of money, sprinkle framed an investment rule that,a bear market in stock prices was predicted 15 months after each peak in monetary growth, and that a bul market was predicted two moths after eac monetary growth trough was reached (Granger, 1996). The link between the money supply and thestock market is created using the methods of regression analysis. Comparitively the regression analysis has more advantages. It allows for more elasticity in makin particular lagged associations. In specific, particular peaks in the money stock and monetary growth sequence do not have to be simply recognised. The forecasts caused by a regression equation are quantitative and the recognised mistake attritbute that the unsurity linked with the forecast can be considered when planning an investment strategy (Chan and Lakonishok, 1995). Announcements about economic variables may also have impact on trading volume if the market member resetting their portfolios based on some new knowledge. If market member disapprove the impacts of surprises in announcements, there should be risen up trading actions in the market quickly after the announcements. In difference, if they are in agreement about the impact of new information, trading actions may not be unusual even when prices vary. Thus, testing the trading activity offers useful info about the activities taken by the market members based on macroeconomic news that stock returns alone cannot do (Bollerslev, 1996). Financial market members are cautious viewers of the weekly money supply declaration, and usually agree that the announcement often heads to variations in interest rates. This happens because the announcement leads market members to rethink their anticipations both of future federal reserve policy activities and of upcoming economic situations (Granger, 1996). Real growth of the money supply heads to less interest rates through a liquidity impact. Though, quick monetary growth which is not expected channels market members to predict the federal reserve to reducet such growth in the future. As a result, there may be a policy expectation impact which is responsible for higher interest rates in prediction of future tightening. in addition, prolonged quick monetary growth also causes inflation and inflationary anticipations which creates higher interest rates. therefore, there may be a third impact, the inflationary anticipations effect which also creates higher interest rates (Karpoff, 1987). The policy exp ectation effect is best defined by example. Assume that the declared variation in the money supply ismore than that expected by market members on the cause of priorexperience and policy announcements. assume more that monetary growth is the federal reserves policy concern. it would, thus, be right to anticipate that the federal reserve will make effort to decrease the growth of the money supply. Policy activities to do so would rise the federal funds rate and in result other market interest rates would also increase in expectations. Thats why, the policy anticipation effect of an unanticipated increase in the money supply is rising in market production. a liquidity impact which goes down produces when the money supply go up is not a same reaction to the money supply announcement because the liquidity effect happens when open market actions are organized (Chaudhary and Parai, 1991). The announcement made at the end of the week offers data for the money supply on wednesday of the prio r week. Furthermore, the money supply is influenced by the open market actions which happened some time earlier. Though growth in money supply can lead market members to rethink upward their anticipations of inflation and certainly of real growth, such reactions are both constant and delayed. Hence, the rapid impact result of the anticipation of a reaction by the federal reserve. a variation in federal reserve policy can happen on the day after the announcement when open market actions are held during early 90s the non-informational influences hugely affect on stock market operations in pakistan. these causes include structured variations in stock market, planning and making the stock price index, founded on market capitalization. These were the cosequences of financial liberalisation and deregulation policy. This has significant influence in the form of undefined and risk aversion. Because of uncertain regulatory and poor enforcement of policies,its increasing the problem like insi der trading and unchecked margin requirement trading. as a consequence these caused the leverage which can simply forced investors in bankruptcy problem if the investors anticipation about future prices are not acknowledged. Numerous huge project in private sectors like ptcl, hubco and others which drwan the investors mainly the foreign investors took away all excess liquidity, which in result sparked off the stock selling for desire of liquidity and this caused price fluctuations. preferential treatment for broker as jobber and involvement in speculative trade were also the cause of uncertain fluctuation in prices (Siddiqui, 1990). The deteriorating situation of law and order and making up political uncertainity dangerously influenced the stock prices. A vast part of capital inflow in stock market was because of portfolio investment. the inflow and out flow of capital relies on the political and economic situation of the country. It is also created excessive fluctuation in stock ma rket. The link between stock prices and trading volume in context of karachi stock markets daily data for very small time period i.e. nine months data. he discovered that importance of non-informational trade in defining the fluctuations in stock prices. the role of non-informational trade on stock prices is defined by introducing the variations in volume as non-information factor.the trading volume is multiplied with returns. trading volume gives the weightage to returns on those days when trading volume is higher than the returns on the days when it is normal. By this the impact of returns on the days of higher trade on the next day returns can be determined (Hossain, 1990). CHAPTER 3: RESEARCH METHODS 3.1 Sample size and sampling technique: The Sample size chosen for the analysis is 58, the data of 58 consecutive months have been taken for analysis. 3.2 Data used: Secondary data is used in this research to analysis this data. 3.3 Method of Data collection: Data of two variable i-e Money Supple (M2) and Trading volume of KSE 100 index was collected from State bank of Pakistan and Karachi Stock Exchange respectively. CHAPTER 4: RESULTS 4.1 Reliability Test: Hence in this research, secondary data is used and the internal consistency of the data extracted from the sources needs to be determind so for this reason Reliability analysis has been analysed and research has found that data is reliable and consistent. Reliability analysis allows studying the properties of scales of measurement and the things that build them up. The Reliability Analysis procedure calculates a number of frequently used procedures of level reliability and also gives information about the associations between individual items mentioned in the scale. Table 4.1: Reliability test Cronbachs Alpha is the internal consistency model which is based on the average correlation. Here the value of Cronbachs Alpha is 0.848 which indicates that the data is consistent. 4.2 Hypothesis testing: In this research, Hypothesis constructed was as followed and for testing this hypothesis regression analysis has been used to analysis and interpretation of the data: Hypothesis: Money supply (M2) has a significant relationship with trading volume of KSE 100 Index The above table shows the three variables that are used in performing the analysis these are Volume of Shares, Money Supply and Lag on first Level. Sample size chosen for the analysis is 58. Table 4.3: Correlation The above table shows the correlation among the variables, as we can observe that significant value of correlation test is less than 0.05 it means that there is correlation exist among the variable. The Relationship between Money Supply and Volume is negative or inversely proportional; correlation values for Volume and Money Supply is -.625. Table 4.4: Durbin Watson Initially when research applied the Simple Linear regression it has been identified a problem that there was a strong presence of Positive autocorrelation in the data set as the value of Durbin Watson was 0.959. In order to resolve the issue lags was generated up to the 2 levels out of which lag 1 becomes significant for the model. Table 4.5: Model Summary As it can be observed that the Adjusted R Square for the above model is 0.536 that is 53.6%, it means that our independent variable sets are explaining 53.6% of the variation in dependent variable. For e.g. if 1 unit change occurs in the independent variable set the change in the dependent variable is 0.536. From the above table we can observe that the Durbin Watson Value is 1.817 that is near to the value of 2 it means that we have solve the problem of Auto correlation in the data set. Table 4.6: ANOVA The regression value is less than 0.05 in the ANOVAs table it means that regression model is suitable to apply on the data set. The constant value for the above model is 6060 it means that if the money supply is equal to zero the volume of sha res is equal to 6060.651. The beta value for the lag 1 is 0.512, lag 1 means that the volume of shares on any day is dependent on the last day volume. For e.g. if 1 unit change occur in the last day volume the change it will bring in today volume is 0.512 of the last day. The Beta value of money supply is equal to -0.001 it means that there is negative relation exist among the money supply and volume of shares for e.g. if 1 unit increase take place in the money supply the volume of shares will decrease by 0.001. Variance Inflation Factors values are equal to 1.540 less than two, it means there is no existence of multi-co linearity in the data set. It has been proved from the above analysis that there is a significant relationship exist between money supply and Volume of KSE 100 Index, our Null Hypothesis is rejected. From the above diagram we can clearly understand the trend of volume over the passing years, in 2004 the volumes range were between 6000 to 7000 but in 2005 there was a huge jump observed in the volumes. We can observe the variation in the volume by the size of the Box Plot. After 2006 as we can see volumes are showing declining trend and in 2009 (economic recession period) the volumes are on very low side as compare to last six years. Graph 4.9: Money supply per year We can clearly observe from the above table that money supply has been increased in the last six years and in 2009 the money supply was enormous as compare to last five years. Stock markets are the true representative of the economy, if there will be a presence of high inflation in the country the investors shrink their business activities due to the chances of currency devaluation. The business activities shrink out and people are not willing to invest in the stocks. Government will inject more money in the market in order to increase the money supply as more money is required to buy the same commodities. Whenever economic recession occurs the activities in the stock mar kets shrinks, people are getting their money out from the market and doesnt willing to invest again until and unless they foresee the improvements in the economic conditions of a country. CHAPTER 5: CONCLUSION Stock market plays an important role in the economic development of a country. Stock exchange performance has attained significant role in global economics and financial markets, due to their impact on corporate finance and economic activity. For instance stock exchanges enable firms to acquire capital quickly, due to the ease with which securities are traded. Stock exchange activity, thus, plays an important role in helping to determine the effects of macroeconomic activities. The Karachi stock exchange has played a very significant role in the economy of Pakistan. Karachi Stock Exchange 100 Index(KSE-100 Index) is astock indexacting as a benchmark to compare prices on theKarachi Stock Exchange(KSE) over a period of time. In determining representative companies to compute the index on, companies with the highestmarket capitalizationare selected. However, to ensure full market representation, the company with the highest market capitalization from each sector is also included. Kara chi Stock Exchange is the biggest and most liquid exchange in Pakistan. The money flow linked with each lasting trade in the research is the dollar volume of the trade, declared positive if the trade took place on an upward and negative if the trade took place on a downward. These both money flows were aggregated to calculate the day to day money flow for each company. However money flow have link to consequent money flow and return. This research was mainly focusing on the relation between the money supply and trading volume of Karachi stock exchange. The findings showed that there is a correlation among the money supply and the trading volume has exist due to its significant value of correlation. The Relationship between Money Supply and Volume is negative or inversely proportional. Hence, finding by using the regression model, the money supply is equal to zero the volume of shares indicating that the volume of shares on any day is dependent on the last day volume and there is negative relation exist among the money supply and volume of shares as there is no existence of multi-co linearity in the data set. It has been proved that there is a significant relationship exist between money supply and Volume of KSE 100 Index, Null Hypothesis is not rejected. It has concluded from the research finding and results that the money supply has been increased in the last six years and in 2009 the money supply was enormous as compare to last five years. Stock markets are the true representative of the economy, if there will be a presence of high inflation in the country the investors shrink their business activities due to the chances of currency devaluation. The business activities shrink out and people are not willing to invest in the stocks. Government will inject more money in the market in order to increase the money supply as more money is required to buy the same commodities. Whenever economic recession occurs the activities in the stock markets shrinks, p eople are getting their money out from the market and doesnt willing to invest again until and unless they foresee the improvements in the economic conditions of a country.

