Section Leader and Drum Major free essay sample

I am applying for both area pioneer and drum major since I have a great deal to offer in the two situations in the band. I am an incredible pioneer, with a great deal of development and know when it’s time to be not kidding, and when it’s time to joke around. Consistently, I develop increasingly more with this band and driving this band as drum major, or driving the saxophones as area pioneer, would be a stunning achievement for me and I realize I can carry out the responsibility well. Most importantly, I will place everything that is in me into this activity, I’ve been in band for a long time, and I have developed with this band for a long time. I realize the band can arrive at new statures in the event that we buckle down enough. With all the progressions we are making one year from now, we are going to require solid pioneers to help the approaching first year recruit and to lead the whole band consistently. We will compose a custom exposition test on Area Leader and Drum Major or then again any comparable theme explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page As drum major, leading requires a particular sort of knowledge and a comprehension of music, which is something that I have begun to create during my seven years of playing an instrument. Expansion to my involvement in music overall, I additionally have three years of walking band understanding. Second, I am resolved to succeed, and to develop myself and the band all in all. It’s not adequate to be good, I need to surpass desires. I have faith in difficult work, and never surrendering; I have confidence in making a little improvement consistently, in light of the fact that there’s ALWAYS opportunity to get better. We had an astonishing year this year, getting two bosses, yet we can’t simply rest. We need to continue working, flourish to be as well as can be expected be. I need to be that individual to lead this band, and push them to be the best. Finally, my way of thinking on authority is straightforward: show others how its done, consistently help, and never quit. Stopping is not feasible for me. Utilizing pardons as opposed to putting forth a strong effort, abandoning something (or somebody), or surrendering your obligations are things I totally don't have faith in. Advancing greatness in others begins with advancing it in yourself. I have found from being in the walking band that every part needs regard. I mean to give regard first and in doing that I trust I will get it from my wharfs permitting this entire experience to be an ideal one.

Victimology Essay Example

Duluth

Duluth Duluth d?lo?oth ´ [key], city (1990 pop. 85,493), seat of St. Louis co., NE Minn., at the west end of Lake Superior, at the head of lake navigation and opposite Superior, Wis.; inc. 1870. It is a commercial, industrial, and cultural center of N Minnesota, as well as a major port on the Great Lakes, a convention headquarters, and the gateway to a resort region. Large amounts of grain, iron ore (especially taconite), oil, and bulk cargo are shipped on lake freighters and ocean vessels. The diverse industries include fish processing and grain elevator services, and the manufacture of steel, concrete, piping, chemical lime, paper, and hand tools. Tourism is important, and the military air-defense installation at Duluth International Airport is valuable to the economy. Native American settlements were found there in the 1670s by the early explorers and fur traders, including the sieur Duluth (for whom the city was named). Permanent settlement began c.1852. Built largely on rocky bluff s overlooking the lake, the city was at first a trade and shipping center for the timber country. Discovery of iron (1865) in the Mesabi range made it the chief ore-shipping point for the nation's steel mills. With the opening of the St. Lawrence Seaway (1959), it became one of the leading ports on the Great Lakes for the export of grain. Duluth is the seat of the College of St. Scholastica, the Duluth Institute of Technology, and a branch of the Univ. of Minnesota. It has a symphony orchestra, a community theater, and various museums. Of interest are the huge Aerial Lift Bridge, linking the city to 7 mi (11.3 km) of sand beach on Park Point; the Skyline Blvd., winding high above the city for 15 mi (24 km); and Leif Erikson Park. The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved. See more Encyclopedia articles on: U.S. Political Geography

Duluth

Duluth Duluth d?lo?oth ´ [key], city (1990 pop. 85,493), seat of St. Louis co., NE Minn., at the west end of Lake Superior, at the head of lake navigation and opposite Superior, Wis.; inc. 1870. It is a commercial, industrial, and cultural center of N Minnesota, as well as a major port on the Great Lakes, a convention headquarters, and the gateway to a resort region. Large amounts of grain, iron ore (especially taconite), oil, and bulk cargo are shipped on lake freighters and ocean vessels. The diverse industries include fish processing and grain elevator services, and the manufacture of steel, concrete, piping, chemical lime, paper, and hand tools. Tourism is important, and the military air-defense installation at Duluth International Airport is valuable to the economy. Native American settlements were found there in the 1670s by the early explorers and fur traders, including the sieur Duluth (for whom the city was named). Permanent settlement began c.1852. Built largely on rocky bluff s overlooking the lake, the city was at first a trade and shipping center for the timber country. Discovery of iron (1865) in the Mesabi range made it the chief ore-shipping point for the nation's steel mills. With the opening of the St. Lawrence Seaway (1959), it became one of the leading ports on the Great Lakes for the export of grain. Duluth is the seat of the College of St. Scholastica, the Duluth Institute of Technology, and a branch of the Univ. of Minnesota. It has a symphony orchestra, a community theater, and various museums. Of interest are the huge Aerial Lift Bridge, linking the city to 7 mi (11.3 km) of sand beach on Park Point; the Skyline Blvd., winding high above the city for 15 mi (24 km); and Leif Erikson Park. The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved. See more Encyclopedia articles on: U.S. Political Geography

Duluth

Duluth Duluth d?lo?oth ´ [key], city (1990 pop. 85,493), seat of St. Louis co., NE Minn., at the west end of Lake Superior, at the head of lake navigation and opposite Superior, Wis.; inc. 1870. It is a commercial, industrial, and cultural center of N Minnesota, as well as a major port on the Great Lakes, a convention headquarters, and the gateway to a resort region. Large amounts of grain, iron ore (especially taconite), oil, and bulk cargo are shipped on lake freighters and ocean vessels. The diverse industries include fish processing and grain elevator services, and the manufacture of steel, concrete, piping, chemical lime, paper, and hand tools. Tourism is important, and the military air-defense installation at Duluth International Airport is valuable to the economy. Native American settlements were found there in the 1670s by the early explorers and fur traders, including the sieur Duluth (for whom the city was named). Permanent settlement began c.1852. Built largely on rocky bluff s overlooking the lake, the city was at first a trade and shipping center for the timber country. Discovery of iron (1865) in the Mesabi range made it the chief ore-shipping point for the nation's steel mills. With the opening of the St. Lawrence Seaway (1959), it became one of the leading ports on the Great Lakes for the export of grain. Duluth is the seat of the College of St. Scholastica, the Duluth Institute of Technology, and a branch of the Univ. of Minnesota. It has a symphony orchestra, a community theater, and various museums. Of interest are the huge Aerial Lift Bridge, linking the city to 7 mi (11.3 km) of sand beach on Park Point; the Skyline Blvd., winding high above the city for 15 mi (24 km); and Leif Erikson Park. The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved. See more Encyclopedia articles on: U.S. Political Geography

How Divorce is Affecting the American Culture Essay

Over the past decades, the patterns of family structure have changed dramatically in the United States. The typical nuclear family, two married parents with children living together in one household, is no longer the structure of the majority of the families today. The percentage of single-parent families, step-families and adopted families has increased significantly over the years. The nuclear family is a thing of the past. Family situations have tremendous influence upon a child’s academic achievement, behavior and social growth. The present structure of the average family in America is changing, mainly due to the growing number of mothers who now work outside the home. The current mark of dual-earner families stands at 64 percent,†¦show more content†¦Step-parent families are formed when one or both partners have separate children and marry. The formation of the step-parent family introduces a second authoritative figure into the household (Sweeney, 2007). Step-p arent families offer more supervision and monitoring in the home as well as additional role model (Sweeney, 2007). In many cases, a step-parent can be an emotional release for parents who may be overwhelmed with raising the children, running the home and being the sole provider for the family. In many instances step-parent families have positive outcomes, but there are some negatives such as retention and socialization skills that children in these homes face. Researchers believe that step-parent families have some of the same outcomes as single parent families. Some researchers believe that children in step-parent families are at a greater risk than those children living in single parent homes. Children in step-parent families have a greater risk of â€Å"suicide attempts, developmental difficulties, early sexual behavior and having a premarital birth† (Sweeney, 2007). Step-parent families may consist of conflict due to resentment. The children of each partner may dislik e or disrespect the step-parent because they feel the parent is attempting to take the place of the absent biological parent. Although having two parents may be more beneficial for children, single parent families are becoming more common. A single-parentShow MoreRelatedEssay about How Divorce is Affecting the American Culture1667 Words   |  7 PagesThe effects of divorce on the American culture are immense. Social scientists have been studying these effects for many years now. The studies are continuing to confirm that the climbing rate of divorce in the American culture is hurting the society and also frequently devastating the lives of many American children. There are many areas in which divorce has a negative effect in the life of a child or an adult. Many of these effects also directly correlate to the effect on a society. HoweverRead MoreThe Issue Of Marriage And Divorce1490 Words   |  6 Pages Marriage and divorce has always been a tricky subject for many couples, the fear of rejection, starting a family or hurting their other counterpart can come to play in many situations throughout the ir relationship. Traditionally marriages were known to be a sacred bond between two individuals. This bond can be between two heterosexuals or two individuals of the same sex. On May 17th, 2004 Massachusetts became the first state to allow all same-sex marriages (Dinno 2013). In Canada same-sex marriagesRead MoreEffects of Divorce on Children1690 Words   |  7 PagesDivorce: Effects on Children Divorce has become an unquestionable remedy for the miserably married. Currently, the United States has the highest divorce rate in the world. Every year in the US approximately one million children experience divorce which, is about one in every three children (Amato 21). The effects of divorce can be tremendously painful for both children and adults. Children of divorce are more likely to suffer from behavioral, social, academic, and psychological problems than childrenRead MoreCritical Evaluation Of The Miller Family759 Words   |  4 PagesAfrican American 7th grade student. James has made a comment about suicide due to his parents’ divorce and bullying at school. The teacher consulted with parents and the school counselor. In the end James was hospitalized for 72 hours. Selma Madsen is James’ mother and primary care taker. Stan Walker, James’ father, lives in a neighboring town with his girlfriend (Amatea, 2013). My initial reaction to the Madsen-Walker family was sadness. I feel bad for James having to go through the divorce and thenRead MoreShould Teachers Be Sensitive And Culturally Diverse Classrooms?1395 Words   |  6 PagesIn the 21st century, teachers will be standing in front of many more racially and culturally diverse classrooms than ever before. Teachers now need to be more aware of culture in their classrooms more than teachers before them. In light of this, it is important to be able to be sensitive and aware of the needs of such diverse students. Teachers also have to be sensitive to the social and family issues of their students. In this new age of teaching, educators now have the ability to save childrenRead MoreWhy Do People Become Homelss1750 Words   |  7 Pagesever stop. Homelessness is a phenomenon that has so much to address research has been done; it was discover that for our government to concentrate on the stop instead of the why. We know the why. The problem is to start by addressing the gender, the culture, the psychosocial of the individual, and the moral effect on our community the economic, create interventions developed to address their housing and service needs. These include interventions directed at the adult the individual themselves educationRead MoreDuring adolescents, there is an increased vulnerability for depression due to biological,1100 Words   |  5 Pageseffective form of treatment for depression with adolescents. I will also review literature which supports Family Therapy as being an effective treatment for adolescents with parent-child relational problems. I will also discuss any issues related to culture, ethnicity, and age regarding Scarlet and her family. Client’s Presenting Problems Scarlet is a sixteen year old Hispanic female who resides in Edison with her biological mother. Scarlet is currently a junior at JP Steven’s high school. ScarletRead MoreBronfenbrenners Ecological Theory of Development Essay1559 Words   |  7 Pageswhich focuses on the changing relations between individuals and the environments in which they live. It consists of five environmental systems ranging from the fine-grained inputs of direct interactions with social agents to the broad-based inputs of culture. The five systems in Bronfenbrenners ecological theory are the microsystem, mesosystem, exosystem, macrosystem, and chronosystem. The microsystem in ecological theory is the setting in which an individual lives (Bronfenbrenner 1979). This contextRead MoreEffects Of The Economy On Marriage1336 Words   |  6 Pagesjoin men in the workforce. Both men and women striving for a career and putting in the effort to get there has changed the norm in which people view marriage. â€Å"In particular, many Americans are waiting longer to get married† (1) a decision which is highly influenced by the current economy. Another factor that is affecting society’s views on marriage is the economy. In the recent past, the economy has taken a turn for the worse making it much more difficult to find jobs. A lack of work and thereforeRead MorePsychoanalysis and Sigmund Freud2808 Words   |  11 Pagesessay in that different theories and components of the approach will be discussed and they will also be used to analyse Wendy and come to decisions about how she is presenting in therapy based on these components of psychoanalysis approach. Psychoanalysis as an approach founded by Freud focuses on what is called the unconscious material and how this material affects the individual (Yakeley, 2014). This essay will specifically look at Freud’s drive theory and the Object Relations Theory as these are

The Role and Rights of Women in Western Europe and Eastern...

