Kurtzs Last Words Essay -- essays research papers

In Heart of Darkness, Joseph Conrad presents the character of Kurtz as a man who is seen differently by all who know him depending on their individual experiences with him. His cousin knew him as a man with great musical talent, others knew him as a great leader, and his Intended fiance knew him as an admirable add-on but all of these knew him to be a remarkable genius. When the narrator, Marlow, first hears of him, he is told that Kurtz is known as a great leader destined to hold lavishly positions and fame. However, as he travels the river, he also learns that Kurtz has become insane during his time in the African jungle. After Marlow finally comes into contact with him, he discovers that Kurtz has become a god among the natives and has been brutally collecting the coveted ivory. Marlow finally convinces the deathly ill man to return to the ship where he finally dies. Upon his death, Kurtzs facial behavior causes Marlow to feel as though he may be seeing his entire life passing just before it ends and finally, he murmurs his final dustup The horror The horror (Conrad, p. 64).Although these last words seem full of meaning, they can be interpreted as being so vague that they are destitute of any specific rationalization. In spite of this, they have several explanations, mainly relating to his life and the choices he made. As Kurtz succinctly verbalizes the terrible visions of ruthless power, of craven ter...

Successful Application of Theory to a Placement Case Essay -- social w

An important aspect of social work is expert experience (Walker, 2012) and application of theory to practice, supported through research evidence (Dunk-West, 2013). In addition, the Professional Capabilities Framework (PCF, The College of Social exert, 2012) outlines the expectations of social workers in the UK. As a educatee social worker, the PCF governs my development and practicing the application of theory is a critical stage in learning. To facilitate this application, I am placed with Southwark Council. Southwark has recently started an organisational re grammatical construction, incorporating Reclaiming Social Work (Forrester et al. 2013) and coining it Social Work Matters (Southwark Council, 2014), see Appendix A. As part of this structure, student social workers are given the opportunity to work with and reflect on industrious cases and apply theory to the placement work. This assay will demonstrate the successful application of theory to a placement case, which has b een included in Appendix A, amply anonymised. The Walker familys brief background and presenting needs have been outlined and will be referred to throughout. The social work process will inform the structure of this essay assessment, deciding on outcomes and planning, intervention and finally evaluation (Howe, 2002).The relevance of the chosen theory will be considered in relation to the above step in the process and strengths and weaknesses will be evaluated. In order to address all these points in a meaningful way within this process this essay will consider a combination of theory and method.To clarify, Theory helps to predict or describe a particular phenomenon (Teater, 2010 2) hence being particularly effectual in the assessment or evaluation states. The Walker ... ... the use of stimulant medications, daybook of Child Psychology and Psychiatry, 50(1-2), pp. 180-193. Teater, B. (2010), Introduction to Applying Social Work Theories and Methods. Maidenhead on the fence(p) University Press. The College of Social Work (2012), Professional Capabilities Framework (PCF), Available at http//www.tcsw.org.uk/pcf.aspx (Accessed 20 March 2014). Ugazio, V., Fellin, L., Pennacchio, R., Negri, A. and Colciago, F. (2012), Is systemic thinking really extraneous to common sense?, Journal of Family Therapy, 34(1), pp. 53-71. Walker, S. (2012), Effective social work with children, young people and families putting systems theory into practice. London SAGE. Woods, K., Bond, C., Humphrey, N., Symes, W. and Green, L. (2011), Systematic review of solution focused brief therapy with children and families brief. London section for Education.

Marketing and Politics :: Globalization, Culture, Informative

Global and Domestic MarketingCultural      Globalization is an inevitable process, and so are the inevitable issues with different cultures. On the one hand, the world is becoming more homogeneous, and distinctions between national markets are not only fading but, for some products, will disappear altogether. This means that ethnic difference is a global issue, not just the United States. On the other hand, the differences among nations, regions, and ethnic groups in terms of cultural factors are far from resolved.It is suggested that the claims for "a right to culture" by national states in recent years can be important criteria for trade policy making, intellectual property rights protection, and the alternative for national interests. From a marketing point of view it is very important for marketers to realize the sensitivity of cultural differences. To be aware of and sensitive to the cultural differences is a major premise for the success of the ma rketplace.To determine the cultural understanding of market means that the professional should positively identify cultural factors that can be utilise to ease any marketing program. These factors may or may not exist in the targeted markets. One must also keep in hear that marketing can also influence culture. Such is the case in Mexico, where the United States has had such a cultural influence. Currently all the Jones in Mexico exigency to bye American product and mimic what Americans do. Promotion, for instance, is strongly influenced by the language. Product acceptance is affected by culturally based attitudes towards change. And distribution is influenced by tender institutions, such as Versace.

Essay --

In this article, Christopher G. Petr presents results of surveys conducted to assess how foster children perceive independent living function put in place to help them adjust as they reach adulthood. Petr makes the point that while most current foster children were optimistic about their futures and believed that these programs were serviceable in wee-weeting them ready to adjust to life after they are age-out from foster care, some of the out of custody youths felt that they had not received comely services.Among the arguments Petr uses to support this point are the two interviews with subjects A and C. Petr reports that their scenarios are at the opposite ends of a spectrum he heard from the 27 people interviewed. He presents lots of anecdotal evidence from the interviews to support these arguments, including that A was using services like a tuition waiver and living subsidy to help her get a college degree and expressed appreciation for this help. Subject C, on the other hand , had no job and was not continuing his schooling and said he did not know he could get a tuition waiver or...

Some Cannot Forget :: essays research papers

The Vietnam War Purpose To illustrate my view on the Vietnam War. Audience Anyone with an interest in the Vietnam War. Some Cant Forget I awaken and bolt of lightning upright in bed, my heart racing and sweat beginning to bead on my forehead. My chest heaving with ragged breaths, I try to figure disclose what startled me out of sleep. Then I hear it The terrified scream of my father piercing through the eerie silence. My heart skips a beat and I shuffle my feet under the covers, letting them fall mop up the bed and land on the carpet. I start to push myself up, but then hear my moms go slowly drift down the hall as she tries to awaken and comfort my father. "Its okay. Youre home. Youre okay. Its over." A sigh escapes my lips and I lay back in bed, pull the covers to my neck, and desperately hope to fall back asleep. Another nightmare of the Vietnam War. I could never in my wildest dreams even begin to imagine having to experience something with such controversy and horr or. tho my father was there and it is still with him today, almost thirty years later. As most people know, there was an extreme amount of debate over the Vietnam War. on that point were protesters in the streets and marching on the White House lawn, preaching about peace and civil rights. Young men were fleeing to Canada to escape the draft, while others freely volunteered to articulation the service. Even though the war was in Vietnam, the fighting spirit could be found all over in the cities of the United States. I understand the rivalry to the war, because technically it wasnt even our fight. It was, after all, within the country of Vietnam. But the reason we intervened was because the South Vietnamese government asked us to fight the communism that was trying to number them over. While most people knew this, I dont think they fully understood it or even cared. All they knew was that people they loved were being sent off to a foreign country to die. One thing that I really dont understand is the way that the Vietnam veterans were treated after they returned home. These soldiers were fighting for our country, doing their duty to serve and protect. They were not the ones who started the war, so why should they be blamed for it?

Some Cannot Forget :: essays research papers

The Vietnam War Purpose To illustrate my view on the Vietnam War. auditory modality Anyone with an interest in the Vietnam War. Some Cant Forget I awaken and bolt upright in bed, my heart racing and sweat beginning to bead on my forehead. My chest heaving with ragged breaths, I try to figure out what startled me out of sleep. Then I hear it The terrified scream of my produce piercing through the eerie silence. My heart skips a beat and I shuffle my feet under the covers, letting them fall off the bed and land on the carpet. I start to push myself up, but then hear my moms voice slowly drift down the hall as she tries to awaken and comfort my father. "Its okay. Youre home. Youre okay. Its over." A sigh escapes my lips and I lay back in bed, pull the covers to my neck, and desperately hope to fall back asleep. Another nightmare of the Vietnam War. I could never in my wildest dreams even begin to imagine having to experience something with such controversy and horror. But my father was there and it is still with him today, al nigh thirty years later. As most people know, there was an extreme amount of debate over the Vietnam War. There were protesters in the streets and marching on the White House lawn, preaching about pink of my John and civil rights. Young men were fleeing to Canada to escape the draft, while others freely volunteered to join the service. Even though the war was in Vietnam, the fighting spirit could be effect all over in the cities of the United States. I pull in the opposition to the war, because technically it wasnt even our fight. It was, after all, within the country of Vietnam. But the reason we intervened was because the southbound Vietnamese government asked us to fight the communism that was trying to take them over. While most people knew this, I dont think they fully understood it or even cared. All they knew was that people they loved were being sent off to a foreign country to die. One thing that I really dont understa nd is the way that the Vietnam veterans were treated after they returned home. These soldiers were fighting for our country, doing their duty to serve and protect. They were not the ones who started the war, so why should they be blamed for it?

Incarceration of African American Males Essay

Introduction The trend of African American males between the ages of 25 and 29 has seen a dramatic increase of immurement. Attention has been counseling on beas of housing, education, and healthc ar but the most prominent problem for African American males is the increase in the incarceration rate. African American males between the ages of 25 and 29 incarceration rate has been thought, by many, to be caused by economic factors much(prenominal) as under employment or unemployment, poor housing, wishing of education, and lack of healthcargon.Yet, others believe it is due to the imbalance of minorities within the criminal justice system, such as judges, lawyers, and lawmakers. This paper willing explore two different outlooks parliamentary law has diminish up with so far, as to why African American Males between the ages of 25 and 29 argon increasingly incarcerated. Finally, the information will give sensory faculty to the problems that is faced by African American Males betwe en the ages of 25 and 29. Prevalence Problem 1 More than 40% of all American pris mavinrs, men and women, are African American men, yet they make up just 13% of the U. S. male population (Roberts, 2004).This statistic does not include those African American men who are in local jails nor does it include those African American men under custodial supervision (Table 2). They enter the state and federal prison system, at the set up of their economic and reproductive lives and yet they exit prison behind both economically and socially. The high rate of incarceration among African Americans has been noted by the interconnectedness of poor economy, lack of affordable housing, mental illness, substance abuse, domestic violence, absence of a strong black male role model, lack of access to education, or nigh type of combination of these factors.Statistics dont even give African American males a good chance to stay out of jail. They consume a one in four chance of world incarcerated, whi le Hispanic American males book a one in six chance, and black-and-blue males only have a one in twenty three chance of incarceration. The color of African Americans sets them apart and makes them targetable. Prevalence Problem 2 on that point is evidence, in our American Justice System, of structural inequality as seen in the percentages of minorities to the percentage of majorities employed in high ranking positions, within the system.The percentage of coupled States judges by race are 79% Caucasian, 12% African American, and 2% Hispanics American (Federal Judicial Center, 2012), as for the thousands of lawyers in the United States it is approximate of 3% are African American (National Law Group, 2010-2011), and about 1 in 4 police officers are members of a racial or ethnic nonage in 2007 (Bureau of Justice Statistics, 2013). An investigation into racial profiling showed that African American and Hispanic American offenders, who often are young unemployed males, are more lik ely than their etiolated counterparts (Spohn, C., 2000).Their prison sentences are also typically longer or they receive differential benefits from guideline departures than do similarly situated white offenders (Spohn, C. , 2000). We must ac friendship the problems of racial discrimination within the criminal justice system, communicate racial disparity within the criminal justice system with those we who are not informed of the problem, and stay committed to changing racial disparity within our justice system for change to begin.Causes In researching the high rate of incarceration in America it is more likely than not that the increase in African American Males being incarcerated is due to the War on Drugs (Table 1). It is public knowledge that drug villainy ranks high among the effects of poverty. These poor neighborhoods not only endure crime they have poor schools, poor food, cramped living areas, and deficit of jobs if any jobs at all.Drugs and drug crime has become regula rity in low income communities, arrests of Hispanics made up 55% of cocaine powder offences and 52% of marijuana offenses and 49% involving opiates African Americans were suspected in 75% of crack cocaine cases White males were suspected in 41% all methamphetamine cases (Motivans, M. , 2011). Decades of failed public and private remedies for chronic disparities and disadvantages in communities of color invite us to reexamine systems and institutions that provide and restrict opportunity in new ways (Lawrence, K. , 2011).The causes seem to be intertwined being poor equals, equals a poor education, equals lack of employment, and ultimately equals an increased rate of crime. Consequences The causes seem to be intertwined being poor, equals lack of education, which equals lack of employment, which equals increased rate of crime which equals impossibility to join criminal justice system. Also, many of these men are incarcerated while all the other non-incarcerated American young men ar e coat school, starting careers, earning seniority at resolve, marrying and having children frankincense gaining capital.Even when released from prison, these men return back to their communities with a felony record that will pose extreme problems for them. The incarceration leads the released denounce into a lower social shape even if they were considered lower class Americans prior to their incarceration they now are lower in social class standing in most instances. This leads to a poor African American community, perhaps as many as 50% of the male population will have been in prison.These incarcerated African American Males, who are in their prime of life, also are leaving half the families in this community facing such things as poverty, lack of affordable housing, mental illness, substance abuse, violence, absence of a strong black male role model, lack of access to education, or some type of combination of these factors. The community ultimately will become poverty strick en, struggling to survive, and ultimately vulnerable to the situation repeating. Solutions How can this be changed? There are four key aspects to addressing racial disparity, in my opinion 1.Acknowledge 2. Communication 3. Setback = Strength 4. Commitment Not only is the problem of racial disparity under recognized by society it is not being communicated effectively to make change. Majority groups use ups to acknowledge racial disparity and minority groups need to communicate their knowledge regarding racial disparity. As each group majority and minority begins to become share their information with each other and work together for a common solution acknowledging there will be setbacks but with continued commitment systemic change will happen.Conclusion By refusing to grant disparate treatment of people of color or anyone within the criminal justice system we empower ourselves and our country. It is time that everyone including our legislators, law enforcement, prosecutors, defe nse attorneys, and judges work collectively and courageously to eradicate this negative stigma. Despite, America being known for its equal rights we are living proof that in this era inequality is a factor that cannot be taken lightly. The statistics that are surrounding African American males is astounding.We need to empower African American males with the knowledge that they have a one in four chance of becoming incarcerated. It is also important to know that Hispanic males have a one in six chance, and white males have a one in twenty three chance of incarceration. All of these statistics need to be addressed to empower each and every one us. end-to-end history we have not seen a change in majority groups (White, Male) and minority groups (Women, anyone that is not White) although we have seen numbers of minorities increasing at a spry pace.Today, however, the election of Barack Obama, not once but twice, may set the new ideal of what an American actually is. As we embrace diff erent cultures and their ethnic backgrounds society will prosper. As society increases their knowledge, in regards to each persons differences, they will acquire greater strength and prosperity. The only issue, that can occur, will be in the short term empowering others to embrace diversity. When we look beyond short-term, focus will shift to diverse empowerment through embracing the knowledge of our differences thus making us stronger as a society.TABLE 1 BLACK PROPORTION OF DRUG ARRESTS, EXCLUDING MARIJUANA POSSESSION YEAR BLACK % 1999 40. 1 2000 39. 3 2001 39. 1 2002 35. 8 2003 33. 8 2004 33. 1 2005 33. 2 Data calculated from drug arrest figures by race provided by the Uniform Crime Reports department of the FBI TABLE 2 FBI CRIME REPORT Arrests By Race, 2006 11,249 agencies 2006 estimated population 216,685,152 Total White Black American Indian or Alaskan Native Asian or Pacific islander Total White Black American Indian or Alaskan Native Asian or Pacific islander TOTAL 10,437, 620.7270214 2924724 130589 112093 vitamin C. 0 69. 7 28 1. 3 1. 1 Drug abuse violations 1376192 875101 483886 8198 9607 1000 63. 6 35. 1 0. 6 0. 7 DUIS 1034651 914226 95260 13484 11681 100 88. 4 9. 2 1. 3 1. 1 Liquor laws 466323 398068 50035 12831 5389 100 85. 4 10. 7 2. 8 1. 2 Drunken-ness 408439 344155 54113 7884 2287 100 84. 3 13. 2 1. 9 0. 6 Dis-orderly conduct 5117264 325991 179733 7606 3934 100 63. 0 34. 7 1. 5 0. 8 (The FBI Uniform Crime Report, 2010) References Bureau of Justice Statistics, 2013, http//bjs. ojp. usdoj. gov/index. cfm?ty=tp&tid=71 The FBI Uniform Crime Reports, 2010, Table 43, http//www. fbi. gov/about-us/cjis/ucr/crime-in-the-u. s/2010/crime-in-the-u. s. -2010/tables/table-43 Federal Judicial Center, 2012, Overview of the United States Court System, http//www. fjc. gov/public/pdf. nsf/lookup/FJC_Standard_PPT_English_June_2012. pdf/$file/FJC_Standard_PPT_English_June_2012. pdf Lawrence, K. , 2011, Race, Crime, and Punishment Breaking the Connection in Americ a.http//www. aspeninstitute. org/sites/default/files/content/docs/pubs/Race-Crime-Punishment.pdf Motivans, Mark, 2011, Washington, DC US Dept. of Justice Bureau of Justice Statistics, http//bjs. ojp. usdoj. gov/content/pub/pdf/fjs09. pdf National Law Group 2010-2011, http//blacklawyers. net/ Roberts, D. , 2004, Measuring the Social and Moral Cost of Mass Incarceration, in African American Communities, http//www. law. fsu. edu/faculty/2003-2004workshops/roberts. pdf Spohn,C. ,2000, Thirty Years of Sentencing Reform The Quest for a Racially Neutral Sentencing Process, http//www. justicestudies. com/pubs/livelink3-1. pdf.