Analysis Of The Poem Easter s End By Jared Diamond

Global warming is the greatest issue facing our planet and it has been acknowledged and discussed by many scientists throughout the world, yet ignored and unresolved. It has created a catastrophe and has produced immutable destruction to the environment and society. For years, global warming was a scientific theory that was not taken seriously, except by scientists, but now many are being aware that the temperature of the earth is increasing due to negligent acts of society. Society has now started considering it as a significant issue that may endanger their surrounding atmosphere and their lives. Easter s End by Jared Diamond discusses the vanishing of Easter Island s forest by the society that once lived there and which has now been left as a mysterious and isolated Island. Similarly, Margaret Wood s The Weather Where We Are, tackles climate change and how it is effecting the Arctic, due to the absent-minded acts of humans. Moreover, Is it Warm in Here by David Ignatius conveys th e importance of environmental changes like global warming and its effects on the planet. The similarity that all these articles include, is that society destroys itself, yet chooses to ignore it until it is too late. Global warming represents a crucial threat to all living things on earth and it is all because of society. Political action is able to alter the laws and directives that concern climate change, such as limits to greenhouse gas emissions or the burning of fossil fuel. It is

Token Vs Ethernet Essay Research Paper Well free essay sample

Token Vs Ethernet Essay, Research Paper Well, now I feel baffled about this whole state of affairs. I started taking categories portion clip at BU about five old ages ago. I took two networking categories, Network hardware and Network direction. I didn? T transportation my credits to um because the engineering had changed so fast, and I wanted to larn the newest engineering. Now here is where the confusion sets in, at the clip they still had some nominal ring material but the large push was Ethernet. My teacher at the clip owned a computing machine store and did tonss of confer withing for concerns in Portland. He swore up and down about how old manner item ring had become. So know we have the Ethernet and everybody can speak at one time and, it so much cheaper. You can acquire in 10Mbps or 100Mbps V. Token rings 4Mbps or 16Mbps. We will write a custom essay sample on Token Vs Ethernet Essay Research Paper Well or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page So, so I come to school here and take an Into to LAN category. The teacher merely so happened to work at Hussey Seating in the IS section. He starts touting about the new engineering called FDDI. He besides talked extremely about Ethernet and severely about Token Ring. Now I? m taking your category and you seem to tilt more toward nominal ring, or mabey that? s merely the feeling I get. My sentiment on this whole state of affairs is that a company should research all of the possibilities and pick the 1 that best suites their demands. They should be carefull non to purchase the newest engineering merely because it is the newest, it may stop up non being every bit good as an older one. From what I have heard it seems that Ethernet is easier to work with, is good in bursty traffic and is cheaper. Then on the other manus Token ring maintains it through put even in high traffic when Ethernet? s throughput is greatly reduced in high traffic. If a company already has an bing web, so I would urge that any new webs be the same protocol because the velocity seems to dramatically drop when two engineerings are bridged. It takes a batch to interpret from one protocol to another. Besides bridging devices can be dearly-won.