During the long nineteenth century, political revolutions, industrialization, and European imperialism resulted in dramatic changes in the role of women in Western Europe and Eastern Asia. As industrialization spread in Western Europe, women were no longer able to fulfill their dual role as a mother and a worker. After the introduction of industrialization, laborious tasks were moved from the household to factories and women were forced to choose either the life of a mother or the life of a worker. Women who chose to leave their households were subjected to harsh conditions, low wages, and long hours. The majority of married and middle-class women were confined to the home, and deprived of an education and civil rights. Unlike the†¦show more content†¦As industrialization spread in Western Europe, the production of products and goods moved from the household to factories which drastically changed family life. Married women were unable to work unless they left their chi ldren and home in someone else’s care. Moreover, middle-class women generally did not leave their homes in order to work. In contrast, the women of Eastern Asia rapidly joined the work force after the introduction of industrialization and made up a gigantic portion of the labor force. This difference is probably due to the fact that the rural women of Eastern Asia were always laborers, and they make up the majority of the female population. Additionally, European women generally preferred domestic labor to laborious tasks. Rural women were offered independence by leaving their homes in order to perform domestic work; they generally sent their earnings to their families or saved it for themselves. Moreover, the European women that participated in the work force were forced to travel long distances and were separated from their families from long hours. Additionally, their wages were significantly lower than that of their male counterparts. Furthermore, women worked und er poor conditions and were constantly susceptible to disease. Similarly, the poor women of Eastern Asia sought employment in the cotton and silk industry.Show MoreRelatedOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 PagesHartman Strom, Political Woman: Florence Luscomb and the Legacy of Radical Reform Michael Adas, ed., Agricultural and Pastoral Societies in Ancient and Classical History Jack Metzgar, Striking Steel: Solidarity Remembered Janis Appier, Policing Women: The Sexual Politics of Law Enforcement and the LAPD Allen Hunter, ed., Rethinking the Cold War Eric Foner, ed., The New American History. Revised and Expanded Edition E SSAYS ON _ T WENTIETH- C ENTURY H ISTORY Edited by MichaelRead MoreInstitution as the Fundamental Cause of Long Tern Growth39832 Words   |  160 PagesQuerubà ­n and Barry Weingast for their helpful suggestions. The views expressed herein are those of the author(s) and not necessarily those of the National Bureau of Economic Research.  ©2004 by Daron Acemoglu, Simon Johnson, and James Robinson. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including  © notice, is given to the source. Institutions as the Fundamental Cause of Long-Run Growth Daron AcemogluRead MoreSwiss Chocolate19949 Words   |  80 Pages Old or young, every individual from different ages can not resist its sublime temptation. So, most people cannot resist the temptation of eating chocolates. Let it be a festival or an ordinary snack, chocolate may be there as one of the delicious dishes. The wonder of its taste is so wonderful that it develops even chocoholics like alcoholics. There are some people who even eat a lot of chocolates to get over tough times. Of course this mouth watering wonder from heaven can also serve the purposeRead MoreEurope Economic Crisis55278 Words   |  222 PagesISSN 0379-0991 Economic Crisis in Europe: Causes, Consequences and Responses EUROPEAN ECONOMY 7|2009 EUROPEAN COMMISSION The European Economy series contains important reports and communications from the Commission to the Council and the Parliament on the economic situation and developments, such as the Economic forecasts, the annual EU economy review and the Public ï ¬ nances in EMU report. Subscription terms are shown on the back cover and details on how to obtain the list of sales agentsRead MoreProject Mgmt296381 Words   |  1186 PagesUniversity PROJECT MANAGEMENT: THE MANAGERIAL PROCESS Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright  © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in

Camelot Poem Analysis - 2223 Words

The poem opened up with the mythology of Britain’s foundings being rooted in the fall of Troy. Following the fall of Troy, Romulus quickly founded Rome which led to having Ticius founded Tuscany and Langobard did the same with Lombardy. Soon after the founding of the three nations, as the myth goes, Felix Brutus founded Britain after the French floods. Soon after the founding of Britain, the nation raised children as soldiers; they were fighting machines in a troubled time filled with turmoil. Among all of the kings, there was one prodigy named Arthur; Arthur stood among the highest; almost untouchable from his fellow peers. His courage and aptitude for ruling were ever so present during his time as king, gaining the respect from his†¦show more content†¦He claimed to have come in peace, but he demanded to be indulged in a game. Arthur assumed that the Green Knight spoke of a fight, but the Green Knight stated that he did not wish to fight such young and puny knights. Instead, he wanted one of the knights to strike a blow to his neck with the Green Knight s own axe, but on the pretense that the Green Knight would return the blow exactly a year and a day from then. The conditions of the game offered by the Green Knight caused everyone to stay silent in both shock and confusion. Soon after, the Green Knight began to question Arthur’s followers, claiming the court is filled with cowards. In retaliation to this accusation, Arthur felt the shame of his court and took up the Green Knight’s offer. As Arthur readied himself to strike the Green Knight down, another member of the court stood up and requested that he take the challenge instead, Gawain. Gawain interrupted the silence that filled the hall by requesting that he take up the challenge instead of Arthur. Arthur allowed Gawain to participate in the Green Knight’s game; Gawain then recited the rules for the game to show he understood the pact that he has taken upon himself. As Gawain brought down the axe upon the Green Knight’s neck, Gawain separated the Green Knight’s head from his body in one swing. To everyone’s disbelief, the Green Knight walked to his headShow MoreRelatedLady of Shalott1194 Words   |  5 Pagesthe Lady of Shalott has. (The mirror being distorted reality is especially interesting when one considers that it is typically used as a symbol of the cold, hard truth. This difference gives added emphasis on the importance of this symbol within the poem, as well as telling us that the Lady of Shalott did not realize that view of the world was warped.) All this changes when she looks out the window and onto an undistorted world. The Lady of Shalott loses her innocence by falling in love. ThusRead MorePoetry1969 Words   |  8 PagesLove Poem Analysis: Linda Pastan is an American poet of Jewish background. She was born in New York on May 27, 1932. Today, she lives in Potomac, Maryland with her husband Ira Pastan, an accomplished physician and researcher. She is known for writing short poems that address topics like family life, domesticity, motherhood, the female experience, aging, death, loss and the fear of loss, as well as the fragility of life and relationships. Love poem is a very simple poem yet it has a deepRead MoreComparing Beowulf And Sir Gawain And The Green Knight Essay1555 Words   |  7 Pagescultural values differ than those who lived â€Å"back then† but the response to that ideology is, does one value loyalty? Among the many values of the Anglo-Saxons, such as bravery, truth, and honor, above them all stands loyalty. Through an archetypal analysis, one may view how two major works of the Middle Ages, Beowulf and Sir Gawain and the Green Knight, both reflect attributes of loyalty, specifically the testing of one’s loyalty and the consequences of disloyalty, which reflect the behavior and valuesRead More A Feminist Perspective of The Lady of Shalott Essay2157 Words   |  9 Pagesessay on feminist criticism, Linda Peterson of Yale University explains how literature can reflect and shape the attitudes that have held women back (330). From the viewpoint of a feminist critic, The Lady of Shalott provides its re ader with an analysis of the Victorian womans conflict between her place in the interior, domestic role of society and her desire to break into the exterior, public sphere which generally had been the domain of men. Read as a commentary on womens roles in VictorianRead More King Arthur Essay1428 Words   |  6 PagesKing Arthur Character Analysis The character of King Arthur is unique in literature. Most characters are known through their actions and words as described by the author of a story. Arthur, however, is a conglomerate of characters described by many different authors over a fifteen hundred year span. There is no single depiction of him, and one cannot trace his origin to a single author for the definitive description. As such, the character of Arthur is different depending on the era, cultureRead MoreSir Gawain And The Green Knight1591 Words   |  7 Pagesof folklore and by others as an allusion to Christ. Written in stanzas of alliterative verse, each of which ends in a rhyming bob and wheel, it draws on Welsh, Irish and English stories, as well as the French chivalric tradition. It is an important poem in the romance genre, which typically involves a hero who goes on a quest which tests his prowess, and it remains popular to this day in modern English renderings from J. R. R. Tolkien, Simon Armitage and others, as well as through film and stage adaptationsRead MoreThe Caterbury Tales, Carmina Burana and The Book of Taliesin722 Words   |  3 PagesBubonic Plague, briefly alluded to in Geoffrey Chaucer’s Canterbury Tales, to the legendary king and war-hero Arthur of Camelot. The Christian Church was the single most influential institution in society, with the pope taking on a role as the leader of European Christendom and education and intellectual life mostly happening through religious institutions. Through the analysis of compositions written during the Middle Ages, it is observable that significant events influenced the pages of these notableRead More On the Entrapment and Incarceration of the Victorian Woman Essay2388 Words   |  10 Pagesthe Lady that gives the poem its title. Both poems are an analysis into the Victorian woman as an incarcerated and entrapped sub-culture of a predominately patriarchal society. It is no surprise then that the methods of which these fictiona l women take to escape comes at the cost of their lives. The doomed Duchess of Robert Browning’s dramatic monologue, â€Å"My Last Duchess† is the embodiment of the incarcerated woman taken to the eternal extreme. The setting for this poem is the Italy of the MiddleRead MoreSir Gawain And The Green Knight2066 Words   |  9 Pagesand the Green Knight: The Pentangle, the Green Knight, and the Perfection of Virtue†, and Manish Sharma, author of â€Å"Hiding the Harm: Revisionism and Marvel in Sir Gawain and the Green Knight†, both discuss major controversial topics relating to this poem. To begin, David N. Beauregard’s intent with his article, â€Å"Moral Theology in Sir Gawain and the Green Knight: The Pentangle, the Green Knight, and the Perfection of Virtue†, was to display that it is possible to relate two major symbols; the pentangleRead MoreAlfred Lord Tennysons Life Influences on His Work508 Words   |  2 PagesTennyson always had some life meaning behind his poems. He was born in the rural town of Somersby in Lincolnshire, the fourth of twelve children. In 1884, Queen Victoria made Tennyson a baron, and so he became the title of Lord in his time. From the Academy of American Poets website, it is stated that, â€Å"At the age of 41, Tennyson had established himself as the most popular poet of the Victorian era.† Alfred Lord Tennyson life had a huge impact on his poems that were written, the most propionate were,

