GoodWill Essay Example | Topics and Well Written Essays - 1500 words

GoodWill - Essay Example Life skills training and counseling, elements of GoodWills core services, help to prepare individuals for the demands of the workplace. Many GoodWill agencies also provide assistive technology devices and training to eliminate barriers for people with disabilities such as vision or hearing impairment and paralysis. (Lysecki 2005) The organization serves individuals with physical, mental and emotional disabilities, as well as those with disadvantages such as welfare dependency, illiteracy, homelessness or lack of work experience. In 2000, the agency began implementing a $20 (m) million grant from the U.S. Department of Labor to provide training and support to place welfare-to-work recipients in temporary Census and permanent community jobs. So far, GoodWill has exceeded the goals of the project, serving 15,175 participants and placing 5,180 of these in competitive employment. GoodWill also established national partnerships with Bank of America and CVS/pharmacy to recruit and train individuals for a variety of jobs at these companies. GoodWill placed 77,895 individuals with disabilities and other disadvantages in competitive jobs; they earned $973.4 (m) million in salaries and wages. "We want to make sure that we are helping people develop a lifelong career plan through education and career development opportunities," says Samuel W. Cox, Interim President and CEO of GoodWill Industries International. "We have the flexibility to meet the needs of the individuals while meeting the needs of employers. Our efforts boil down to building lives, families and communities one person and one job at a time." Over 42 (m) million people donated clothing, household goods, computers, cars, and other items to GoodWill, generating $941.1 (m) million in revenues for GoodWill programs. GoodWill sells its donations in 1,869 retail stores across North America and on its Internet auction site, shopGoodWill.com. GoodWills retail stores earn more than 50 percent of

Patton Fuller Financial Statements Essay Example for Free

Patton Fuller Financial Statements Essay Financial statements hold a great deal of information on them and there are many things to consider when reviewing them. A financial statement can be audited or unaudited which vary in expense information. There are effects of revenue sources to consider and businesses have a different revenue every year. They can either be close in dollar amount or could vary significantly. The financial goal to how much revenue a business wants to make should be set in order to plan and control for expenses that the business must pay for in case of emergencies. Financial statements are very detailed and are well informative of the financial status of a business. Audited Versus Unaudited In the Patton-Fuller revenue and expense statement report, the audited or unaudited financial statements vary in their particular expense information. A considerable reduction in the analysis of income is the fundamental procurement of every doubtful account. The distinct term refers to fixed number of accounts receivable that will eventually become bad debt or standardized as unvaluable funds. A statement furnished concerning all third party reports shall always demonstrate the distribution of doubtful accounts noteworthy as an expenditure (Baker Baker, 2011). Management of the doubtful accounts have a million dollar increase particularly on the audited statement report in comparison to the unaudited report. All the allotments in the calculated amounts vary within the net income and operating income from signifying a profit that undoubtedly shows a loss. An audited balance statement affirms an amount of one million dollars that is reduced in revenue corresponding with the unaudited report on the present profit listed that relates to patient balance due.

I am Buddhist :: essays research papers

I am Buddhist An often forgotten essential in our short existence we call â€Å"life† is our need for at least a quintessential connection of spirituality for our own subsistence. And as this world we live in, develops into supposed â€Å"development’’ and as evolution directs our way of life into a tedious search of happiness derived from money†¦ and a person in a modern society barely has a moment for a prayer and â€Å"time’’ being as impatient as it is, the youth have no seconds to just sit and contemplate the power of a higher being, that a GOD might be the one that governs our destiny and fate†¦ and to have a flicker of an instant where one experiences a religious outlook on life†¦the air we breathe turns a little fresher and a load gets lifted off shoulders of stressed mentalities†¦ and call it a â€Å"pre-mature revelation’’ or a pious unveiling of my character but I have encountered such an emotion when I visited a ha ven called Bodh Gaya. Situated in the most corrupts of states in India, Bihar†¦it is an oasis of belief and hope and maybe the only answer and truth to some. It’s an uncanny placement for enlightenment, one might suggest†¦ but as a Buddhist, imagining all the struggle and suffering that the Buddha had overcome and all the adversities he had surpassed and of course the harsh truth he reveals to us and conveys with such meaning in his simple diction is at most overwhelming. At first sight the Mahabodhi temple standing tall among such meagre neighbours, humbled me at once†¦ petrifying in some ways and yet it seemed to comfort me all at once. As for the papal tree where Buddha had gained salvation is surrounded with such spirituality that it seemed to bog down upon my shoulders and yet at the same time it uplifted my spirits in the most unexplainable way. The hustling and bustling noises of Indians selling odd trinkets and beggars among the streets are drowned by the Tantric chants of monks praying in union. A pilgrimage that changed the way I thought about the youth†¦ and I was young too, therefore it basically changed the way I thought. As words are my limits†¦ so is word my only limits through which I cannot describe and do justice to the communion that one has to go there and experience for oneself. ‘’Nothing is as constant as change’’ and the journey through life does not end until death.

A Canticle for Leibowitz and Starship Troopers: The Movie Essay

A Canticle for Leibowitz and Starship Troopers: The Movie In this paper I intend to explore the attitudes toward the value of individual life vs. the value of a community as a whole expressed in A Canticle for Leibowitz and Starship Troopers: the Movie by analyzing their treatment of information control, euthanasia, and the idea of obtaining happiness through a sense of purpose. Starship Troopers may be a satire of a fascist state or an apology for fascist ideology or neither (I don’t pretend to know which). In any case, it is a depiction of a possible state of affairs that could theoretically arise out of a futuristic fascist regime. The ideology advocated by this state, and for the most part by its subjects, is one that treats the state as something greater than the sum of its parts, as a benevolent machine that will take care of the people as long as the people are willing to sacrifice as much of themselves as necessary to keep it oiled. A Canticle for Leibowitz, at least from the perspective of the monks (again, this is not necessarily that of the author), takes a much more individual approach to pursuing the common good. In other words, it treats the community, or species, as exactly the sum of its parts; people are encouraged to further the common good by furthering their own good. Progress is a result of individual motivation rather than of a m andate of the state. One way the difference between these two ideologies manifests itself is in the treatment of the control of information. In Starship Troopers, since everything is controlled by the government, so are all channels of information. In the movie, we see an unidentified hand (presumably that of the common citizen) happily clicking on the government-controlled... ...ach relies on a different method of human motivation. Starship Troopers relies on an individual’s submission to the rule of the state and willingness to forget about himself in terms of his own psyche in favor of a collective identity. A Canticle for Leibowitz supposes that people are best motivated as individuals; that is, allowing people to act and exist as individuals increases their investment and interest in their own survival, which in turn increases that of the survival of the species. It also supposes that individuals can be trusted as such, without a controlling system. Maybe this difference is why we are so upset when the first main character in A Canticle for Leibowitz dies (after we spend about a hundred and seven pages becoming attached to him), but the characters in Starship Troopers are so flat and predictable that we really don’t care when they die. A Canticle for Leibowitz and Starship Troopers: The Movie Essay A Canticle for Leibowitz and Starship Troopers: The Movie In this paper I intend to explore the attitudes toward the value of individual life vs. the value of a community as a whole expressed in A Canticle for Leibowitz and Starship Troopers: the Movie by analyzing their treatment of information control, euthanasia, and the idea of obtaining happiness through a sense of purpose. Starship Troopers may be a satire of a fascist state or an apology for fascist ideology or neither (I don’t pretend to know which). In any case, it is a depiction of a possible state of affairs that could theoretically arise out of a futuristic fascist regime. The ideology advocated by this state, and for the most part by its subjects, is one that treats the state as something greater than the sum of its parts, as a benevolent machine that will take care of the people as long as the people are willing to sacrifice as much of themselves as necessary to keep it oiled. A Canticle for Leibowitz, at least from the perspective of the monks (again, this is not necessarily that of the author), takes a much more individual approach to pursuing the common good. In other words, it treats the community, or species, as exactly the sum of its parts; people are encouraged to further the common good by furthering their own good. Progress is a result of individual motivation rather than of a m andate of the state. One way the difference between these two ideologies manifests itself is in the treatment of the control of information. In Starship Troopers, since everything is controlled by the government, so are all channels of information. In the movie, we see an unidentified hand (presumably that of the common citizen) happily clicking on the government-controlled... ...ach relies on a different method of human motivation. Starship Troopers relies on an individual’s submission to the rule of the state and willingness to forget about himself in terms of his own psyche in favor of a collective identity. A Canticle for Leibowitz supposes that people are best motivated as individuals; that is, allowing people to act and exist as individuals increases their investment and interest in their own survival, which in turn increases that of the survival of the species. It also supposes that individuals can be trusted as such, without a controlling system. Maybe this difference is why we are so upset when the first main character in A Canticle for Leibowitz dies (after we spend about a hundred and seven pages becoming attached to him), but the characters in Starship Troopers are so flat and predictable that we really don’t care when they die.

Novartis Pharmaceutical Gender Discrimination Class Action Lawsuit

Amy Velez, et al. , v. Novartis Pharmaceuticals Corp. is one of the largest gender discrimination lawsuits ever to go to trial. The class action lawsuit claimed Novartis Pharmaceuticals (NPC) practiced sex discrimination against female employees under Title VII of the Civil Rights Act of 1964 (Wilson 2010). The plaintiffs are nineteen women presently or formerly employed by NPC in sales related positions. They claimed the NPC discriminated against them in various ways, including compensation, promotion and promotional opportunities, personnel evaluations and by adverse treatment of women who take maternity leave.They seek injunctive relief, back pay and front pay, and compensatory and punitive damages (US District Court Document). The class action lawsuit later grew to include 6,200 women employed by NPC. The time period of the discrimination was from 2002-2007 Amy Velez, who had twins in 2001 claimed she was repeatedly passed over for promotions by men who had inferior sales numbers . She also claims to have overheard a manager asking recruiters prospective employees were married or had children. Wilson 2010). Another woman claims she was told by a manager that he prefers not to hire younger women saying â€Å"First comes Love, then comes marriage, then comes flex time and a baby carriage. † (Wilson 2010). In addition, the plaintiffs claim that men in the same positions earned more money than women in the save positions. The final approval of the settlement was November 19, 2010. The settlement, which totaled $175 million, included $152. million in back wages, benefits, and adjusted wages, service payments to named plaintiffs who helped litigate the case, and attorneys' fees and costs, plus $22. 5 million in nonmonetary relief representing Novartis's commitments to revise its employment policies to eliminate sex discrimination (McGowan 2010).In response to the decision, according to NPC’s web page â€Å"As part of its commitment to fostering a di verse and inclusive workforce, NPC is implementing comprehensive programs designed to ensure that all members of its sales force are treated fairly. NPC still denies these claims but admits some of its employees may have not followed company policy. NPC will also substantially revising its human resources policies, revamping its personnel management systems, and strengthening its commitment to ensuring gender equality in the workplace These practices by NPC took place over a five year period between 2002-2007. The severity of the claims shows an escalating conflict. There were repeated offences. First here was awareness of differences; a couple female employees knew they were being passed over for promotions. This continued to annoyance; more female employees learned they were being continually passed over for promotions. Later to frustration; when the female employees learned that certain managers were not hiring younger women or women with children. Next there was anger; when sexi st comments were made by management. This conflict finally escalated to hostility and war (war being the lawsuit).NPC could have avoided this class action lawsuit by making sure all their branches were following proper anti-discrimination procedures. Inappropriate comments by management should have been taken seriously by upper management. All employees should have been required to go to diversity training. Upper management should have looked more closely at the male/female promotion ratio. If only NPC’s upper management would have been more in tune with their subordinates this costly lawsuit might have been avoided.