Peoples Mind Work

It is possible to concentrate on the idea that the people’s mind is responsible for the human’s attitude to the reality and to his or her perception of time, space, and the form of being because these categories are the results of the mind’s work.Advertising We will write a custom essay sample on People’s Mind Work specifically for you for only $16.05 $11/page Learn More Thus, people’s relations with the world depend on the peculiarities of this or that person’s mind and understanding of one’s role in the whole world. Differentiating between identity and relational logics, it is important to operate the notions of time, space, and being and discuss them in detail with references to Virginia Woolf’s vision of the person’s mind and its possibilities in this context. Can people follow the principles of only identity logic or only relational logic? The variety of the life situations and the react ions of the human mind to them can support the idea that there are no persistent followers of this or that pattern of behaviour, actions, and attitude because of the diversity of the variants and influential conditions. In spite of the fact identity logic is based on the definite stableness of considerations and ideas, it is impossible to speak about one identity for the majority of situations and at all the life stages. From this point, relational logic is more flexible for defining the people’s behaviours. Thus, the man is often different in his attitude to time, space, and even being, and this peculiarity can be discussed with references to Woolf’s considerations. The opposition of the human’s dependence on his or her identity or relations has its origins in the power of the mind. Is a person stable from the point of identity and form of being? According to Woolf, the answer is ‘no’ because the mind â€Å"seems to have no single state of beingâ €  (Woolf, 1989, p. 97).Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More That is why it is significant to focus on the variety of persons’ forms of being which can be realised in relation to different people and different situations. What forms of being can people acquire because of the work of their mind? What are the mind’s relations with the persons in the street? Are they the part of the whole picture of the world along with the person who observes them through the window? The mind â€Å"can separate itself from the people in the street, for example, and think of itself as apart from them† (Woolf, 1989, p. 97). Separation and division of the world into ‘I’ and ‘the other people’ is the principle associated with the vision of the being according to the person’s identity. Can this perspective be discussed as the only one for describing the possibilities of the mind in its relation to the world? Even being separated from the public with the help of a window and observing the other people from the distance, the mind often breaks these boundaries and acts according to the open relations with the world and persons in it. The mind â€Å"can think with other people spontaneously† (Woolf, 1989, p. 97). In this case, people focus on the relational being instead of the defined one. Humans develop varieties of their identities while being involved in relations with the world and persons in it. Thus, the notions of independence and identity are changed with the concept of closeness to the whole. As a result, not only the form of being is influenced but also the space which expands its boundaries in relation to the crowd is affected. If the defined and relational beings can be changed under the impact of definite conditions and situations, what factor can influence the concept of time? The mind â€Å"can think back th rough its fathers or through its mothers† (Woolf, 1989, p. 97).Advertising We will write a custom essay sample on People’s Mind Work specifically for you for only $16.05 $11/page Learn More Thus, the mind can exist in the flow of the past, presence, and future where the past is the part of the presence, and the presence forms the future. Thinking back, it is possible to support the chain of times without references to its chronological character. From this point, the perception of time can be discussed as the perception of the eternal and dependent chain. Fluency is in a kind of the continuity, and it is the way to determine the time from the relational perspective. Nevertheless, the perception of time also depends on the surroundings. The impossibility of the constant fluency of time for the mind is accentuated with emphasising the fact that actions can be spontaneous and sudden. In this case, suddenness can result in â€Å"a sudden split ting off of consciousness† (Woolf, 1989, p. 97). This fact allows further focusing on the duality of the person’s mind and its perceptions. Consciousness which is the basics for understanding and explaining of the people’s actions can be split off, changing the perceptions of being, time, and space. This principle can work for everyone, including writers and women-writers who â€Å"being the natural inheritor of that civilization† can become â€Å"alien and critical† when looking at it from the distance (Woolf, 1989, p. 97). This opposition accentuates the duality of the mind’s perception and conclusion. The ‘natural inheritor of that civilization’ acts according to the principles of the relational logic, being the part of the whole. The moment when a person, especially a writer, becomes distant from his or her surroundings and critical about them is associated with the identity logic with focusing on differentiating between this person and the other people. Does Woolf concentrate on one vision of the person and his mind? The author provides the readers with the point of view according to which she accentuates two possible ways of discussing the question at a time. The sense of difference is emphasised by the fact that â€Å"the mind is always altering its focus†, and it can discuss the world from â€Å"different perspectives† (Woolf, 1989, p. 97).Advertising Looking for essay on social sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is possible to see the world processes from a distance or be actively involved in its development, to perceive the time as the line or as the circle or chain, to think of the space as full of boundaries or as infinite. All the variants can be close to different people in various situations in spite of their vision of their own identity because the people’s mind can change the focus and perspectives from which the world and people can be perceived. Reference Woolf, V. (1989). A Room of One’s Own. USA: Mariner Books. This essay on People’s Mind Work was written and submitted by user Graysen K. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