Nursing Care Practices And Its Importance †MyAssignmenthelp.com

Question: Discuss about the Nursing Care Practices And Its Importance. Answer: Introduction The current assignment focuses upon the aspect ofnursing care practices and its importance in the regulation and management of chronic illnesses. Thenursing practices are based upon a number of set principles or guidelines which places patient care experience at the centre of the health care delivery. The current study uses the Millers functional consequences theory to understand the effect of various social, economical, biological and physical determinants on the health of a person. The study over here uses the Levett Jones clinical reasoning cycle to identify access, implement and evaluate the care processes. The topic also emphasizes upon construction of suitable goals and actions which could be taken in order to provide optimum care services to the patient. The assignment helps in the identification of different steps or measures which could be taken in order to provide support to the patient here who had been suffering from Parkinsons. Additionally, the man was also lacking sufficient financial resources which also affected his care retrieval processes. The assignment describes the clinical reasoning cycle in detail which consist of a total of 8 steps and has been discussed elaborately under each sub-head of the assignment. Considering the patient history This is the first step of the clinical reasoning cycle where the health care professional collects pivotal information about the patient health. These forms the backbone of the care delivery processes based on which further therapeutic and clinical interventions can be implemented. The care personnel here can use through questioning and interviewing methods to collect sufficient and relevant health information about the patient. Here, the patient name Mr. Ratin Bhai was an 87 year old Indian who had migrated from his native land with his wife and extended family. He was recently diagnosed with Parkinsons and hypothyroidism both of which have affected the daily life processes of the man. Ratin had been living in a two storeyed house alone and has been managing his cooking and daily activities all alone. However, as per millers theory the reduced mobility and tremors experienced in both the hands can expose him to increased risk of accidents from fall. In this context, the locomotor abilities of the man are severely impaired causing safe movement through the stairs of a two storeyed house difficult for him. Though, the hypothyroidism has been under control his Parkinsons has been getting worse. Additionally, dwelling alone he doesnt have anyone to support him with his daily course of activities. It has also been mentioned that the man has little or no source of income. The care professional has also recorded the present medication pattern and doses of the patient. The man has been taking 100g of thyroxin daily along with carbidopa/Levodopa 25/100 q8h, entacapone 20 mg q8h. Collection of cues or information The recent condition of the patient had been getting worse attributed to his Parkinsons. The man had been experiencing slights tremor in both of his hand which has been getting worse. As commented by Odin et al. (2015), impaired locomotor abilities can affect the daily life processes of an individual. In this context, the patient had been living alone and had been suffering from advanced stages of Parkinsons. Moreover, he had been experiencing increased tremors in both his hands due to Parkinsons. This could make him more prone to injury from falling down as a result of poorly coordinated movements. Additionally, the man had been dwelling alone which could subject him to increased risk of depression. Moreover, the lack of support care along with affected cognition can affect his medication patterns. It has been mentioned by the man that he does not wish to bother his family living next door. Therefore, as per Millers Functional consequences theory such isolated environment can result in the onset of depression within the individual. Processing of information The man had been suffering from hypothyroidism along with Parkinsons which had affected his daily set of activities. Reports and evidences have suggested that the presence of hypothyroidism is almost 10% higher in people with idiopathic Parkinsons disease. However as argued by Hutchinson Wick (2016), there has been little or less clinical correlation between the two. As mentioned by Chenet al. (2016), less thyroxin within the blood have also been known to cause tremors in the patient. However, with medication the condition of hypothyroidism has been controlled in the patient. The condition of Parkinsons had been found to be getting worse in the patient causing increased tremors of arms and legs. As commented by Magennis et al.(2016), Parkinsons is a progressive neurodegeneration disease affecting the cerebral cortex of the brain and has severe consequences on motor abilities of a person. In this context, the progressive neurodegeneration disease also affects the degree of mental awa reness and cognition of the person. Therefore, the reduced decision making skills can affect the medicine schedule of the person. The increase in the tremors could also make the person unable to travel the clinics situated distantly or access regular medical services. Therefore, preparation of rosters for time and schedule of medicine uptake along with constant supervision can aid the process. Identification of problem/issues From a detailed analysis of the case scenario of the patient three most significant issues or problems encountered by the patient can be highlighted over here which needs proper care and intervention. The patient had been living alone therefore his worsening Parkinsons calls for support care. Additionally, the patient also suffers from hypothyroidism which has been found to be present as a co-morbid condition in Parkinsons. Therefore, his current situation calls for sufficient clinical intervention and medication management. Additionally, the man reportedly does not have enough financial resources to avail proper care treatment. This calls for the sufficient support from health care professionals and community care concerns.For the current assignment, proper medication management for Parkinsons has been undertaken as one of the primenursing concerns. Establishing goals The medication management is taken as the top priority for establishing the goals in the treatment plan of Parkinson disease in order to follow the Millers consequences theories. As stated already in the scenario, that Ratin has problems regarding the medications. He has been prescribed with medicines like Thyroxine, carbidopa, and Entacapone Considering the symptoms of Parkinson disease, thyroxine is given to the patient to manage the thyroid hormone which would be necessary for motor movements (Odin et al, 2015). Carbipoa is given to lessen nausea. Entacapone would manage the involuntary functions. Based on these the intervention goals would be set up following the SMART rules: Specific The nurses would have to evaluate the safety and on time prescribed drugs Measurable There will be a treatment team that would make assessment of the ward nurses and how they are managing the medications of Ratin Attainable The entire evaluation strategy would be feasible until one month Results oriented This identifies that the output would reach the realistic level in which all the nurses involved would be asked questions about the medication management Timely The interim steps like reports would be generated after the survey by the end of the month Taking action The above quasi experimental strategy used by the nurses can help them to take interventions and fulfill all the rationales in medication management for Parkinson disease. The interventions are to be taken that will help Ratin to take medicines on time. He faces problem in medication intake because he has both financial problems and he lives alone. The nurses can prepare for him rooster that would help him take the medicines daily as prescribed by his physicians. The telephonic calls by nurses can remind him of the medicines that are to be taken with the oncoming of different symptoms and can also change the doses according to the problems he faces (Rascol, 2015). In this way, nurses can describe the medication administration, monitor their dosage systems, multi dosage system analysis and dose administration aids. The nurses can also use the telecommunication systems like electronic health records for describing the patient with medication protocols and the medicine reconciliation. T he rationale for this intervention is that it would help nurses to give the list of the drug name, dosage, frequency, discrepancies, omissions (Katus Shtilbans, 2014). Evaluation of the outcomes The evaluation of the entire process would be extended from the goals that were set in the analysis of the medication management. This is done by collecting the objective data that would give the measurable data on the situations observed. It is the quasi experimental study that would be developed in order to understand the new concerns and the interventions taken for the medicine management of Ratin. The primary data is collected by the questionnaires made on the nurses that are involved in handling the treatment of Ratin (Connolly Lang, 2014). This would be specifically tailored to identify and evaluate the current conditions and quality in the medicinal management for the patient. This would be a research based study and would practically identify if the interventions are been performed well. The process would be more effective is done on the analysis of qualitative data (Morton et al, 2017). This data gives the measurement not in terms of the numbers of nurses involved in the me dication plan but with the natural description of the recurrent situation. The inferential statistics can be used to identify the situation in the medicinal management. Reflection Thus, from this entire report, I as a nurse have identified three main categories for enhancing the Millers consequences theories that would provide the wellness of old people like Ratin. I have also understood that clinical reasoning cycle would be useful in a collection of the cues and information. The process information can also be made that can predict the outcome (Urden et al, 2015). Finally, I can easily identify the problems and issues. When the problems are known then the goals can be established that is based on the main priority of medication management of Ratin. The interventions were also taken accordingly following the rationales. The recent use of electronic health records, telephone, rooster can be used by the nurses to help him take medicines properly. Thus I now have more knowledge in understanding the impact of Parkinson disease and the interventions that can be taken for the management. Next time I would take more steps in more improvement of the treatments that a re to be provided to Ratin. Conclusion The following treatment plan for the management of Parkinson disease would help the nurses to take useful strategies to provide patient centered care. This is based on studying the current situation and the problems of Ratin and then applying the clinical reasoning model for getting the priorities on which the nurses must observe to provide high-quality treatment to the patient. This would be based on collecting all the information of the patient and then make a critical analysis of the information to identify the top 3 requirements which are the medication management, management of patient symptoms of Parkinson and providing health care financial support for him. The take home message from this report is that the patient centered care would be well provided for fixing a particular goal and then taking the interventions and rationales based on the situation. There would be complete evaluation and statistical analysis that would reflect the performance of the nurses in medicinal manag ement. Thus the report in future would give the preferences, needs, and values for the patient and guide the clinical decisions based on it. References Castrioto, A., Lhomme, E., Moro, E., Krack, P. (2014). Mood and behavioural effects of subthalamic stimulation in Parkinson's disease.The Lancet Neurology,13(3), 287-305. Chen, S., Chan, P., Sun, S., Chen, H., Zhang, B., Le, W., ... Cheng, Y. (2016). The recommendations of Chinese Parkinsons disease and movement disorder society consensus on therapeutic management of Parkinsons disease.Translational neurodegeneration,5(1), 12. Connolly, B. S., Lang, A. E. (2014). Pharmacological treatment of Parkinson disease: a review.Jama,311(16), 1670-1683. Ferreira, J. J., Katzenschlager, R., Bloem, B. R., Bonuccelli, U., Burn, D., Deuschl, G., ... Kostic, V. (2013). Summary of the recommendations of the EFNS/MDS?ES review on therapeutic management of Parkinson's disease.European journal of neurology,20(1), 5-15. Hutchinson, K., Wick, J. Y. (2016). Deep brain stimulation and medication management in parkinson's disease.The Consultant Pharmacist,31(2), 73-84. Julius, A., Longfellow, K. (2016). Movement Disorders.Medical Clinics,100(4), 733-761. Katus, L., Shtilbans, A. (2014). Perioperative management of patients with Parkinson's disease.The American journal of medicine,127(4), 275-280. Magennis, B., Lynch, T., Corry, M. (2014). Current trends in the medical management of Parkinson's disease: implications for nursing practice.British Journal of Neuroscience Nursing,10(2). Morton, P. G., Fontaine, D., Hudak, C. M., Gallo, B. M. (2017).Critical care nursing: a holistic approach. Lippincott Williams Wilkins. Odin, P., Chaudhuri, K. R., Slevin, J. T., Volkmann, J., Dietrichs, E., Martinez-Martin, P., ... Rascol, O. (2015). Collective physician perspectives on non-oral medication approaches for the management of clinically relevant unresolved issues in Parkinson's disease: consensus from an international survey and discussion program.Parkinsonism related disorders,21(10), 1133-1144. Odin, P., Chaudhuri, K. R., Slevin, J. T., Volkmann, J., Dietrichs, E., Martinez-Martin, P., ... Rascol, O. (2015). Collective physician perspectives on non-oral medication approaches for the management of clinically relevant unresolved issues in Parkinson's disease: consensus from an international survey and discussion program.Parkinsonism related disorders,21(10), 1133-1144. Urden, L. D., Stacy, K. M., Lough, M. E. (2015).Priorities in critical care nursing. Elsevier Health Sciences.

Bethel School Distric Vs Fraser Essays - , Term Papers

Bethel School Distric Vs Fraser Bethel School District vs. Fraser This case involved a public high school student, Matthew Fraser who gave a speech nominating another student for a student elective office. The speech was given at an assembly during school as a part of a school-sponsored educational program in self-government. While giving the speech, Fraser referred to his candidate in what the school board called elaborate, graphic, and explicit metaphor. After his speech, the assistant principal told Fraser that the school considered the speech a violation of the school's disruptive-conduct rule. This prohibited conduct that interfered with the educational process, including obscene, profane language or gestures. After Fraser admitted he intentionally had used sexual innuendo in the speech, he was told that he would be suspended from school for three days, and his name would be removed from the list of the speakers at the graduation exercises. Fraser's father brought action against the school board in the United States District Court for the Western District of Washington. He alleged the suspension and punishment were a violation of his son's First Amendment right to freedom of speech. The father sought injunctive and monetary damages under 42 U.S.C. of 1983. The district court awarded the student $278 in damages, $12,750 in litigation costs and attorney's fees, and ordered the school district not to prevent the student from speaking at the commencement ceremonies. The school district appealed the decision, arguing that the speech had a disruptive effect on the educational process. The school district said it had an interest in protecting an audience of minors from indecent speech in the school. The school board believed it had the right to control language that was used during a school-sponsored activity. The Court of Appeals for the Ninth Circuit affirmed the judgment of the district court. The district court found the disruptive-conduct rule unconstitutionally vague and broad, and that withdrawal of the student's name from the graduation speaker's list violated the Due Process Clause of the Fourteenth Amendment because the rule did not mention such removal as a likely sanction. The court made the case that nothing in the Constitution forbids the states from insisting that certain forms of expression are unfitting and subject to sanctions. (Tinker v. Des Moines Independent Community School District, 1969) The court affirmed that students do not shed their constitutional rights to freedom of speech or expression at the schoolhouse gate.(Tinker) If the student had given the same speech off the school premises, he would not have been penalized because government officials found his language inappropriate. (Cohen v. California) The court found that the language used by the student was far from the obscene speech, which the court held is not protected by the First Amendment. (Ginsberg v. New York, 1968, Roth v. United States, 1981). The speech was found not to be disruptive to the education process. The school district failed to bring in a sufficient amount of evidence to convince that the educational process was disturbed. The Court of Appeals for the Ninth Circuit affirmed the judgment of the district court, holding the student's speech equivalent to the armband in Tinker. The court of appeals made it clear that the student's speech was not prohibited by any disciplinary rule that the school had in effect. Although the speech contained a sexual metaphor that undoubtedly might have been offensive to some listeners in some settings, the court of appeals again stated there was no evidence that students found the speech to be offensive. The case was appealed to the Supreme Court. The Supreme Court stated that the rights of students in public school do not coexist with the rights of adults in other settings. The Supreme Court found Fraser's speech offensive to both teachers and students, and especially insulting to teenage girls. The First Amendment does not prevent school officials from deciding what is vulgar and lewd speech. Given the school's need to be able to impose disciplinary sanctions for a wide range of unanticipated conduct disruptive of the educational process, the school disciplinary rules need not be as detailed as a criminal code that imposes criminal sanctions. (Arnett v. Kennedy, 1974) The student was given enough warning that his speech could subject him to disciplinary

Key influences on personal learning processes Essays

Key influences on personal learning processes Essays Key influences on personal learning processes Essay Key influences on personal learning processes Essay This essay will be describing in detail a few of the many different influences that can and do have an effect on learning; some of these have influenced me personally. This essay is like a self analysis looking from the perspective of the learner. It will be looking at the work of some key theorists to support and back up the points. It will also discuss how others can be helped to learn and the effectiveness of doing this. Learning is a process by which we acquire knowledge, skills and an understanding of abstract concepts. You start learning from birth and the learning process continues through formal schooling and even right through to adulthood, they do say you learn something new every day. In everyday life we call our learning informal. Firstly there are some main theories of learning used to understand the way in which individuals learn. From experience the best way of influencing and progressing an individuals learning is to actually know how you learn best, this will be either visually, auditory, kinaesthetically or tactilely. I am an example of a visual learner taking in information best when it has come from something seen like pictures or information in a book, etc. When you know this you can then put it into practice by planning the learning, then actually doing it and finally reflecting on what has been learnt. One of the main theorists associated with learning is Kolb. Kolb looks at the ways adults learn referring to these as cognitive abilities, he says that learning processes begin as instinctive preferences during adolescence. Kolb identified two pairs of opposing factors which, combined together, show learning as a cycle with four different stages of learning. Each stage can be entered at any time but for learning to be effective the stages must be followed in a sequence. As you can see from the diagram the four stages are concrete experience, reflective observation, abstract conceptualisation and active experimentation. Kolbs learning cycle can be applied to everyday practice. Another important theory is the learning styles theory conducted by Honey and Mumford. They identified ways in which different employees learned and came up with four learning style preferences, reflector, theorist, activist and pragmatist. Honey and Mumford conducted a questionnaire in order to find out peoples preferred learning style/s (see appendix 1 for their questionnaire) Honey and Mumford (1986) stated that the learning style questionnaire is designed to probe the relative strengths of four different learning styles.