A Comparative Analysis of Overstock and Amazon

Financial Reporting, Analysis and morals A Comparative Analysis of buy in. com and virago Robert Baird BU7545 Fall 2011 Financial Reporting, Analysis and Ethics A Comparative Analysis of over gunstock. com and amazon Robert Baird BU7545 Fall 2011 Table of Contents Executive Summary 2 Company and Industry Information 3 story Issues 6 Accounting Policies and Disclosure Practices 9 Financial Statement Analysis 10 Corporate Governance 13 Conclusion 15 References 18 Appendices 21 Executive Summary This paper covers the news accountancying errors related to freight bells that lead buy in. com in 2006 to restate its mo engagementary statements for 2002, 2003, 2004 and suckly reports for 2004 and 2005, and the accompanying south investigation in which they were cle bed of wrongdoing. It to a fault covers a second restatement from 2009, in which the fiscal statements for 2009 and 2008 were re state and an opposite(a) arcsecond investigation related to those re statements.The paper details a tangible problem for buy in related to its score keep backs and regular the beau mondes admittance in its yearly report that it does not book an appropriate bite of qualified accounting professionals able to produce fiscal statements that be free of material errors. overstock is compared against a direct competitor, virago, who although is a a great deal larger friendship that overstock, has become the standard in the industry against which all different companies are judged.The financial statements and financial dimensions from 2006-2008 of both virago and overstock are shown in relation with one another to offer any(prenominal) insight into the strengths and weaknesses of each(prenominal) keep company and to evaluate their performance, and include consolidated statements of trading operations and consolidated symmetry sheets from 2005-2008 and common-size statements of operations and balance sheets for each company from 2005-2008, as well as trend statements of operations and balance sheets for each company from 2005-2008.The paper also examines the corporate structure of each company, including the senesce of directors, the different board committees that exist and wages practices for senior company executives. The paper concludes that buy in must put in place the proper controls and acquire competent accounting and auditing professionals to ensure the validity of their financial statements. Company and Industry Information stock. com (Overstock) was incorporated in Utah in celestial latitude 1998, originally as D2-Discounts Direct, Inc. , later reincorporated in the state of Delaware in 2002 and counterchanged its name to Deals. om, Inc. in 1999. Overstock adopted its present name on October 25, 1999 and is based turn up of coarseness Lake City, Utah. Overstock is an online retailer that sells discount merchandise to consumers through its online website. According to Mergent Online, Overstock. com i s an online retailer providing discount brand name, non-brand name and closeout merchandise, including bed-and-bath advantageouslys, home decor, kitchenware, furniture, watches and jewelry apparel, electronics and computers, sporting goods, and designer accessories, among other products (2011).Overstock also sells run books, magazines, compact discs, digital video disk and video games (Mergent Online, 2011). The company conducts direct business, in which it orders are fulfilled at Overstocks warehouses in sodium chloride Lake City, Utah and shipped to final consumers or business, and business with fulfillment quislings, which occurs when Overstock sells another manufacturers or retailers merchandise on their website and those third parties pack and ship orders. Overstock, however, does cargo hold returns and customer service related to substantially all orders placed through its website (Mergent Online, 2011).According to Mergent Online, as of the end of 2010, Overstock sells to customers in over 90 countries but does not mother sales agreements operations outside the United States and is using a United States based third party to provide logistics and fulfillment for all foreign orders (2011). Overstock does ship goods to suppliers on consignment, and includes car and real estate listings, insurance quotes and an online auction service on its website. amazon was originally incorporated in cracking letter in 1994 and later reincorporated in the state of Delaware in 1996. amazon. om (Amazon), desire Overstock is an online retailer that sells all motleys of different products and merchandise on its website. According to Mergent Online, the products on Amazons website primarily include merchandise and content purchased for resale from vendors and those provided by party venders, and it also manufactures and sells the Kindle e-reader and they also provide service such as Amazon Web Services (AWS), fulfillment, miscellaneous market placeing and pro motional agreements, such as online advertising and co-branded credit cards. Amazon consists of dickens separate business segments, North the States and internationalistic.North America consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through North America- focalizationed websites such as www. amazon. com and www. amazon. ca and include amounts earned from AWS and includes the export sales from the above mentioned websites (Mergent Online, 2011). The International business segment consists of amounts earned from retail sales of consumer products (including from sellers) and subscriptions through internationally focused locations and the segment includes export sales from these internationally ased locations (including export sales from these sites to customers in the United States and Canada), but excludes export sales from the companys United States and Canadian locations (Mergent Online, 2011). According to Standard & P oors NetAdvantage, Amazon has virtually countless online shelf space, and can offer customers a vast s preference of products through an efficient search and retrieval interface (2011). In addition to being the seller of record for a broad range of new products, Amazon allows other businesses and individuals to sell new, used and collectible products on its websites through its Merchant and Amazon securities industry programs in which Amazon earns fixed fees, sales commissions and/or per unit of measurement activity fees, as well as serving developers and enterprises of all sizes through AWS, which provides access to technology infrastructure that developers can use to virtually enable any type of business (S&P NetAdvantage, 2011).The online retail industry is an industry that is thriving as more(prenominal) and more consumer purchase products online. As the supply chain and logistics processes have become increasingly advanced and streamlined, online retailing has taken major strides in the past two decades. According to the Standard & Poors Industry Surveys (Computers Consumer Services & the Inter pay), United States online retail sales (excluding the auto, travel and prescription drug categories) increased 13% in 2010 to $17. billion and improvements in multi-channel initiatives, better online merchandising, more personalized offerings and increasingly sophisticated marketing efforts drove growth in 2010, while S&P hood IQ forecasts gain retail sales will rise to 11% in 2011 (2011, p. 10) . The S&P Industry Survey also states that worldwide business-to-consumer (B2C) inter boodle spending may increase from $708 billion in 2010 to $1. trillion in 2014 and the cardinal most popular categories of merchandise sold online in 2009 were (in order) apparel, accessories and footwear software system and peripherals and consumer electronics, and a number of exclusive online retailers have also been successful, among (them) major publicly traded online retai lers like Amazon. com Inc. and Overstock. com Inc. (2011, p. 17). Amazon, however, is far and away the leader of its industry. At first it seemed like a business model that was destined to ail, but is has since become the model for its industry and has been the breakaway leader in global e-commerce for a number of years (S&P Industry Surveys, 2011, p. 18). Overstock is trying to emulate the strategy used by Amazon, but it is difficult for any online retailer to differentiate itself from a company like Amazon, with its huge market share and market slap-upization. Amazon is an incredibly tough act to follow and according to the S&P Industry Survey, it is predicted that in 2011, Amazon will achieve its sixth straight year with taxation growth of greater than 25% (2011, p. 18).Amazon has achieved strong and sustained success by continuing to focus on its customers and has looked to innovate and take risks, despite potential near-term negative impacts to its financial performance (S&P Industry Surveys, 2011, p. 18). Accounting Issues Overstock has had numerous instances of accounting and control errors that have resulted in restatements of financial statements and probes by the United States Securities and Exchange Commission (SEC). In 2006, Overstock announced that it would restate its previously reported financial statements passing play back to 2002 due to an error in the way it accounted for its freight costs.According to the Deseret News on contact 1, 2006, the accounting errors relate to how the Salt Lake-based company immediately expensed inward freight costs in the periods they were incurred, instead of capitalizing such costs as part of inventory and expensing them as it sold off the inventory and the error effects yearbook financial reports for 2002, 2003, 2004 and quarterly reports for 2004 and 2005 (2006, p. E1). The correction of the freight cost error actually increased the inventory by $3. gazillion as of the third quarter of 2005, and lowere d the take in leavinges for fiscal years 2002, 2003 and 2004. In an inter go out on CNBC in 2006, Overstock CEO said of the restatement our restatement was $3. 5 million to the good and our auditors have said that we understated our results by $3. 5 million (CEO Wire, 2006). He went on to say in the interview with Becky Quick on CNBC that it turns out we had turns out that we have understated our performance, that our books are too conservative, is what the auditors have said (CEO Wire, 2006).Overstock vice president of corporate affairs, echoed this sentiment in an interview with the Knight Ridder Tribune Business News, look when you look at what this restatement is really, it is positive (Sims, 2006, p. 1). In an interview with the Salt Lake Tribune, Overstock President Jonathan Johnson said of the accounting errors When we order comforters, we pay the manufacturer and the freight bill. Weve been accounting for the freight bill as we gainful it, expensing it. We should have b een capitalizing the freight bill as we sold the goods, as opposed to when we actually paid it (Keahey, 2009).These are still some examples from the corporate officers at Overstock that they just clearly do not get it, and do not understand the impact of a financial restatement. The Deseret News describes the effects of the accounting error as follows, for 2005, the accounting change will narrow the reported clams detriment by $1. 8 million for the quarter ended September 30 and by $592,000 for the quarter ended June 30 and widen the wampum loss by $107,000 for the quarter ended demonstrate 31. For 2004, the correction will lower the full-year loss by $461,000.The accounting change will also reduce the moolah losses for the 2002 and 2003 fiscal years (2006, p. E1). This restatement led to an investigation of Overstock by the SEC resulting in a subpoena from the SEC for inner documents relating to its accounting policies, targets and projections (Wall Street Journal, 2006). On June 6, 2008 the SEC informed Overstock that it had completed its investigation of the company and its officers and does not intend to recommend any enforcement action (Financial Wire, 2008).Overstock apparently did not learn much from the above mentioned restatement and subsequent SEC investigation, and on September 15, 2009, Overstock received yet another notice from the SEC, putting the company on notice that the SEC was conducting an investigation concerning Overstocks previously-announced restatements of its financial statements in 2006 and 2008 and other matters and the subpoena that accompanied the notice covers documents related to the restatements and also to Overstocks billings to its partners in the fourth quarter of 2008 and related collections, and Overstocks accounting for and implementation of software relating to its accounting for customer refunds and credit, including offsets to partners, and related matters (PR Newswire, 2009). In February 2010, Overstock announc ed it was restating its financial statements for 2008 and 2009, shifting $1. 