History and Evolution of Digital Imaging Technology in Health Care Essays

History and Evolution of Digital Imaging Technology in Health Care Essays History and Evolution of Digital Imaging Technology in Health Care Paper History and Evolution of Digital Imaging Technology in Health Care Paper Digital imaging technology plays a major role in contemporary health care, both as a tool in primary diagnosis and as a guide for surgical and therapeutic procedures. Besides gains over analog techniques concerning the image acquisition phase, such as possibility of dose reduction with no over- or under-exposure problems, the main motivation behind digital imaging is to exploit the advantages of digital storage and communication technology. Digital data can be easily archived, stored and retrieved quickly and reliably, used in more than one location at a time, do not suffer from aging and moreover are suited to image post-processing operations. One of the most important innovations not only in digital imaging technology, but in the medicine field as well, is the X-ray technology. X-ray imaging was the first diagnostic imaging technology, and scholars claim that X-ray technology was invented accidentally in 1895. Wilhelm Conrad Roentgen was a professor of physics at the University of Wurzberg in Germany. He was doing experiments with a cathode ray tube when he noticed that a fluorescent screen on the other side of the room was glowing (Green and Bowie, 2004). Because Roentgen knew that the cathode rays could travel only a short distance outside the cathode tube in the air, he knew he was observing a new phenomenon, an unknown ray, which he identified as an â€Å"x† ray, noting the unknown in mathematics. This accidental discovery by Roentgen has impacted most human beings in the course of their lives. For the health care sector, this discovery has led to more effective diagnostics, X-ray technology gave physicians a powerful too, that for the first time, permitted accurate diagnosis of a wide variety of diseases and injuries. X-ray is a form of electromagnetic radiation capable of penetrating solids. The penetration capability is higher in soft tissue than in hard and this difference can be registered on photographic film. This basic method of X-ray was quite sufficient for the examination of broken bones or punctured lungs, but the use of X-ray as a diagnostic instrument was increased by replacing the photographic film with a light sensitive electronic device combined with a capability for amplifying the signals. Initially, x-rays were used to diagnose bone fractures and dislocations, and in the process, x-ray machines became commonplace in most urban hospitals. Separate departments of radiology were established, and their influence spread to other departments throughout the hospital. By the 1930s, x-ray visualization of practically all organ systems of the body had been made possible through the use of barium salts and a wide variety of radiopaque materials (Green and Bowie, 2004). Through this development, it became possible to convert the X-ray beam to analog electronic signals, which could be presented on a television screen. In many respects the technology of image amplifying resembled television technology. By employing electronics it became possible to decrease the energy in the X-ray beam and thus to reduce the exposure to radiation. The shift to electronic technology increased the possibilities for discriminating between different levels of penetration and it also made possible to examine moving parts. The energy required by the electromagnetic radiation was also reduced by the development of new, more light-sensitive photographic film. Issues in Information Technology for Health Care In the pre-information technology, the management of patient records in health care organizations was based largely on manual file processing systems. Over time, these practices became standardized in the form of patient registers, medical service claims, work orders, patient billing files, and books of accounts. The manual system required health record technicians and specialists who were well trained in maintaining paper-based records, while others (e.g., physicians and nurses) delivered the services. The health manager’s role was simply to enforce documentation to conform to evolving standards, such as acceptable data coding, accounting principles, and book practices. In effect, the manual system of documentation dictated the traditional structure of the health care organization. Patient records are maintained by the records department of a health care institution, and the quality of a patient record depends largely on the individuals making record entries. All healthcare practitioners and others who enter information into patient records must understand the importance of creating complete and accurate records, as well as the legal and medical implications of failing to do so. The increased emphasis on fraud and abuse prevention in the healthcare industry has further highlighted the importance of proper medical records. Today, concern about privacy and confidentiality is increasing. To some degree, this concern is fueled by the growth of electronic medical records and databases that allow the exchange of information to more people, at great distances, with little effort.

afghanistan karzai essays

afghanistan karzai essays Dear brothers and sisters, the representatives of the bereaved nation of Afghanistan; Dear guests, members of the diplomatic corps Assalamu alaikum, may peace be upon you. I have some wonderful news and some concerning regarding the status of your country through my leadership as your president. As you may have known in my past, I have loyally served my country through the Soviet attempt of occupation and have succeeding and assisting my compatriots in freeing our country. I left Kabul in 1994 for Qandahar, due to the internal strife among the various factions. While in Qandahar, I was approached by my former colleagues from the Afghan resistance against the Soviets, to free Qandahar from the menace of warlordism, factionalism, and oppression. Thus, with the assistance of the local inhabitants and the Taliban this objective was achieved. However, in mid 1995 I parted with the Taliban movement, since they were gravitating towards extremism and negative foreign influence. In 1996, with the Taliban in control of Kabul, I was offered the post of their representative to the United Nations. Hamid Karzai rejected the Talibans offer, and instead devoted all my efforts towards the convening of an Emergency Loya Jirga, under the auspices of His Majesty, Mohammed Zaher, the Former King of Afghanistan. With me as one of the principal organizers, the Loya Jirga movement received an important impetus and in October 1997, an Intra-Afghan Dialogue Process was launched in Istanbul, Turkey. The movement sought to provide the Afghan people the opportunity to determine their right to self-determination in accordance to their free will. Following meetings of the Intra-Afghan Dialogue Process in Frankfurt and Bonn, Germany in July 1998, the focus of activity was shifted to Rome, Italy in 1999. (embassyofafghanistan.org/main/bios/karzai_bio.cfm) During the next several years, I worked to introduce the Loya Jirga process as the on...

Any engineering ethical issue happend in the LAST TWO MONTHS Essay

Any engineering ethical issue happend in the LAST TWO MONTHS - Essay Example At a distance of about 1500 miles towards the west of Cape Town in South Africa, oil spill occurred in the south Atlantic that put millions of Northern Rockhopper penguins’ life in danger (â€Å"Fragile Earth† 1). In the present time, the most rare and endangered Penguin specie is the Rockhopper Penguin. The very specie ha been affected the most by this incident. It is quite likely that this incident becomes sufficient to make this specie completely extinct. Tons of diesel fuel and crude oil have soaked their furs and blocked their nostrils. A lot of penguins have died since the spill occurred. This is the most severe oil spill that has occurred in 2011 and is a potential issue of engineering ethics. The oil discharging company remained highly unethical in its practice. In this course, we have been taught that engineers should discharge the waste in ways that are environment friendly. The oil spill in the south Atlantic was totally unfriendly towards the environment. Wo rks Cited: â€Å"Fragile Earth: Oil Spill, March 16 2011, Threatens world's most endangered species of Penguin.† 2011. Web. 3 May. 2011. . Harris, Charles E., Davis, Michael, Pritchard, Michael S., and Rabins, Michael J. â€Å"Engineering Ethics: What? Why? How? And When.† Journal of Engineering Education. (1996): 93-96. Web. 3 May. 2011.

The wall between Palastain and isreal Essay Example | Topics and Well Written Essays - 500 words

The wall between Palastain and isreal - Essay Example It is a source of malevolence, violence and untold misery to many. The Israelis call it the â€Å"Security Fence† while the Palestinians call it the â€Å"Apartheid Wall†. This paper discusses why the Wall brought about damaging effects to the Palestinians living in and around Jerusalem. To begin with, the Wall discussed here refers to the barrier that was constructed by the Israeli Government in June, 2002. Christison (Para 3) states that the Wall was constructed in order to serve as a protection barrier for the Israelis, with the chief objective of preventing the uncontrolled entry of the Palestinians into Israel. One reason for this was the rampant activities of suicide bombers, in what the Israelis termed as terrorism. It separated Israel from the West Bank region, and would me built along the Green Line – an internationally recognized boundary that was set up after the war in 1948 to 1949. While the Israelis were justified to build a barrier of protection, they hardly considered the vast harmful effects that such a Wall would bring about, especially to the Palestinians. Exploring the reasons as to why the Wall resulted in misery for the Palestinians, the first would be the political philosophy of the Israeli Government, commonly known as Zionism. Zionism advocates for the separation of the Israelis from the Palestinians, including those who live in Jerusalem. It is firmly believed that this would eventually cleanse the population. One of the key features of Zionism is the confiscation of land. This implies that the Wall would be constructed in such a manner as to curve out more land for the Israelis, a factor that would eventually help them take over control of majority of the land in question. The effect of such an action is that it has left many Palestinians without land that originally belonged to them. Secondly, the Wall covers a route that partly runs through the West