Can men be victims of rape Consider this question in relation to Essay

Can men be victims of rape Consider this question in relation to legislative changes and the evolution of the policing response - Essay Example Although many people may view this assertion as vague, there are some different and varying deliberations on how men undergo difficult times as victims of rape. The worst of it has been on the revelations of how the society would view this issue given that in the wider society, culture has it that men are not allowed to discuss such matters in public. In fact, in some instances, men fear reporting instances of rape with the consequence of being turned against and being the offender instead of being the victims. Some of the common instances of men’s rape are between men and men. This is evidenced by the increased instances of homosexuality. Nevertheless, deliberations have been on how to define men rape in the context of events that may have transpired during the incidence. However, just like in women, men’s rape is characterized by assault and use of force and being forced to perform the sexual act without ones consent. When this happens, a man, just like a woman feels diminished and less a man (Lea, Lanvers, & Shaw, 2003). In fact, to some extent, when men undergo rape, they have a feeling of fear that they end up being gay. There are also concerns that this act may affect their sexual orientation in future. In addition, the worst thing comes in when a man feels that the connection between him and women has been eroded. They get scared even to approach women. In another dimension, for those men that become victims of rape, they have problems having sexual intimacy with their wives. This greatly affects their marriage and may end up breaking up. This becomes worse when men victims stomach these deeds instead of sharing with their spouses. In addition, there have been instances of men’s victim developing avoidance emotions. They tend to kind of develop some psychological problems that keep them away from other people. Some have developed some assault traits that make them aggressive even to their own relatives and friends. In this regard,

Borrowed Theories guiding practice Essay Example | Topics and Well Written Essays - 250 words

Borrowed Theories guiding practice - Essay Example Knowles further theorizes adults need to be aware of why they need to learn something. Adults exhibit self-directed concept when learning. Adults have a plethora of experience, which can be conducive to learning new things. Adults want to learn things that may help them solve real-life problems. For adults, learning is problem-centered. Adults are motivated to learn to solve immediate/practical problems (McEwen & Wills, 2014). The theory of adult learning focuses â€Å"on the immediate value to the needs of the learner† (Gatti-Petito et al, 2013, p. 273) and problem-solving (Gatti-Petito et al, 2013). When performing patient education, the APN can employ Knowles concepts and assumptions to creating a successful educational outcome. This will leave the APN satisfied in knowing aspects of the teaching were absorbed. This will also leave the patient self-confident in conquering health issues and being an active, integral participant in their own healthcare. Gatti-Petito, J., Lakatos, B. E., Bradley, H. B., Cook, L., Haight, I. E., & Karl, C. A. (2013). Clinical Scholarship and adult learning theory: a role for the DNP in nursing education. Nursing Education Perspectives, 34(4), pp.

Digital Music Case Study Media Essay

Digital Music Case Study Media Essay The industry condition that led to the revolution in audio distribution was the transformation of music from conventional songs and albums to new digitally recorded formats. The MP3 format not only provided the means to store more songs in a given media by reducing the size of each song but it also enabled digital music players to play these songs with relatively high levels of clarity. The new format also enabled the songs to be downloaded and played on personal computers. Another aspect of the revolution in digital music was the ability of the software to convert existing CDs to the new MP3 format. On a broader scale, the industry condition witnessed the advent of media sharing applications which enabled the users to freely share as well as distribute songs in MP3 format with users who possessed the same file sharing application. Napster was the most popular among such media file sharing applications (Protecting Innovation: The Digitial Music Distribution Revolution ). The stakeholder who would be benefitted the most from this digital revolution would be the consumers of the music, especially those who have a personal computer as well as an access to the internet. With the increased feasibility of sharing media files in the new MP3 format had increased the possibility of users with respect to the acquisition of freely available media files (Protecting Innovation: The Digitial Music Distribution Revolution ). Question 2: Why did the music stores created by the record labels fail to attract many subscribers? What, if anything, should the record labels have done differently? Answer: The music stores created by the record labels fail to attract many subscribers due to their utilization of proprietary file formats. These file formats meant that the songs would have limited playability in terms of the music playing devices. It also drastically limited the digital rights management schemes and this was further subjected to limited offering of media selection. However the unrestricted peer to peer services such as Napster, Gnutella and Kaazaa provided a large selection of free media in the new format which did not incur costs that were commonly incident on media obtained from authorized stores. It is this feature of the unrestricted media sharing applications which led to the music stores created by record labels being rendered as ineffective (Protecting Innovation: The Digitial Music Distribution Revolution ). The record labels should have at least considered the option of changing the format of their offered media to MP3 format in keeping with the current environmental trends and consumer preferences. This would have enabled the record labels to manage the competition by free sharing apps to some extent by providing the popular media format to the consumers (Protecting Innovation: The Digitial Music Distribution Revolution ). Question 3: What will determine how long the success of the iPod and iTunes endures? Should Apple allow its iPods to play non-iTunes songs? Should Apple allow iTunes songs to play on non-iPod MP3 players? Answer: The factors which would determine the longevity of the success of the iPod and iTunes pertain fundamentally to the appeal of the product / service offerings of Apple. One of the main factors is the coolness of the products which has been successful in appealing to the younger faction of the target segment. Adequate emphasis also needs to be maintained on the smart strategies adopted by Apple which has been instrumental in developing strong relationships with the record labels. These record labels had accurately identified the cool factor of Apples products and were able to foresee viable prospects if an association were to be established with it. Other factors which would contribute to the determination of the longevity of the success of the iPod and iTunes would relate to the use of widely adopted and popular media formats, competitive pricing of the media products (purchase as well as downloads) and the possibility of licensing agreements with the record labels by means of which a comprehensive solution could be provided wherein a one-stop music shopping portal would be offered to the consumers (Protecting Innovation: The Digitial Music Distribution Revolution ). Apple currently permits the playing of non-iTunes songs on its iPod. The restriction in this regard is experienced when the users burn music to blank CDs. In this case the non iTunes songs would not be written on the storage media due to restrictions imposed by Apple with respect to non-iTunes songs. Apple should permit iTunes songs to be played on non iTunes compatible MP3 devices. Currently the imposition of this decision would not hold much relevance as Apple has already achieved 73% of the MP3 players market share due to the relaxation in the restrictions which were imposed on the playability of the media formats (Protecting Innovation: The Digitial Music Distribution Revolution ). Question 4: Why would musicians sign away their copyright privileges to their songs through Creative Commons? Answer: Musicians sign away their copyright privileges to their songs through Creative Commons due to the varying degrees of openness which would have an impact on the extent of sharing of media undertaken by the consumers. This degree of openness has been deemed as highly successful for the file sharing applications and the same could be utilized by the musicians for promoting that their music was ready and available for downloading. A significant aspect of this approach is that musicians have been enabled to promote their music for downloading without bearing any risk of infringement lawsuits that would otherwise have been imposed by record labels in such situations (Protecting Innovation: The Digitial Music Distribution Revolution ). Question 5: How is podcasting likely to impact the appropriability of recorded music, radio broadcasting, or other types of audio transmissions? Answer: Podcasts are likely to impact the appropriability of recorded music, broadcasting and other types of audio transmission in terms of the creation rights of such media. Users can freely create and develop the podcasts and share the same with users on the internet. The boundaries of recording have been removed with the possibility of sharing free MP3 media on the net without the presence of restrictions and barriers. The musicians who utilize this method do not approach music labels for obtaining the legal rights to their compositions. Users of such applications have no labels but they are able to generate the require popularity levels in the public. This would directly result in the incurrence of heavy loss to the record labels and would in fact pose a threat to the already existing music productions which have been developed by them. The trend in this regard has already commenced though in its infancy stages, and has gained popularity especially with music bands. An apt example of thi s the initiatives of the famous rock band, Motorhead which had released its new album with download permission being provided to the users. Some of the features of their offering were: The songs were provided in the currently popular MP3 format and this was beneficial for appealing to the consumers preferences. Moreover the standard pricing for albums ($.99 a song) was not imposed on the songs. The band had provisioned that the consumers would be permitted to pay whatever amount that they felt to be nominal in their opinion. The band had not used any record label for distributing this release, but still they managed to get the required reach as desired for their songs. The above features exhibit the manner in which podcasting has affected and will continue to influence the appropriability of recorded music, broadcasting and other types of audio transmission (Protecting Innovation: The Digitial Music Distribution Revolution ).

Public Relations in Professional Sports Essay example -- Professional

Public Relations in Professional Sports "If industry is to be successful in dealing with public opinion . . . it must learn the language of the people, it must consider the study of public opinion as important as any phase of its operations. It must recognize that public opinion can be measured, and utilize the increasingly scientific methods developing today for gauging it"(Ross) PR today, has undergone a massive restructuring and organization and is now gaining recognition worldwide. An offshoot of this is PR in sports. The sports industry in the U.S. generates $213 - $350 billion a year as revenues and is growing by the day (ESPN). Everyone tries to cash in on their benefits. Sports PR have come a long way. Today it is far more dynamic and complex. Public Relations is a very broad industry, serving a wide variety of institutions in society such as businesses, trade unions, government agencies, voluntary associations, foundations, hospitals, schools, colleges, and sports teams. Sports in the last fifty years have changed an amazing amount. It used to be just two teams playing against each other strictly for the love of the sport and for the enjoyment of the few people in attendance. As time went on and attendance and interest in professional sports grew so did the cash flow. Teams began adding more coaches as well scouts. It became obvious that a font office staff was needed to take care of the day to day operations of sports teams. In the 1940s baseball owner Bill Veeck changed the games even more when he promised the game to be the least exciting part of the evening. He hosting Ladies’ Night, Fireworks Fridays, and a Disco Demolition Night in which he blew up a pile of old records, Veeck brought sports into a new era (Veeck & Linn, 1962). Bill Veeck was the first true PR man in sports. He sold out stadium after stadium, in several different cities. The sports PR which Bill Veeck started has now evolved and is a much different brand of PR then every other industry. In order for an Athletic team to have effective PR, they require very large in-house staffs which are very diverse in there job descriptions and responsibilities. The first and broadest group is the basic public relations staff. The basic public relations staff takes care of the basic day to day of the organization. They are the people who write and release the updates on the team to ... ...Bernie Parent spoke to the sell-out crowd of 17,000 while Pelle’s #31 hung in black above the ice. The spoke about the positives that Pelle gave Philadelphia and there was no mention of alcohol. The PR director at the time, Joe Kadlac made sure that Pelle’s death would not look bad on the team for allowing him to drink and drive but instead showed he was a team player. A fan in the upper level had a sign that simply read, â€Å"Get Pelle’s Name On The Cup, Its His Last Chance.†   Ã‚  Ã‚  Ã‚  Ã‚  Public Relations are a critical part of sports. It is what puts people in the seats pays the athletes and builds the stadiums. Public Relations are what make sports what it is today. If it were not for today’s ever changing public relations industry sports would not be what they are today. Sources Bill Veeck with Ed Linn, â€Å"Veeck--As in Wreck†, G.P. Putnam's Sons, 1962 The Baseball Library T.J. Ross, The Public Relations Problem of Industry, American Management Series (New York, 1937), pp. 6--9. Crafting the national pastime's image: The history of major league baseball public relations William B Anderson. Journalism and Communication Monographs. Columbia: Spring 2003. Vol. 5, Iss. 1; pg. 5