8 million of income from 2009 to 2008. Overstock attributed this restatement to some accounting confusion involving other companies that sell goods on its website and a related problem involving incorrect invoices from a freight vendor (Deseret News, 2010, p. A10).Overstock also stated in a filing with the SEC that it was applying different accounting standards for its stock option plans that will have in mind decreased income of $350,000 for 2008 and about $900,000 for 2009 (Harvey, 2010). As if the restatement of financial reports was not bad enough, Overstock admitted to a deficiency in its financial controls related to its relationship with certain business partners and informed the SEC that managements report on internal control over financial reporting for fiscal 2008 can no longer be relied upon (Harvey, 2010). On his blog on Phils Stock World, Sam Antar (who discloses that he is a convicted felon a nd former CPA who now works closely with government and law enforcement agencies in cases of white-collar crimes and on a regular basis refers cases to them) wrote that in 2009Overstock. om violated GAAP in accounting for its recoveries of certain offsetting costs and reimbursements amounts due to the company from its fulfillment partners (suppliers) who were under-billed in previous reporting periods and that Overstock should have restated its financial reports to recognize income when those offsetting costs and reimbursements were actually earned by the company in those previous reporting periods (Phils Stock World, 2010). Antar claims that accounting errors are bordering on criminal and that the company improperly recognized income as those amounts were collected in future accounting periods on a non-GAAP gold basis and that Overstock even reported earningss in the fourth quarter of 2008 when they should have reported a loss under GAAP (Phils Stock World, 2010).Antar made some even stronger claims against Overstock, saying that accounting errors have become commonplace at Overstock at that the officers of the company do not seemed interested or wedded to put the proper controls in place to detect these errors. Antar writes that so far, from 1999 to Q3 2009 every single financial report issued by Overstock. com had to be restated at to the lowest degree once, sometimes twice or even three times to correct material accounting errors with the company even claiming that the last two restatements were caused by technology problems (Phils Stock World, 2010). In the 2009 10-K issued by Overstock it stated that Overstocks information technology program change and program development controls were inadequately knowing to prevent changes in our accounting systems which led to the failure to appropriately capture and accurately process data (2010, p. 18).The two previously mentioned instances of financial report restatements mean that in 2006, the annual financia l statements for 2002, 2003 and 2004 were restated then the 2006 financial statements were restated again along with the statements for 2008. Both restatements had little or no effect on the stock wrong of the company and after each restatement was announced the stock price either fall modestly or even went up slightly. Accounting Policies and Disclosure Practices As shown in the numerous instances of accounting errors and restatements, Overstock clearly has an issue with its internal controls over financial reporting to detect basic GAAP errors forwards their financial statement are released to the SEC.In its 2010 10-K, Overstock acknowledges that they have a problem and states, we lacked a sufficient number of accounting professionals with the necessary knowledge, experience and training to adequately account for and perform adequate supervisory reviews of significant transactions that resulted in misapplications of GAAP (2010, p. 22). This is a fascinating admittance by a major publicly traded company that it simply does not have accountants to properly produce correct financial statements free of significant accounting errors. Amazon, for its part, is the leader in online retailing and a much larger company with a global footprint that outstretches most companies, and curiously that of Overstock, yet their accounting policies are sound.There exists nothing in their annual reports to the SEC that outlines anything of the sort that Overstock has admitted related to not having a sufficient number of accountants. The information listed in their financial reports seems to be standard language related to GAAP. Both companies, Amazon and Overstock account for their inventory using the first-in, first-out (FIFO) method, valued at lower of cost or market value and depreciate their fixed assets on a straight-line basis. Financial Statement Analysis In its 2009 10-K report, Amazon gives an interesting overview to its business. It states that its primary source of revenue is the sale of a wide range of products and services to customers and that their financial focus is on long-term, sustainable growth in free hard bullion flow per share (2009, p. 21).It also states that we seek to reduce our variable costs per unit and work to leverage our fixed costs and because of our model we are able to turn over inventory quicker and have a cash-generating in operation(p) roll (2009, p. 22). Amazons inventory swage, as shown in the financial ratios in the appendix, was 11. 46 times in 2008 (consistent with 11. 06 times in 2007 and 11. 44 times in 2006) and with a receivables turnover of 24. 95 times in 2008 and payables turnover of 5. 98 times in 2008, they have a sufficient direct cycle and cash conversion cycle. Overstocks inventory turnover was 31. 68 times in 2008, up from 12. 21 times in 2006, and means their sales are stronger and they are moving inventory at a much better rate. The receivables turnover for Overstock 75. 49 times in 2008 and accounts payable turnover of 12. 53 times in 2008.Amazon gets more bang for their buck than Overstock, and is able to leverage their considerable size and operational capacity to achieve significant returns on their assets, paleness and income. In 2008, Amazons return on assets (ROA) was 8. 69 share, compared with Overstocks -6. 23 per centum ROA. Overstocks ROA has improved from 2006 when it was -34. 43 part but because of consistent net losses their return ratios are negative. Overstocks return on impartiality (ROE) was -105. 88 per centum, and improvement from -131. 38 percent in 2006, but nothing compared to Amazons ROE of 33. 25 percent in 2008. Amazon also has a significant return on operational income (ROI) of 28. 93 percent in 2008, as contrasted with Overstocks ROI of -12. 82 percent in 2008 (up from -57. 89 percent in 2006).A look at the common-size consolidated statement of operations of Amazon and Overstock (restated) offers some insights into the considerable di fferences between a company with the size and stature of Amazon and a company that would like to achieve that status, like Overstock. Amazon had a gross dough in 2008 of 22. 3 percent of sales (consistent to the gross profit for 2005 through 2007), whereas Overstock had a gross profit of 17. 1 percent of revenue (consistent with gross profit percentages from 2005 through 2007). Both Amazon and Overstock had similar total operating expenses, 17. 9 percent of sales for Amazon in 2008 and 18. 4 percent of revenue for Overstock in 2008. The numbers that are the most telling are the income statistics, with Amazon having a net income as a percentage of sales of 3. 4 percent in 2008, whereas Overstock had a net loss s a percentage of revenue of -1. 5 percent, which improved significantly from 2006 when it was -13. 7 percent and 2007 when it was -6. 3 percent. The trend consolidate statements of operations for Amazon and Overstock (restated), in which the base year of 2005 equals one hund red percent, the discrepancies between a global leader in its industry, Amazon, and its competitor, Overstock, are even more compelling. Net sales for Amazon more than doubled from 2005 to 2008, and in 2008 net sales were 225. 7 percent of the net sales from 2005. thorough revenue for Overstock was only up slightly from 2005 to 2008, and in 2008 total revenues were 104. 4 percent of the total revenues from 2005.Amazon also doubled its gross profit from 2005 in, up 209. 4 percent, whereas Overstocks gross profit in 2008 was 122. 3 percent of its 2005 gross profit. Overstocks total operating expenses stayed relatively close to their 2005 direct in 2006, 2007 and 2008, only rising slightly. Amazon, on the other hand had a significant increase in total operating expenses. Operating expenses in 2008 were 213. 3 percent of the 2005 total operating expenses. Net income for Amazon for 2008 was 179. 7 percent of its 2005 net income and increased from 132. 6 in 2007 and from a very off year in 2006, when net income was 52. 9 percent of the previous year 2005.Overstock has lowered its net losses, and in 2008 the net loss was half (50. 8 percent) of the 2005 level, and they too had a rough year in 2006 when the net loss was four times (428. 5 percent) that of 2005. Analysis of the restated common-size consolidate balance sheet for Overstock and the common-size consolidate balance sheet for Amazon show that both companies have a similar number of electric circulating(prenominal) assets, as would be expected from two companies that sell products online and have significant sales and inventory turnover, but Overstock has more cash and cash equivalents when compared to Amazon. Overstock had, as a percentage of total assets, 58. 3 percent of cash and cash equivalents, up drastically from 17. percent in 2005, while Amazon had cash and cash equivalents of one-third (33. 3 percent) of total sales, up slightly from 27. 4 percent in 2005. Amazons total current assets were 74 pe rcent of total assets, whereas Overstock had total current assets that totaled 84. 7 percent of total assets, which increased from 72. 1 percent of total assets in 2005. Since current assets were a large percentage of total assets, the reverse would be expected, and total current liabilities for an online retailer would also be a significant portion of total liabilities and stockholders equity. Most consumers make purchases online using credit cards and those purchases are often paid off within a year, devising them current. heart current liabilities for Amazon in 2008 were 57 percent of total assets, remaining stable year over year between 2008 and 2005, while total current liabilities for Overstock were 61. 6 percent of total assets, up from 47. 5 percent in 2005. Corporate Governance Overstock has a board of directors that is comprised of four members, three of whom are independent, and is chaired by the CEO Patrick Byrne. According to the proxy statement (DEF 14A) filed on Apri l 2, 2009, the board of directors held ten meeting during 2008 and each director attended at least 75 percent of the meetings of the board (2009, p. 14). Overstock has an audit committee and fee committee, but no standing nominations committee.According to the proxy statement, the audit committee held 11 meetings during 2008 and the salary committee held six meetings, and like board meetings each director attended at least 75 percent of the committee meetings on which he or she served in 2008 (2009, p. 14). The audit committee is chaired by Allison Abraham and includes two financial experts, as defined by the SEC. The audit committee is responsible for reviewing and monitoring our financial statements and internal accounting procedures, selecting, reviewing and monitoring our independent registered public accounting firm, evaluating the scope of the annual audit, reviewing audit results and consulting with management and our independent registered public accounting firm prior to demonstration of financial statements to stockholders (2009, p. 15).The compensation committee is responsible for determining salaries, incentives and other forms of compensation for our directors, officers and other employees and administering various incentive compensation and benefit plans (2009, p. 15). The 208 proxy statement says the compensation objectives are to seek to attract and retain highly competent executive management who will build long-term economic value for the Company and that our compensation philosophy is that the executive salary and bonus levels should be modest in comparison to those paid at comparable companies, and that executives opportunities for more significant compensation should be tied closely to the Companys performance (2009, p. 20).The elements of total compensation, as laid out by the 2009 proxy statement include base salary, annual individual cash bonuses, payments under our Performance Share Plan, awards under our 2005 rectitude Incentive Pl an, matching contributions under our 401 (k) plan and benefits under our health and welfare benefits plans (2009, p. 20-21). The board of directors for Amazon consists of nine members, eight of whom are independent, and is chaired by the CEO of Amazon, Jeffrey Bezos. The 2009 proxy statement reads that the board is responsible for the control and direction of the Company and represents the Companys shareholders and its primary purpose is to build long-term shareholder value (2009, p. 8). In 2008, the board of directors met nine times and that all directors attended at least 75 percent of the aggregate of the meetings of the board and committees occurring while they were members (2009, p. 9).Amazon has an audit committee, leadership development and compensation committee and a nominating and corporate governance committee. The audit committee is chaired by Tom Alberg, who meets the requirement of a financial expert as defined by the SEC. According to the 2009 proxy statement, the aud it committee represents and assists the board in fulfilling its wariness responsibility relating to the Companys financial statements and reporting process, the qualifications, independence and performance of the Companys independent registered public accounting firm, the performance of the Companys internal audit function and the Companys compliance with legal and regulatory requirements (2009, p. 9).The leadership development and compensation committee, as stated in the 2009 proxy statement, evaluates the Companys programs and practices relating to leadership development, reviews and establishes compensation of the Companys executive officers, and administers the Companys stock-based and certain other compensation plans, all with a view toward maximizing long-term shareholder value (2009, p. 10). The proxy statement for 2009, also lays out the responsibilities of the nominating and corporate governance committee, and says it reviews and assesses the composition of the board, assi sts in identifying potential new candidates for director, recommends candidates for election as director and provides a leadership role with respect to corporate governance of the Company (2009, p. 10).According to the 2009 proxy statement, Amazons executive compensation flack is to tie total compensation to long-term shareholder value, as reflected primarily in the Companys stock price and therefore the primary serving of a named executive officers total compensation is