The Importance of Sex Education in Todays Schools Essay Example for Free

The Importance of Sex Education in Todays Schools Essay What did you learn about in school today honey? Oh, we did some proofs in Geometry, practiced past tense verbs in Spanish, and learned about sexually transmitted diseases in Health class. Suddenly, all goes silent, and the subject is quickly changed to something else. One of the most controversial issues facing todays schools is whether or not sexual education, or sex ed, should continue to be taught to children. On one hand, some argue that it should, because children need to be properly educated on this topic and the potential consequences that can result from it. However, many others oppose this viewpoint, arguing that sex ed is a personal subject for parents to discuss with their children, and therefore does not belong in an academic setting. While both of these viewpoints have their strengths as well as their limitations, it is extremely important for sex ed to continue to be taught in todays schools. Not only will students be properly educated on how to prevent negative sexual outcomes, such as sexually transmitted diseases (STDs) and unintended pregnancies, but also on the wide range of topics related to sexual health, such as communication, relationships, and decision-making. Overall, sex education has both physical as well as emotional benefits for school-aged children. Of course, there are several reasonable objections to sexuality education curriculum being taught in todays schools. First, it is argued that  sexuality is an inappropriate topic to be taught in schools, for schools are a place to learn typical academic subjects such as Math, Science, or English. In addition, those who are against sex ed assert that sex is a personal matter and should only be taught to children by their parents. In other words, it is the parents responsibility to provide sexuality education for their own children (Goldman 5). This would be a reasonable point to make. After all, parents are the first and most readily accessible of all the teachers from whom children learn (Goldman 6). Further, children consistently report that they want to receive information from their parents regarding sex (Goldman 6), suggesting that they would rather learn about sexual activity from their parents than from teachers. Finally, opponents of sexuality education curriculum argue that teaching this topic in schools essentially condones teenage sex, and thus will result in more teens engaging in sexual activity. However, these opposing positions have their limitations. Researchers point out that sex ed is after all, an academic subject, so it is appropriate that it is included in schools curriculum (Hamilton, Sanders, and Anderman 3). Sex ed is not a class taught on its own, but rather a component of schools health classes. The problem is, people mistakenly believe that sex ed only refers to sexual behavior, such as sexual intercourse, and not the full array of topics that comprise sexuality (Implementing, par. 4). These topics include information on:  abstinence, body image, contraception, gender, human growth and development, human reproduction, pregnancy, relationships, safer sex (prevention of sexually transmitted infections), sexual attitudes and values, sexual anatomy and physiology, sexual behavior, sexual health, sexual orientation, and sexual pleasure. (Implementing, par. 4) From this information, it can be concluded that sex ed does not just discuss sexual activity as critics claim. Rather, it teaches students about several important life topics regarding sexual health and human relationships. The argument that parents should be the sole educators on sexuality has its  limitations as well. The fact is, not all parents are talking to their children about sex. A nationally representative survey commissioned by the Planned Parenthood Federation of America (PPFA) and the Center for Latino Adolescent and Family Health (CLAFH) revealed that 57% of parents either feel only slightly comfortable or uncomfortable talking to their children about sex and sexual health (Parents, par. 6). Also, additional research has shown that many parents do not provide relevant, timely, developmentally appropriate or even enough sexuality education for their own children, and the education they do provide is perceived by their children as infrequent and of poor quality (Goldman 6). So even if parents are talking to their children about sex, they may not be giving their children a proper or complete education. A study conducted on the salience and utility of school sexuality education for young men found that for most young men, school sex education appeared to be the only substantive source of information they had received on sexual matters (Goldman 8). Finally, if parents really feel that they are the best educators regarding sexuality and do not want schools teaching their children this topic, they have the right to pull their children out of the program. According to the California Department of Education, the law recognizes that parents have the ultimate responsibility for teaching their children about human sexuality and may choose to withdraw their children from this instruction (California Department of Education #15). Schools are required to notify parents at the beginning of the school year about planned comprehensive sexual health education and HIV/AIDS prevention education and give parents the opportunity to review materials as well as the opportunity to request in writing that their child not participate in the instruction (California Department of Education #15). In closing, sexual education is a vital component in todays academic curriculum, for it may be the only source from which some children receive accurate information regarding sexual health. Finally, there is the false belief that providing comprehensive sexual education in schools endorses sexual activity and will lead to more teenagers having sex. However, research shows just the opposite: knowledge of sexuality is much more likely to lead to informed decision making, delayed sexual intercourse, responsible interpersonal behavior, and  self-protection strategies (Goldman 7). In addition, a study that examined sex education in California public schools revealed that curriculum-based, comprehensive sexuality education, which involves instruction that includes a focus on abstinence, as well as inclusive information about contraception and sexually transmitted diseases, has been shown to delay sexual activity (Combellick and Brindis 3). The belief that teaching children about sexual education endorses premarital sex is erroneous because school-based sex education has been shown to delay, rather than hasten, the onset of sexual activity (Goldman 7). It can now be seen tha t these three common objections to sexual education curriculum being included in todays schools have their limitations. Comprehensive sexual education programs can greatly benefit school-aged children. With this curriculum in place, children will receive a complete education on the risks associated with sex, such as sexually transmitted diseases (STDs) and unintentional pregnancies, and how to avoid these outcomes. This knowledge has been shown to decrease the number of unintentional teenage pregnancies as well as STDs. One study revealed that teenagers who received a comprehensive sex education were significantly less likely to report a teen pregnancy compared to those who received no sex education (Kohler, Manhart, and Lafferty). According to the Sexuality Information and Education Council of the United States (SIECUS), this likelihood is about 50 percent lower, a tremendous finding. In addition, school-based sex education efficiently reduces the incidence of negative sexual outcomes as well as increases teenagers intentions to adopt safer sex behaviors (Kumar, Lim, Langford, Seabrook, Speechley, and Linch; Goldman 7). Thus, sexual education programs can play a tremendous