261 Introduction 1865-1914 Professor Ramos Blog

261 Introduction 1865-1914 Introduction to Post-Civil War America Introduction to Post-Civil War America The Gilded Age Reconstructing America The Literary Marketplace Forms of Realism The Woman Question Unseen Forces The New American Empire Aftershock: Beyond the Civil War

Petroleum and Middle Indus Basin Essay Example

Petroleum and Middle Indus Basin Essay Example Petroleum and Middle Indus Basin Essay Petroleum and Middle Indus Basin Essay Kohat-Potwar Oil and Gas Exploration and Production The first oil well drilled in present-day Pakistan was at Kundal on the Potwar Plateau in 1866. The first commercial oil discovery was made in the Greater Indus Basin in 1914 when the Attock Oil Company completed a 214 ft well on a thrust-faulted anticline near Khaur on the Potwar Plateau (Khan and others, 1986). Early success in the Kohat-Potwar geologic province served to focus much of the early exploration activity in that area. The Sui field in the Sulaiman-Kirthar Foreland geologic province was the first discovery outside of the Kohat-Potwar geologic province and is the largest gas discovery in Pakistan, with more than 5 trillion cubic feet (TCF) of gas reserves. Discovered in 1952, the Sui field is a dome-shaped reef structure with an anticlinal surface expression. The largest reserves were found in the 625 m thick Eocene Sui Formation Sui Main Limestone Member. The Sui Upper Limestone Member and upper Eocene Habib Rahi Limestone were also productive. In 1999, Upper Cretaceous Pab Sandstone Formation gas production began at Sui field. Although exploratory wells had been previously drilled in the Middle and Lower Indus Basins, the discovery of the Sui field accelerated exploration efforts in the 1950s. More discoveries followed in that area with the Zin gas field in 1954, the Uch gas field in 1955, and the Mari gas field in 1957. Exploration activity increased again in the 1980s, when identification of a tilted fault block in the Lower Indus Basin led to the discovery of a series of oil fields. Although there have been significant oil discoveries in the Lower Indus Basin, it remains a gas-prone province. Gas discoveries that are attributed to the Sembar-Goru/Ghazij TPS have been made in Eocene, Paleocene, and Lower Cretaceous rocks on the Mari-Kandhot High in the Rajasthan Province of India. The Cambrian oil discoveries in Rajasthan, however, are beyond the extent of Sembar deposition and are either sourced by updip hydrocarbon migration from the Sembar or more likely by proximal older Mesozoic and early Paleozoic rocks. Sembar-Goru/Ghazij Composite Total Petroleum System The Sembar-Goru/Ghazij Composite Total Petroleum System (TPS) as defined for this assessment, is a north-south elongated area extending from the Potwar-Kohat geologic province in the north to the 2,000 m bathymetric contour in the Arabian Sea . The west boundary coincides with the axial belt and western edge of the Indian plate and the eastern boundary extends into India on the Indian Shield . Geochemical analyses of potential source rocks and produced oil and gas have demonstrated that the Lower Cretaceous Sembar Formation is the most likely source of oil and gas for most of the producing fields in the Indus Basin. Source Rocks While the Sembar has been identified as the primary source rock for much of the Greater Indus Basin, there are other known and potential source rocks. Rock units containing known or potential source rocks include the Salt Range Formation Eocambrian shales, Permian Dandot and Tredian Formations, Triassic Wulgai Formation, Jurassic Datta Formation, Paleocene Patala Formation, Eocene Ghazij Formation, and lower Miocene shales. Of all the possible source rocks in the Indus Basin, however, the Sembar is the most likely source for the largest portion of the produced oil and gas in the Indus foreland. In the Kohat-Potwar geologic province the Paleocene Patala Shale is the primary source rock for most, if not all of the province. In the offshore areas of the Indus geologic province, Miocene rocks are postulated to be good hydrocarbon sources, with the Sembar contributing in the shelf area. The Lower Cretaceous Sembar Formation consists mainly of shale with subordinate amounts of siltstone and sandstone. The Sembar was deposited over most of the Greater Indus Basin in marine environments and ranges in thickness from 0 to more than 260 m (Iqbal and Shah, 1980). Rock-eval pyrolysis analyses of 10 samples from the Jandran-1 well in the Sulaiman Range of the foldbelt, indicate an   most likely prove to be gas prone. verage total organic carbon content (TOC) of 1. 10 percent. The TOC values from the Sembar in two Badin area wells in the foreland portion of the Lower Indus Basin have TOC’s ranging from 0. 5 to 3. 5 percent and averaging about 1. 4 percent. A cross-plot of pyrolysis data on a modified van-Kreveln diagram study indicates that the organic matter in the Sembar is mainly type-III kerogen, capabl e of generating gas; however, additional proprietary data indicate the presence of type-II kerogen as well as type-III kerogen. With respect to the oil window (0. 6 1. 3 percent vitrinite reflectance), the Sembar ranges from thermally immature to over mature . The Sembar is more thermally mature in the western, more deeply buried part of the shelf and becomes shallower and less mature toward the eastern edge of the Indus Basin   Conclusive geochemical data supporting a Sembar source for most of the produced oil and gas in the Indus Basin are lacking; however, limited available geochemical and thermal data favor a Sembar source. To date, the only oil-productive regions in the Greater Indus Basin are the Potwar Plateau in the north and the Badin area in the Lower Indus Basin. Cross-plots of the carbon isotope ratios and the isoprenoid ratios of produced oils in these two regions are distinctly different , indicating two different source rocks. Gas content varies throughout the basin with CO2 ranging from lt; 1 percent to gt;70 percent, nitrogen lt; 1 percent to gt; 80 percent, and H2S lt; 0. percent to gt; 13 percent (IHS Energy Group, 2001). Reservoirs Productive reservoirs in the Sembar-Goru/Ghazij Composite TPS include the Cambrian Jodhpur Formation; Jurassic Chiltan, Samana Suk, and Shinawari Formations; Cretaceous Sembar, Goru, Lumshiwal, Moghal Kot, Parh, and Pab Formations; Paleocene Dungan Formation and Ranikot Group; and the Eocene Sui, Kirthar, Sakesar, Bandah, Khuiala, Nammal, and Ghazij Formations . The principal reservoirs are deltaic and shallow-marine sandstones in the lower part of the Goru in the Lower Indus Basin and the Lumshiwal Formation in the Middle Indus Basin and limestones in the Eocene Ghazij and equivalent stratigraphic units . Potential reservoirs are as thick as 400 m. Sandstone porosities are as high as 30 percent, but more commonly range from about 12 to 16 percent; and limestone porosities range from 9 to 16 percent. The permeability of these reservoirs ranges from 1 to gt; 2,000 milidarcies (md). Reservoir quality generally diminishes in a westward direction but reservoir thickness increases. Because of the progressive eastward erosion and truncation of Cretaceous rocks, the Cretaceous reservoirs all have erosional updip limits, whereas Tertiary reservoirs extend farther east overlying progressively older rocks. Traps All production in the Indus Basin is from structural traps. No stratigraphic accumulations have been identified, although the giant Sui gas field is a dome-shaped reef structure (possibly an algal mound) expressed on the surface as an anticline. The variety of structural traps includes anticlines, thrust-faulted anticlines, and tilted fault blocks. The anticlines and thrusted anticlines occur in the foreland portions of the Greater Indus Basin as a consequence of compression related to collision of the Indian and Eurasian plates. The tilted fault traps in the Lower Indus Basin are a product of extension related to rifting and the formation of horst and graben structures. The temporal relationships among trap formation and hydrocarbon generation, expulsion, migration, and entrapment are variable throughout the Greater Indus Basin. In the foreland portion, formation of structural traps pre-date hydrocarbon generation, especially in the Lower Indus Basin. In the Middle and Upper Indus Basins, traps may also have formed prior to hydrocarbon generation, although the temporal relationships between trap formation and hydrocarbon generation are not as distinct as in the Lower Indus Basin. The structural deformation in the foldbelt region is generally contemporaneous with hydrocarbon generation, suggesting that some of the hydrocarbons generated from the Sembar probably leaked to the surface prior to trap formation. Burial history reconstructions based on data from the Sakhi-Sarwar no. 1 well , located in the foreland part of the Middle Indus Basin, and the Shahdapur no. 1 well, located in the foreland part of Lower Indus Basin, indicate that hydrocarbon generation began 40 and 65 Ma, respectively . The main differences in the hydrocarbon generation times between these wells are due to large differences in the thermal gradients; the present-day thermal gradient in the Sakhi-Sarwar well is 2. 6 °C/km as opposed to 3. 3 °C/km in the Shahdapur well. We interpret the critical moments for these wells at about 15 and 50 Ma, respectively. Based on these reconstructions, trap formation may have postdated the start of hydrocarbon generation in the foreland portion of the Indus Basin. Seals The known seals in the system are composed of shales that are interbedded with and overlying the reservoirs. In producing fields, thin shale beds of variable thickness are effective seals. Additional seals that may be effective include impermeable seals above truncation traps, faults, and updip facies changes. Overburden Rock The rocks overlying the Sembar are composed of sandstone, siltstone, shale, limestone, and conglomerate. The maximum thickness of these overlying rocks is estimated to be as much as 8,500 m in the Sulaiman foredeep area . In the foredeep areas immediately adjacent to the front of the foldbelt parts of the Indus Basin, the overburden thickness ranges from 2,500 m to 6,000 m. East of the foredeep, overburden rocks thin as Cretaceous and Paleocene rocks are progressively truncated.