stock-based compensation (2009, p. 17). In addition to stock-based compensation, executives also receive a base salary, new-hire cash bonuses and other compensation and benefits, including vacation, medical, 401 (k) and relocation benefits. Conclusion When it comes to online retailing, Amazon is far and away the leader of the industry and the model for all companies to follow. Amazon has an enormous share of the market and their market capitalization is tremendous. Their financial ratios are sound and their year o ver year statistics are rather impressive. Overstock, on the other hand, is a company that leaves a mess to be desired.They have had numerous restatements of their financial reports, and two instances of these restatements have been covered in detail above. Overstock has yet to have a positive net income and has had net losses every year. Due to the sheer amount of restatements that have occurred, many executives have fired or resigned their positions and taken the fall for their accounting errors and subsequent SEC investigations. Overstock seems to need to branch out into different revenue streams, such as car and real estate listings, insurance quotes and travel services in order to differentiate themselves from Amazon and capture some market share back from the titan of the industry.Amazon has its eyes on bigger targets, and wants to stand toe to toe with another gigantic company, Apple. Amazons manufacturing and subsequent sales of the various incarnations of the Kindle and a n online music service are bold ideas that have paid off handsomely for the company, as have their investments in supply chain and shipping processes, as well as third party relationships. Overstock, for its part, would most apt(predicate) just like a piece of Amazons market share and still has a long way to go forward it is anywhere near the level of an Amazon. Overstock first needs to get its accounting controls in order and make sure that the financial statements they release in their annual reports to the SEC will not be restated in the future.The audit committee, auditors, CFO and accountants need to work together to ensure that their work is free from error, and there clearly needs to be a change in the corporate culture at Overstock because change needs to come from the top. These accounting errors should have been caught before the statements were released and given their history of investigations by the SEC, Overstock should have made every effort to clean up its act and bring in competent accounting and auditing professionals that would have the requisite attention to detail required in producing mistake free financial reports. If Overstock has any hope of ever reaching the level of an Amazon, it needs to fix its accounting issues and to install investor confidence in the company.Outside of their ROA, ROE, and ROI ratios, which are negative due to their net losses, Overstocks financial ratios stack up nicely against the financial ratios of Amazon, which are a good sign for the company moving forward, if they can right the ship. The fact that Overstock is still around today has to be a good sign for the company, in that is has come through adversity and still remains a going concern. References Amazon, Inc. (2009). 2008 yearly Report. Seattle, WA Amazon, Inc. , 2009. Amazon, Inc. (2008). 2007 Annual Report. Seattle, WA Amazon, Inc. , 2008. Amazon, Inc. (2007). 2006 Annual Report. Seattle, WA Amazon, Inc. , 2007. Amazon, Inc. (2006). 2005 Annual Re port. Seattle, WA Amazon, Inc. , 2006. Amazon, Inc. (2009) Definitive Proxy Statements.Seattle, WA Amazon, Inc. 2009. Amazon, Inc. (2008) Definitive Proxy Statements. Seattle, WA Amazon, Inc. 2008. Antar, S. (2010, October 16). Does Overstock. com CEO Patrick Byrne know when to shut up, especially while the SEC investigates his company? Retrieved October 30, 2011, from Phils Stock World Web site http// www. philstockworld. com Boyd, R. (2007, May 11). Company Byrne-d on probe report. New York Post, pp39. Cheng, A. (2006, May 11). Overstock cancels its share sale after SEC subpoena. Deseret News, pp. E4. Harvey, T. (2010, February 5). Overstock hit by another restatement. The Salt Lake Tribune. Hendrick, D. (2009, November 18).Online retailer fires auditor over accounting fight. SNL Kagan Media & Communications Report. Kanaracus, C. (2008, November 3). Overstocks ERP woes force it to restate results. Computerworld, 42(44), pp. 7. Keahey, J. (2009, September 23). Overstock CEO and his critics differ over SEC probe. The Salt Lake Tribune. Kessler, S. (2011, October 13). Industry surveys computers consumer services & the internet. Standard & Poors. Mergent, Inc. (2011). Mergent Online. Mims, B. (2006, March 1). Overstock to restate earnings. Knight Ridder Tribune Business News, pp. 1. Moving the market Overstock. com corrects results back to 2002 losses are narrowed. (2006, March 1).Wall Street Journal (Eastern Edition), pp. 1. Overstock. com, Inc. (2009) 2008 Amended Annual Report. Salt Lake City, Utah Overstock. com, Inc. , 2009. Overstock. com, Inc. (2008) 2007 Amended Annual Report. Salt Lake City, Utah Overstock. com, Inc. , 2008. Overstock. com, Inc. (2007) 2006 Amended Annual Report. Salt Lake City, Utah Overstock. com, Inc. , 2007. Overstock. com, Inc. (2006) 2005 Amended Annual Report. Salt Lake City, Utah Overstock. com, Inc. , 2006. Overstock. com, Inc. (2009) 2008 Annual Report. Salt Lake City, Utah Overstock. com, Inc. , 2009. Overstock. com, Inc. (20 08) 2007 Annual Report. Salt Lake City, Utah Overstock. com, Inc. , 2008.Overstock. com, Inc. (2007) 2006 Annual Report. Salt Lake City, Utah Overstock. com, Inc. , 2007. Overstock. com, Inc. (2006) 2005 Annual Report. Salt Lake City, Utah Overstock. com, Inc. , 2006. Overstock. com announces receipt of another SEC subpoena. (2009, September 17). PR Newswire. Overstock. com President interview. (2006, March 1). CEO Wire. Overstock corrects its financial results. (2006, March 1). Deseret News, pp. E1. Overstock. com, Inc. (2009). Definitive proxy statement. Salt Lake City, Utah Overstock. com, Inc. , 2009. Overstock. com, Inc. (2008). Definitive proxy statement. Salt Lake City, Utah Overstock. com, Inc. , 2008.Overstock gets SEC subpoena. (2006, May 10). Wall Street Journal (Eastern Edition). Overstock. com shifting income. (2010, February 6). Deseret News, pp. A10. Q3 2008 Overstock Com Inc earnings conference call final. (2008, October 24). Fair Disclosure Wire. SEC closes Overst ock. com probe, will take no action. (2008, June 7). Financial Wire. Standard & Poors. (2011) Standard & Poors NetAdvantage. Taub, S. (2006, February 28). Freight costs spur Overstock restatement. CFO. com, pp. 1. Appendices Overstock Original Consolidated Statements of Operations (in thousands) form Ended declination 31, 2008 2007 2006 2005 revenue Direct Revenue 174,203 195,622 303,202 324,875 Fulfillment partner revenue 660,164 564,539 484,948 478,947 summarise Revenue 834,367 760,161 788,150 803,822 Cost of goods sold Direct 154,501 164,368 284,943 283,377 Fulfillment partner 536,957 468,222 408,407 400,889 conglomeration cost of goods sold 691,458 632,590 693,350 683,266 Gross profit 142,909 127,571 94,800 120,556 Operating expenses Sales and merchandise 57,634 55,458 70,897 79,651 Technology 57,815 59,453 65,158 28,132 General and administrative 38,373 41,976 46,837 36,495 Restructuring 12,283 5,674 Amortization of stock-based compensation 72 center operating expenses 153,822 169,170 188,566 144,350 Operating loss (10,913) (41,599) (93,766) (23,794) Interest income, net 3,163 4,788 3,566 (270) Interest expense (3,462) (4,188) (4,765) (5,582) other(a) income (expense), net (1,446) (92) 81 4,728 Loss from continuing operations (12,658) (41,091) (94,884) Loss from stop operations (3,924) (6,882) Net loss (12,658) (45,015) (101,856) (24,918) Overstock Restated Consolidated Statements of Operations (in thousands) For form Ended December 31, 2008 2007 2006 2005 Revenue Direct Revenue 174,203 197,088 301,509 324,875Fulfillment partner revenue 660,164 568,814 478,628 474,441 Total Revenue 834,367 765,902 780,137 799,316 Cost of goods sold Direct 154,501 168,008 284,774 282,383 Fulfillment partner 536,957 473,344 405,559 400,057 Total cost of goods sold 691,458 641,352 690,333 682,440 Gross profit 142,909 124,550 89,804 116,876 Operating expenses Sales and Marketing 57,634 57,81 5 38,373 77,one hundred fifty-five Technology 57,815 59,453 70,897 27,901 General and administrative 38,373 41,976 46,837 33,043 Restructuring 12,283 5,674 Amortization of stock-based compensation Total operating expenses 153,822 169,170 188,566 138,099 Operating loss (10,913) (44,620) (98,762) (21,223) Interest income, net 3,163 4,788 3,566 (270) Interest expense (3,462) (4,188) (4,765) (5,582) Other income (expense), net (1,446) (92) 81 4,728 Loss from continuing operations (12,658) (44,112) (99,880) (22,347) Loss from discontinued operations (3,924) (6,882) (2,571) Net loss (12,658) (48,036) (106,762) (24,918) Overstock Common-Size Consolidated Statements of Operations year Ended December, 31 (% of revenue) 2008 2007 2006 2005 Total Revenue hundred% degree centigrade% light speed% coke% Total cost of goods sold 82. 9% 83. 2% 88% 85% Gross profit 17. 1% 16. 7% 12% 15% Operating expenses Sales and Marketing 6. 9% 7. 3% 9% 9. 9% Technology 6. 9% 7. 8% 8. 3% 3. 5% General and administrative 4. 6% 5. 5% 6% 4. 5% Restructuring 1. 6% . 7% Amortization of stock-based compensation . 009% Total operating expenses 18. 4% 22. 3% 23. 9% 18% Operating loss -1. 3% -5. 5% -11. 9% -3% Interest income, net . 3% . 6% . 5% -. 03% Interest expense -. 4% -. 6% -. 6% -. 7% Other income (expense), net -. 1% -. 01% . 01% . 6% Loss from continuing operations -1. 5% -5. 4% -12% Loss from discontinued operations -. 5% -. 9% Net loss -1. % -5. 9% -12. 9% -3. 1% Overstock Trend Consolidated Statements of Operations (2005= 100%) For Year Ended December 31, 2008 2007 2006 2005 Total Revenue 103. 8% 94. 6% 98. 1% 100% Total cost of goods sold 101. 2% 92. 6% 101. 5% 100% Gross profit 118. 5% 105. 8% 78. 7% 100% Operating expenses Sales and Marketing 72. 4% 69. 7% 89% 100% Technology 205. 6% 211. 3% 231. 6% 100% General and administrative 105. 1% 115% 128. 3% 100% Total operating expenses 106. 6% 117. 2% 130. 6% 100% Operating loss 45. 9% 174. 8% 394. 1% 100% Interest expense 62% 75% 85. % 100% Loss from continuing operations 13. 3% 43. 3% 100% Loss from discontinued operations 57% 100% Net loss 50. 8% 180. 7% 408. 8% 100% Overstock Restated Common-Size Consolidated Statements of Operations For Year Ended December 31, (% of revenue) 2008 2007 2006 2005 Total Revenue 100% 100% 100% 100% Total cost of goods sold 82. 9% 83. 7% 88. 5% 85. 4% Gross profit 17. 1% 16. 3% 11. 5% 14. 6% Operating expenses Sales and Marketing 6. 9% 7. 5% 4. 9% 9. 7% Technology 6. 9% 7. 8% 9. 1% 3. 5% General and administrative 4. 6% 5. 5% 6% 4. 1%Restructuring 1. 6% . 7% Amortization of stock-based compensation - Total operating expenses 18. 4% 22. 1% 24. 2% 17. 3% Operating loss -1. 3% -5. 8% -12. 7% -2. 7% Interest income, net . 4% . 6% . 5% -. 03% Interest expense -. 4% . 5% -. 6% -. 7% Other income (expense), net -. 2% . 01% . 01% . 6% Loss from continuing operations -1. 5% -5 . 8% -12. 8% -2. 8% Loss from discontinued operations -. 5% -. 9% -. 3% Net loss -1. 5% -6. 3% -13. 7% -3. 1% Overstock Trend Restated Consolidated Statements of Operations (2005= 100%) For Year Ended December 31, 2008 2007 2006 2005 Total Revenue 104. 4% 95. 8% 97. 6% 100% Total cost of goods sold 101. 3% 94% 101. 2% 100% Gross profit 122. 3% 106. 6% 76. 8% 100% Operating expenses Sales and Marketing 74. 7% 75% 50% 100% Technology 207. 2% 213. 1% 254. 1% 100% General and administrative 116. 1% 127% 141. 7% 100% Total operating expenses 111. 3% 122. 5% 136. 5% 100% Operating loss 51. 4% 210. 2% 465. 4% 100% Interest expense 62% 75% 85. 4% 100% Loss from continuing operations 56. 6% 197. 4% 447% 100% Loss from discontinued operations 152. 6% 267. % 100% Net loss 50. 8% 192. 9% 428. 5% 100% Overstock Original Consolidated isotropy Sheets (in thousands) December 31, 2008 2007 2006 2005 Assets Current Assets Cash and cash equivalents 100,57 7 101,394 126,965 56,224 Marketable securities 8,959 46,000 55,799 Cash, cash equivalents and marketable securities 109,566 147,394 126,965 112,023 Accounts receivable, net 6,985 12,304 11,638 11,695 Notes receivable 1,250 1,506 6,702 Inventories, net 17,723 25,933 20,274 93,269 Prepaid inventory, net 761 3,572 2,241 9,633 Prepaid expense 9,694 7,572 7,473 8,508Current assets of held for sale subsidiary 4,718 Total current assets 145,975 198,281 180,011 235,128 limit cash 253 Fixed assets, net 23,142 27,197 56,198 61,914 Goodwill 2,784 2,784 2,784 13,169 Other long-term assets, net 538 86 578 15,449 Notes receivable 4,181 Long-term assets of held for sale subsidiary 16,594 Total assets 172,441 235,529 265,165 325,913 Liabilities and Stockholders Equity (Deficit) Current liabilities Accounts payable 62,120 70,648 66,039 101,436 accrue liabilities 25,154 52,598 40,142 46,847 Deferred Revenue 19,026 Capital lease obligations 3,796 5,074 6,683Current liabili ties of held for sale subsidiary 3,684 Total current liabilities 106,300 127,042 114,939 154,966 Other long-term liabilities 2,572 3,034 Capital lease obligations, non-current - - 3,983 3,058 Convertible senior notes 66,558 75,623 75,279 74,935 Total liabilities 175,430 205,699 194,201 232,959 Stockholders equity (deficit) Preferred stock Common stock 2 2 2 2 redundant paid in capital 338,620 333,909 325,771 251,244 Accumulated deficit (264,985) (243,709) (198,694) (96,829) honorary stock-based compensation (305)Treasury stock (76,670) (63,278) (64,983) (65,325) Accumulated other comprehensive income (loss) 48 (94) (132) 962 Total stockholders equity (deficit) (2,985) 26,830 61,964 89,749 Total liabilities and stockholders equity (deficit) 172,445 232,529 265,165 325,913 Overstock Restated Consolidated Balance Sheets (in thousands) December 31, 2008 2007 2006 2005 Assets Current Assets Cash and cash equivalents 100,577 101,394 126,965 55,875 Mark etable securities 8,989 46,000 55,799 Cash, cash equivalents and marketable securities 109,566 147,394 126,965 111,674 Accounts receivable, net 6,985 11,208 16,330 10,021 Notes receivable 1,250 1,506 6,702 Inventories, net 17,723 25,643 23,970 93,269 Prepaid inventory, net 761 3,572 2,241 9,633 Prepaid expense 9,694 7,572 7,473 8,477 Current assets of held for sale subsidiary 4,718 2,054 Total current assets 145,979 196,895 188,299 235,128 Restricted cash 253 Fixed assets, net 23,144 27,197 56,198 60,850 Goodwill 2,784 2,784 2,784 2,784 Other long-term assets, net 538 86 578 3,333 Notes receivable 4,181 Long-term assets of held for sale subsidiary 16,594 23,565 Total assets 172,445 231,143 264,453 325,913 Liabilities and Stockholders Equity (Deficit) Current liabilities Accounts payable 62,120 70,358 58,412 100,188 Accrued liabilities 25,154 37,155 38,434 45,934 Deferred Revenue 19,026 22,965 23,220 6,683 Capital lease obligations 3,796 5,074 Current liabilities of held for sale subsidiary 3,684 2,161 Total current liabilities 106,300 134,274 128,824 154,966 Other long-term liabilities 2,572 3,034 Capital lease obligations, non-current 3,983 3,058 Convertible senior notes 66,558 75,623 75,279 74,935 Total liabilities 175,430 212,931 208,086 232,959 Stockholders equity (deficit) Preferred stock Common stock 2 2 2 2Additional paid in capital 338,620 333,909 325,771 250,939 Accumulated deficit (264,985) (252,327) (204,291) (96,829) Treasury stock (76,670) (63,278) (64,983) (65,325) Accumulated other comprehensive income (loss) 48 (94) (132) 962 Total stockholders equity (deficit) (2,985) 18,212 56,367 89,749 Total liabilities and stockholders equity (deficit) 172,445 231,143 264,453 325,913 Overstock Restated Common-Size Consolidated Balance Sheets December 31, (% of total assets) 2008 2007 2006 2005 Assets Current Assets Cash and cash equivalents 58. 