role in reducing the number of teenage pregnancies and STD cases. In addition, sex education programs are necessary in todays schools because children are undergoing sexual development at much younger ages than in previous generations. Over the past decade or so, the age at which children start puberty has gone down considerably. According to WebMD.com, American boys are starting puberty at an average age of ten; two years earlier than the average age from twenty years ago (DeNoon par. 1). Similarly, girls tend  to start puberty around age eleven, but some can start as young as eight or nine years old (Watson). With the onset of puberty, children undergo many hormonal and physical changes that they may not fully understand without proper instruction. Furthermore, adolescence, defined as the ages between 10 and 19 years (Goldman 4), is a crucial stage in sexual development as well as for learning about healthy sexuality (Kumar; Goldman 20). In Goldmans study, surveyed children viewed puberty and its implications for the maturation of human development as a major part of their body, self-identity, and social and interpersonal norms (20). In other words, children are aware of the important role puberty plays in their physical, emotional, and social development. Thus, sexual education should remain a part of todays schools curriculum, so children will continue to be fully educated on the rapid physical and emotional changes they are undergoing. However, as is the case with all arguments, this position has its limitations. Students being educated about sexuality at school may feel like they do not need to discuss this topic with their parents. As a result, sexual education programs could indirectly discourage students from talking to their parents about sex. Additionally, even if schools are teaching comprehensive sexual education programs, some students may not retain all of the information they receive. One study found that a majority of the surveyed adolescents demonstrated significant gaps in sexual knowledge even though they had successfully completed their high school sex ed requirements (Kumar et al.). Finally, despite the fact that 22 states require public schools to teach sex ed, the United States still has the highest teen birth rate in the industrialized world: three out of ten girls in the U.S. will become pregnant at least once before their 20th birthday (State). In addition, about nine million cases of STDs occur among teenagers and young adults in the United States every year (Weinstock) even though 33 states require HIV/AIDS instruction in schools (State). However, these limitations do not take into account that 28 U.S. states do not require sexual education to be taught in public schools. As a result, not all students are receiving a complete education on sexuality, which includes instruction on how to prevent pregnancies and STDs. After all, only  about five percent of young people in the United States get a complete and comprehensive sexuality education (Goldman 19). In addition, only 14% of school districts in the U.S. permit comprehensive sexuality education to be offered to students (Goldman 15). Therefore, the high number of teen pregnancies and STD cases in the U.S. could be attributed to a lack of comprehensive sex education programs, not an overabundance of them. Overall, sexual education programs are an integral component of school-aged childrens academic curriculum, as much as the public has come to realize. More than 90% of parents of junior high and high school students believe that it is important for sex ed to be taught in the classroom (Facts #10). Moreover, teachers, parents, and students all agree that schools should provide quality sex ed, including knowledge, skills, and values, that will enable school-aged children to make timely choices and thought-out decisions for themselves (Goldman 20). Thus, it can be seen that sex education is already a widely supported component of elementary and secondary academic curriculum. Finally, sex education should continue to be taught in schools because it educates children on many important life skills. Sexuality has several different topics associated with it, such as human development, relationships, communication and decision making (Siecus par. 5.). When people think of sex ed, they generally do not think of these life skills. However, sex involves numerous life decisions, from choosing to abstain to choosing a birth control method. In addition, communication and relationships are an integral part of sexuality, because it is a union that involves two separate people. Plus, students who received a comprehensive sex education were more likely to report having better communication with their parents (Hamilton 5). Due to this wide array of topics covered, it is no wonder that high school sexual education classes received the highest average rating of usefulness among all listed sources (Kumar et al.). Sex education programs truly benefit todays school-age children in countless ways. There is no doubt that sex education in todays schools is a controversial  issue, however, it must continue to be taught. Children who do not receive proper instruction on this topic at home need a place where they can receive accurate information regarding sexuality. Furthermore, this academic subject will help students learn the skills necessary to make informed decisions regarding their sexual health and avoid negative sexual outcomes. Finally, it is so important for sex education to be taught in schools so that developing children can learn about their changing bodies as well as numerous important life skills. Sex education should no longer be viewed as an inappropriate topic to be taught in schools, but rather as an essential component of school-aged childrens education. Works Cited California Department of Education. Frequently Asked Questions. _CDE.CA.GOV._ California Department of Education, 19 Sep. 2013. Web. 3 Nov. 2013. Combellick, Sarah, MPH and Claire Brindis, DrPh. Uneven Progress: Sex Education in California Public Schools. _Bixby Center for Global Reproductive Health,_ Nov. 2011. Web. 3 Nov. 2013. DeNoon, Daniel J. Earlier Puberty: Age 9 or 10 for Average U.S. Boy. _Children.WebMD.com._ WebMD LLC., 12 Oct. 2012. Web. 5 Nov. 2013. Goldman, Juliette D. G. Responding To Parental Objections To School Sexuality Education: A Selection Of 12 Objections. _Sex Education_ 8.4 (2008): 415-438. _Education Research Complete_. Web. 2 Nov. 2013 Hamilton, Rashea, Megan Sanders, and Eric M. Anderman. The Multiple Choices Of Sex Education. _Phi Delta Kappan_ 94.5 (2013): 34-39. _ERIC_. Web. 1 Nov. 2013. Kohler, Pamela, et al., Abstinence-Only and Comprehensive Sex Education and the Initiation of Sexual Activity and Teen Pregnancy, _Journal of Adolescent Health_ 42.4 (March 2008); 344-351. Web. 4 Nov. 2013. Kumar, Maya M., et al. Sexual Knowledge Of Canadian Adolescents After Completion Of High School Sexual Education Requirements. _Paediatrics Child Health (1205-7088)_ 18.2 (2013): 74-80. _Academic Search Complete._ Web. 1 Nov. 2013. National Conference of State Legislatures. State Policies on Sex Education in Schools. National Conference of State Legislatures, 1 July 2013. Web. 6 Nov. 2013. Planned Parenthood. _Implementing Sex Education._ Planned Parenthood Federation of America Inc, 2013. Web. 3 Nov. 2013. Planned Parenthood. _New Poll: Parents are Talking With Their Kids About Sex but Often Not Tackling Harder Issues._ Planned Parenthood Federation of America Inc, 3 Oct. 2011. Web. 3 Nov 2013. _Support the Real Education for Healthy Youth Act._ Sexuality Information and Education Council of the United States, n.d. Web. 4 Nov. 2013. Watson, Stephanie. Dealing with Early Puberty. _Teens.WebMD.com._ WebMD LLC., 17 Nov. 2011. Web. 5 Nov. 2013. Weinstock, H., et al., Sexually Transmitted Diseases Among American Youth: Incidence and Prevalence Estimates, 2000, _Perspectives on Sexual and Reproductive Health_, 2004, 36(1):6-10. Web. 7 Nov. 2013