Biography of Aviator Amelia Earhart

Biography of Aviator Amelia Earhart Amelia Earhart the first woman to fly across the Atlantic Ocean and the first person to make a solo flight across both the Atlantic and the Pacific oceans.  Earhart also set several height and speed records in an airplane. Despite all these records, Amelia Earhart is perhaps best remembered for her mysterious disappearance, which has become one of the enduring mysteries of the 20th century. While attempting to become the first woman to fly around the world, she disappeared on July 2, 1937, while heading toward Howlands Island. Dates: July 24, 1897 July 2, 1937(?) Also Known As: Amelia Mary Earhart, Lady Lindy Amelia Earhart’s Childhood Amelia Mary Earhart was born in her maternal grandparents’ home in Atchison, Kansas, on July 24, 1897 to Amy and Edwin Earhart. Although Edwin was a lawyer, he never earned the approval of Amy’s parents, Judge Alfred Otis and his wife, Amelia. In 1899, two-and-a-half years after Amelia’s birth, Edwin and Amy welcomed another daughter, Grace Muriel. Amelia Earhart spent much of her early childhood living with her Otis grandparents in Atchison during the school months and then spending her summers with her parents. Earhart’s early life was filled with outdoor adventures combined with the etiquette lessons expected of upper-middle-class girls of her day. Amelia (known as â€Å"Millie† in her youth) and her sister Grace Muriel (known as â€Å"Pidge†) loved to play together, especially outdoors. After visiting the World’s Fair in St. Louis in 1904, Amelia decided she wanted to build her own mini roller coaster in her backyard. Enlisting Pidge to help, the two built a homemade roller coaster on the roof of the tool shed, using planks, a wooden box, and lard for grease. Amelia took the first ride, which ended with a crash and some bruises – but she loved it. By 1908, Edwin Earhart had closed his private law firm and was working as a lawyer for a railroad in Des Moines, Iowa; thus, it was time for Amelia to move back in with her parents. That same year, her parents took her to the Iowa State Fair where 10-year-old Amelia saw an airplane for the very first time. Surprisingly, it didn’t interest her. Problems at Home At first, life in Des Moines seemed to be going well for the Earhart family; however, it soon became obvious that Edwin had started to drink heavily. When his alcoholism got worse, Edwin eventually lost his job in Iowa and had trouble finding another. In 1915, with the promise of a job with the Great Northern Railway in St. Paul, Minnesota, the Earhart family packed up and moved. However, the job fell through once they got there. Tired of her husband’s alcoholism and the family’s increasing money troubles, Amy Earhart moved herself and her daughters to Chicago, leaving their father behind in Minnesota. Edwin and Amy eventually divorced in 1924. Due to her family’s frequent moves, Amelia Earhart switched high schools six times, making it hard for her to make or keep friends during her teen years. She did well in her classes  but preferred sports. She graduated from Chicago’s Hyde Park High School in 1916 and is listed in the school’s yearbook as â€Å"the girl in brown who walks alone.† Later in life, however, she was known for her friendly and outgoing nature. After high school, Earhart went to the Ogontz School in Philadelphia, but she soon dropped out to become a nurse for returning World War I soldiers and for victims of the influenza epidemic of 1918. First Flights It wasn’t until 1920, when Earhart was 23 years old, that she developed an interest in airplanes. While visiting her father in California she attended an air show and the stunt-flying feats she watched convinced her that she had to try flying for herself. Earhart took her first flying lesson on January 3, 1921. According to her instructors, Earhart wasn’t a â€Å"natural† at piloting an airplane; instead, she made up for a lack of talent with plenty of hard work and passion. Earhart received her â€Å"Aviator Pilot† certification from the Federation Aeronautique Internationale on May 16, 1921 a major step for any pilot at the time. Since her parents could not afford to pay for her lessons, Earhart worked several jobs to raise the money herself. She also saved up the money to buy her own airplane, a small Kinner Airster she called the Canary. In the Canary, she broke the women’s altitude record on October 22, 1922, by becoming the first woman to reach 14,000 feet in an airplane. The First Woman to Fly Over the Atlantic In 1927, aviator Charles Lindbergh made history by becoming the first person to fly non-stop across the Atlantic, from the U.S. to England. A year later, Amelia Earhart was asked to make a non-stop flight across the same ocean. She had been discovered by publisher George Putnam, who had been asked to look for a female pilot to complete this feat. Since this was not to be a solo flight, Earhart joined a crew of two other aviators, both men. On June 17, 1928, the journey began when the Friendship, a Fokker F7 specially outfitted for the trip, took off from Newfoundland bound for England. Ice and fog made the trip difficult and Earhart spent much of the flight scribbling notes in a journal while her co-pilots, Bill Stultz and Louis Gordon, handled the plane. 20 Hours and 40 Minutes in the Air On June 18, 1928, after 20 hours and 40 minutes in the air, the Friendship landed in South Wales. Although Earhart said she did not contribute any more to the flight than â€Å"a sack of potatoes† would have, the press saw her accomplishment differently. They started calling Earhart â€Å"Lady Lindy,† after Charles Lindbergh. Shortly after this trip, Earhart published a book about her experiences, titled 20 Hours 40 Minutes. Before long Amelia Earhart was looking for new records to break in her own airplane. A few months after publishing 20 Hours 40 Minutes, she flew solo across the United States and back the first time a female pilot had made the journey alone. In 1929, she founded and participated in the Woman’s Air Derby, an airplane race from Santa Monica, California to Cleveland, Ohio with a substantial cash prize. Flying a more powerful Lockheed Vega, Earhart finished third, behind noted pilots Louise Thaden and Gladys O’Donnell. On February 7, 1931, Earhart married George Putnam. She also banded together with other female aviators to start a professional international organization for female pilots. Earhart was the first president. The Ninety-Niners, named because it originally had 99 members, still represents and supports female pilots today. Earhart published a second book about her accomplishments, The Fun of It, in 1932. Solo Across the Ocean Having won multiple competitions, flown in air shows, and set new altitude records, Earhart began looking for a bigger challenge. In 1932, she decided to become the first woman to fly solo across the Atlantic. On May 20, 1932, she took off again from Newfoundland, piloting a small Lockheed Vega. It was a dangerous trip: clouds and fog made it difficult to navigate, her plane’s wings became covered with ice, and the plane developed a fuel leak about two-thirds of the way across the ocean. Worse, the altimeter stopped working, so Earhart had no idea how far above the ocean’s surface her plane was a situation that nearly resulted in her crashing into the Atlantic Ocean. Touched Down in a Sheep Pasture in Ireland In serious danger, Earhart abandoned her plans to land at Southampton, England, and made for the first bit of land she saw. She touched down in a sheep pasture in Ireland on May 21, 1932, becoming the first woman to fly solo across the Atlantic and the first-ever person to fly across the Atlantic twice. The solo Atlantic crossing was followed by more book deals, meetings with heads of state, and a lecture tour, as well as more flying competitions. In 1935, Earhart also made a solo flight from Hawaii to Oakland, California, becoming the first person to fly solo from Hawaii to the U.S. mainland. This trip also made Earhart the first person to fly solo across both the Atlantic and Pacific oceans. Her Last Flight Not long after making her Pacific flight in 1935, Amelia Earhart decided she wanted to try flying around the entire world. A U.S. Army Air Force crew had made the trip in 1924 and male aviator Wiley Post flew around the world by himself in 1931 and 1933. Two New Goals But Earhart had two new goals. First, she wanted to be the first woman to fly solo around the world. Second, she wanted to fly around the world at or near the equator, the planet’s widest point: the previous flights had both circled the world much closer to the North Pole, where the distance was shortest. Planning and preparation for the trip were difficult, time-consuming, and expensive. Her plane, a Lockheed Electra, had to be completely re-fitted with additional fuel tanks, survival gear, scientific instruments, and a state-of-the-art radio. A 1936 test flight ended in a crash that destroyed the plane’s landing gear. Several months passed while the plane was fixed. The Most Difficult Point in the Trip Meanwhile, Earhart and her navigator, Frank Noonan, plotted their course around the world. The most difficult point in the trip would be the flight from Papua New Guinea to Hawaii because it required a fuel stop at Howland’s Island, a small coral island about 1,700 miles west of Hawaii. Aviation maps were poor at the time and the island would be difficult to find from the air. However, the stop at Howland’s Island was unavoidable because the plane could only carry about half the fuel needed to fly from Papua New Guinea to Hawaii, making a fuel stop essential if Earhart and Noonan were to make it across the South Pacific. As difficult as it might be to find, Howland’s Island seemed like the best choice for a stop since it is positioned approximately halfway between Papua New Guinea and Hawaii. Once their course had been plotted and their plane readied, it was time for the final details. It was during this last minute preparation that Earhart decided not to take the full-sized radio antenna that Lockheed recommended, instead opting for a smaller antenna. The new antenna was lighter, but it also could not transmit or receive signals as well, especially in bad weather. The First Leg of Their Trip On May 21, 1937, Amelia Earhart and Frank Noonan took off from Oakland, California, on the first leg of their trip. The plane landed first in Puerto Rico and then in several other locations in the Caribbean before heading to Senegal. They crossed Africa, stopping several times for fuel and supplies, then went on to Eritrea, India, Burma, Indonesia, and Papua New Guinea. There, Earhart and Noonan prepared for the toughest stretch of the trip the landing at Howland’s Island. Since every pound in the plane meant more fuel used, Earhart removed every non-essential item even the parachutes. The plane was checked and re-checked by mechanics to ensure it was in top condition. However, Earhart and Noonan had been flying for over a month straight by this time and both were tired. Left Papua New Guinea Heading Toward Howland’s Island On July 2, 1937, Earhart’s plane left Papua New Guinea heading toward Howland’s Island. For the first seven hours, Earhart and Noonan stayed in radio contact with the airstrip in Papua New Guinea. After that, they made intermittent radio contact with the U.S.S. Itsaca, a Coast Guard ship patrolling the waters below. However, the reception was poor and messages between the plane and the Itsaca were frequently lost or garbled. The Plane Did Not Appear Two hours after Earhart’s scheduled arrival at Howland’s Island, at about 10:30 a.m. local time on July 2, 1937, the Itsaca received a last static-filled message that indicated Earhart and Noonan could not see the ship or the island and they were almost out of fuel. The crew of the Itsaca tried to signal the ship’s location by sending up black smoke, but the plane did not appear. Neither the plane, Earhart, nor Noonan were ever seen or heard from again. The Mystery Continues The mystery of what happened to Earhart, Noonan, and the plane has not yet been solved. In 1999, British archaeologists claimed to have found artifacts on a small island in the South Pacific that contained Earhart’s DNA, but the evidence is not conclusive. Near the plane’s last known location, the ocean reaches depths of 16,000 feet, well below the range of today’s deep-sea diving equipment. If the plane sank into those depths, it may never be recovered.