3% 43. 9% 48% 17. 1% Marketable securities 5. 2% 19. 9% 17 . 1% Cash, cash equivalents and marketable securities 63. 5% 63. 8% 48% 34. 2% Accounts receivable, net 4. 1% . 5% 6. % 3. 1% Notes receivable . 7% . 7% 2. 5% Inventories, net 10. 3% 11. 1% 9. 1% 28. 6% Prepaid inventory, net . 4% 1. 5% . 8% 3% Prepaid expense 5. 6% 3. 3% 2. 8% 2. 6% Current assets of held for sale subsidiary 1. 8% . 6% Total current assets 84. 7% 85. 2% 71. 2% 72. 1% Restricted cash . 07% Fixed assets, net 13. 4% 11. 8% 21. 3% 18. 7% Goodwill 1. 6% 1. 2% 1. 1% . 9% Other long-term assets, net . 3% . 04% . 2% 1% Notes receivable 1. 8% Long-term assets of held for sale subsidiary 6. 3% 7. 2% Total assets 100% 100% 100% 100% Liabilities Current liabilities Accounts payable 36% 30. 4% 22. 1% 30. 7% Accrued liabilities 14. 6% 16. 1% 14. 5% 14. 1% Deferred Revenue 11% 10% 8. 8% 2. 1% Capital lease obligations 1. 6% 1. 9% Current liabilities of held for sale subsidiary 1. 4% . 7% Total current liabilities 61. 6% 58. 1% 48. 7% 47. 5% Other long-t erm liabilities 1. 5% 1. 3% Capital lease obligations, non-current 1. 5% . 9% Convertible senior notes 38. 6% 32. 7% 28. 5% 23% Total liabilities 101. 7% 92. 1% 78. 7% 71. 5% Stockholders Equity Stockholders equity (deficit) Preferred stock Common stock Additional paid in capital 196. 4% 144. 5% 123. 2% 77% Accumulated deficit -153. 7% -109. 2% -77. 3% -29. 7% Treasury stock -44. 5% -27. 4% -24. 6% -20% Accumulated other comprehensive income (loss) . 03% -. 04% -. 05% . 3% Total stockholders equity (deficit) -1. 7% 7. 9% 21. 3% 27. 5% Total liabilities and stockholders equity (deficit) 100% 100% 100% 100% Overstock Restated Trend Consolidated Balance Sheets (2005 = 100%) December 31, 2008 2007 2006 2005 Assets Current Assets Cash and cash equivalents 180% 181. 5% 227. % 100% Marketable securities 16. 1% 82. 4% 100% Cash, cash equivalents and marketable securities 98. 1% 132% 113. 7% 100% Accounts receivable, net 69. 7% 111. 8% 163% 100% Notes receivable 18. 7% 22. 5% 100% Inventories, net 19% 27. 5% 25. 7% 100% Prepaid inventory, net 7. 9% 37. 1% 23. 3% 100% Prepaid expense 114. 4% 89. 3% 88. 2% 100% Current assets of held for sale subsidiary 229. 7% 100% Total current assets 62. 1% 83. 7% 80. 1% 100% Restricted cash 100% Fixed assets, net 38% 44. 7% 92. 4% 100% Goodwill 100% 100% 100% 100% Other long-term assets, net 16. 1% 2. % 17. 3% 100% Notes receivable 100% Long-term assets of held for sale subsidiary 70. 4% 100% Total assets 53% 71% 81. 1% 100% Liabilities Current liabilities Accounts payable 62% 70. 2% 58. 3% 100% Accrued liabilities 54. 8% 80. 9% 83. 7% 100% Deferred Revenue 284. 7% 343. 6% 347. 4% 100% Capital lease obligations 74. 8% 100% 00% Current liabilities of held for sale subsidiary 170. 5% 100% Total current liabilities 68. 6% 86. 6% 83. 1% 100% Other long-term liabilities 84. 8% 100% 00% Capital lease obligations, non-current 130. % 100% Convertible senior notes 88. 8% 10 1% 100. 5% 100% Total liabilities 75. 3% 91. 4% 89. 3% 100% Stockholders Equity Stockholders equity (deficit) Preferred stock 00% Common stock 100% 100% 100% 100% Additional paid in capital 134. 9% 133. 1% 129. 8% 100% Accumulated deficit 273. 7% 260. 6% 211% 100% Treasury stock 117. 4% 96. 9% 99. 5% 100% Accumulated other comprehensive income (loss) 5% -9. 8% -13. 7% 100% Total stockholders equity (deficit) -3. 3% 20. 3% 62. 8 100% Total liabilities and stockholders equity (deficit) 52. 9% 70. 9% 81. 1% 100%Amazon Consolidated Statements of Operations (in millions) Year Ended December 31, 2008 2007 2006 2005 Net sales 19,166 14,835 10,711 8,490 Cost of sales 14,896 11,482 8,255 6,451 Gross profit 4,270 3,353 2,456 2,039 Operating expenses Fulfillment 1,658 1,292 937 745 Marketing 482 344 263 198 Technology and content 1,033 818 662 451 General and administrative 279 235 195 166 Other operating expense (income), net (24) 9 10 47 Total operating expenses 3,428 2,698 2,067 1,607 Income from operations 842 655 389 432 Interest income 83 90 59 44 Interest expense (71) (77) (78) (92) Other income (expense), net 47 (8) 7 2Total non-operating income (expense) 59 5 12 42 Income before income taxes 901 660 377 428 Provision for income taxes (247) (184) (187) 95 Equity-method investment activity, net of tax (9) Income before accumulative effect of change in accounting principle 333 Cumulative effect of change in accounting principle 26 Net income 645 476 one hundred ninety 359 Amazon Common-Size Consolidated Statements of Operations Year Ended December 31, (% of sales) 2008 2007 2006 2005 Net sales 100% 100% 100% 100% Cost of sales 77. 7% 77. 4% 77. 1% 76% Gross profit 22. 3% 22. 6% 22. 9% 24% Operating expenses Fulfillment 8. 7% 8. 7% 8. 7% 8. 8% Marketing 2. 5% 2. 3% 2. 5% 2. 3% Technology and content 5. 4% 5. 5% 6. 2% 5. 3% General and administrative 1. 5% 1. 6% 1. 8% 2% Other operating expense (income), net -. 1% . 06% . 09 % . 6% Total operating expenses 17. 9% 18. 2% 19. 3% 18. 9% Income from operations 4. 4% 4. 4% 3. 6% 5. 1% Interest income . 4% . 6% . 6% . 5% Interest expense -. 4% -. 5% -. 7% -1. 1% Other income (expense), net . 2% -. 05% . 07% . 02% Total non-operating income (expense) . 3% . 03% . 1% . 5% Income before income taxes 4. 7% 4. 4% 3. 5% 5% Provision for income taxes -1. 3% -1. % -1. 7% 1. 1% Equity-method investment activity, net of tax -. 05% Income before cumulative effect of change in accounting principle 3. 9% Cumulative effect of change in accounting principle . 3% Net income 3. 4% 3. 2% 1. 8% 4. 2% Amazon Trend Consolidated Statements of Operations (2005 = 100%) For Year Ended December 31, 2008 2007 2006 2005 Net sales 225. 7% 174. 7% 126. 2% 100% Cost of sales 231% 178% 1278% 100% Gross profit 209. 4% 164. 4% 120. 5% 100% Operating expenses Fulfillment 222. 6% 173. 4% 125. 8% 100% Marketing 243. 4% 173. % 132. 8% 100% Technology and content 229% 181 . 4% 146. 8% 100% General and administrative 168. 1% 141. 6% 117. 5% 100% Other operating expense (income), net -51. 1% 19. 1% 21. 3% 100% Total operating expenses 213. 3% 167. 9% 128. 6% 100% Income from operations 194. 9% 151. 6% 90% 100% Interest income 180. 6% 204. 5% 134. 1% 100% Interest expense 77. 2% 83. 7% 84. 8% 100% Other income (expense), net 2350% -400% 350% 100% Total non-operating income (expense) 140. 5% 11. 9% 28. 6% 100% Income before income taxes 210. 5% 154. 2% 88. 1% 100% Provision for income taxes -260% -193. 7% -196. % 100% Equity-method investment activity, net of tax 100% Income before cumulative effect of change in accounting principle 100% Cumulative effect of change in accounting principle 100% Net income 179. 7% 132. 6% 52. 9% 100% Amazon Consolidated Balance Sheets (in millions) December 31, 2008 2007 2006 2005 Assets Current assets Cash and cash equivalents 2,769 2,539 1,022 1,013 Marketable securities 958 573 997 987 Inventories 1,39 9 1,200 877 566 Accounts receivable, net and other 827 705 399 274 Deferred tax assets 204 147 78 89 Total current assets 6,157 5,164 3,373 2,929 Fixed assets, net 854 543 457 348 Deferred tax assets 145 260 199 223Goodwill 438 222 195 159 Other assets 720 296 139 37 Total assets 8,324 6,485 4,363 3,696 Liabilities and Stockholders Equity Current liabilities Accounts payable 3,594 2,795 1,816 1,366 Accrued expenses and other 1,093 902 716 533 Current portion of long-term debt 59 17 Total current liabilities 4,746 3,714 2,532 1,899 Long-term debt 409 1,282 1,247 1,480 Other long-term liabilities 487 292 153 71 Commitments and contingencies Stockholders equity Preferred stock Common stock 4 4 4 4 Treasury stock, at cost (600) (500) (252) Additional paid-in capital 4,121 3,063 2,517 2,263 Accumulate other comprehensive income (loss) (123) 5 (1) 6 Accumulated deficit (730) (1,375) (1,837) (2,027) Total stockholders equity 2,672 1,197 431 246 Total liabilities and stoc kholders equity 8,314 6,485 4,363 3,696 Amazon Common-Size Consolidated Balance Sheets December 31, (% of total assets) 2008 2007 2006 2005 Assets Current assets Cash and cash equivalents 33. 3% 39. 2% 23. 4% 27. 4% Marketable securities 11. 6% 8. 8% 22. 9% 26. 7% Inventories 16. 8% 18. 5% 20. 1% 15. 3% Accounts receivable, net and other 9. 9% 10. 9% 9. 1% 7. 4% Deferred tax assets 2. 5% 2. 3% 1. 8% 2. 4%Total current assets 74% 79. 6% 77. 3% 79. 2% Fixed assets, net 10. 3% 8. 4% 10. 5% 9. 4% Deferred tax assets 1. 7% 4% 4. 6% 6% Goodwill 5. 3% 3. 4% 4. 5% 4. 3% Other assets 8. 6% 4. 6% 3. 2% 1% Total assets 100% 100% 100% 100% Liabilities Current liabilities Accounts payable 43. 2% 43. 1% 41. 6% 37% Accrued expenses and other 13. 1% 13. 9% 16. 4% 14. 4% Current portion of long-term debt . 7% . 3% Total current liabilities 57% 57. 3% 58% 51. 4% Long-term debt 4. 9% 19. 8% 28. 6% 40% Other long-term liabilities 5. 9% 4. 5% 3. 5% 1. 9% Stockholders Eq uity Preferred stock Common stock . 05% . 06% . 09% . 1% Treasury stock, at cost -7. 2% -7. 7% -5. 8% Additional paid-in capital 49. 5% 47. 2% 57. 7% 61. 2% Accumulate other comprehensive income (loss) -1. 5% . 08% -. 02% . 2% Accumulated deficit -8. 8% -21. 2% -42. 1% -54. 8% Total stockholders equity 32. 1% 18. 5% 9. 9% 6. 7% Total liabilities and stockholders equity 100% 100% 100% 100% Amazon Trend Consolidated Balance Sheets (2005 = 100%) December 31, 2008 2007 2006 2005 Assets Current assets Cash and cash equivalents 273. 3% 250. 6% 100. % 100% Marketable securities 97. 1% 58. 1% 101% 100% Inventories 247. 2% 212% 155% 100% Accounts receivable, net and other 301. 8% 257. 3% 145. 6% 100% Deferred tax assets 229. 2% 165. 2% 87. 6% 100% Total current assets 210. 2% 176. 3% 115. 2% 100% Fixed assets, net 245. 4% 156% 131. 3% 100% Deferred tax assets 65% 116. 6% 89. 2% 100% Goodwill 275. 5% 139. 6% 122. 6% 100% Other assets 1945. 9% 800% 375. 7% 100% Tota l assets 225. 2% 175. 5% 118% 100% Liabilities Current liabilities Accounts payable 263. 1% 204. 6% 132. 9% 100% Accrued expenses and other 205. 1% 169. % 134. 3% 100% Current portion of long-term debt 347. 1% 100% Total current liabilities 249. 9% 195. 6% 133. 3% 100% Long-term debt 27. 6% 86. 6% 84. 3% 100% Other long-term liabilities 685. 9% 411. 3% 215. 5% 100% Stockholders Equity Preferred stock Common stock 100% 100% 100% 100% Treasury stock, at cost 240% 200% 100% Additional paid-in capital 182. 1% 135. 4% 111. 2% 100% Accumulate other comprehensive income (loss) -2050% 83. 3% -16. 7% 100% Accumulated deficit 36% 67. 8% 90. 1% 100% Total stockholders equity 1086. 2% 486. 6% 175. % 100% Total liabilities and stockholders equity 224. 9% 175. 5% 118% 100% Overstock Financial Ratios 2008 2007 2006 Return on assets (net)(ROA) -6. 23% -18. 09% -34. 43% Return on equity (net) (ROE) -105. 88% -101. 39% -131. 38% Return on income (Operating) (ROI) -12 . 82% -32. 94% -57. 89% EBITDA Margin 1. 24 -1. 6 -7. 8 Calculated tax rate Revenue per employee $803,173 $900,665 $912,211 Quick ratio 1. 04 1. 21 1. 2 Current ratio 1. 37 1. 56 1. 57 Net current assets 23. 01% 30. 64% 24. 54% Long-term debt to equity 2. 82 1. 28 Total debt to equity 2. 96 1. 36Interest coverage Total asset turnover 4. 11x 3. 05x 2. 67x Receivables turnover 75. 49x 47. 29x 52. 48x Inventory turnover 31. 68x 27. 38x 12. 21x Accounts payable turnover 12. 53x 11. 12x 9. 41x Accrued expenses turnover 27. 55x 20. 9x 19. 13x Property, plant and equipment turnover 33. 06x 18. 23x 13. 35x Cash and cash equivalents turnover 6. 48x 5. 54x 6. 6x Amazon Financial Ratios 2008 2007 2006 Return on assets (net)(ROA) 8. 69% 8. 78% 4. 72% Return on equity (net) (ROE) 33. 25% 58. 48% 56. 13% Return on income (Operating) (ROI) 28. 93% 30. 9% 22. 45% EBITDA Margin 6. 26% 6. 1% 5. 56%Calculated tax rate 27. 41% 27. 88% 49. 6% Revenue per employee $923,364 $872,647 $770, 576 Quick ratio . 96 1. 03 . 95 Current ratio 1. 3 1. 39 1. 33 Net current assets 16. 97% 22. 36% 19. 28% Long-term debt to equity . 2 1. 12 2. 94 Total debt to equity . 22 1. 12 2. 94 Interest coverage 20. 47x Total asset turnover 2. 58x 2. 74x 2. 66x Receivables turnover 24. 95x 26. 88x 31. 83x Inventory turnover 11. 46x 11. 06x 11. 44x Accounts payable turnover 5. 98x 6. 43x 6. 73x Property, plant and equipment turnover 27. 36x 29. 67x 26. 61x Cash and cash equivalents turnover 5. 59x 5. 78x 5. 33x