Artificial Intelligence: Where does it fit? Essay -- Technology Artifi

Artificial Intelligence: Where does it fit? Machines in the future will not be able to differentiate between man and machine, and neither will humans; except that machines will be active: working, learning, developing new technology. Humans on the other hand, have no choice but to watch from our glass boxes because machines have become so advanced and we would only interfere. Maybe the future won’t look exactly like that, but truthfully, computers will reach human intelligence someday. They have already surpassed our calculation abilities and our speed of processing information. But we can still hold on to our intelligence for now. Artificial intelligence, the science and engineering of making intelligent machines through intelligent programs, is not just about modeling human behavior. It’s more about making life easier and better by developing new tools with advanced capabilities. Artificial intelligence, like technology, advances rapidly as time moves on. It needs to be worked on before considered satisfactory, let alone perfect. Computers have many similarities to humans like neural impulses to digital technology or being programmed to function in a certain manner. A computer is given commands and specific outputs for corresponding commands. Humans are taught to act or not act in specific ways. We have automatic responses such as fear, hunger, and happiness. We’ve been programmed to react differently to various stimulants. Great progress has been made by developers of artificial intelligence, but there remain large gaps between humans and machines. Physically, humans have bodies with senses. Machines could have bodies— like robots—but they are still unable to sense the physical world and react to it. H... ... If computers overtake the workplace, professionals sacrifice their dignity: there will no longer be an emphasis on skill level because the computer makes the decisions. Mistakes would be inexcusable, although humans are not flawless. Humans would not be credited for achievements because computers will have done all the computation, planning and presentation. The value of a human life will decrease as the computer climbs the corporate ladder. If humans continue to do what we do best, look out for ourselves. We’ll realize that artificial intelligence should be made to supplement humans, not to replace them. We should not rely on computers as much as we rely on our instincts and judgments. If we allow machines without bodies and without minds to take over our world, what would our purpose be? Would we have existed just to bring artificial intelligence about?

Articles and Essays Essay

Today’s teenagers seem to have more time and less responsibility and supervision than the last generation’s. It’s quite common to see teens â€Å"hanging out† at shopping centers, fast food restaurants or where ever they can get together to socialize. Usually, they just have fun and enjoy themselves, but sometimes problems occur. Teenagers who are bored and looking for something to do are likely to get into trouble and become involved in unhealthy, inappropriate or illegal activities. The increased number of unoccupied and unsupervised teens in may be related to the loss of many family farms and business and to the increase in single parent families. Many teens in the last generation were expected to share the responsibility and work of a family farm or business. They were supervised, learned important skills and didn’t have time to get into mischief. Today, most parents work away from the family, and teens are left to occupy themselves . Also, single parents and parents who are both working are often unable to adequately supervise their teenager’s activities. Teens need free time to spend with friends, relax and have fun. They need to learn how to find appropriate, healthy activities and entertainment. Free time can teach them important skills they will need as adults. Unfortunately, too much free time can cause problems. Not all teenagers are able to find appropriate, healthy activities and entertainment for themselves when they are not occupied and supervised. Following are some things parents can do to help teens learn to be responsible, have fun and stay out of trouble. †¢Set specific rules about family expectations, such as time to be home, chores and responsibilities, etc. Allow teens to help make decisions about rules and consequences. †¢Give younger teens specific responsibilities and chores. offer opportunities to earn extra privileges or money for doing extra chores. Allow teens to spend money they earn on things they want. †¢Encourage older teens to get a part time job. Jobs provide and opportunity to meet people, learn new skills and earn extra money. †¢Talk with older teens and encourage them to think about their goals and what they would like to be doing when they are adults. Help them plan activities working toward their goals. †¢Know where teens will be. Call and check occasionally, or ask them to check in periodically. If they are at home, ask a family member, neighbor or friend to stop by if possible. †¢Encourage teens to become involved in community programs, recreational activities and special events that they are interested in. Check into activities available in the community, such as scouting, softball, YMCA, camps, church activities, clubs, etc.