How to successfully replace an outter vehicle CV joint Coursework

How to successfully replace an outter vehicle CV joint - Coursework Example Remove the wheel by use of wrench. And using a spanner, remove the axle nut. This is a large nut on the outside of the hub. The removal of the lower control arm from the ball joint and the hub assembly will enable the removal of the bolt from the shock and upper control arm. The tapping will facilitate the slipping out of the CV joint through the back. The axle nut should be put back halfway during this process to avoid damaging of the threads. Put the CV axle in a vise by the shaft close to the inner CV or the U-Joint. Cut the boot clamps and make sure that your CV joint is not held by on by a clip that you can see on the shaft under the boot. If there is no clip, you will want to tap lightly on the outer CV joint and then give a few good hits to knock it off the shaft. The tools involved in this are 5 lb Sledge and hammer. Make sure you wear protective glasses since the grease may fly. If it does not come out, put the axle in a vise and try again. If this goes in vain, use the hammer and break the cage to remove the ball bearings. This will expose the race, and then press the race off the shaft using the punch hammer. Cut the race in the direction of the splines on the shaft so that it does not affect the new joint going into the splines (Gilles, 2004). Put on the new boot and slide it to the inner out of the way. Fill the CV joint with grease, and a little of it on the ‘C’ clip. Line the outer CV joint with the splines of the shaft and place the axle nut on the threads halfway to avoid damaging the threads. In conclusion, these processes should be observed keenly, to avoid damage to other parts of the vehicle especially during the removal of the wrecked CV joint. A step by step procedure with keen observation will lead to excellent replacement of the wrecked joint with a new

Outline the key arguments of Plato - Analyze the above arguments given Essay

Outline the key arguments of Plato - Analyze the above arguments given Plato's main theses - Compare those arguments to Butler - Essay Example According to him, the difference between a man and woman is merely biological, whereby both sexes play certain roles during procreation. Consequently, this thought and understanding of gender as irrelevant prompted numerous intellectuals to conclude Plato was a feminist. Primarily, this is because of his argument regarding inclusion of women in assuming similar roles towards nation building without considering humanity’s biological discrepancies, which are beyond human intervention. Women ought to have equal say similar to their male counterparts, as per Platonic argument. This is because they are capable of delivering as necessitated besides talented enough to exceed society’s expectations (Jowett 106). Consequently, this prompted Plato among all other philosophers to emerge as the modern day’s democratic ancestor due to his perspective regarding female gender’s consideration into public affairs. However, in the execution of same duties or roles by both s exes, Plato seems to have a soft understanding concerning jobs’ allocation without giving a clear explanation. Thus, women and men guardians cannot tolerate similar severity of their respective jobs’ environment, whereby the latter’s environment is a bit tougher than the females’. ... Are there roles in the city that are particular to women and men because they are women or men? Besides Plato’s strong stand regarding gender irrelevance in the allocation of jobs and undertaking of diverse roles in the society, he admits that each sex has a responsibility to undertake. Mainly, these roles basis encompass biological differences where women, according to Plato’s arguments, embrace the role of mothers and wives. These roles are irrefutable, and nature dictates them to assume that course; hence, they are beyond human intervention. However, for other roles, especially those that encompass diverse city’s tasks, Plato emphasize consideration for gender equality. However, his argument did not imply he had in mind the position of woman in the society; instead, his intention was strictly to involve them in the kallipolis affairs. Plato’s perspective entailed women’s capability and not their liberation as it is with numerous contemporary femi nists. This is evident from Plato’s deprecating attitude towards women, which comprised his nature. Plato’s advocating of gender equality was a way of ensuring that justice prevails in all sectors where women will be able to contribute constructively. Why does Plato make the argument that he does? Plato’s main concern is to ensure justice and development in kallipolis with the involvement of both sexes. Thus, he deemed the authorities would prove to be fair via accommodating every person to contribute constructively in doing what one thinks he or she is proficient in. This is regardless of sharing or assuming similar roles like that of a guardian where the authorities should not discriminate women

Management and Accounting Assignment Example | Topics and Well Written Essays - 2250 words

Management and Accounting - Assignment Example Breakeven analysis of the results has also been prepared to determine the volume of sales at which the company will be able to cover its fixed costs. There are a number of financial tools and techniques available to assist business managers to monitor and control their operations. They include budgeting, ratio analysis, breakeven analysis and sensitivity analysis. 2.0 Budgeting Budgets are useful methods of monitoring and controlling costs and organisations prepare a number of them in order to monitor and control expenditure. They include revenue budget, material budget, labour budget, cash budget, budgeted income statement, and budgeted financial statements. The revenue budget is normally the first budget to be prepared. The revenue requirements are determined and a forecast is done of the revenues that the company will generate over a period and when the actual amounts will be received (See Appendix A). The material budget and the labour budget is then prepared based on the informa tion in the revenue budget. These budgets indicate the cost of materials that are required in each period in order to achieve the targeted revenues. The material budget indicates when materials are purchased and the quantity in which they are purchased (See Appendix B). The labour budget includes a description of the labour required and the cost of labour for each period included in the budget. A cash budget is then produced based on the information in the revenue budget, material budget and labour budget (See Appendix C). The cash budget includes a section for inflows (receipts) and another for outflows (payments) (See Appendix D). The receipts in the cash budget are linked to information in the revenue budget and the payments are linked to information in the materials budget and the labour budget. The revenue, material, labour and cash budgets are shown in Appendix A, B, C and D. In order to forecast the total income, expenditure and profits for the period a projected income state ment is prepared. This statement draws cumulative information from the revenue budget, the material budget, the labour budget and the cash budget. The projected retained earnings from the projected income statement is then used in the preparation of the forecast balance sheet along with capital items in the cash budget, prepaid and unpaid expenses which are determined by comparing the information in the income statement with the cash budget. The projected income and financial position statements are shown in Figure 1 and 2 respectively. Famished! Limited Forecast Income Statement for the year ending March 31, 2012 ? ? ? Gross sales revenue 592,000 Less direct material costs after deduction of closing inventory 124,320 Gross margin 467,680 Less expenses: Lease 24,000 Refit depreciation 7,000 Equipment depreciation 5,148 Business rates 24,300 Water 1,712 Electricity 4,508 Gas 6,050 Internet for business use 360 telephone 909 Cleaning 10,944 Promotional expenditure 600 Salaries 241,661 327,191 Operating profit 140,489 Interest payable 902 Retained profit 139,587 Figure 1 Famished! Limited Projected STATEMENT OF FINANCIAL POSITION as at March 31, 2012 ? ? ? Non current assets Cost Dep'n Net Refit of premises 35,000 7,000 28,000 Equipment 28,600 5,148 23,452 51,452 Current assets Inventories 1,800

Connecting my teaching style with what adult leraners need to know Research Paper

Connecting my teaching style with what adult leraners need to know - Research Paper Example While the quantity of lessons may matter with ample significance at anytime, such an instructor does not afford to neglect providing quality in his unique creative style of teaching which naturally earns appreciation by colleagues and pupils alike. An effective teacher exhibits a character of passion toward mastery of specialization or subject being taught so that in this manner, adult learners are concretely addressed as they meet their maturing scholastic needs. Because it is part of his chief objective to sustain learning with excellence, he finds a way to exceed the standards of his profession. He even considers exploring knowledge of the yet unknown for the benefit not only of improving his intellect but also of inspiring the students with the wonderful idea of gaining the intended proficiency through their individual endeavors both at present and in the future. Adult students, similarly, are able to show regular attendance and to listen and perform in a stimulating atmosphere f ostered by a teacher who demonstrates skilfulness in classroom management. Given this condition, no matter how busy an adult learner is with non-academic cares, valuable learning becomes accessible. An effective teacher serves a huge contributing factor in making such student figure ways of putting valuable ideas to application when solving problems and handling studies with the favour of working under alternative situations as seen fit. Having the initiative and discerning what to do upon encounter of conflict make the anticipated output of learning valuably. Positive development among adult learners, on the other hand, may be perceived once a creative style of teaching facilitates belief that new experiences could be found and used as a tool for an advancement in an adult’s learning capacity. Based on Kolb’s theory (1984), the impetus for the development of new concepts is provided by new experiences where Kolb himself stated that â€Å"Learning is the process where by knowledge is created through the transformation of experience† (Mcleod, 2010). Hence, as one develops positively, it may occur pleasingly worthwhile to construct awareness and social growth with the rest of the academic community. Around this stage, productive motivation is sought to come along since the learning process allows each adult learner to seek greater essence in connecting an individual’s well-being or ultimate identity to a set of tasks assigned by the motivational instructions. Because there ought to be harmony of interaction between the teacher and the student in order to translate effective teaching into remarkable outcomes with knowledge, hence, both parties must converge onto a common interest or point of similarity as through behaviour and way of thinking. The effective teacher may draw an adult pupil to this convergence if his technique of instruction is built on resourcefulness, for a resourceful character tends to adopt the mood of exhausting pos sibilities for the teacher and the learner to function within transparent relationship. Strategizing an effort to know each student at depth such that it yields back similar action in response would assuredly cause higher degree of motivation for the learner to trust and utilize the concepts with pertinent

Others Assignment Example | Topics and Well Written Essays - 250 words

Others - Assignment Example The retail establishment will offer a variety of coffee products using high quality coffee beans. The products will be differentiated to meet different customer needs. The bakery will provide fresh pastry and bakery products. The company will prepare six batches of pastry and bakery products to ensure fresh products are available at all times of business hours. The retail coffee industry in Canada is growing rapidly. The climatic conditions of Ontario encourage the consumption of hot beverages. Westside Bakery and Java will concentrate its marketing and business on locals, who will be the dominant market. This strategic move will benefit the company by establishing a consistent and healthy revenue base, which will ensure the business is stable. Strategic location of the company, high quality products, and excellent service delivery will be crucial in achieving the company’s targets. Westside Bakery and Java expects to borrow $50,000 and raise $150,000 own capital. The company expects annual sales worth $400,000 in the first year, $600,000 in the second year, and $700,000 in the third year. Westside Bakery and Java will break even by the sixth month of operation. The company anticipates profits of $10,000 in the first year, $30,000 by the second year, and $50,000 by the third year. Westside Bakery and Java does not anticipate any cash flow

Connecting my teaching style with what adult leraners need to know Research Paper