History project- religious development in India Essay

With the coming of the Mughals in India and the Turkish rule, there were m both developments and changes in the Indian culture and religion. The Sultans of Delhi and Mughal tolerated different religions, especi eachy Hinduism, though they were celebrateers of Islam. This slip away to the beggining of indo-islamic culture. Since dawn of history, India has been the cradle of religious developments. In the early medival period, two parrelel movements in Hinduism and Islam representing the Bhakti and Sufi movements emerged in India.The Indo-Islamic strands consider been woven into the texture of India by intertwining Bhakti and Sufi traditions. Bhakti movement The Bhakti movement is a Hindu religious movement in which the main spireligious rite practice is loving devotion towards Shiva or Vishnu. Bhakti movement is also closely related to Sufism of Islam which rose in the same time period and both advocated love of God as the easiest way to dispatch God. The Bhakti movement originate d in ancient Tamil Nadu. The Nayanmars and the Alvars played a major role in the Bhakti movement.The Bhakti movement co-existed peacefully with the other movements in Hinduism. It was initially considered unorthodox, as it rebelled against caste distinctions and disregarded Brahmanic rituals, which according to Bhakti saints were not necessary for salvation. In the course of time, however, owing to its immense popularity among the masses it became orthodox and continues to be one of the most grave modes of religious expression in modern India. The military man Bhakti means devotion to God. The Bhakti movement had its origin in the Bhagavadgita and the Upanishads.The Bhaktas of God did not believe in any sort of caste distinctions. They advocated love and devotion to God and discarded all sorts of rituals and ceremonies. They preached oneness of God and that all religions were but roads leading to the same coating. Chief Principles of Bhakti Movement The chief principles of the B hakti movement were as follows 1. It is Bhakti or devotion to God alone that push aside help man attain salvation. 2. It is important to follow a true guru for realizing God. 3. All men are equal and no one is superior or inferior. 4. Caste distinctions, rituals, fasts, etc., are useless and lead to nowhere. 5. All men should be tolerant. Effects of the Bhakti Movement The Bhakti movement had far-reaching effects on the people. Firstly, it helped a lot in removing the existing bitterness between the Hindus and the Muslims. twain became more tolerant towards each other. Secondly, the Bhaktas exposed the hollowness of empty rituals and ceremonies and taught the people to give up evils like belief in superstitions etc. This movement delta a blow to the superiority of the Brahmins, for it propagated the equality of all men. This also helped in checking conversions.Thirdly, the Bhakti reformers preached in the common language of the people, which gave rise to the vernacular languages s uch as Bengali in the east, Gujarati and Marathi in the west and Punjabi in the north. Important Bhakti Reformers Ramanuja Ramanuja was one of the earliest reformers. His teachings were based on the Upanishads and Bhagwad Gita. he had taught in the language of the common man. Soon a handsome number of people became his followers. Ramananda was his disciple. Ramananda Ramananda was the first reformer to preach in Hindi, the main language spoken by the people of the North.He was educated at Benaras. He preached that there is nothing high or low. He was an ardent believer of Rama. He considered God as a loving father. He lived in the fourteenth century A. D. Kabir Kabir was an ardent disciple of Ramananda. He wanted unity between the Hindus and the Muslims. He preached that both the Hindus and the Muslims are the children of a single God. He had no trust in idol worship, religious rituals and ceremonies. The devotees of Kabir were known as Kabir Panthis. Chaitanya Chaitanya, a g reat devotee of Lord Krishna, was a saint from Bengal.From his very childhood, he had showed great intimacy in education and studied Sanskrit. He married the daughter of a Saintly person. Later at the age of 24, he renounced the worldly life and became a sanyasin. His followers regarded him as an incarnation of Lord Vishnu. He helped the old and the needinessy. He was opposed to the inequalities of the caste system. He emphasised the need for tolerance, humanity and love. He air the message of Bhakti in Bengal. He popularised Sankritanor public singing of Gods name. He was addressed Mahaprabhu by his followers.Meera Bai Meerabai was a Rajput princess. She married the Rana of Mewar. She was a pious devotee of Lord Krishna. Her songs or hymns are even today sung all over India. Her palace was kept open to people of all castes to join her Bhajans of Lord Krishna. She had lived for the most part of her life in Mathura, the birth place of Krishna and Vrindaban. There is a temple dedi cated to Meerabai in Chittor, the capital of Mewar. Sufi movement Sufism was a reform movement within Islam which applies greater stress on free thinking, liberal ideas and toleration.The Sufis believed in the equality of all human beings and join mankind. The Sufi movement started in Persia. Some of the Sufi saints also came to India. They began to preach their liberal ideas and to remove the gulf between the Hindus and the Muslims and join them together. The word Sufi has been taken from the Arabic word Suf which means wool. The movement may have been given the name Sufism because of the course wool garments they wore as a mark of their rejection of worldly things. Sufis have traditionally taken vows of poverty and celibacy.Sufism developed religious practices focusing on strict self-control that enable both psychological and mystical insights as head as a loss of self, with the ultimate goal of mystical union with God. The Sufi movement consists of fraternal orders in which le aders train and assist disciples in the mastery of Sufisms philosophical principles and ritual practices. Such rituals and practices include writing and reciting poetry and hymns some of the most famous and beautiful literature of the Islamic world has been writ tenner by Sufis.Sufis engage in a variety of ritual practices intended to help them realize union with God, such as distinct forms of ritual prayer including the recitation of Gods names, as well as bodily rituals such as those practices by the so-called Whirling Dervishes, a Turkish Sufi order that practices meditation and contemplation of God through spinning. Teaching of Sufism 1. There is one God, the Eternal, the Only Being none else exists save He. 2. There is lonesome(prenominal) one Master, the Guiding Spirit of all souls, who constantly leads his followers towards the light. 3.There is one Holy Book, the sacred manuscript of nature the only scripture, which can straighten out the reader. 4. There is one Religion, the unswerving progress in the right direction towards the ideal, which fulfills the lifes purpose of every soul. 5. There is one Law, the Law of reciprocity, which can be observed by a selfless conscience together with a sense of awakened justice. 6. There is one Brotherhood, the human brotherhood, which unites the children of earth helter-skelter in the fatherhood of God. 7. There is one Moral Principle, the love which springs forth from self-denial, and blooms in deeds of beneficence.8. There is one Object of Praise, the beauty which uplifts the heart of its worshipper through all aspects from the seen to the Unseen. 9. There is one Truth, the true knowledge of our being within and without, which is the essence of all wisdom. 10. There is one Path, the annihilation of the false self in the real, which raises the mortal to immortality and in which resides all perfection. The Sufi Movement there is no priesthood in the ordinary sense, the priesthood is only to conduct the service and to answer the need of a priest which always exists in our everyday life.Those ordained in the Sufi Movement are called Sirajs and Cherags. There is no distinction between women and men. The exemplary soul is ordained this gives an example to the world that in all places in the church, in the school, in parliament, in court it is woman and man together who fox evolution complete. But at the same time every Sufi is a priest, a preacher, a teacher, and a pupil of every soul that he meets in the world. The Sufi prayers such as Saum and Salat are not man-made prayers. They have descended from above, just as in every period of unearthly reconstruction prayers were given.And there is every power and blessing in them, especially for those who believe. Sikhism Guru Nanak is the founder of the religion of Sikhism and is the first of the ten Sikh Gurus. His birth is celebrated world-wide on Kartik Puranmashi, the full-moon day which falls on different dates each year in the month of Katak, October-November. Guru Nanak travelled to places far and wide teaching people the message of one God who dwells in every one of Gods creations and constitutes the eternal Truth. He setup a unique spiritual, social, and political platform based on equality, fraternity love, goodness,and virtue. Nanak was born on 15 April 1469, now celebrated as Guru Nanak Gurpurab. Today, his birthplace is marked by Gurdwara Janam Asthan. His parents were Kalyan Chand Das Bedi and Mata Tripta. His father was a patwari (accountant) for crop tax income in the village of Talwandi, employed by a Muslim landlord of that area, Rai Bular Bhatti. He had one sister, Bibi Nanaki, who was five years older than him and became a spiritual figure in her own right. Nanak also found work with Daulat Khan, when he was around 16 years old.On 24 September 1487 Nanak married Mata Sulakkhani, daughter of Mul Chand and Chando Ra? i, in the town of Batala. The couple had two sons, Sri Chand and Lakhmi Chand. Inspit e of his married life, he spent most of his time in the company of holy men. At the age of 29, he go away his home to spread the message of faith far and wide. Sikh teaching emphasizes the principle of equality of all humans and rejects discrimination on the basis of caste, creed, and gender. Sikh principles encourage living life as a householder Sikh Religion and Worship 1)A Sikh believes in, and worships only one God.2)A Sikh regards the succession of ten gurus, and the written word of the Guru Granth, a channel through which predict light manifests as salvation. 3)Sikhs worship in the gurdwara, congregating with spiritual companions, and communing with God, by singing divine hymns selected from the Guru Granth. 4)Sikhs perform ardas, a formal prayer, and read from Guru Granth before embarking on important endeavors. 5)The uniqueness of Sikhism is upheld without any derogatory attitude towards others, or belittling of others faith. . A sketch of the next 9 Gurus http//www. sara bsanjhigurbani. com/ten-guru. asp

Explore the theme of loneliness in Mice and men Essay

Explore the theme of loneliness in Mice and manpower, how does Steinbeck show the loneliness of an itinerant lifestyle through three particular characters.many of the characters in mice and men are lonely and this motivates them to look for an alternative way of life. This is one of the reasons why they are drifters. They are continually searching often with turn up intimate what they are really looking for. Characters are also lonely because of something within themselves. Different characters limitk comfort in different things, for Candy this is his dog, for George and Lenny its apiece other I want you to stay with me Lenny, for Crooks its his pride and skill at pitching horseshoes. These small comforts are the only things that keep these men going. They have no family to feed so the only real motivation they have to work is to keep themselves alive.Right from the beginning of the book Steinbeck emphasizes the loneliness of George and Lenny by putting clean two men in such a b ig and empty space On one side of the river the golden foot-hill slopes wind up up to the strong and rocky Gabilan Mountains. Steinbeck uses lexical choice like Strong and rocky to make the description more cinematographic so that you can actually see these two small mean compared to their mountainous surroundings. These two men have travelled together for all of their lives. They were friends as children but now George has had to take a more parental role over Lenny. You know damn well what Lenny, now hand over that mouse. The use of the word damn makes George sound a good deal more authoritative.Lenny being mentally disabled is probably a lot less lonely in his mind compared to the other characters in the novel as his brain seems to be more child like and he is easily occupied Id just love to pet those rabbits George. The primary(prenominal) stopping point in Lennys life is to have his own rabbits. In a way this would be his way of becoming less lonely as he could be an author ity figure over them rather than foreveryone else telling him what to do.George is Lennys best friend and mentor. He is the closest thing to family that Lenny has got from what we can tell in the book and although he gets angry some measures and talks about how he could do so much better without Lenny, When I think of the swell time I could have without you, I go nuts, I never get no peace., he knows deep down that without Lenny he wouldnt be the alike(p) No look I was jus foolin, Lenny cause I want you to stay with me. When Lenny threatens George that he will actually leave George realises the loneliness that they would both face if Lenny carried out the threat and told Lenny to stay.Crooks is the stable-buck on the ranch. Although most of the men are lonely none of them are outcasts. This is an advantage which Crooks doesnt carry. He is a Negro and in the 1930s racial discrimination was an every day practise where the hell is that god damned nigger? Writing about coloured peop le in this context of use in those days wasnt a problem and people wouldnt think twice about using words such as nigger or Negro to a black persons face. Crooks has no friends, he just sits in his own little room in the stables and he had books too a tattered dictionary and a mauled copy of the California civil code for 1905.Reading these books has made Crooks intelligent and being so bitter this intelligence makes him artful at times. For example he teases Lenny about George not returning from town Spose George dont come back no more, Spose he just took a powder and just aint coming back. He knows that Lenny is easily fooled and teasing him is a way of gaining a higher social status as he has someone to ridicule. Crooks has no woman in his life and the book doesnt mention that he ever has. The only time Crooks isnt lonely is when the men play the horseshoe tossing game. Crooks in this unique social activity is aloud to take part and choke up that he is a social pariah Outside ca me the clang of horse-shoes on the playing peg as Crooks scored top pointsIn conclusion one of the novels main themes is loneliness. There isnt one character in the whole story who doesnt feel lonely. All the men move to a ranch and just as they make good friends it becomes time to move in to the next ranch and start again. For Crooks he will most likely stay in the same place for all his working life living alone until such time he becomes useless and then he will be thrown out into a world that has no place for him. By the end of the novel the only two people who escape this life coarse loneliness seem to be Lenny and Curlies wife.