Recent Trends in Capital Market of Bangladesh Critical Evaluation

RECENT TRENDS IN CAPITAL MARKET OF BANGLADESH: CRITICAL EVALUATION OF REGULATION by Syed Golam Shahjarul Alam A thesis submitted in partial fulfillment of the requirements for the degree of Professional Master in Banking and Finance Examination Committee: Dr. Sundar Venkatesh (Chairperson) Dr. Winai Wongsurawat Dr. Yuosre Badir Nationality: Previous Degree: Bangladeshi Master of Business Administration University of Dhaka Dhaka, Bangladesh Bangladesh Bank (Central Bank of Bangladesh) Scholarship Donor:Asian Institute of Technology School of Management Thailand May2012 ACKNOWLEDGEMENTS My greatest Gratitude is given to Dr. Sundar Venkatesh, my project advisor, for his deep insight in capital market, which helped me to accomplish the project paper. His dedication towards teaching, motivating and supervising influenced me greatly, leading to do my project work carefully and seriously. I wish to express my deepest gratitude and appreciation to Bangladesh Bank, My office, for granting me a scholarship, to pursue my Masters in banking and finance.I express my gratitude and deepest appreciation to my friend Ms. Senjuti binte rafiq, My Colleagues in Bangladesh Bank and DSE Library staffs who helped me by providing valuable suggestions and necessary data for my analysis. I am very much thankful to Dr. Winai Wongsurawat and Dr. Juthathip Jongwanich for their valuable suggestions regarding my project. I express my gratitude and deepest appreciation to Ms Kluaymai Thongkham, Ms. Farah Nashid Hossain and other AIT staffs for their effort in creating a homely atmosphere amid the difficult time. i ABSTRACT The Capital Market of Bangladesh is passing tough times since December 2010 as high volatility is eroding the capital of Thousands of Investors that might turn into social instability. This fall is caused by many factors that I tried to identify and tried to link up between causal factors of market crash and regulatory failure. Primary issue related problems was faulty list ing methods and IPO overpricing, few numbers of new listings, revaluating assets before company listing, high premium in issuance of right share/Repeat IPO etc. hile secondary market related problems was stock splits and stock price manipulations through block trading, circular trading and insider trading. Investor’s greed and irrational behavior played a big rule to make the stock prices sky rocking as they were crazy to buy shares without judging the company fundamentals. Shares of the companies with closed operations and big accumulated losses were rising constantly due to investors high risk appetite that caused them to loss everything.Government had already taken many steps (including SEC reforms) to stabilize the market but failed as investors confidence is in the bottom level. Government and regulators should work together to identify the main speculators and should brought under proper trial to bring investors back to the market. Regulator should make reforms on Listi ng procedures and other faulty regulatory frameworks to ensure transparency and efficiency in the capital market and also should bring clear guidelines regarding Private Placements, Asset Revaluation, Insider Trading, Dealing with Omnibus Accounts etc. ii TABLE OF CONTENTS CHAPTER TITLE Title Page Acknowledgements Abstract Table of Contents List of Tables List of Figures List of Illustrations 1 Introduction 1. 1 Background 1. 2 Statement of the problems 1. 3 Objectives 1. 3. 1 Overall Objective 1. 3. 2 Specific Objectives 1. 4 Scope Literature Review 2. 1 Terminology 2. 2 Previous research works on this topic Methodology 3. 1 Data Source 3. 2 Methods Recent Trends of Capital Market PAGE i ii iii iv vi vii viii 1 1 1 2 2 2 2 3 3 10 14 14 14 15 2 3 4 6 7 8 Factors behind recent Capital market Crash in Bangladesh Conclusions and Recommendations Bibliography/References Appendixes 22 35 39 40 iv LIST OF FIGURES FIGURE 2. 1 2. 2 2. 3 5. 2 TITLE Trend of Bombay Stock Exchange-30 (BSE-30) i ndex Trend of DSE General (DGEN) index Trend of SET Index Price Trend of Chittagong Vegetable Oil Ind. Ltd. PAGE 9 9 10 30 v LIST OF TABLES TABLE 2. 1 2. 2 4. 1 4. 2 4. 3 4. 4 4. 5 5. 1 5. 2 5. 3 5. 4 5. 5 5. 6 5. 7 5. 8 5. 9 5. 10 5. 11 5. 12 5. 13 5. 14 5. 15 5. 16 5. 7 TITLE DSE Top five BO Accountholders in 2010 Comparison of DSE volatility with other market Dhaka Stock Exchange (DSE) activities DSE Highest Records Change in total Number of BO Accounts in two Years Detail information of fresh Issues in the DSE during 2009-11 Inconsistency in regulations regarding Margin Loan Price comparison of companies with different per value Price comparison of Mutual Funds with different per value List of some stock split companies and their Market Capitalization Top 10 NAV-gainer companies after asset revaluationsTop Companies offered Right shares with high premium Top Companies offered preference Shares Companies floated shares through Book Building Method Basic Listing Information of Khu lna Power Company Ltd. Basic Listing Information of Ocean Containers Limited.Top 20 Gainers in 2010 Financial Performance of Chittagong Vegetable Oil Industries Ltd Price trends of the stocks of Chittagong vegetable oil Industries Ltd Paired Samples Test One Sample Test Price sensitive information of Chittagong vegetable oil Industries Regulatory Actions displayed in DSE screen Increase of Market Capitalization and Total Turnover PAGE 5 9 17 17 18 19 20 22 23 24 25 25 26 26 27 27 28 30 31 32 32 32 33 39 viLIST OF ABBREVIATIONS AIT Asian Institute of Technology BB Bangladesh Bank DSE Dhaka Stock Exchange SEC Securities and Exchange Commission CSE Chittagong Stock Exchange Report Ibrahim Khalid Share Probe Report FI Financial Institution ADB Asian Development Bank EII Eligible Institutional Investors IPO Initial Public Offerings PER Price Earnings Ratio DGEN DSE General Index vii viii CHAPTER 1 INTRODUCTION 1. 1 Background/Rationale for the thesis Sound Capital Market is an indispensi ble part of an Economy.Without sound and efficient capital market, rapid economic development could be hampered as capital market provides long term funds to entrepreneurs. Capital Market of Bangladesh is still highly speculative and lacks transparency due to poor regulatory framework. In Bangladesh, Financial sector was historically driven by banks and capital market had fewer rules to play as people had mixed perception about the risk pattern in capital market that discouraged them mostly to invest there. But in the mid of ninetieths of last century capital market started to show vibrant behavior that make people interested bout the stock exchanges. As the index was rising sharply and everyone was making money, many people started to invest their money to the heated market that made a bigger bubble and finally the bubble bursts. Benchmark index came down to 700 point in November 1997 from its highest 3600 point in November 1996. Thousands of investors lost their money that made th em reluctant to invest in the capital market again. It took one decade for them to forget the history of collapse. After that, regulators had taken many steps to stabilize the market. Hundreds of new issues came to the market.Central depository, circuit breaker, online trading, etc. were introduced in the market to attract investors. As a result, the market started to grow again. Investors started to forget the history of 1996 and started to invest again. This time most investors were new and young with little knowledge about stocks and did not care about market risk. They invested their money and finally lost everything when the bubble started to burst in December, 2010 that had started to grow from the year 2009. This time Benchmark index came down to 3616 points in early February 2012 from its highest point 8918 in December 2010.Millions of investors lost their money and came down to the street. This is the small picture of stock market crashes in Bangladesh. In both cases regula tors had failed to take proactive measures to not grow the bubble and caused losses for millions of investors when the bubbles burst. When analysts were anxious about the bubbles, regulators were ignoring them and even defended the bubbles. The recent volatility of the capital market of Bangladesh is an abnormal phenomenon and such volatility tends to economic instability. I believe it will be interested enough to look into the causes of the problem.As such volatility affects mass people (many investors), it is essential to try to minimize such volatility by identifying the causes (esp. , Regulatory failure) and solving the problems. In my study, I will try to identify the reasons of this volatility and also to recommend some suggestions to minimize such volatility in future. 1. 2 ? Statement of the Problems As recent volatility raises many questions about the regulatory capability of the SEC, I would like to study whether regulator had any rule to worsen the problem or does it had anything to do at all?In my study, I will try to identify the reasons of recent unexpected events of the capital market of Bangladesh and will also try so suggests some ways to avoid same incidences in the future. Another reason to choose this topic is my present job field. I work for the central Bank of Bangladesh that plays a vital rule for economic development as a regulator. So the learning from this study will help me to identify 1 ? ? ? ? ? future risks associated with both money and capital market and also will make me able to make proactive decisions to prevent the economy from such disasters.As no research is made in this important issue, I believe that my research will be very useful for users. I also believe that regulators (e. g. , SEC, DSE, CSE, Bangladesh Bank) might use my study to strengthen the financial system (esp. , capital market) of Bangladesh. It is unknown whether the recent stock market fluctuation is due to regulatory failure or due to irrational behaviors of investors. Irrational behavior of investors might be an important reason for recent stock market bubble. Patterns of investor’s behavior might be covered by the study.In many cases, data availability might hinder to reach on my objectives. Data related to stock manipulations and insider trading are not available and that’s why I have to rely on secondary sources (if there is any) to conduct my study. Objectives of the Research Overall objective The study will try to identify the rule of regulators behind the recent capital market crash and focus on developing a road map for promoting Sustainable capital market regulatory framework in Bangladesh. Specific objectives 1. 3 1. 3. 1 1. 3. 2 The specific objectives of the study will be: ? To analyze and identify the reasons (Esp. regulatory rules. ) for recent stock market crash in Bangladesh. ? To review the existing listing and trading rules in Stock indices in Bangladesh. ? To recommend some guidelines for better regul ations to strengthen the capital market of Bangladesh. 1. 4 Scope This study is focused on the recent trend of the capital market of Bangladesh. The study will explain the regulatory aspects of capital market of Bangladesh on the basis of disclosed regulations and will try to judge the quality of the regulations in terms of its achievement of the goals. This study is basically descriptive in nature.Data is collected from both Primary (Stock Exchange, SEC) and secondary sources like different publications of DSE, Bangladesh Bank, ADB, WB and IMF. Some other research papers in this line will also be used. The areas that will be concentrated are: ? Various aspects of capital market regulations of Bangladesh ? Recent trends of Capital Market ? Bubble creation and Bubble Burst and reasons behind this market collapse 2 CHAPTER 2 LITERATURE REVIEW 2. 1 Terminology To establish the conceptual framework for the research, it is important to provide definitions of key terminologies that are gi ven below: 2. 1. 1 Capital MarketA capital market is a market for both debt and equity securities, where business enterprises and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year (Sullivan et. al. , 2003) 2. 1. 2 Money Market Money market is a segment of the financial market in which financial instruments with high liquidity and short maturities (one year or shorter) are traded. Trading in the money markets involves Treasury bills, bankers' acceptances, certificates of deposit, commercial paper, federal funds, and short-lived mortgage- and asset-backed securities.It provides liquidity support to the global financial system (Frank J. Fabozzi et. al. , 2002). Money market of Bangladesh consists Bangladesh Bank (BB) as the central bank, 4 State Owned Commercial Banks (SCB), 5 government owned specialized banks, 30 domestic private banks, 9 foreign banks and 29 non-bank financial institutions. Moreover, MicroCredi t Regulatory Authority (MRA) has given license to more than 300 Micro-credit Organizations. 2. 1. 3 Stock Exchange A stock exchange is a body that provides services to stock brokers and traders to trade stocks, bonds, and other securities.Stock exchanges also provide facilities for issuance and redemption of securities and other financial instruments, capital events including the payment of income and dividends. Securities traded on a stock exchange include shares issued by companies, Mutual funds, unit trusts, derivatives and bonds. The initial public offering (IPO) of securities (stocks and bonds) is done in the primary market and subsequent trading of it is done in the secondary market. A stock exchange is often the most important component of a stock market. The major functions of Stock Exchanges are: 1.Listing of Companies (As per Listing Regulations). 2. Providing the screen based automated trading of listed Securities. 3. Settlement of trading (As per Settlement of Transactio n Regulations). 4. Gifting of share / granting approval to the transaction/transfer of share outside the trading system of the exchange (As per Listing Regulations 42). 5. Market Administration & Control. 6. Market Surveillance. 7. Publication of Monthly Review. 8. Monitoring the activities of listed companies (As per Listing Regulations). 9. Investor’s grievance Cell (Disposal of complaint by laws 1997). 0. Investors Protection Fund (As per investor protection fund Regulations 1999). 3 11. Announcement of Price sensitive or other information about listed companies through online. 2. 1. 6 Demutualization Demutualization of a stock exchange is the process of transforming a non-profit memberowned mutual organization into a profit seeking shareholder Corporation. Exchanges all over the world have been demutualizing due to increasing international competition and technological challenges to traditional modes of securities trading.The change of a stock exchange from a member-owned organization to a for-profit shareholder corporation triggers a number of questions about regulatory oversight. In Bangladesh, Stock indices are directed by the elected body of stock brokers where conflict of interest happens. There is very poor corporate governance in the Stock Indices that is an important reason of recent debacle (Investigation Report by the Committee). In chapter 2 I discussed about benefits of demutualization that are applicable for the capital market of Bangladesh.As stock dealers and brokers are familiar as institutional investors and play a big rule in the capital market mechanism, they should be regulated properly. In Bangladesh, DSE conduct inspection on brokerage houses and DSE is also run by a selected committee of brokerage house, so one cannot expect proper judgment from the DSE. Table 2. 