Connecting my teaching style with what adult leraners need to know - Research Paper Example While the quantity of lessons may matter with ample significance at anytime, such an instructor does not afford to neglect providing quality in his unique creative style of teaching which naturally earns appreciation by colleagues and pupils alike. An effective teacher exhibits a character of passion toward mastery of specialization or subject being taught so that in this manner, adult learners are concretely addressed as they meet their maturing scholastic needs. Because it is part of his chief objective to sustain learning with excellence, he finds a way to exceed the standards of his profession. He even considers exploring knowledge of the yet unknown for the benefit not only of improving his intellect but also of inspiring the students with the wonderful idea of gaining the intended proficiency through their individual endeavors both at present and in the future. Adult students, similarly, are able to show regular attendance and to listen and perform in a stimulating atmosphere f ostered by a teacher who demonstrates skilfulness in classroom management. Given this condition, no matter how busy an adult learner is with non-academic cares, valuable learning becomes accessible. An effective teacher serves a huge contributing factor in making such student figure ways of putting valuable ideas to application when solving problems and handling studies with the favour of working under alternative situations as seen fit. Having the initiative and discerning what to do upon encounter of conflict make the anticipated output of learning valuably. Positive development among adult learners, on the other hand, may be perceived once a creative style of teaching facilitates belief that new experiences could be found and used as a tool for an advancement in an adult’s learning capacity. Based on Kolb’s theory (1984), the impetus for the development of new concepts is provided by new experiences where Kolb himself stated that â€Å"Learning is the process where by knowledge is created through the transformation of experience† (Mcleod, 2010). Hence, as one develops positively, it may occur pleasingly worthwhile to construct awareness and social growth with the rest of the academic community. Around this stage, productive motivation is sought to come along since the learning process allows each adult learner to seek greater essence in connecting an individual’s well-being or ultimate identity to a set of tasks assigned by the motivational instructions. Because there ought to be harmony of interaction between the teacher and the student in order to translate effective teaching into remarkable outcomes with knowledge, hence, both parties must converge onto a common interest or point of similarity as through behaviour and way of thinking. The effective teacher may draw an adult pupil to this convergence if his technique of instruction is built on resourcefulness, for a resourceful character tends to adopt the mood of exhausting pos sibilities for the teacher and the learner to function within transparent relationship. Strategizing an effort to know each student at depth such that it yields back similar action in response would assuredly cause higher degree of motivation for the learner to trust and utilize the concepts with pertinent

Contradicting and Acquisition Assignment Example | Topics and Well Written Essays - 500 words

Contradicting and Acquisition - Assignment Example Appropriation does not necessarily represent cash. Instead, it represents the amount for a given purpose as stated in the appropriation act which the companies are obligated to during a given period as noted in the appropriation act. It is most important for it helps the companies spend federal funds (Warde, 2010). Difference between authorization and appropriation: The constitution usually grants its Congress the power of appropriation for agencies and federal spending. The federal programs are authorized by some Senate rules and activities of appropriation follows. Congress usually breaks the rules because the rules carry no constitutional weight or no statutory weight. The authorization-appropriation process serves as a highway in enacting federal spending. So the Congress is authorized before appropriation takes place whereby budget authority is provided to federal agencies that incur obligations and make payment out of the treasury (Gibbler, 2006). Obligations: Legal actions or responsibilities made by federal agencies at a given period. The actions may include different transactions made by them and they may include the number of orders received, services received, different contracts awarded among others. Obligation results to the amount of payment made including advances, amount of checks issued, reimbursement and net of refunds during the same period or in the future (Smith, 1976). Expenditure: It is a charge on current cash that results when agencies settle an obligation as evidenced by receipts, voucher, and invoice. Federal agencies spend authorized funds in some of the federal programs. Gross outlays are disbursement that is, cash, and fewer funds received. Net outlays involve disbursement minus reimbursement collected.  

Zig Ziglar’s Over The Top Essay Example for Free

Zig Ziglar’s Over The Top Essay In his book, Over the Top Zig Ziglar reminds us that we are capable of moving from the level of basic survival to exceeding our goals. Regardless of where we begin in life, and no matter how our lives are right now, we each have the power to do something to change the situation. He directs us to make the choice to take actions that will change our lives for the better. I enjoyed reading this book. It has something to offer to everyone. I believe it should be required reading for all college students. Zig Ziglar teaches people to take responsibility for their lives instead of making excuses. He does refer to God and make references to the bible, but you don’t need to be a Christian, have a religion or even believe in God to benefit from reading this book. It is filled with practical principles useful in everyday life for everyday people. In terms of education, the book provides an abundance of information that could impact the way educational administrators manage our schools, as well as shape the knowledge of educators. For example, the book discusses the premise that when we help other people get what they want this helps us to get to the top and beyond. What does this mean in terms of education? Well, if the principals and administrators in charge would help the teachers get what they want it would probably improve the overall academic environment. When administrators are effective leaders, and give guidance and supervise with more of an authoritative approach as opposed to an authoritarian approach, it would lead to more positive results. According to Ziglar, authoritarian people simply say that you must do something because they say so. An authoritative person would explain the reason why a certain decision was made and why it is best to move in that direction. Thus, an authoritative principal treats his or her faculty members with respect, and authoritative teachers, likewise, treat their students with respect. Moreover â€Å"all of us perform better and more willingly when we know why we’re doing what we have been told or asked to do,† (p. 77). This applies equally to children as it does to adults. The book also points out the importance of being dedicated and feeling positive pride. There are a lot of administrators and teachers dedicated to the field of education. However, society in general seems to lack respect for educators; teachers are often blamed for many social problems such as the deviant behavior and poor academic ability of today’s young people, while parents and society at large are assigned little responsibility for these problems. Over the Top will actually help teachers feel more pride in being teachers. They will know that they can make a positive difference in the lives of their students. The book will motivate them to set goals both inside and outside the classrooms and take the steps necessary to accomplish those goals. They will be committed to being excellent teachers regardless of the financial compensation because they will know that eventually they will be rewarded. Being rich alone does not equal success. Zig Ziglar informs readers that being successful, and over the top includes being â€Å"happy, healthy, reasonably prosperous, and secure, to have friends, peace of mind, good family relationships, and hope,† (p. ). We are reminded to keep a positive attitude, to work towards improving our weaknesses, to view personal growth as a lifetime commitment, and to be willing to change. Haven’t you heard that to be insane is to repeatedly do the same thing and respect different results? Change leads to progress. Zig Ziglar provides the perfect instructional manual for changing our lives for the better. Over the top is interesting, inspirational and will make a difference in the lives of those fortunate enough to read it.