Investment Banking Essay

A specific part of patoising related to the creation of crown for different companies. enthronisation verifys underwrite new debt and rectitude securities for all types of corporations. Investment banks in any case provide steering to issuers regarding the issue and placement of stock. Investment banking involves nurture silver (capital) for companies and governments, usually by issuing securities. Securities or financial instruments include equity or ownership instruments much(prenominal) as stocks where seators own a plow of the issuing concern and therefore ar entitled to profits. They in addition include debt instruments much(prenominal)(prenominal) as bonds, where the issuing concern borrows money from investors and promises to repay it at a certain date with interest. Companies typically issue stock when they first go public through initial public cracks (IPOs), and they may issue stock and bonds sporadically to fund such enterprises as research, new produc t development, and expansion.Companies seeking to go public must register with the Securities and Exchange Commission and pay registration fees, which veil accountant and lawyer expenses for the preparation of registration statements. A registration statement describes a ships companys argument and its plans for using the money raised, and it includes a companys financial statements. Before stocks and bonds are issued, investiture bankers perform due diligence examinations, which entail carefully evaluating a companys worth in terms of money and equipment (as pay offs) and debt (liabilities). This examination requires the full disclosure of a companys strengths and weaknesses. The company pays the investiture specie banker after the securities deal is completed and these fees often hunt from 3 to 7 percent of what a company raises, depending on the type of transaction. Investment banks aid companies and governments in transmiting securities as well as investors in purchasin g securities, managing investiture fundss, and job securities.Investment banks take the form of brokers or agents who purchase and sell securities for their clients dealers or principals who debauch and sell securities for their personal interest in crook a profit and broker-dealers who do both. The primary service provided by investing banks is underwriting, which refers to guaranteeing a company a set price for the securities it plans to issue. If the securities fail to sell for the set price, the investment bank pays the company the difference. Therefore, investment banks must carefully determine the set price by con gradientring the expectations of the company and the state of the market place for the securities. In addition, investment banks provide a plethora of other function including financial advising, acquisition advising, divestiture advising, buying and change securities, interest-rate swapping, and debt-for-stock swapping. Nevertheless, close of the revenues of investment banks come from underwriting, selling securities, and setting up mergers and acquisitions.When companies need to raise large amounts of capital, a group of investment banks often participate, which are referred to as syndicates. Syndicates are hierarchically structured and the members of syndicates are grouped fit to lead functions managing, underwriting, and selling. Managing banks sit at the pinch of the hierarchy, conduct due diligence examinations, and receive management fees from the companies. Underwriting banks receive fees for sharing the hazard of securities offerings. Finally, selling banks function as brokers within the syndicate and sell the securities, receiving a fee for each share they sell. Nevertheless, managing and underwriting banks usually also sell securities. All major investment banks have a syndicate department, which concentrates on recruiting members for syndicates managed by their firms and responding to recruitments from other firms. A r enewing of legislation, mostly from the 1930s, governs investment banking. These laws require public companies to fully disclose breeding on their trading operations and financial position, and they mandate the separation of commercial and investment banking.The latter mandate, however, has been relaxed over the intervening yrs as commercial banks have entered the investment banking market. An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the clients agent in the issuing of securities. An investment bank may also assist companies involved in mergers and acquisitions, and provide ancillary services such as market making, trading of derivatives, refractory income instruments, foreign exchange, commodities, and equity securities. Unlike commercial banks and retail banks, investment banks do not take deposits. From 1933 (GlassSteagall Act) until 1999 (GrammLeachBliley Act), the linked States prolonged a separation mingled with investment banking and commercial banks. Other industrialized countries, including G8 countries, have historically not maintained such a separation. There are two main lines of business in investment banking. commerce securities for cash or for other securities (i.e., facilitating transactions, market-making), or the promotion of securities (i.e., underwriting, research, etc.) is the sell side, while dealing with pension funds, mutual funds, beleaguer funds, and the investing public (who consume the products and services of the sell-side in establish to maximize their return on investment) constitutes the buy side. Many firms have buy and sell side components. An investment bank gouge also be split into private and public functions with a Chinese jetty which separates the two to prevent information from crossing. The private areas of the bank deal with private insider information that may not be publicly disclosed, while the pu blic areas such as stock digest deal with public information. An advisor who provides investment banking services in the United States must be a licensed broker-dealer and subject to Securities & Exchange Commission (SEC) and fiscal Industry Regulatory Authority (FINRA) regulation. Investment banking is a field of banking that aids companies in acquiring funds.In addition to the of new funds, investment banking also offers advice for a wide range of transactions a company might engage in. In commercial banking, the institution collects deposits from clients and gives direct loans to businesses and individuals. In the United States, it was illegal for a bank to have both commercial and investment banking until 1999, when the Gramm-Leach-Bliley Act legalized it. Through investment banking, an institution generates funds in two different ways. They may heap on public funds through the capital market by selling stock in their company, and they may also seek out estimate capital or pr ivate equity in exchange for a stake in their company. Investment bankers give companies advice on mergers and acquisitions, for example.They also track the market in order to give advice on when to make public offerings and how best to manage the business public pluss. Some of the consultative activities investment banking firms engage in overlap with those of a private brokerage, as they will often give buy-and-sell advice to the companies they represent. The line surrounded by investment banking and other forms of banking has blurred in recent years, as deregulation allows banking institutions to take on more(prenominal) and more sectors.With the advent of mega-banks which operate at a number of levels, many of the services often associated with investment banking are being made available to clients who would otherwise be too small to make their business profitable. Careers in investment banking are lucrative and one of the most sought after positions in the money markets. A c areer in investment banking involves extensive travelling, gruelling hours and an often cut-throat lifestyle. While highly competitive and meter intensive, investment banking also offers an exciting lifestyle with huge financial incentives that are a draw to many muckle.HISTORY & DEVELOPMENT OF investing BANKINGInvestment banking began in the United States somewhat the midpoint of the 19th century. Prior to this period, auctioneers and merchantsparticularly those of Europeprovided the majority of the financial services. The mid-1800s were marked by the countrys greatest frugal growth. To fund this growth, U.S. companies looked to Europe and U.S. banks became the intermediaries that secured capital from European investors for U.S. companies. Up until World War I, the United States was a debtor nation and U.S. investment bankers had to rely on European investment bankers and investors to share guess and underwrite U.S. securities. For example, investment bankers such as John Pi erpont (J. P.) Morgan (1837-1913) of the United States would buy U.S. securities and resell them in London for a high price. During this period, U.S. investment banks were linked to European banks. These connections included J.P. Morgan & Co. and George Peabody & Co. (based in London) Kidder, Peabody & Co. and Barling Brothers (based in London) and Kuhn, Loeb, & Co. and the Warburgs (based in Germany).Since European banks and investors could not assess businesses in the United States easily, they worked with their U.S. counterparts to monitor the success of their investments. U.S. investment bankers often would hold seats on the boards of the companies issuing the securities to supervise operations and make sure dividends were paid. Companies established long-term relationships with particular investment banks as a consequence. In addition, this period saw the development of two basic components of investment banking underwriting and syndication. Beca example some of the companies seeking to sell securities during this period, such as railroad and utility companies, unavoidable substantial amounts of capital, investment bankers began under-writing the securities, thereby guaranteeing a specific price for them. If the shares failed to fetch the set price, the investments banks covered the difference. Underwriting allowed companies to raise the funds they needed by issuing a sufficient amount of shares without inundating the market so that the value of the shares dropped.Because the value of the securities they underwrote frequently surpassed their financial limits, investment banks introduced syndication, which involved sharing risk with other investment banks. Further, syndication enabled investment banks to establish larger networks to distribute their shares and hence investment banks began to develop relationships with each other in the form of syndicates. The syndicate structure typically included three to five tiers, which handled varying degrees of sha res and responsibilities. The structure is often thought of as a pyramid with a few large, influential investment banks at the apex and small banks below. In the first tier, the originating broker or house of issue (now referred to as the manager) investigated companies, determined how much capital would be raised, set the price and number of shares to be issued, and decided when the shares would be issued.The originating broker often handled the largest strength of shares and eventually began charging fees for its services. In the second tier, the purchase syndicate took a small number of shares, often at a slightly higher price such as I percent or 0.5 percent higher. In the third tier, the banking syndicate took an even smaller amount of shares at a price higher than that paid by the purchase syndicate. Depending on the size of the issue, other tiers could be added such as the selling syndicate and selling group. Investment banks in these tiers of the syndicate would just sell shares, but would not agree to sell a specific amount. Hence, they functioned as brokers who bought and exchange shares on commission from their customers. From the mid-i800s to the early 1900s, J. P. Morgan was the most influential investment banker. Morgan could sell U.S. bonds overseas that the U.S. Department of the Treasury failed to sell and he led the financing of the railroad. He also raised funds for General Electric and United States Steel. Nevertheless, Morgans control and influence helped cause a number of stock panics, including the panic of 1901.Morgan and other powerful investment bankers became the target of the muckrakers as well as of inquiries into stock speculations. These investigations included the Armstrong insurance investigation of 1905, the Hughes investigation of 1909, and the specie Trust investigation of 1912. The Money Trust investigation led to most states adopting the so-called blue-sky laws, which were designed to deter investment scams by start-u p companies. The banks responded to these investigations and laws by establishing the Investment Bankers Association to ensure the prudent practices among investment banks. These investigations also led to the creation of the Federal Reserve System in 1913. Beginning about the time World War I broke out, the United States became a creditor nation and the roles of Europe and the United States switched to some extent. Companies in other countries now turned to the United States for investment banking.During the 1920s, the number and value of securities offerings ontogenesisd when investment banks began raising money for a variety of emerging industries automotive, aviation, and radio. Prior to World War 1, securities issues peaked at about $ 1 million, but afterwards issues of more than $20 million were frequent. The banks, however, became mired in speculation during this period as over 1 million investors bought stocks on margin, that is, with money borrowed from the banks. In addit ion, the large banks began speculating with the money of their depositors and commercial banks made forays into underwriting. The stock market crashed on October 29, 1929, and commercial and investment banks lost $30 billion by mid-November. While the crash only stirred bankers, brokers, and some investors and while most people still had their problems, the crash brought about a credit crunch. Credit became so scarce that by 1931 more than cholecalciferol U.S. banks folded, as the Great Depression continued.As a result, investment banking all but frittered away. Securities issues no thirster took place for the most part and few people could afford to invest or would be willing to invest in the stock market, which kept sinking. Because of crash, the government launched an investigation led by Ferdinand Pecora, which became known as the Pecora Investigation. After exposing the corrupt practices of commercial and investment banks, the investigation led to the establishment of the S ecurities and Exchange Commission (SEC) as well as to the signing of the Banking Act of 1933, also known as the Glass-Steagall Act. The SEC became trusty for regulating and overseeing in-vesting in public companies. The Glass-Steagall Act mandated the separation of commercial and investment banking and from thenuntil the late 1980banks had to choose between the two enterprises. Further legislation grew out of this period, too.The Revenue Act of 1932 raised the tax on stocks and required taxes on bonds, which made the practice of raising prices in the different tiers of the syndicate system no longer feasible. The Securities Act of 1933 and the Securities Exchange Act of 1934 required investment banks to make full disclosures of securities offerings in investment prospectuses and charged the SEC with reviewing them. This legislation also required companies to regularly file financial statements in order to make known changes in their financial position. As a result of these acts, b idding for investment banking projects became competitive as companies began to select the lowest bidders and not rely on major traditional companies such as Morgan Stanley and Kuhn, Loeb. The persist major effort to clean up the investment banking industry came with the U.S. v. Morgan case in 1953. This case was a government antitrust investigation into the practices of 17 of the top investment banks.The court, however, sided with the defendant investment banks, concluding that they had not conspired to monopolize the U.S. securities industry and to prevent new entrants beginning around 1915, as the government prosecutors argued. By the 1950s, investment banking began to pick up as the economy continued to prosper. This growth surpassed that of the 1920s. Consequently, major corporations sought new financing during this period. General Motors, for example, made a stock offering of $325 million in 1955, which was the largest stock offering to that time. In addition, airlines, shopp ing malls, and governments began raising money by selling securities around this time. During the 1960s, high-tech electronics companies spurred on investment banking. Companies such as Texas Instruments and Electronic selective information Systems led the way in securities offerings.Established investment houses such as Morgan Stanley did not handle these issues rather, Wall track newcomers such as Charles Plohn & Co. did. The established houses, however, participated in the conglomeration trend of the 1950s and 1960s by helping consolidating companies negotiate deals. The stock market collapse of 1969 ushered in a new era of economic problems which continued through the 1970s, stifling banks and investment houses. The recession of the 1970s brought about a wave of mergers among investment brokers.Investment banks began to dilate their services during this period, by setting up retail operations, expanding into international markets, investing in venture capital, and working with insurance companies. While