1 DSE Top five BO Accountholders in 2010 Name Total Annual Turnover (Tk. Billion ) Prime Bank Investment Ltd. 676. 73 IDLC Finance Ltd. 555. 58 LankaBangla Securities Ltd. 525. 33 Trust Bank Ltd. 523. 25 AB Investments Ltd. 497. 33 Sl. 1. 2. 3. 4. 5.From the table, we find that all the top investors are brokerage houses who are mainly monitored by DSE that creates many conflicts of interests. So, if brokerage houses make any big irregularity, DSE is supposed to hide it as it a member of DSE. In 2010, many positive factors along with regulatory supports (SEC, DSE) inflated the market and finally caused big losses for general investors. In case of irregularities (serial Trading, price manipulation) by brokerage houses/members, DSE had failed to make any proper investigation and also failed to inform it to SEC for regulatory actions and favored members.In case of price bidding under book-building method, some members (associated to underwriter of the company) quoted very high and irrational price and DSE listed the securities of these companies without asking any question that rises about the transparency of the listing methods. Without stock excha nge demutualization such conflict of interests could not be avoided. 2. 1. 7 Stock market Bubble A stock market bubble is one kind of economic bubble that takes place in stock markets when market participants drive stock prices above their value in relation to some system of stock valuation. (Smith et. al. 1988) 4Impact of Bubble: There is debate about the impact of economic bubbles among different schools of economic thoughts. Many of the mainstream economists believe that bubbles cannot be recognized in advance, cannot be prevented from forming and attempts to â€Å"prick† the bubble cause financial crises. Instead of pricking the bubble, authorities should wait for bubbles to burst by their own ways, dealing with the consequences via monetary and fiscal policies (Robert E. Wright, 2010). Other economists believe that bubble have negative impact on the economy as it tends to cause misallocation of resources into non-optimal uses.Robert E. Wright, a political economist argue s that bubbles can be identified ex ante with high confidence. In addition, the crash that is caused by an economic bubble can demolish a large amount of wealth and might cause continuing economic depression; this view is particularly linked to the debt-deflation theory of Irving Fisher and elaborated within PostKeynesian economics. An important aspect of economic bubbles is its impact on spending habits. Market participants with overvalued assets tend to spend more because they â€Å"feel† richer (the wealth effect).Many observers quote the housing market of New Zealand, Spain, United Kingdom, Australia and United States in recent times as an example of this effect. Possible causes of Bubble: Low interest rate policies by the Federal Reserve system are believed to have exacerbated housing and commodities bubbles. The housing bubble popped as subprime mortgages began to default at much higher rates than expected, which also coincided with the rising of the fed funds rate. It has also been variously suggested that bubbles may be intrinsic, rational and contagious.To date, there is no widely accepted theory to explain their occurrence. Recent computergenerated agency models suggest that excessive leverage could be a key factor in causing financial bubbles. Some of the causes of economic bubble are given below: Liquidity: One of the possible causes of bubbles is the presence of excessive liquidity in the financial system that induces aggressive lending banks that make asset markets vulnerable. Economic bubbles often occur when too much money is chasing too few assets, causing both good and bad assets to appreciate excessively beyond their intrinsic value to an unacceptable level.Greater fool theory: Greater fool theory says that bubbles are driven by the behavior of highly optimistic market participants (the fools) who buy overpriced assets in anticipation of selling it to other speculators (the greater fools) at a higher price. According to this unsupport ed explanation, the bubbles continue as long as the fools can find greater fools to pay up for the overpriced assets. The bubbles will be ended only when the greater fool becomes the greatest fool who pays the highest price for the overpriced asset and no longer finds another buyer to pay for it at a higher price (Levine et. al. 007) Extrapolation: Extrapolation is the process of projecting historical data into the future on the same basis. If price of an asset have increased at a certain rate in the past, they are supposed to continue to rise at that rate perpetually. It says that investors tend to extrapolate past abnormal returns on investment of certain assets into the future, causing them to overbid those risky assets in order to attempt to capture the same rates of return 5 again. Overbidding on certain assets will at a point of time results uneconomic rates of return for investors and then the asset price starts to shrink (Buchanan and Mark, 2008).Herding: Investors tend to b uy or sell an asset in the direction of the market trend. This is sometimes supported by technical analysis that tries to identify those trends and follow them that creates a self-fulfilling prophecy. Investment managers are compensated and retained in part due to their performance relative to their industry peers. Taking a conservative or contrarian position as a bubble builds results in performance unfavorable to peers that might cause customers to go to competitors and might affect the investment manager's employment and compensation.Moral hazard: Moral hazard is the prospect that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk. A person's belief that they are responsible for the consequences of their own actions is an important aspect of rational behavior. An investor must balance the possibility of making a return on their investment with the risk of making a loss – the risk-return relationship. A moral hazard can occur when this relationship is interfered with, often via government policy.A recent example is the Troubled Asset Relief Program (TARP), signed into law by U. S. President George W. Bush on October 3, 2008 to provide a Government bailout for many financial and non-financial institutions who speculated in high-risk financial instruments during the housing boom condemned by a 2005 story in The Economist titled â€Å"The worldwide rise in house prices is the biggest bubble in history†. Manipulation: Manipulation could be a very important reason of economic bubble. Especially, stock market bubble could be created through stock manipulations.In many developed and developing countries, big investors (Both individuals and Institutional) might manipulate the stock price and could create a bubble. Recent stock market bubble in Bangladesh is mostly caused by manipulations (Ibrahim Khalid stock market probe Report, 2011) Insider Trading: Insider trading also might be a cau se of economic bubble, esp. , in the capital market. Insiders can use the hidden information to take advantage of the undisclosed news from the market and can make the stock price higher than its intrinsic value (Ronald R et. al. 993) Other possible causes of Economic Bubble: Some regard bubbles as related to inflation and thus believe that the causes of inflation are also the causes of bubbles. Others think that bubbles represent an increase over that â€Å"fundamental value† of an asset, which finally return to that fundamental value. Finally, others regard bubbles as necessary consequences of illogically valuing assets solely based upon their returns in the recent past without resorting to a rigorous analysis based on their underlying â€Å"fundamentals†. 2. 1. 8 Omnibus Account Omnibus account is a type of account between two futures merchants (brokers).Transaction of individual accounts is combined in this type of account that allows easier management of portfolio by the futures merchant. But this type of account could be used to manipulate stock as many individual transactions are kept hidden over there. 6 In a recent investigation, it was found that many speculative deals were made through Omnibus accounts of Merchant Banks. Report showed that each Omnibus account consists of 3000-10000 individual accounts and big market players/manipulators used Omnibus Accounts to make speculate stock prices.Even high SEC and Government Officials used the help of Omnibus account to buy and sell share though its prohibited for them to involve invest in the stock market. (Ibrahim Khalid Committee Report) In this case Merchant Bank did not comply with SEC and Bangladesh Bank rules. As per central Bank law, shares of Banks cannot be bought in unidentified accounts but Merchant banks did so in many cases. But SEC never raised any question about such accounts and never made any investigations to dig out irregularities that indicate poor regulations. . 1. 9 Sto ck market crash A stock market crash is a sudden dramatic fall of stock prices across a significant crosssection of a stock market, resulting in a significant loss of paper assets. Crashes are driven by panic as much as by underlying economic factors. They often follow speculative stock market bubbles. Stock market crashes are social phenomena where external economic events combine with crowd behavior and psychology in a positive feedback loop where selling by some market participants drives more market participants to sell.Generally speaking, crashes usually occur under the following conditions, a prolonged period of rising stock prices and excessive economic optimism, a market where P/E ratios exceed long-term averages, and extensive use of margin debt and leverage by market participants (Galbraith, The Great Crash 1929, 1988). There is no numerically specific definition of a stock market crash but the term commonly applies to steep double-digit percentage losses in a stock market index over a period of several days. Crashes are often distinguished from bear markets by panic selling and abrupt, dramatic price declines.Bear markets are periods of declining stock market prices that are measured in months or years. While crashes are often associated with bear markets, they do not necessarily go hand in hand. The crash of 1987, for example, did not lead to a bear market. Likewise, the Japanese Nikkei bear market of the 1990s occurred over several years without any notable crashes. 2. 2 Comparison of recent stock market volatility of DSE with other markets As any sudden dramatic and persistent stock price fall is treated as stock market crash, I believe the recent price fall of Dhaka stock exchange should be called a crash.Recent price fall in DSE was sudden and persistent that caused significant loss of paper wealth and was abnormal in nature compared to other stock markets. If I compare the price trends of Dhaka Stock exchange with other stock exchange I find t he price movement of DSE is absolutely different from other stock markets. Table-22: Comparison of DSE volatility with other market Name of the Index Index Return Std. Dev of index return (Dec’10-Jan’12) (Dec’10-Jan’12) DSE (50%) 11% BSE-30 (14%) 7. 8% SET 55. 62% 5. 84% 7 From the table 2. , we find that during December 2011 to January 2012 Bombay Stock Exchange selected index (BSE-30) felled by 14% while SET index of Thailand increased by 55. 62% during the period while Dhaka Stock Exchange general Index (DGEN) felled by more than 50% during that period, i. e. , DGEN lose its value by 50% during the period that says that this is not simple volatility and it can be defined as a collapse. On the other hand, Standard deviation of index return (a measure of volatility) for BSE-30 and SET index was respective 7. 8% and 5. 4%. But for DSE, the standard deviation of index return was 11% that was much higher than other two indices. DSE index felled sharply duri ng the period from 8200 point (approx. ) to 4000 point (approx. ) and the fall was persisted over a long period. Graph 2. 1 Trend of Bombay Stock Exchange-30 (BSE-30) index Graph 2. 2 Trend of DSE General (DGEN) index Graph 2. 3 Trend of SET Index 8 From the graph 2. 1 we find that BSE-30 index fluctuating over the period in the range of 10000 to 20000 points and showing an increasing trend now.As a result the standard deviation of the index return was 7. 8%. But the BSE-30 index fluctuation is much lower than the DSE general index (Graph-2. 2). Graph 2. 3 gives the trend of SET Index of Thailand that is growing fast and crossed 1000 points from 600 points during the period. Standard deviation of SET index was 5. 84% that is much lower than that of DSE general index (11%). Graph 2. 2 gives the highly volatile and sharply falling index trend of DSE general Index that started to increase from 2600 points in January 2009 and crossed its zenith price of 8600 in December 2010.After climb ing the highest point it started to fall sharply and came down below 4000 in January 2012 less than half of the highest point. From the above analysis we can conclude that DSE index movement was not normal and the fall was so abrupt that it caused huge loss for investors. Especially investors who invested with margin loan lost everything as the index loss was more than 50%. Both BSE30 and SET are facing regular rise and fall while DSE is facing regular and sharp that indicates that the fall was like a stock market collapse and in the later part of the study I will identify this as a stock market collapse. 2. Previous research on this topic Many studies are done around the world to find the reasons of stock market crash and linked with regulatory issues. Recent economic crunch and stock market crash in US motivated economists to conduct in-depth research on it. In Bangladesh many analysts expressed their view regarding the capital market crash but no comprehensive research work is st ill done on it. Government had formed an enquiry team headed by Mr. Ibrahim Khalid, former deputy Governor of the Central Bank to make a probe into the recent activity and to identify the culprits that submitted their report to the government.I am going to discuss the causes of recent Credit Crisis of 2007-2009 and â€Å"Ibrahim Khalid stock probe report† regarding the stock market of Bangladesh in this chapter. 2. 3. 