Significance of Capital Market for Economic Development

Significance of Capital Market for Economic Development An Explotary Study On The Significance of Capital Market for Economic Development and Its Further Growth Potential In Context of Bangladesh Abstract This research paper investigates whether the role of capital market is significant for the economic development of Bangladesh. Literature suggests that well developed stock market can provide an extra impetus to economic activity. Similar conclusions were also drawn from the in-depth interviews. This paper also reveals a well-scanned scenario of the capital market highlighting its setbacks, current weakness, recent improvements and its prospective signs of development through which we can foresee whether the capital market has further growth potential or not. Thus the present study can also contribute in providing essential information that can also be used for further research. Abbreviations ADB- Asian Development Bank CDBL- Central Depository of Bangladesh Limited CDS- Central Depository System CSE- Chittagong Stock Exchange DGEN- DSE general index DSE- Dhaka Stock Exchange GDP- gross domestic product IPO- initial public offering SEC- Security and Exchange Commission 1.0 Introduction The financial market contributes to the economic growth and development by providing the needed finance for provision of goods and services. The financial market consists of two division- money market and capital market. The money market is basically entitled to supply finance on short-term basis to individuals, businesses, enterprises, government and their agencies. The capital market, on the other hand, provides finance on medium to long-term basis to corporate bodies, government and their agencies (Al-Faki, 2006). Capital Market plays a crucial role in any modern economy as they allow investors’ fund to flow to the most promising opportunities, i.e., the funds are mobilized and channeled efficiently from savers to the users of funds (Al-Faki, 2006; DSE, 2006; Hubbard and Thornton, 2006; Ahmed, 1997). In Bangladesh financial intermediation relies mostly on the banking sector which further resulted in lack of equity financing (Salahuddin Ahmed, 2007; Islam and Hassan 2002). Furthermore out of 5 million urban-based middle class people only four hundred thousand are participating in the securities market and among them roughly hundred thousand are active investors. A large portion is still ignorant of the nature and benefits of the capital market (Abu Ahmed, 2006; DSE Review, 2006; Islam and Hassan, 2002). Developing more complete and deeper capital market would enhance a countries growth potential and innovation (Andritzky, 2007). The forces of globalization, technology, new forms of competition have noticeably transformed capital market worldwide (Hassan, 2004). The chief advisor Dr. Fakhruddin Ahmed stated that â€Å"Only a vibrant and well-regulated capital market can bring sustainable economic development in the country through making the real sector capable of meeting the challenges of the competitive global economic realities† ( DSE Monthly Review, June 2007). Regardless of recent improvements, Bangladesh’s capital market remains underdeveloped as its size is still very small in terms of market cap (ADB, 2006; Salahuddin Ahmed, 2007; Islam and Hassan 2002). The market cap represents just above 9% of the GDP (Dr. Fakhruddin Ahmed retrieved from DSE Review). As Bangladesh capital market is still quite small compared to other regional market and to the size of its economy (CSE, 2006) despite its existence for a long time, this paper applies a framework for analyzing the significance of capital market for economic growth and development of Bangladesh, identifying its growth potentials through exploration. 2.0 Problem Statement Bangladesh’s capital market is still underdeveloped, in spite of recent improvements. The size of the country’s capital market is quite small mainly due to the excessive dependence of leading corporate entities on the banks for financing. Moreover the overall transparency of market transaction is also low compared to international standards and generally there has been slow development of the underlying market infrastructure. The government is making effort to develop the reliability and efficiency of stock exchanges as investment market. Compared to the other neighboring countries the numbers of participants are much smaller in Bangladesh as investor lack confidence. There is a supply side constrains in the capital market as quality shares are lacking. For all this reason this research is done to explore the importance of capital market in the economy and what are the prospective sign of development of the stock market. 3.0 Purpose of the Study The purpose of the study is to explore a well scanned scenario of Bangladesh capital market, its significance and its prospects. Although some research has been conducted relating to this topic but there is little empirical evidence about how essential stock market is to economic development of a country. A sound capital market prompts better economic base and influence its future growth and so it can help realize Bangladesh’s growth potential. The capital market of Bangladesh is on the brink to play its due role as a medium for financing investment and thereby making a notable contribution to economic growth, employment creation and poverty alleviation. The capital market plays an important role in quickening the pace of economic development but the existing state of the capital market is under-developed and not in a position to ensure economic progress of the country. Hence this research will try to highlight the significance of capital market for the nation and explore what are the probable signs of progress. 4.0 Research Timeline 2007 SeptemberWriting Research Proposal 2007 SeptemberDeveloping Literature Review 2007 OctoberCollecting Data 2007 October- NovemberData Analysis and Interpretation of the Findings 2007 NovemberPreparing Draft and Finalizing the Research Paper 2007 DecemberSubmission of Research Paper 5.0 Limitations of the study During conducting the research I came across certain limitations and among them the foremost one is time constrain. Although I got the opportunity to work in an organization that is capital market based but it was difficult to find spare time that could be used for the report. Moreover the interviewed person could not provide all necessary information due to lack of time. The research timeline also reveals that time constrain was actually a barrier as there was plenty to find about this research topic. As the research is conducted for the first time, I did not get much support from previous research paper and further research is suggested. A huge portion of the report is based on secondary data collected through websites and so the depth of reliability varies as by the nature of website. 6.0 Review of the Literature 6.1 Financial Intermediation According to Joseph Yam (2004) financial intermediation is channeling savings into investments. Aziz and Duenwald (2002) referred that financial intermediation affects growth through the following channels – (i) it can increase the marginal productivity of capital by collecting information to evaluate alternative investment projects and by risk sharing (ii) it can raise the proportion of savings channeled to investment through financial development. According to Conning and Kevane (2002) â€Å"intermediation implies an intermediary†. Gorton and Winton (2002) added that â€Å"it is the root institution in the saving investment process†. They referred that financial intermediaries are firms that borrow from those who have excess money, that is, the savers and lend the money to companies that need resources for investment. 6.2 Performance Indicators According to R. N. Agarwal (2000) the most commonly used standard to measure the size of a country’s stock market is market capitalization ratio, that is, the ratio of market value of stocks which are currently listed on a bourse to Gross Domestic Product (GDP). A small ratio of capitalization to GDP reveals the small size of a stock market. Alternatively, the size can be measured by the number of listed companies on a stock market. The height of maturity of an economy’s financial system is essential for economic development. Bekeart et al., (2007), Hubard and Thornton (2006), Rosul (2002) all investigated the significance and relation of stock market development with the economic growth and their conclusion suggests that capital market development is positively correlated with long term economic growth and the capital market plays an important role in the economic development of any country. The size of the equity capital market has an optimistic effect on economic growth of the country, that is, much higher market cap and turnover has a major positive influence on the economy (Institute for Advanced Studies, IHS, 2006). It is seen that the ratio of market cap to GDP in neighboring countries like India, Pakistan and Sri Lanka is relatively much higher, that is, more than 60% of their GDP (DSE, Kh. Asadul Islam, 2007; Dr. Fakhruddin Ahmed,2007). In Bangladesh the market cap is very small proportion of the countries GDP (Islam Hassan, 2002) and this is due to significant dependence on the banking sector (DSE Review, Fakhruddin Ahmed, June 2007). Market capitalization as a share of GDP was around 2.5%-3.3% during 2001-2003 compared with 1.4-10.1% during 1993-1996 and 2- 4% during 1997-2000. However in the year 2004 market cap reached 6.8% reflecting the rise in the DSE index from 968 to 1,971 at the end of 2003 and 2004 respectively (ADB, May 2005). The trend of market cap as percentage of GDP and other capital market indicators of DSE and CSE are shown through the help of statistical data represented in the discussion section in Table 1. Despite the existence of the bourse from 1954, the capital market still exhibits features of an emerging equity market (Islam Hassan, 2002). The finance sector is immensely bank-based (Salahuddin Ahmed, 2007) as resource mobilization for industrialization and economic development is made primarily through the regular banking system (Islam Hassan, 2002). Borrowing requires fixed payments and over-reliance on banks can cause credit default risk. According to (Mochammad Rosul, 2002) excessive reliance on bank borrowing results in a mismatch with long-term investments being financed with short-term bank loans. He added that such a risky situation can further contribute to the economic crisis and so the job of the principal fund supplier for business should be transferred from banking sector to the capital sector. 6.3 Regulatory Bodies 6.3.1. The Security and Exchange Commission (SEC) The Security and Exchange Commission (SEC) exercises power under the Security and Exchange Commission Act 1993 and established on June 8, 1993. SEC, the sole Capital Market Watchdog and Regulator, has been pursuing a vigorous capital market development process including amendments of its existing regulations, conduction of investor awareness programs, rigid monitoring and surveillance to bring in transparency in the trading mechanism (SEC, Annual Report 2003 -04). The responsibility of SEC includes the following: Regulating the functions of Stock Exchanges Registering and regulating the business of stock brokers, sub broker, share transfer agents, underwriters, registrar, portfolio managers, investment advisors, and other middlemen related to security dealings. Registering, controlling, and monitoring of all types of mutual funds Controlling and monitoring of all authorized self regulatory organizations Prohibiting fraudulent and unfair practices related to securities Promoting investor’s education program and providing training of intermediaries Regulating substantial acquisition of shares and takeover of companies SEC are detects market manipulation and also keeps constant vigil on the activities of stock exchanges to ensure effectiveness of the surveillance system. Conducts research and publishes information for above purposes (Source: Security Exchange Commission Website: www.secbd.com) 6.3.2 Stock Exchanges 6.3.2.1 Dhaka Stock Exchange (DSE) On April 28, 1954 DSE was first incorporated as the East Pakistan Stock Exchange Association Limited. Formal trading began in 1956 with 196 securities listed on the DSE with a total paid up capital of about Taka 4 billion. On June 23, 1962 it was renamed as Dhaka Stock Exchange (DSE) Limited. After 1971, the trading activities of the prime bourse remained suppresses until 1976 due to liberation war and economic policy pursued by the then government. Trading resumed at DSE in 1976 with only 9 companies listed having a paid up of Taka 137.52 million (Bashar et al., 2000; M Farid Ahmed, 1997). As of today there are 342 listed companies in the prime bourse with market cap exceeding 700,000 million (DSE, 2007). The reforms that DSE undertook recently for ensuring professionalism and transparency focused on the trading of securities. The measure were taken to implement transparent trading system, efficient reporting of trade, real time delivery of information, strong surveillance and monitoring over trade of securities and settlement of shares (Rahman,Uddin and Malik, 2006). 6.3.2.2 The Chittagong Stock Exchange Limited (CSE) The CSE is the countries second bourse that started its operation from the year 1995. It is also a self-regulatory non profit organization. Currently the numbers of listed securities are 223 of which the number of listed companies are 208, mutual funds 14, and one debenture. 6.4 Recent Capital Market Scenario of Bangladesh According to Dr Fakhruddin Ahmed (DSE, 2007) political uncertainty, corruption and lack of transparency in all section of the social and economic fabric are some of the reasons for capital market deficiency. Bangladesh Governor Salehuddin Ahmed (2007) reveals that foremost problems include political instability, under developed infrastructure, poor port management, short comings in legal system and corruption (Financial Express Report). On the other hand DSE general share price index reached its pinnacle and crossed 3000 points (Newage: www.newagebd.com). In fact the capital market witnessed a robust growth in the current year. Both turnover and market cap crossed new milestones at Tk 3000 million and Tk 700,000 million respectively during the year (DSE, 2006; DSE, 2007, IDLCSL). Recently our market cap crossed USD 10 billion that accounts for only 13% of its GDP which was only 8% a year back. (DSE Monthly Review, Oct 2007). Though the contribution of capital market to GDP is still inadequate when compared to neighboring countries but still its increase is significant for the development of our economy. Comparison of indices and market cap among different countries is shown in Table 2 and Figure 2 in the discussion part. Entry of 12 new issues worth Tk 11,322.95 million helped raise the market cap. Some of the reason for the progress in capital market development is central depository system and the automated trading system (ADB, 2006; SEC, 2005). The DSE has upgraded its automated online trading system and investors are able to trade from different parts of the country (SEC Quarterly Report, April-June 2007; ADB, 2006). Another reason for the vigorous improvement of the equity capital market is due to strenuous efforts taken by the SEC that further boosted investors’ confidence (DSE, 2007). 7.0 Research Methodology 7.1 Research Design The present study endeavored to explore importance of capital market for the economic development of Bangladesh and its future prospects. Exploratory research is selected as research design as little information exists about the capital market of Bangladesh. The aim of exploratory research is mainly to gain enough information before doing more thorough research. We basically start by gathering as much information about the object as possible and with a vague impression of what we should study (Cooper Schindler, 2003). 