investment bankers once worked for mulish commissions, they have been negotiating fees with investors since 1975, when the SEC opted to deregulate investment banker fees. This deregulation also gave rise to discount brokers, who undercut the prices of established firms. In addition, investment banks started to implement computer technology in the 1970s and 1980s in order to automate and expedite operations. Furthermore, investment banking became much more competitive as investment bankers could no longer wait for clients to come to them, but had to endeavour to win new clients and retain old ones.ORGANIZATIONAL STRUCTURE & CORE BANKING ACTIVITIESInvestment banking is split into front office, middle office, and back office activities. While large service investment banks offer all lines of business, both sell side and buy side, smaller sell side investment firms such as boutique investment banks and small broker-dealers focus on investment banking and sa les/trading/research, respectively. Investment banks offer services to both corporations issuing securities and investors buying securities. For corporations, investment bankers offer information on when and how to place their securities on the open market, an activity very important to an investment banks reputation. Therefore, investment bankers play a very important role in issuing new certification offerings.Front OfficeInvestment BankingCorporate pay is the traditional aspect of investment banks which also involves helping customers raise funds in capital markets and giving advice on mergers and acquisitions (M&A). This may involve subscribing investors to a security issuance, coordinating with bidders, or negotiating with a merger target. Another term for the investment banking division is corporate finance, and its advisory group is often termed mergers and acquisitions. A pitch maintain of financial information is generated to market the bank to a potential M&A client if the pitch is fortunate, the bank arranges the deal for the client.The investment banking division (IBD) is broadly shared out into industry coverage and product coverage groups. Industry coverage groups focus on a specific industry, such as healthcare, industrials, or technology, and maintain relationships with corporations within the industry to bring in business for a bank. Product coverage groups focus on financial products, such as mergers and acquisitions, leveraged finance, public finance, asset finance and leasing, structured finance, restructuring, equity, and high-grade debt and world(a)ly work and collaborate with industry groups on the more intricate and special(a)ized needs of a client.Sales and TradingOn behalf of the bank and its clients, a large investment banks primary function is buying and selling products. In market making, traders will buy and sell financial products with the goal of making money on each trade. Sales is the term for the investment banks sale s force, whose primary job is to call on institutional and high-net-worth investors to suggest trading ideas (on a caveat emptor basis) and take orders. Sales desks then communicate their clients orders to the appropriate trading desks, which can price and execute trades, or structure new products that fit a specific need. Structuring has been a relatively recent activity as derivatives have come into play, with highly technical and numerate employees working on creating complex structured products which typically offer much greater margins and returns than underlying cash securities.In 2010, investment banks came under pressure as a result of selling complex derivatives contracts to local municipalities in Europe and the US. Strategists advise external as well as internal clients on the strategies that can be adopted in various markets. Ranging from derivatives to specific industries, strategists place companies and industries in a quantitative framework with full musing of the ma croeconomic scene.This strategy often ingrains the way the firm will operate in the market, the direction it would like to take in terms of its proprietary and run positions, the suggestions salespersons give to clients, as well as the way structures create new products. Banks also undertake risk through proprietary trading, performed by a special set of traders who do not interface with clients and through principal riskrisk undertaken by a trader after he buys or sells a product to a client and does not hedge his total exposure. Banks seek to maximize profitability for a given amount of risk on their balance sheet. The necessity for numerical ability in sales and trading has created jobs for physics, mathematics and engineering Ph.D.s who act as quantitative analysts.Equity ResearchThe research division reviews companies and writes reports about their prospects, often with buy or sell ratings. While the research division may or may not generate revenue (based on policies at dif ferent banks), its resources are used to assist traders in trading, the sales force in suggesting ideas to customers, and investment bankers by covering their clients. Research also serves away(p) clients with investment advice (such as institutional investors and high net worth individuals) in the hopes that these clients will execute suggested trade ideas through the sales and trading division of the bank, and thereby generate revenue for the firm. There is a potential conflict of interest between the investment bank and its analysis, in that published analysis can affect the banks profits. Hence in recent years the relationship between investment banking and research has become highly regulated, requiring a Chinese wall between public and private functions.Asset ManagementpicThe asset management division manages money for institutions, such as mutual funds, and wealthy individuals. The business is divided into three sub-divisions. Asset Management Division has the responsibility to co-ordinate and facilitate in term of Strategic and Development Programme in Asset Management. Data Management, Performance Managing and Information in Asset Management. Fund ManagementThis division manages a number of funds, each with a different focus and strategy. For example the asset management division may have three funds, one focused on private equity investments in emerging markets, another dealing with trade trades, and yet another that buys and holds corporate debt. Clients can choose to place their money with either of these funds. Some banks, such as Bank of New York Mellon, manage exchange-traded funds that are accessible to retail investors. The bank earns revenue by charging a fee for assets under management, and sometimes by charging a commission based on returns. Private Banking and Wealth ManagementThe division manages banking activities of extremely wealthy individuals. Apart from providing regular banking services, such as check clearing, the division also advise such individuals on tax strategy and investments. They work closely with other parts of the asset management division to provide a comprehensive service, e.g. work with fund management to invest in different strategies. Prime BrokerageThe division deals with professional asset managers, such as mutual funds and hedge funds. Their services include executing trades on behalf of these clients, holding custody of their assets, and advising them on potential opportunities. For example When Berkshire Hathaway (BRK) needs to buy a certain security from public markets, it uses a prime broker to buy and hold the security on its behalf. The division works closely with the Sales and Trading division. Additionally, the prime brokerage can also help its clients (hedge funds) to find investors.Middle OfficeThis area of the bank includes risk management, treasury management, internal controls, and corporate strategy. Risk management involves analyzing the market and credit risk that traders are taking onto the balance sheet in conducting their daily trades, and setting limits on the amount of capital that they are able to trade in order to prevent bad trades having a detrimental effect on a desk overall. Another key Middle Office role is to ensure that the economic risks are captured accurately (as per agreement of commercial terms with the counterparty), correctly (as per standardized booking models in the most appropriate systems) and on time (typically within 30 transactions of trade execution). In recent years the risk of errors has become known as operational risk and the assurance Middle Offices provide now includes measures to divvy up this risk.When this assurance is not in place, market and credit risk analysis can be unreliable and open to deliberate manipulation. Additionally, corporate treasury is responsible for an investment banks funding, capital structure management, and liquidity risk monitoring. Financial control tracks and analyzes the capital flo ws of the firm, the Finance division is the principal adviser to ranking(prenominal) management on essential areas such as controlling the firms world-wide risk exposure and the profitability and structure of the firms various businesses via dedicated trading desk product control teams. In the United States and United Kingdom, a Financial Controller is a senior position, often coverage to the Chief Financial Officer. Corporate strategy, along with risk, treasury, and controllers, also often falls under the finance division.Back OfficeOperationsThis involves data-checking trades that have been conducted, ensuring that they are not erroneous, and transacting the required transfers. Many banks have outsourced operations. It is, however, a critical part of the bank. Due to increased competition in finance related careers, college degrees are now authorisation at most Tier 1 investment banks. A finance degree has proved significant in understanding the depth of the deals and transact ions that emit across all the divisions of the bank.engineeringEvery major investment bank has considerable amounts of in-house software, created by the technology team, who are also responsible for technical support. Technology has changed considerably in the last few years as more sales and trading desks are using electronic trading. Some trades are initiated by complex algorithms for hedging purposes. Firms are responsible for compliance with government regulations and internal regulations. Principal Investing and Proprietary TradingpicInvestment banks have attempted to increase their return on equity by investing their own capital into certain ventures. The bank invests its own capital by taking a equity or debt stake in corporations with the aim of influencing the management. The motive is very similar to that private equity investors the bank tries to profit by turning around companies. The bank can also take short-term positions in the market with its own capital. This is known as proprietary trading, and the bank attempts to earn a profit by correctly predicting market movements.Proprietary trading is very different from normal sales and trading operations where the banks revenue is primarily dependent on the volume of trade it executes on behalf of its client. The notion of the bank risking its own capital can be traced back ever since banking was invented. J.P. Morgan, founder of J P Morgan Chase, was an extremely successful investor. However, in recent years, Goldman Sachs has been the leader in this field in 2007, the bank profited greatly from the proprietary trades that it made against the sub-prime market. In many cases, the banks allow other investors to invest in such ventures (and charge a management fee). This puts them in direct competitor with hedge funds and private equity firms for both investors and investing opportunities.INVESTMENT BANKING IN THE 20TH CENTURYIn the mid-20th century, large investment banks were dominated by the de almakers. Advising clients on mergers and acquisitions and public offerings was the main focus of major Wall Street partnerships. These bulge bracket firms included Goldman Sachs, Morgan Stanley, Lehman Brothers, First Boston and others. That trend began to change in the 1980s as a new focus on trading propelled firms such as Salomon Brothers, Merrill Lynch and Drexel Burnham Lambert into the limelight. Investment banks earned an increasing amount of their profits from proprietary trading. Advances in computing technology also enabled banks to use more sophisticated model driven software to execute trades and generate a profit on small changes in market conditions. In the 1980s, operate Michael Milken popularized the use of high yield debt (also known as junk bonds) in corporate finance and mergers and acquisitions.This fuelled a nab in leverage buyouts and hostile takeovers (see story of Private Equity). Filmmaker Oliver Stone immortalized the spirit of the times with his movie, Wall Street, in which Michael Douglas played the role of corporate raider Gordon Gekko and epitomized corporate greed. Investment banks profited handsomely during the boom years of the 1990s and into the tech boom and bubble. When the tech bubble burst, it precipitated a string of new legislation to prevent conflicts of interest within investment banks. Investment banking research analysts had been actively promoting stocks to investors while privately acknowledging they were not attractive investments. In other instances, analysts gave favourable stock ratings to corporate clients in the hopes of attracting them as investment banking clients and discourse potentially lucrative initial public offerings. These scandals paled by comparison to the financial crisis that has enveloped the banking industry since 2007.The speculative bubble in housing prices along with an overreliance on sub-prime mortgage lending trigged a cascade of crises. Two major investment banks, Bear Stearns and Lehman Brothers, collapsed under the weight of failed mortgage-backed securities. In March, 2008, the Federal government began using a variety of taxpayer-funded bailout measures to prop up other firms. The Federal Reserve offered a $30 billion line of credit to J.P. Morgan Chase to that it could acquire Bear Sterns. Bank of the States acquired Merrill Lynch.The last two bulge bracket investment banks, Goldman Sachs and Morgan Stanley, elected to convert to bank holding companies and be fully regulated by the Federal Reserve. go forward, the recent financial crisis has weakened both the reputation and the dominance of U.S. investment banking organizations throughout the world. The growth of foreign capital markets along with an increase in pools of independent capital is changing the landscape of the industry. The growing international flow of capital has also opened up opportunities for investment banking in new financial centers around the world, including those in developing co untries such as India, China and the Middle EastSIZE OF THE INDUSTRYGlobal investment banking revenue increased for the fifth year running in 2007, to a record US$84.3 billion, which was up 22% on the previous year and more than double the level in 2003. ulterior to their exposure to United States sub-prime securities investments, many investment banks have experienced losses since this time. The United States was the primary source of investment banking income in 2007, with 53% of the total, a harmonise which has fallen somewhat during the past decade. Europe (with Middle East and Africa) generated 32% of the total, slightly up on its 30% share a decade ago. Asiatic countries generated the remaining 15%. Over the past decade, fee income from the US increased by 80%.This compares with a 217% increase in Europe and 250% increase in Asia during this period. The industry is heavily concentrated in a small number of major financial centres, including City of London, New York City, Ho ng Kong and Tokyo. Investment banking is one of the most global industries and is hence continuously challenged to respond to new developments and innovation in the global financial markets. New products with higher margins are constantly invented and manufactured by bankers in the hope of winning over clients and developing trading know-how in new markets. However, since these can usually not bepatented or copyrighted, they are very often copied pronto by competing banks, pushing down trading margins. For example, trading bonds and equities for customers is now a commodity business, but structuring and trading derivatives retains higher margins in good timesand the risk of large losses in difficult market conditions, such as the credit crunch that began in 2007.Each over-the-counter contract has to be unambiguously structured and could involve complex pay-off and risk profiles. Listed option contracts are traded through major exchanges, such as the CBOE, and are almost as commodi tized as general equity securities. In addition, while many products have been commoditized, an increasing amount of profit within investment banks has come from proprietary trading, where size creates a arrogant network benefit (since the more trades an investment bank does, the more it knows about the market flow, allowing it to theoretically make better trades and pass on better guidance to clients).The fastest growing segments of the investment banking industry are private investments into public companies (PIPEs, otherwise known as Regulation D or Regulation S). much(prenominal) transactions are privately negotiated between companies and accredited investors. These PIPE transactions are non-rule 144A transactions. Large bulge bracket brokerage firms and smaller boutique firms deal in this sector. Special purpose acquisition companies (SPACs) or blank check corporations have been created from this industry.