1 Research on Capital Market crash in Bangladesh After the recent catastrophe of capital market of Bangladesh, Government of Peoples republic of Bangladesh had formed a high-powered committee in 2011 to investigate the issue and to give a report to the government within two months. The committee was headed by the ex-deputy governor of Bangladesh Bank, Mr. Khondoker Ibrahim 9 Khaled and the committee was named â€Å"Ibrahim Khaled share market probe Committee†.The committee published a report that was initially kept undisclosed to the general people but la ter on it was disclosed as investors groups and civil society was creating pressure over the government for disclosing it. I will try to summarize the findings of the report in this chapter. Reasons behind the Market Failure: Committee identify following broad factors that caused the capital market disaster recently: a) Primary Issue related Problems: ? Direct listing in Primary issue ? Abuse of Book Building Method of IPO ? High premium for stock listing ? Illegal Private placement market ?Asset Revaluation of Companies before listing to charge higher premium. b) Secondary market related problems: ? Circular trading in Secondary market ? Block trading ? Stock Price Manipulation through Omnibus Accounts ? Most of the market players are identified in the report c) Irregularities in issuance of Right Share/Preference Share/Repeat IPO etc. d) Recommendation of Stock Dividend by companies against unrealized Profits e) Regulatory Failure ? Inconsistency in regulatory activities ? Support ing and legalization of unethical activities of Big Investors ?Irresponsible Behavior/Weakness in many areas ? Formulating policies to support market Players (Manipulators) ? Lack of Due Diligence ? Lack of Co-ordination between SEC and Stock exchanges ? Allowing Financial Institutions to invest in capital market aggressively ? SEC Failed to take measure against manipulation of Financial statements Report says that the burden of this failure should be carried by Securities and Exchange Commission (SEC). Recommendations by the Committee The Committee has recommended some suggestions to the Government to recover the Capital Market from the depression.Major points of their recommendations are given below: a) Restructuring of SEC ? Termination of SEC chief and some other corrupt members ? Comprehensive inspection of their corruption and necessary legal actions ? Recruiting qualified accountants/financial analysts/experts/Talents for SEC ? Increase the remuneration of SEC staff to attrac t talents ? Ensuring integrity of SEC personnel b) Stock Exchange Demutualization: ? Form Committee within DSE to give report regarding demutualization process within 3 months 10 c) d) e) f) g) h) i) j) k) l) m) If DSE fails to give report on time, Government should take steps after 3 months ? Government can take advisory supports from World Bank or any other international organization ? Government can employ an â€Å"Administrator† to DSE to implement the demutualization process. Co-ordination between SEC and stock exchanges for better regulation Capital Market financing by Financial Institutions (FI’s) ? Formulate policy for capital market investment by FI’s in the line of such policies in India and Pakistan ? Take measures against FI’s who are involved with the recent stock market manipulation ?Central Bank should monitor FI’s aggressive stock investment very strictly Formulate clear policy for Pre-IPO placement Ensure transparency in dealing wi th Omnibus Accounts Prohibit share trading by some Government Officials (e. g. , SEC, DSE, CSE, Bangladesh bank , Commercial bank officials) Asset Revaluation by companies should be reviewed by SEC Review the Book-Building Method of IPO Make uniform face-value of all companies Take legal actions against market players/manipulators Government should be more aware about the capital market and they should be free from influence of top market players ( Salman F.Rahman, Rakibur Rahman etc. ) SEC should Open Investors advisory support services to avoid rumor-based trading Conclusion: Committee has made a study on the capital market issues. They specially focused on individual manipulations and regulatory system failure and provided some clear-cut recommendations for the government. I will conduct empirical study on some of the factors to test whether the volatility was due regulatory failure or not. 11 CHAPTER 3 METHODOLOGY 3. 1 Data Source This study is basically descriptive in nature.Da ta is collected from both Primary (Stock Exchange, SEC) and secondary sources like different publications of DSE, Bangladesh Bank, ADB, WB and IMF. Some other research papers in this line will also be used. 3. 2 Analysis Technique/method 3. 2. 1 Qualitative analysis: As my study will try to examine the regulatory aspect in the capital market of Bangladesh, I will focus more qualitative analysis techniques. Quantitative Analysis: In my study, I will also use quantitative techniques to analyze data. Software’s like SPSS, Excel might be helpful for me. 3. 2. 2 12CHAPTER 4 Recent Trends of Capital Market Over the last few years, the capital market of Bangladesh has witnessed a super-normal growth which is not in line of development of real sector of the country. Progress in capital market development has been made possible by, among other things, the central depository system and the automated trading system, a substantial increase in the minimum capital requirement of banks and nonbank financial institutions, lower interest rates on long-term government savings instruments, and an increase in overseas workers’ remittances (Bangladesh Bank, 2011).Increased investors' participation and demand for stocks are fueling price hikes in the market. Other indicators of the capital market also recorded significant growth. Market capitalization of DSE remarkably increased during last three years as reflected in the ratios of market capitalization to the country's GDP at current market price. Market capitalization stood at Taka 2700. 7 billion at the end of FY10 increased by 190. 1 percent from Taka 931. 0 billion of end FY08. The ratio of market capitalization of DSE to GDP rose to 39. percent in end FY10 from 5. 2 percent in FY06 and from 2. 3 percent of FY00. Except for the 13. 1 percent bubble in 1996, the ratio was almost flat at below 3 percent up to FY04. After the 1996's bubble and bust, the market returned to sunny days in the beginning of last quarter FY04 by crossing the index 1100 marked point. After ten years of a flat capital market, the DSE General Index (DGEN) crossed 3000 marked point in December 2007 for the second time. Since the third quarter of FY09, the DGEN gained sharply and it jumped to 8918. 1 in December 2010 increased by 5908. 51 points or 197 percent from the index of end June 2009(3010 points). When the recent past global recession adversely affected the world capital market, sustained rise of price index and daily average turnover of Bangladesh capital market could be seen as a positive sign for the Bangladesh economy. Investment by foreigners in DSE increased during last three years. In FY10, the foreign trade turnover was Taka 18. 7 billion (0. 7 percent of total turnover in DSE) which was 57. 9 percent higher than previous year.Foreign trade was Taka 9. 9 billion (6. 0 percent of total turnover) in FY07 and was Taka 3. 4 billion (9. 7 percent of total turnover) in FY97 (Bangladesh Bank, 2011) Nonetheless, long-term prospects for capital market development are mixed. Although, the Securities and Exchange Commission (SEC) of Bangladesh has tried to correct the abnormal behavior observed in the market, very often it is argued that lack of proper and firm decisions from the regulator’s side has contributed to make the market more unstable rather than stabilizing it.At the beginning of recent Bull Run, Bangladesh capital market was fairly underpriced in terms of Price Earnings Ratio. The market weighted PER of DSE was 11 to 18 during FY04-FY07. PER became to bigger from beginning of FY09 as the acceleration of price index. The PER reached to its peak level at 30. 6 in February 2010 from 18. 4 of end June 2009. The high PER indicates that the market is highly overpriced and overheated. The strong demand from the retail investors, not matched by a corresponding increase in supply of stocks, has caused the PER to rise beyond rational levels.In terms of any measure, Bangladesh capital market is overheated during last couple of years as supply shocks (Bangladesh bank, 2011). 13 The capital market developments and its sustainability depend on market fundamentals at least in the medium term, and the fundamental strength of the market essentially comes from financial strength of the listed companies. Also, strong regulatory environment created and maintained by the regulatory bodies and participation of institutional investors and professional market analysts help orderly market operations.The market witnessed that last few years many fundamental companies with strong financial strength have been listed in the market. The main regulatory body SEC and the Government of Bangladesh and others related regulatory authorities have continued their all efforts to develop the Bangladesh capital market that reflected in the market trends. But growth of market demand for stock was much then that of supply that inflated the market in recent years and made the market most volatil e one in the region.The recent vibrant nature of the capital market also might be due to the increased interest in the market by a large number of individual investors which has been influenced by the government’s decision to reduce the bank interest rates for its different types of savings instrument. Some basic information regarding Dhaka stock Exchange is given below: Table 4. 1 Dhaka Stock Exchange (DSE) activities FY08 FY09 FY10 378 443 450 No. of listed securities 284. 4 457. 9 607. 3 Issued equity and debt (billion Taka) 1044. 80 1903 3508. 0 Market capitalization (billion Taka) 4309. 46 9327. 153 17831. 37 Turnover in value (million Taka) 2795. 00 4535. 30 8290. 50 DSE General Index* ? Year-end close Price, Source-Dhaka Stock exchange FY11 459 618. 51 2616 5598. 52 5257. 50 Table 4. 2 DSE Highest Records Total Number of Trades Total Trade Volume Total Traded Value in Taka(mn) Total Market Capital in Taka(mn) DSI Index Values 389310 242856735 32495. 756 3680714. 195 73 83. 93657 8918. 51346 Date 05-12-2010 21-07-2011 05-12-2010 05-12-2010 05-12-2010 05-12-2010From Table 4. 1, we find that DSE general index, Daily trade value and market capitalization of DSE increased substantially during last 4 years. But number of listed securities remained almost the same during the period that implies that supply side response was less relative to demand side response and market capitalization and index increased due to increased demand for securities and scarcity of good securities. Nature of Investors: At the end of 2010, total number Beneficiary Owner (BO) Account stood at 3. Million (DSE Data). Out of that a big number of investors did not have sufficient knowledge about securities trading and most of them were relying on rumors spread by big investors. Information of BO accounts of last 3 years are given below: Table 4. 3 Change in total Number of BO Accounts in two Years Date 01. 01. 2009 30. 06. 2009 31. 12. 2009 Total No. of BO A/C 14,68,500 14,19,019 1 9,20,602 Change (+/-) -(49481) 5,01,583 14 30. 06. 2010 31. 01. 2011 25,70,654 33,79,719 6,50,052 8,09,065From the table we find that most of the BO accounts were opened during June ’2009 to January ’2011 that indicated that more than half of the investors could be treated as new investors. During 2009, stock exchanges, Institutional investors and SEC make many campaigns within and outside the country to attract new investor that seems to be successful as the BO accountholders was doubled in last two years that might be treated as a potential for market development. But due to scarcity of new securities market price increased substantially.This demand-supply mismatch along with inadequate investor’s knowledge made the stock prices in a new height and finally turned into a big depression that is still going on. Recently listed Companies with financial information: Twenty three companies (including three direct listing companies) raised new equity of Taka 18. 2 bi llion in the capital market in FY10, higher than the Taka 5. 9 billion raised by the sixteen companies in FY09. Of the new equity issued, Taka 5. 3 billion raised through private placements and Taka 12. 9 billion raised through public placements against Taka 0. billion raised through private placements and Taka 5. 0 billion through initial public offerings (IPO) in FY09. The volume of public offerings in FY10 was oversubscribed more than nine times indicating the high demand of new securities in the primary market. Bonus shares valued at Taka 27. 6 billion were issued in FY10 by one hundred and twenty one companies against retained profits, higher than the Taka 16. 2 billion issued in FY09 by ninety one companies. Currently 493 securities (Debt and Equity securities) are being traded in Dhaka stock exchange. Few numbers of companies are making fresh issue every year. 3, 18 and 10 companies listed their securities respectively in 2009, 2010 and 2011(up to July). Traditionally DSE use d fixed price method for flotation of new companies. But fixed price method does not attract good companies always. So, to attract new companies, SEC decided to introduce Book building method that is a globally acceptable method for IPO. But in Bangladesh, Book Building method is handled very roughly that caused loss for millions of investors. Detail information of securities floated in the market for last 3 years are given in table 4. 4. 15 Table 4. Detail information of fresh Issues in the DSE during 2009-11 Book Value 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 100 10 10 10 10 100 100 10 10 10 100 10 10 10 100 100 10 10 10 100 100 100 10 Issue Price 111. 6 127 10 10 10 60 10 10 10 10 10 10 10 10 10 10 10 25 100 10 10 10 48 120 100 10 10 10 100 10 20 70 100 100 10 90 10 100 100 250 10 Opening Price 134 145 12. 7 10 10. 2 73 68 10. 8 9. 5 74 9. 6 136 9. 3 10. 9 12. 6 11. 4 89. 2 89 235 12. 7 12. 9 16. 5 208 799 514 28. 6 23. 5 27 559 25 57 177 462 261 63. 1 325 35. 5 1955 405 784 71. 6 1st day return 20. 07 14. 7 27. 00 0. 00 2. 00 21. 67 580. 00 8. 00 -5. 00 640. 00 -4. 00 1260. 00 -7. 00 9. 00 26. 00 14. 00 792. 00 256. 00 135. 00 27. 00 29. 00 65. 00 333. 33 565. 83 414. 00 186. 00 135. 00 170. 00 459. 00 150. 00 185. 00 152. 86 362. 00 161. 00 531. 00 261. 11 255. 00 1855. 00 305. 00 213. 60 616. 00 1st Month close Price 140 190 10. 5 9. 2 8. 5 65 48 9. 5 9. 8 61 9. 5 130 10. 2 10 11. 4 10. 5 85. 2 85 620 12. 4 12. 7 16 170 740 506 24. 2 20. 6 20 619 27 60 171 511 180 59 451 31. 5 1667 470 762 46. 9 1st Month return 25. 45 49. 61 5. 00 -8. 00 -15. 00 8. 33 380. 00 -5. 00 -2. 0 510. 00 -5. 00 1200. 00 2. 00 0. 00 14. 00 5. 00 752. 00 240. 00 520. 00 24. 00 27. 00 60. 00 254. 17 516. 67 406. 00 142. 00 106. 00 100. 00 519. 00 170. 00 200. 00 144. 29 411. 00 80. 00 490. 00 401. 11 215. 00 1567. 00 370. 00 204. 80 369. 00 1st year close price 70 71. 9 8. 3 8. 6 8. 7 35. 1 23. 5 7. 7 9. 5 29. 3 5. 4 77 7. 2 7. 4 8. 1 7. 4 41 70 510 8. 7 9. 4 14 103 2 646 1197 16. 1 17. 5 17 800 17 102 245 604 156 73. 1 672 17. 5 2497 838. 5 1721 29. 8 Yearly return -37. 28* -43. 39* -17* -14* -13* -41. 5* 135* -23 -5 193 -46 670 -28 -26 -19 -26 310 180 410 -13 -6 40 114. 8 2105 1097 61 75 70 700 70 410 250 504 56 631 646. 67 75 2397 738. 5 588. 4 198 year 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 2009 Issue Name M. I. Cement MJL BD Ltd. Reliance MF EBL NRB MF SEBL 1st MF Barkatullah Electrodes Salvo chemicals MBL MF AIBL MF Deshbandhu polymer PHP MF Active Fine Chemicals IFIL MF Popular MF Janata MF Green delta MF Beacon Pharma Malek Spinning United Air ICB 3rd MF Phoenix MF IFIC MF RAK Ceramic Dhaka Insurance R.N. Spinning DBH 1st MF Prime Bank 1st Icb MF Trust Bank MF Provati Insurance ICB employees MF Goldenson (RPO) Grameen Phone Ltd. Islami Insurance ICB AMCL MF Dacca Dying MARICO BD L td. EBL 1st MF Rupali Life insurance Asia Insurace Bay Leasing Prime Finance 1st MF From the table it was found that many of the new issues were overvalued and lost value in fast few month that are contrary to traditional ideas regarding IPO.Most of such losing stocks were listed through Book building method where it was assumed that premium value for new stock was much higher than the intrinsic value and after listing in the market these stocks reached on their fundamental value. Actually this is an example of overpricing of IPOs in Bangladesh that caused bubble in the market. 