7.2 Research Instrument The research was conducted using both primary and secondary data. For collecting secondary data, various books, websites, newspapers, annual reports, monthly reviews and significant articles were chosen. Also for collection of primary data in-depth interviews with a range of designated professional, related to this field, were taken. 7.3 Data Collection Secondary data used in the paper has been collected through access of different source of books, journals, publications of DSE, SEC, ADB and other news paper and articles. The DSE and SEC library were visited to acquire secondary information. Various websites were browsed to collect relevant articles that are circulated on online sites. For collecting primary data, in-depth interviews of experienced people related to this field of capital market were taken. Appointments were fixed initially and then the interviews were taken. The interviewed persons are Kh. Asadul Islam, CEO, IDLC Securities Limited (IDLCSL); Anwarul Kabir Bhuiyan, SEC, Executive Director; Tania Sharmin, SEC, Assistance Director (Surveillance); Abul Ehsan, Senior Officer, IDLC Finance Limited; Moumita Manzoor, Research Associate, IDLCSL. Each of them was interviewed for 40 minutes approximately during the office hour while taking break from work. They were asked some essential questions associated to this research topic. Some of the questions that were asked are as follows- What is the role of capital market in the economy? What are the setbacks of the stock market in Bangladesh? Explain the current scenario of the capital market What are the prospective sign of the development of the capital market? How can we be sure of a sound growth of capital market in Bangladesh? Do you see a better or worse scenario ahead of us and why? 8.0 Discussion 8.1 Role of Capital Market in the Economy According to Dr. Mirza Azizul Islam (2006) capital market can play an essential role in enhancing economic development through efficient intermediation of savings into productive investments and in encouraging the expansion of private entrepreneurship (DSE, 2006). The primary market can contribute to the growth of private entrepreneurship by facilitating the entrepreneurs to raise funds from surplus savers and consequently finance investment in a cost-effective manner. For instance, if an industrialist with a viable new investment or expansion proposal is unable to execute his plan due to financial crisis then he can issue securities to meet the required deficit. Moreover issuing shares have the additional advantage that they do not create fixed charges for the companies issuing them and hence endows a better option than, say, financing through bank loans. A proficient and vibrant secondary market can also contribute copiously to economic growth. If a company, for instance, is well-managed and the secondary market prices are higher than face value, subsequent rights issue can obtain premium. Therefore the company can finance its development plan in lucrative and cost-effective approach. So the capital market not only provides opportunity for companies to borrow funds needed for long term investment purposes but also provides avenue for the marketing of shares and other securities in order to raise fresh funds for expansion of operations, leading to increase in output or productivity. The equity market offers opportunity for government to finance projects aimed at providing essential amenities for socio-economic development. Such market encourages inflow of foreign capital when foreign companies or investors invest in domestic securities. The securities market can help attain higher productivity by restructuring of ownership and management of the company as secondary market provides an exit option for the original founders and it also creates an avenue for the populace to participate in the corporate sector of the economy and share in its wealth through ownership of securities. So it not only reduces the over-reliance of the corporate sector on short term finance for long term projects but truly makes available the needed money for venture capital development which could serve as a vehicle for industrial development. So through its allocating mechanism, the capital market ensures an efficient and effective distribution of scarce financial resources for the optimal benefit to the economy. 8.2 Major Setbacks of the Capital Market Investment in capital market is limited to a small proportion of the population. Investors’ confidence in the capital market has not entirely recovered since the stock market crash in 1996. Share market debacle in 1996 was mainly the result of market manipulation by a section of stockbrokers in collaboration with some other market participants (SEC, 1997). Some of the other notable reasons behind the stock market crash includes insider-trading and off-loading of shares by directors of the company, absence of circuit breaker in the securities market, disclosure of unregulated rumors and sensitive information, lack of attention given by investors to the relation between stock price and company fundamentals, weak regulatory body to name a few. The diagram below shows clearly the catastrophe that took place during 1996. Figure 1 DSE General Price Index (DGEN) 1993-2007 (Source: IDLCSL) On November, 2001 the DSE introduced the benchmark price barometer DSE General Index (DGEN) with a base index of 817.62 points. The index excludes companies of Z category and is calculated on the basis of price movement of individual stocks. Figure 1 displays the monthly DSE general index from the year January 1993 to November 2007, the latest month for which the data was available. From the diagram we can tell that the market behaved irrationally during the year 1996. The DSE all share price index rose from 832 in 1 January 1996 to 3567 in 14 November of the same year, i.e. DGEN rose from 1106 to 4738.83. This conspicuous rise in DSI was followed by a drastic fall to 2261.47 points in the last week of December 1996 and again to 1140.65 points on April 1997. The market was dreary for a long period of time after the 1996 collapse but between July 20003 and June 2005, DGEN more than doubled from 823 to 1727. It appears that the index is performing modestly in the current year followed by an uptrend as it shows an increase in the index from 1527.29 in November 2006 to 3011.60 in November 2007, reaching its pinnacle after 1996. The devastating history of 96 crashes still persists in the mind of potential investors but without mass participation the market cannot sustain in the long-run. Also it needs to bring back the foreign investors that fled in the 1996 debacle. Inflows of foreign direct investment need to be restored to stabilize the economy. From the statistical data below in Table 1 it can be observed that foreign investors are least attracted to the securities market of Bangladesh. There were significant foreign investment inflows into equities in the year 1994 amounting to $ 106 million but by the mid 1997, most of the foreign portfolio investors had divested holdings and have not since returned. The following table contains the key capital market indicators reflecting that the pace of primary market development had been fluctuating and the market’s contribution to resource mobilization of the economy remains below potential and the secondary market remained stagnant during 1997-2003 but showed some sign of recovery in 2004. Overall, investor confidence has not yet fully recovered. Table 1 Capital Market Indicators- Dhaka Stock Exchange Item 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 No of Listed Companies 143 157 183 186 202 208 213 223 231 242 248 337 Market Cap In taka (mn) 18099 41771 56518 168106 71302 50254 44789 62932 63777 71269 97587 224923 In $ (mn) 455 1038 1409 3960 1569 1036 881 1169 1119 1229 1685 3709 Market Cap as % of GDP 1.44 3.08 3.71 10.11 3.95 2.51 2.04 2.65 2.52 2.61 3.25 6.76 Significance of Capital Market for Economic Development Significance of Capital Market for Economic Development An Explotary Study On The Significance of Capital Market for Economic Development and Its Further Growth Potential In Context of Bangladesh Abstract This research paper investigates whether the role of capital market is significant for the economic development of Bangladesh. Literature suggests that well developed stock market can provide an extra impetus to economic activity. Similar conclusions were also drawn from the in-depth interviews. This paper also reveals a well-scanned scenario of the capital market highlighting its setbacks, current weakness, recent improvements and its prospective signs of development through which we can foresee whether the capital market has further growth potential or not. Thus the present study can also contribute in providing essential information that can also be used for further research. Abbreviations ADB- Asian Development Bank CDBL- Central Depository of Bangladesh Limited CDS- Central Depository System CSE- Chittagong Stock Exchange DGEN- DSE general index DSE- Dhaka Stock Exchange GDP- gross domestic product IPO- initial public offering SEC- Security and Exchange Commission 1.0 Introduction The financial market contributes to the economic growth and development by providing the needed finance for provision of goods and services. The financial market consists of two division- money market and capital market. The money market is basically entitled to supply finance on short-term basis to individuals, businesses, enterprises, government and their agencies. The capital market, on the other hand, provides finance on medium to long-term basis to corporate bodies, government and their agencies (Al-Faki, 2006). Capital Market plays a crucial role in any modern economy as they allow investors’ fund to flow to the most promising opportunities, i.e., the funds are mobilized and channeled efficiently from savers to the users of funds (Al-Faki, 2006; DSE, 2006; Hubbard and Thornton, 2006; Ahmed, 1997). In Bangladesh financial intermediation relies mostly on the banking sector which further resulted in lack of equity financing (Salahuddin Ahmed, 2007; Islam and Hassan 2002). Furthermore out of 5 million urban-based middle class people only four hundred thousand are participating in the securities market and among them roughly hundred thousand are active investors. A large portion is still ignorant of the nature and benefits of the capital market (Abu Ahmed, 2006; DSE Review, 2006; Islam and Hassan, 2002). Developing more complete and deeper capital market would enhance a countries growth potential and innovation (Andritzky, 2007). The forces of globalization, technology, new forms of competition have noticeably transformed capital market worldwide (Hassan, 2004). The chief advisor Dr. Fakhruddin Ahmed stated that â€Å"Only a vibrant and well-regulated capital market can bring sustainable economic development in the country through making the real sector capable of meeting the challenges of the competitive global economic realities† ( DSE Monthly Review, June 2007). Regardless of recent improvements, Bangladesh’s capital market remains underdeveloped as its size is still very small in terms of market cap (ADB, 2006; Salahuddin Ahmed, 2007; Islam and Hassan 2002). The market cap represents just above 9% of the GDP (Dr. Fakhruddin Ahmed retrieved from DSE Review). As Bangladesh capital market is still quite small compared to other regional market and to the size of its economy (CSE, 2006) despite its existence for a long time, this paper applies a framework for analyzing the significance of capital market for economic growth and development of Bangladesh, identifying its growth potentials through exploration. 2.0 Problem Statement Bangladesh’s capital market is still underdeveloped, in spite of recent improvements. The size of the country’s capital market is quite small mainly due to the excessive dependence of leading corporate entities on the banks for financing. Moreover the overall transparency of market transaction is also low compared to international standards and generally there has been slow development of the underlying market infrastructure. The government is making effort to develop the reliability and efficiency of stock exchanges as investment market. Compared to the other neighboring countries the numbers of participants are much smaller in Bangladesh as investor lack confidence. There is a supply side constrains in the capital market as quality shares are lacking. For all this reason this research is done to explore the importance of capital market in the economy and what are the prospective sign of development of the stock market. 3.0 Purpose of the Study The purpose of the study is to explore a well scanned scenario of Bangladesh capital market, its significance and its prospects. Although some research has been conducted relating to this topic but there is little empirical evidence about how essential stock market is to economic development of a country. A sound capital market prompts better economic base and influence its future growth and so it can help realize Bangladesh’s growth potential. The capital market of Bangladesh is on the brink to play its due role as a medium for financing investment and thereby making a notable contribution to economic growth, employment creation and poverty alleviation. The capital market plays an important role in quickening the pace of economic development but the existing state of the capital market is under-developed and not in a position to ensure economic progress of the country. Hence this research will try to highlight the significance of capital market for the nation and explore what are the probable signs of progress. 4.0 Research Timeline 2007 SeptemberWriting Research Proposal 2007 SeptemberDeveloping Literature Review 2007 OctoberCollecting Data 2007 October- NovemberData Analysis and Interpretation of the Findings 2007 NovemberPreparing Draft and Finalizing the Research Paper 2007 DecemberSubmission of Research Paper 5.0 Limitations of the study During conducting the research I came across certain limitations and among them the foremost one is time constrain. Although I got the opportunity to work in an organization that is capital market based but it was difficult to find spare time that could be used for the report. Moreover the interviewed person could not provide all necessary information due to lack of time. The research timeline also reveals that time constrain was actually a barrier as there was plenty to find about this research topic. As the research is conducted for the first time, I did not get much support from previous research paper and further research is suggested. A huge portion of the report is based on secondary data collected through websites and so the depth of reliability varies as by the nature of website. 6.0 Review of the Literature 6.1 Financial Intermediation According to Joseph Yam (2004) financial intermediation is channeling savings into investments. Aziz and Duenwald (2002) referred that financial intermediation affects growth through the following channels – (i) it can increase the marginal productivity of capital by collecting information to evaluate alternative investment projects and by risk sharing (ii) it can raise the proportion of savings channeled to investment through financial development. According to Conning and Kevane (2002) â€Å"intermediation implies an intermediary†. Gorton and Winton (2002) added that â€Å"it is the root institution in the saving investment process†. They referred that financial intermediaries are firms that borrow from those who have excess money, that is, the savers and lend the money to companies that need resources for investment. 