IMAX’s business level strategy Essay

1. Discuss IMAX’s business level strategy to date and proposed changes. (10 points) Products differentiation The large format movie system gives customers unique visual and audio movie watching experience that cannot be found in conventional movie theaters. IMAX is also differentiated by its library of films and locations. IMAX located itself in institutional environment and commercial multiplexes to target wider audiences include family, students, and tourists at different time during the day by screening its own movies and other studios’ movies. Speaking of the technologies, IMAX films printed on larger films, which require special designed camera, projector, and screen to display the IMAX features. Cost leadership. The company heavily invests financial and human resources in their R&D, because the technologies developed would lower the costs of producing and distributing films significantly. The newer service agreements and partnership with theater owners allow IMAX lower its capital requirements when new IMAX screens were opened in the traditional multiplexes. IMAX not only saves money on films making because they don’t have to pay a lots of money to the major stars as the Hollywood does, but also save money on the marketing. IMAX increased the number of Hollywood movies in order to ride on the coat- tails of marketing campaigns launched by the studios. The proposed expanding strategies will bring more audience to IMAX, and save more production and distribution costs. By opening new IMAX screen in commercial multiplexes will give customers easy access to IMAX movie, and allow IMAX gain more market share, and increase box ticket revenue. Although the initial system installation and movie converting costs are big, over long term IMAX can achieve economies of scale by utilizing the IMAX system installed in traditional theaters. 2. Conduct an external analysis. (25 points) a). PESTEL framework Political factors Concerns about violence, sex, and vulgar language in movies had generated considerable efforts to organize and lobby political action to regulate the industry. There are some limit in terms on selection of movies. Legal factors Copyright law protects this industry suffering from piracy. Violations of copyright act were considered felonies and were subject to federal criminal charges and civil lawsuits. Patent law also protects the technologies heavily used in this industry. Economic factors The economy is fairly stable except the crisis that hit the industry in the late 1990s because of the overbuilding during that decade, the 911 crisis in the early 2000s and the economic recession in 2008. The economic crisis in 2001 and 2008 would reduce people’s disposable income therefore reduce the revenue of the industry. Socio-cultural IMAX is trendy. It does not matter that if people have seen movies in the traditional theater before, some of them would like to watch on IMAX screen again. Parents looking for activities combine education and entertainment would go to IMAX. More highly educated parents and overscheduled kids would like to go to places equipped with IMAX system. The college and university education are popularized which increases the majority of IMAX audiences. Technology factor New filming technology development are encouraged and supported by funds, associations and Oscar Award. But the development of high-definition DVD recording, big screen TVs and cheaper projection and sound system technology offers potential IMAX viewers’ alternative sources of entertainment. The internet, live play, TV programs and cables are also substituting technologies. b). Porter’s Five Forces IMAX operating in three industries: photographic equipment and supplies industry, motion and picture and video production and distribution industry. Barriers to entry  This industry requires upfront investments to develop technologies, relationship with producer and access to the distribution channels. IMAX held 46 patents and has seven patents pending in the United States, in order to enter this industry, potential competitors must develop their substitute technologies, or take the risks of copying IMAX’s patented technologies, and  both are very costly. IMAX is achieving economies of scale, the more movies released in IMAX format, the more the IMAX system installed are utilized. IMAX is also updating their technologies and making improvement to lower the costs of operations, therefore the learning curve cost advantages act as a barrier to entry. The barrier to enter this industry is high. Threats of substitutes Live plays, sport events, TV programs (big screen TV, cable, and satellite), the internet, DVD, home theater projection and sound system are all alternatives of IMAX movie for consumers to entertain themselves in a different way. These substitutes also prevent IMAX from raising the ticket price. The threats of substitutes are high. Suppliers The suppliers are vendors who provide the critical elements involved in IMAX’s projectors and camera systems, film making talents (actors, post-production workers), other studios (Hollywood, Disney, SKG DreamWorks etc.), and movie distributers (theater chain). The suppliers’ power is low because by releasing movies in IMAX format and opening more IMAX screens will increase the box office revenue for all the parties involved. IMAX does not pay top stars to make movies. They pay the actors whose median salary is $17 per hour. IMAX has most its post-production work done by its wholly-owned subsidiary. IMAX purchases its equipment components from vendors with whom it maintained long-term relationships. Buyers Buyers are people who are willing to pay for the IMAX movie tickets, and theater chain has IMAX systems installed in their theaters. IMAX doesn’t rely on certain type of buyers. The buyer range is very wide, and from different demographic. They are not likely to be price sensitive because the majority IMAX audience with average household income of more than $70000. The product offered by IMAX is much differentiated, and buyers cannot get the same watching experience anywhere else. Overall, the buyers’ power is low. Rivalry The rivalry is low because IMAX was founded as the only company in the world that was involved in all aspects of large format films. IMAX doesn’t have  direct competitor in this industry. Even though some of the moviegoer may choose the traditional theater instead of watching IMAX, most the IMAX audience are willing to pay extra $3 to $5 to experience the unique IMAX features and some of them already watched the same movie in the traditional theater before. Additionally, only IMAX movies have long lifespans in the theater circuit. In conclusion, I think this industry is attractive. c). Key opportunities and threats Opportunities: Large format film industry is emerging industry, and this industry is driven by technological innovations, changes in demand, and customer needs. IMAX can utilize the first-movers advantages. IMAX has the technological leadership, and also obtains the patent protections that enhance their performance. IMAX has the opportunities to tie up the strategically valuable resources, which are the relationships with independent filmmakers, and distribution channel such as theater chains, so that it can success in this industry Threats: IMAX is a relatively small firm compared to a rival studio, so they might be bought, and becomes a part of another company. IMAX is not able to maintain their brand image if so many Hollywood movies released in IMAX format. 3. VRIO (25 points) Valuable Rare Inimitable Organized Competitive implications Technological leadership Yes Yes Yes Yes Sustainable competitive advantage Locations Yes Yes No Yes Temporary competitive advantage Relationships with other studios and theaters Yes No No Yes Competitive parity Brand image Yes Yes Yes Yes Sustainable competitive advantage Cash flow No No No Yes Competitive disadvantage The technologies allow IMAX display the large format film features on giant screen to attract customers. Because of the patent protection, it is rare and hard to copy. IMAX invested in their R&D, and received grants and award from third parties, so it is organized. By locating itself in institutional environment, IMAX creates a unique brand and attract different group of audience, so it is valuable. It is rare because not so many entertaining facilities opened in this environment. This strategy is not hard to imitate. It is organized because some of the IMAX films were educational and entertaining, and involved documentaries of natural and scientific wonders, so it valid to have IMAX in these locations. Convert other studios’ movies into IMAX format increase the IMAX ticket revenue, so it is valuable. The alliance with other filmmakers also saving IMAX’s marketing expenditure. It is not rare because the Hollywood movies also released on DVD, pay-per-view  format. People can also watch movies on TV and internet. It is not costly to imitate. It is organized because not all the Hollywood movies are released in IMAX format, it must be carefully chosen. The brand image is valuable because the large films features and unique watching experience are only associated with this brand name. It is rare because this product can only be provided by IMAX. It is hard to copy because this brand image is developed over long time, and IMAX has the first mover advantage. The company R&D and new services are supporting this brand image in terms of innovation and cost saving, so it is organized. The cash flow is not valuable because this company has negative net income for 2006 and 2007. The fact that IMAX’s debt has been downgraded is an indication that the company’s liquidity is questionable. It is organized because IMAX is trying to solve this problem by signing new service agreement, which would lower its operational capital requirements and help it pay off its debt. More box office revenue is expected by converting more commercial movies into IMAX format. 4. Based on your analysis, would you recommend proceeding with and expanding the strategy to exhibit Hollywood movies? Should the firm retrench? (20 points) Pro: Hollywood movies are the most popular movies in the world, by releasing more Hollywood movies in IMAX format, more audience will be attracted by the combination of the movie and unique watching experience. This is the quickest way to make revenue in order to improve the company’s financial situation. This strategy also allows IMAX to take advantage of marketing campaigns launched by the studios therefore to save the marketing expenses. Because Hollywood movies has the most market shares, and this high demand will stimulate the theater owners to open more IMAX screens. It gives IMAX the opportunity to attract more viewers and expand the core audience. IMAX can make more revenue by signing more service agreements with traditional theaters, and make profits by maintaining the system and sharing ticket revenue. If IMAX is releasing more Hollywood movies, share price is likely to go up, and create more value for shareholders. The more confident the stakeholders are, the easier for IMAX to raise capital to focus on technology R&D and further differentiate its products. The digital re-mastering technology reduced converting costs. Converting other studio’s movie is now making more profits and cost less. Con: Screening re-formatted movie is not as profitable as screening IMAX own movies, and makes IMAX take  the risk of diluting its brand image. Releasing more Hollywood movies may let people question IMAX’s educational function. The violence and sex contents in Hollywood movie may drive parents and their children away. Screening more Hollywood movies will benefit IMAX. It increases the revenue and the number of audience; therefore I recommend proceeding with and expanding the strategy to exhibit Hollywood movies. In long term, because IMAX has all these great technologies, and more stable financial supports, they should focus on developing its own movies. IMAX also should launch more marketing campaigns to promote its movies in order to maintain the brand image, and place more emphasis on its educational and entertaining functions. IMAX may develop some sub brands for example like, Smart Imax Kids, or Learning with Imax which only located at institutional environments and integrate with the ride simulation packages to target specific demographics. This action will strengthen IMAX brand image and make the young generations and potential Hollywood moviegoers like these brands and become real IMAX fans when they grow up.