16 CHAPTER 5 Empirical examination of three problems identified by Ibrahim Khalid committee In recent years, Bangladesh capital market witnessed both bullish and bearish trends caused by irregular fluctuation in the indices due to various reasons.In this chapter, I will try to identify some reasons/factor that caused such irregular cycles or stock market crash in Bangladesh. 5. 1 Changes in Face Value (Stock Split) of Securities: There are several theories that explain the reasons of stock split by companies. The most common reasons are to achieve an optimal price range for liquidity, to achieve an optimal tick size and to signal the confidence of managements’ in the future stock price. Various studies on stock split and market behavior shows that there are stock price might lead increase in stock price and trade volume in the short term (Aduda and Caroline. 2010).Copeland (1979) noted that a stock split changes stock prices to a more optimal price, which in turn increased demand for the stock. Their hypothesis of the optimal price range stated that there was a price range within which trading was most liquid for stocks of a company. Baker and Powell (1993) noted that the main motivation for the executives to split stock was toward improved liquidity. High-priced stocks found to be illiquid due to the psychological reasons and transaction costs. Therefore, when the prices climbs up to a certain level, the executive splits the stock to lower prices which facilitates trading and enhance liquidity.Benartzi et al. (2005) argued that management splits their stocks only if it considers the current level of stock price and earnings to be persistent. In Bangladesh, price of small face value (Tk. 10) securities are relatively higher then big face value (Tk. 100) securities where other things remain the same. By May 2010, SEC instructed all companies to convert the face value of securities to Tk. 10 from various per values that increased price level of Tk. 10 share substantially that inflated both the individual stock price and indices. During the period of 2009-2010, 62 companies had changed their face value.Some of the examples are given below with pairs: Table 5. 1 Price comparison of companies with same fundamentals but different per value Items EPS-2009 (Tk. ) NAV-2009 (Tk. ) (floating share (%)) Dividend-2009 Price-30/12/09 Price-30/12/10 1. Union Capital (Par value- 2. BIFC (Par value- Differences(1-2) 10) 100) 3. 90(39. 00) 34. 35 15. 60(156) 153 417. 5 Million (21%) 359. 0 Million (22%) 30%B 10%C, 12%B 116. 50(1165) 323. 00 246. 80(2468) 1117. 00 Market Return (31/12/09-31/12/10) -4. 65 +3 +58. 50 +8% TK. 842 (+360%) TK. 1351 (+221%) 82% Table 5. 2 Price comparison of Mutual Funds with different per value Items EPS-2009 (Tk. NAV-2009 (Tk. ) Paid Up capital 1. AIMS MF (Par 2. GrameenMF(Par value-1) value-10) 0. 19(1. 9) 3. 45 1. 91(19. 1) 34. 65 168. 0 Million 170. 0 Million Differences (1-2) -1. 55 -15. 55 -2 17 Dividend-2009 Price-30/12/09(TK) Price-30/12/10 (TK) No dividend was declared that year due to pending case with the court. 13. 83(138. 30) 78. 48 +59. 52(176%) 11. 85(118. 50) 104. 17 +14. 33(114%) From the both table given above that with similar financial condition or weaker financial conditions lower face value companies were overvalued relative to higher face value companies in same industries.This situation was persisting for many years and regulator failed to identify the face value of all listed companies that created some overvalued securities in the market. Investors were eager to buy the securities of these companies that were going to change face and before split price of these were jumping. As an example, National Bank Ltd (NBL) spits its share from Tk. 100 par value to Tk. 10 at 22/09/2010. At that day, the price of those securities was Tk. 823. 00(82. 30) only. But after just two months, price of the securities stood at Tk. 40 (22/11/2011) without any significant change in the company fundamentals. Another example is Prime finance and Investment Companies Ltd. that split the stock in 25 July 2010 when the stock price was Tk. 331. But just after two month (26 July 2010) stock price rose to Tk. 472 and the increase during this two month is almost 43%. So, we might say that change in face value (stock Split) inflated the market and caused an unanticipated bubble in the market. List of some sto ck split companies and their market capitalization are given below: Table 5. List of some stock split companies and their Market Capitalization(Tk. ) Market Capitalization Market Capitalization Change Market Millions Name of the Company (as on 02. 07. 2009) (as on 05. 12. 2010) (%) Adjusted Return (%) NBL Pubali Bank UCBL Uttara Bank ICB Islamic Bank Ltd Eastern Bank Uttara Finance Al-Arafah Islami Bank Prime Bank Southeast Bank Dhaka Bank NCCBL Social Islami Bank MIDAS Finance Standard Bank EXIM Bank People’s Leasing Prime Finance Jamuna Bank Shahjalal Islami Bank Premier Bank Ltd. BD Finance Phoenix Finance First Security Bank Ltd. Automobile Aftab 17093. 5 16979. 24 9544. 65 20777. 12 7946. 52 2475. 00 2475. 00 6687. 61 15747. 27 10584. 51 7324. 53 7511. 61 6762. 96 1560. 80 6953. 95 12498. 38 10172. 48 10172. 48 5100. 82 7583. 21 6889. 42 2039. 68 1059. 30 2768. 4 2768. 41 18 77256. 42 57735. 13 765099. 54 43391. 15 13958. 75 39460. 16 21859. 2 32413. 54 57186. 03 45708. 89 21250. 18 37404. 66 16044. 57 12483. 34 22424. 52 42838. 33 33180. 05 43690. 10 17602. 83 309117. 03 20200. 744 20200. 75 12199. 52 12963. 72 24360. 48 351. 96 240. 03 7916. 0 0 108. 84 75. 65 1494. 3 5 783. 2 384. 68 263. 14 331. 84 190. 12 397. 95 137. 24 699. 0 222. 47 242. 75 226. 17 329. 49 245. 09 3976. 3 3 193. 21 890. 38 1051. 6 5 368. 27 779. 94 2. 5 (30) Not traded in 2009 (150) (147) 4 240 101 (30) (77) (55) (54) (76) 228 (23. 8) (153) 612 263 (103) 45 (62) 273 225 (65) 70 From the table we find that market capitalization of stock split companies increased substantially during that period. Market adjusted returns of these companies were mixed as dividends, Right share issues are not considered here. Stock denomination fixation and Regulatory rules: From the table 4. 5 we find how stock split companies’ shares increased substantially.But such behavior is considered as normal in terms of other markets and cannot be treated as market failure and regulator cannot st op stock split in a stock market. 5. 2 Asset Revaluation: Chainirun and Narktabtee (2008) argued that firms revalue their assets to signal the firms’ growth prospect and liquidity improvement in order to decrease information asymmetry. Sharpe and Walker (2007) revealed that announcements of asset revaluation were associated with substantial upward movement in stock price and these shift in stock price generally sustains in later months.In Bangladesh, companies revalued their assets (Land and other Fixed Assets) that increased their asset value substantially as price of land and all other assets increased sharply that caused increased stock prices in the market. Many factors influenced companies to revalue their fixed assets. Some of these factors are to increase Stock price, to get more credit under NAV-based margin rules, to get higher ratings, to strengthen financial statement and to attain investors confident etc. sample of the companies of top value gainers are listed bel ow: Table 5. Top 10 NAV-gainer companies after asset revaluations Stock Price DGEN the NAV per Share(Tk. ) NAV Before Asset Revaluation After Asset Revaluation Name of Company Change (%) Change during Jan’2009Dec’2010 (%) Change Jan’2009Dec’2010(%) Market Adjusted return (%) Libra Infusions Ltd. 438 15,667 Sonali Ansh Ltd. 297 2,157 Rahim Textile Ltd. 127 785 BD Thai Aluminum 142 566 Ltd. Infusions Ltd. Orion 20 101 Ocean Containers 13 50 Shinepukur 12 26 ceramics Prime Textile 300 633 Eastern Insurance 151 309 BD welding 20 39 electrodesthe company was listed in 2010. As 3472 626 518 298 413 296 120 110 104 95 355 767 641 185 357 Not Applicable* 212% 21 572 162 1001 143 555 429 (27) 145 —(191) 360 (50) 789 From the Table 5. 4 given above, we find that some company gained up-to 1000% after asset revaluations during the period of 2009-10. As there is a clear and direct relationship between asset revaluation gain and stock price growth, I can say tha t revaluation might help the market to grow up faster and also caused much volatility. Many of the company directors sold their shares when the price went to the peak in 2010.But such phenomenon is supported by study and cannot be treated as regulatory failure. 19 5. 3 Issuance of Right/Preference Shares: Companies offer right shares to increase capital base or to meet regulatory capitals. In 2010, 22 companies proposed right shares to existing shareholders valuing 24720 million Taka that almost 17 times than that of 2009 figure which was only 1450 Million taka. Most of the right proposals of 2010 were with a premium price that differed on a range of 10% to 600%. Table 5. 5 Top Companies offered Right shares with high premium Company Name Confidence Cement Co.Ltd. Bay Leasing & Finance Eastern Insurance Co. Ltd. The City Bank Ltd. Phoenix Finance Asia Insurance *Close Price of 1st Trading day Premium Value (Tk. ) 600 250 200 100 100 100 Stock Price on 01/01/2009 (Tk. ) 323. 00 784. 75* 562. 25 432. 50 440. 50 404. 30* From table 5. 5 we find that in January 2009, price of confidence cement co. ltd. was only Tk. 323 but just after one year its right offer price was Tk. 700 (including Tk. 600 Premium) that was approved by the SEC which is a classic example of regulatory silence toward manipulation. Table 5. Top Companies offered preference Shares Company Name Value of Preference Share (Tk. Million) Private Placement Beximco Pharma 4100 63% Sumit Power 3000 69% Aftab Automobile 1800 82% Peoples Leasing 1200 58% BD Thai Aluminum 750 77% In case of preference share, most of them are distributed through private placement where there was no transparency of allocation. Another interesting thing is that, stock price of most of the companies mentioned above increased substantially just after the offerings that increased the greed of investors to make profit through buying right/preference shares of these companies. . 4 Faulty listing methods: In the year 2010, regulator introduced Book building method to attract new companies to the market. Some companies abused this opportunity to exploit maximum benefits from listing that inflated the market. SEC allows companies to float securities through IPO (Fixed Price and Book Building method), Direct Listing and Repeat IPO where Book building method is used mostly in the year 2010. In Bangladesh, following companies used book building method for listing in the capital market: 20 Table 5. Companies floated shares through Book Building Method Name of Company Premium Offer Collected capital value price (Million Tk. ) MJL Bangladesh Ltd. MI cement Ltd. Khulna power company Ltd. Ocean containers Ltd. (OCL) RAK Ceramics Ltd. 142. 40 101. 60 184. 25 135 38 152. 40 111. 60 194. 25 145 48 5690 3050 9600 1600 1310 Market Price (02/02/12) 68. 10 65. 20 43. 20 46. 20 54. 07 From the Table 5. 7 we find that first four companies charged very high premium for its share where and withdrawn huge amount of capital from mar ket.When these companies asked for very high price, shares of other companies of same industry tends to rise on an expectation that it is highly undervalued that increases the general price index. As per the local expert, local media and committee report, Book building method is the most important factor behind the recent stock market volatility in Bangladesh. So we need to study this factor deeply to reach on a conclusion. I would like to describe the implication of price discovery method followed to discover the price of KPCL and OCL here. Khulna Power Company Ltd: Khulna Power Company Ltd. s a power generation company under private ownership that sells supply electricity to consumers through national distribution system. Its security was first traded in 18April, 2010 and price of the securities is being discovered by eligible institutional investors through Book Building system. The company was registered in 15 October, 1997. Its NAV was 17. 09 and 18. 53 respectively for the yea r 2008 and 2009 while EPS was 0. 97 and 2. 79 respectively for the year 2008 and 2009. Other listing related information regarding the company is given below: Table 5. Basic Listing Information of Khulna Power Company Ltd. Khulna Power Company Ltd. Name of the Item Sl. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Face Value Indicative price Offer Price NAV (As of 2009) EPS(As of 2009) Salable Shares Paid Up capital(As of 2009) First day Trade Price(18/04/2010) Trade price after 7 days Trade price after 30 days Trade Price After 1 year Lowest trade price Highest Trade Price(18/04/2010) Taka Tk. 10 Tk. 162 TK. 194 Tk. 18. 53 Tk. 2. 97 5,21,48,250 TK. 208,593,0000 Tk. 273. 60 TK. 270 TK. 207 Tk. 90. 60 TK. 55. 00 Tk. 341 21 Net Asset Value of KPCL was TK. 18. 3 and indicative price was Tk. 162 that is Ten times higher than the asset value of the company. EPS of the company was TK. 2. 79 and before the listing P/E of the security stood at almost 60 that is unusual in respect of other company. Ocean Containers Limited: It is the pioneer for Inland Container Depot (ICD) and Container Freight Stations (CFS) and is the largest privately owned land container port (Off-dock) in Bangladesh. It is located at Patenga Industrial Area of Chittagong on the International Airport road, which is only 6 km from the country’s largest seaport, Chittagong Port.It was listed with DSE in 2010 through book building method. Other listing related information regarding the company is given below: Table 5. 9 Basic Listing Information of Ocean Containers Limited. Sl. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Ocean Containers Limited. Name of the Item Face Value Offer price NAV (As of 2009) EPS(As of 2009) First day Trade Price (04/03/2910) Trade price after 7 days Trade price after 30 days Trade Price After 1 year Lowest trade price Highest Trade Price (04/03/2910) Taka Tk. 10 Tk. 145 Tk. 55 Tk. 3. 73 Tk. 297 TK. 79 TK. 258 Tk. 96. 60 TK. 62 Tk. 2254 From these figures, we find that the maximum price of the stock was Tk. 2254 and minimum price was Tk. 69 only against face value of Tk. 10. The lowest price of the securities was half of the offer price of the securities that indicates that many shareholders caused huge losses out of this security. In both cases discussed above most benefit goes to the owners of the company and both the company are owned by same people. Few institutional investors benefited directly from these two securities.Book Building method for price discovery gives various massages to the market. Some of these are follows: 1. Investors will feel that market is undervalued and they will select instruments that are already in the peak but relatively undervalued if compared to KPCL/OCL. 2. Companies of same industry of which KPCL is operating should go up. Most of the companies of power sector seemed undervalued relative to KPCL as it was overvalued and investors had expectations that price of each company will go to that level that fueled the speculative trend of the market. 3.General Investors had a perception that Eligible institutional investors are technically sound to discover the justified price for a specific stock and th