6.2 Performance Indicators According to R. N. Agarwal (2000) the most commonly used standard to measure the size of a country’s stock market is market capitalization ratio, that is, the ratio of market value of stocks which are currently listed on a bourse to Gross Domestic Product (GDP). A small ratio of capitalization to GDP reveals the small size of a stock market. Alternatively, the size can be measured by the number of listed companies on a stock market. The height of maturity of an economy’s financial system is essential for economic development. Bekeart et al., (2007), Hubard and Thornton (2006), Rosul (2002) all investigated the significance and relation of stock market development with the economic growth and their conclusion suggests that capital market development is positively correlated with long term economic growth and the capital market plays an important role in the economic development of any country. The size of the equity capital market has an optimistic effect on economic growth of the country, that is, much higher market cap and turnover has a major positive influence on the economy (Institute for Advanced Studies, IHS, 2006). It is seen that the ratio of market cap to GDP in neighboring countries like India, Pakistan and Sri Lanka is relatively much higher, that is, more than 60% of their GDP (DSE, Kh. Asadul Islam, 2007; Dr. Fakhruddin Ahmed,2007). In Bangladesh the market cap is very small proportion of the countries GDP (Islam Hassan, 2002) and this is due to significant dependence on the banking sector (DSE Review, Fakhruddin Ahmed, June 2007). Market capitalization as a share of GDP was around 2.5%-3.3% during 2001-2003 compared with 1.4-10.1% during 1993-1996 and 2- 4% during 1997-2000. However in the year 2004 market cap reached 6.8% reflecting the rise in the DSE index from 968 to 1,971 at the end of 2003 and 2004 respectively (ADB, May 2005). The trend of market cap as percentage of GDP and other capital market indicators of DSE and CSE are shown through the help of statistical data represented in the discussion section in Table 1. Despite the existence of the bourse from 1954, the capital market still exhibits features of an emerging equity market (Islam Hassan, 2002). The finance sector is immensely bank-based (Salahuddin Ahmed, 2007) as resource mobilization for industrialization and economic development is made primarily through the regular banking system (Islam Hassan, 2002). Borrowing requires fixed payments and over-reliance on banks can cause credit default risk. According to (Mochammad Rosul, 2002) excessive reliance on bank borrowing results in a mismatch with long-term investments being financed with short-term bank loans. He added that such a risky situation can further contribute to the economic crisis and so the job of the principal fund supplier for business should be transferred from banking sector to the capital sector. 6.3 Regulatory Bodies 6.3.1. The Security and Exchange Commission (SEC) The Security and Exchange Commission (SEC) exercises power under the Security and Exchange Commission Act 1993 and established on June 8, 1993. SEC, the sole Capital Market Watchdog and Regulator, has been pursuing a vigorous capital market development process including amendments of its existing regulations, conduction of investor awareness programs, rigid monitoring and surveillance to bring in transparency in the trading mechanism (SEC, Annual Report 2003 -04). The responsibility of SEC includes the following: Regulating the functions of Stock Exchanges Registering and regulating the business of stock brokers, sub broker, share transfer agents, underwriters, registrar, portfolio managers, investment advisors, and other middlemen related to security dealings. Registering, controlling, and monitoring of all types of mutual funds Controlling and monitoring of all authorized self regulatory organizations Prohibiting fraudulent and unfair practices related to securities Promoting investor’s education program and providing training of intermediaries Regulating substantial acquisition of shares and takeover of companies SEC are detects market manipulation and also keeps constant vigil on the activities of stock exchanges to ensure effectiveness of the surveillance system. Conducts research and publishes information for above purposes (Source: Security Exchange Commission Website: www.secbd.com) 6.3.2 Stock Exchanges 6.3.2.1 Dhaka Stock Exchange (DSE) On April 28, 1954 DSE was first incorporated as the East Pakistan Stock Exchange Association Limited. Formal trading began in 1956 with 196 securities listed on the DSE with a total paid up capital of about Taka 4 billion. On June 23, 1962 it was renamed as Dhaka Stock Exchange (DSE) Limited. After 1971, the trading activities of the prime bourse remained suppresses until 1976 due to liberation war and economic policy pursued by the then government. Trading resumed at DSE in 1976 with only 9 companies listed having a paid up of Taka 137.52 million (Bashar et al., 2000; M Farid Ahmed, 1997). As of today there are 342 listed companies in the prime bourse with market cap exceeding 700,000 million (DSE, 2007). The reforms that DSE undertook recently for ensuring professionalism and transparency focused on the trading of securities. The measure were taken to implement transparent trading system, efficient reporting of trade, real time delivery of information, strong surveillance and monitoring over trade of securities and settlement of shares (Rahman,Uddin and Malik, 2006). 6.3.2.2 The Chittagong Stock Exchange Limited (CSE) The CSE is the countries second bourse that started its operation from the year 1995. It is also a self-regulatory non profit organization. Currently the numbers of listed securities are 223 of which the number of listed companies are 208, mutual funds 14, and one debenture. 6.4 Recent Capital Market Scenario of Bangladesh According to Dr Fakhruddin Ahmed (DSE, 2007) political uncertainty, corruption and lack of transparency in all section of the social and economic fabric are some of the reasons for capital market deficiency. Bangladesh Governor Salehuddin Ahmed (2007) reveals that foremost problems include political instability, under developed infrastructure, poor port management, short comings in legal system and corruption (Financial Express Report). On the other hand DSE general share price index reached its pinnacle and crossed 3000 points (Newage: www.newagebd.com). In fact the capital market witnessed a robust growth in the current year. Both turnover and market cap crossed new milestones at Tk 3000 million and Tk 700,000 million respectively during the year (DSE, 2006; DSE, 2007, IDLCSL). Recently our market cap crossed USD 10 billion that accounts for only 13% of its GDP which was only 8% a year back. (DSE Monthly Review, Oct 2007). Though the contribution of capital market to GDP is still inadequate when compared to neighboring countries but still its increase is significant for the development of our economy. Comparison of indices and market cap among different countries is shown in Table 2 and Figure 2 in the discussion part. Entry of 12 new issues worth Tk 11,322.95 million helped raise the market cap. Some of the reason for the progress in capital market development is central depository system and the automated trading system (ADB, 2006; SEC, 2005). The DSE has upgraded its automated online trading system and investors are able to trade from different parts of the country (SEC Quarterly Report, April-June 2007; ADB, 2006). Another reason for the vigorous improvement of the equity capital market is due to strenuous efforts taken by the SEC that further boosted investors’ confidence (DSE, 2007). 7.0 Research Methodology 7.1 Research Design The present study endeavored to explore importance of capital market for the economic development of Bangladesh and its future prospects. Exploratory research is selected as research design as little information exists about the capital market of Bangladesh. The aim of exploratory research is mainly to gain enough information before doing more thorough research. We basically start by gathering as much information about the object as possible and with a vague impression of what we should study (Cooper Schindler, 2003). 7.2 Research Instrument The research was conducted using both primary and secondary data. For collecting secondary data, various books, websites, newspapers, annual reports, monthly reviews and significant articles were chosen. Also for collection of primary data in-depth interviews with a range of designated professional, related to this field, were taken. 7.3 Data Collection Secondary data used in the paper has been collected through access of different source of books, journals, publications of DSE, SEC, ADB and other news paper and articles. The DSE and SEC library were visited to acquire secondary information. Various websites were browsed to collect relevant articles that are circulated on online sites. For collecting primary data, in-depth interviews of experienced people related to this field of capital market were taken. Appointments were fixed initially and then the interviews were taken. The interviewed persons are Kh. Asadul Islam, CEO, IDLC Securities Limited (IDLCSL); Anwarul Kabir Bhuiyan, SEC, Executive Director; Tania Sharmin, SEC, Assistance Director (Surveillance); Abul Ehsan, Senior Officer, IDLC Finance Limited; Moumita Manzoor, Research Associate, IDLCSL. Each of them was interviewed for 40 minutes approximately during the office hour while taking break from work. They were asked some essential questions associated to this research topic. Some of the questions that were asked are as follows- What is the role of capital market in the economy? What are the setbacks of the stock market in Bangladesh? Explain the current scenario of the capital market What are the prospective sign of the development of the capital market? How can we be sure of a sound growth of capital market in Bangladesh? Do you see a better or worse scenario ahead of us and why? 8.0 Discussion 8.1 Role of Capital Market in the Economy According to Dr. Mirza Azizul Islam (2006) capital market can play an essential role in enhancing economic development through efficient intermediation of savings into productive investments and in encouraging the expansion of private entrepreneurship (DSE, 2006). The primary market can contribute to the growth of private entrepreneurship by facilitating the entrepreneurs to raise funds from surplus savers and consequently finance investment in a cost-effective manner. For instance, if an industrialist with a viable new investment or expansion proposal is unable to execute his plan due to financial crisis then he can issue securities to meet the required deficit. Moreover issuing shares have the additional advantage that they do not create fixed charges for the companies issuing them and hence endows a better option than, say, financing through bank loans. A proficient and vibrant secondary market can also contribute copiously to economic growth. If a company, for instance, is well-managed and the secondary market prices are higher than face value, subsequent rights issue can obtain premium. Therefore the company can finance its development plan in lucrative and cost-effective approach. So the capital market not only provides opportunity for companies to borrow funds needed for long term investment purposes but also provides avenue for the marketing of shares and other securities in order to raise fresh funds for expansion of operations, leading to increase in output or productivity. The equity market offers opportunity for government to finance projects aimed at providing essential amenities for socio-economic development. Such market encourages inflow of foreign capital when foreign companies or investors invest in domestic securities. The securities market can help attain higher productivity by restructuring of ownership and management of the company as secondary market provides an exit option for the original founders and it also creates an avenue for the populace to participate in the corporate sector of the economy and share in its wealth through ownership of securities. So it not only reduces the over-reliance of the corporate sector on short term finance for long term projects but truly makes available the needed money for venture capital development which could serve as a vehicle for industrial development. So through its allocating mechanism, the capital market ensures an efficient and effective distribution of scarce financial resources for the optimal benefit to the economy. 8.2 Major Setbacks of the Capital Market Investment in capital market is limited to a small proportion of the population. Investors’ confidence in the capital market has not entirely recovered since the stock market crash in 1996. Share market debacle in 1996 was mainly the result of market manipulation by a section of stockbrokers in collaboration with some other market participants (SEC, 1997). Some of the other notable reasons behind the stock market crash includes insider-trading and off-loading of shares by directors of the company, absence of circuit breaker in the securities market, disclosure of unregulated rumors and sensitive information, lack of attention given by investors to the relation between stock price and company fundamentals, weak regulatory body to name a few. The diagram below shows clearly the catastrophe that took place during 1996. Figure 1 DSE General Price Index (DGEN) 1993-2007 (Source: IDLCSL) On November, 2001 the DSE introduced the benchmark price barometer DSE General Index (DGEN) with a base index of 817.62 points. The index excludes companies of Z category and is calculated on the basis of price movement of individual stocks. Figure 1 displays the monthly DSE general index from the year January 1993 to November 2007, the latest month for which the data was available. From the diagram we can tell that the market behaved irrationally during the year 1996. The DSE all share price index rose from 832 in 1 January 1996 to 3567 in 14 November of the same year, i.e. DGEN rose from 1106 to 4738.83. This conspicuous rise in DSI was followed by a drastic fall to 2261.47 points in the last week of December 1996 and again to 1140.65 points on April 1997. The market was dreary for a long period of time after the 1996 collapse but between July 20003 and June 2005, DGEN more than doubled from 823 to 1727. It appears that the index is performing modestly in the current year followed by an uptrend as it shows an increase in the index from 1527.29 in November 2006 to 3011.60 in November 2007, reaching its pinnacle after 1996. The devastating history of 96 crashes still persists in the mind of potential investors but without mass participation the market cannot sustain in the long-run. Also it needs to bring back the foreign investors that fled in the 1996 debacle. Inflows of foreign direct investment need to be restored to stabilize the economy. From the statistical data below in Table 1 it can be observed that foreign investors are least attracted to the securities market of Bangladesh. There were significant foreign investment inflows into equities in the year 1994 amounting to $ 106 million but by the mid 1997, most of the foreign portfolio investors had divested holdings and have not since returned. The following table contains the key capital market indicators reflecting that the pace of primary market development had been fluctuating and the market’s contribution to resource mobilization of the economy remains below potential and the secondary market remained stagnant during 1997-2003 but showed some sign of recovery in 2004. Overall, investor confidence has not yet fully recovered. Table 1 Capital Market Indicators- Dhaka Stock Exchange Item 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 No of Listed Companies 143 157 183 186 202 208 213 223 231 242 248 337 Market Cap In taka (mn) 18099 41771 56518 168106 71302 50254 44789 62932 63777 71269 97587 224923 In $ (mn) 455 1038 1409 3960 1569 1036 881 1169 1119 1229 1685 3709 Market Cap as % of GDP 1.44 3.08 3.71 10.11 3.95 2.51 2.04 2.65 2.52 2.61 3.25 6.76