Organizational Change Final Assignment Example | Topics and Well Written Essays - 2000 words

Organizational Change Final - Assignment Example Apart from the increase in salaries, workers are motivated by various factors such as increased commission, training, freedom to join trade unions, training, gifts, holidays, promotion and increased responsibilities among other factors. On their part, the management team should ensure that employees are involved in the decision making process and that a proper management style is adopted. For example, employees should be provided with a chance to provide feedback on the various issues affecting their organization. In this way, they feel as part and parcel of the entity thus taking every measure to safeguard the image of the company. One of the notable global companies that have been successful in meeting the needs of its consumers at the local and international market is Walmart Stores Incorporation. Walmart Incorporation, a US based firm with over two million employees has not only maintained a strong brand but also it has created a stiff competition in the retail industry. This pap er discusses the strategies that Walmart Company needs to emulate in order to bring change and bring about a transformation in the organization. Company Overview With its headquarters based in Bentonville US, Walmart Company was established in 1962 by Sam Walton. The company started to trade its shares in the New York Stock Exchange in 1972 thus making it to generate significant amount of capital that it used in its expansion strategies. Based on the effective leadership of Robson Walton and Doug McMillon, the chairman and the president respectively, the company has established more than 8,500 stores in 15 countries thus making it to effectively face off it competitors including Tesco and Target Companies. Due to its strong brand image and strong promotional and advertisement strategies, Walmart has continued to enjoy high sales and sustainable profitability. For example, in 2013, it generated total revenue of US$ 469.162 billion while its total net income stood at US$ 16.999Â  bil lion. Similarly, the company total assets in 2013 stood at US$ 203.105Â  billion while the operating income was US$ 27.801Â  billion. Walmart Stores US, the biggest division makes a significant contribution on the company sales. This is based on the establishment of wide range of products that meets high demand as the result of the US high population as well as quality brands that meets the needs of its customers. The three notable outlets that make up Walmart Stores US include Supercentres, Walmart market and Discount Stores (Lichtenstein, 2009). One of the key strategies that have made Walmart to attain a competitive position in the market is its focus of attracting large number of customers from various regions by introducing brands that matches with their cultural background. For example, in its effort to attract the Hispanic communities, the company established the Supermercado de Walmart in 2009 that offers wide range of food products among other brands that are highly deman ded by the community. As a result, the company has maintained a strong positive relationship with the consumers an aspect that has made it to continue enjoying high sales and profits (Sandra and Scott, 1997). Other operating divisions for the company include Vudu, Walmart international, Sam’

Engineering Essay Example | Topics and Well Written Essays - 2500 words

Engineering - Essay Example discussion is to study the development of a control system through the designed scheduled autopilot that enables the flying of a model at different speed conditions in the air. Aircraft have been designed by different parameters and analysis is needed to establish their effects on the performance of the vehicle. The Wright brothers used the wind tunnel to study the performance of various types of airfoils. There have been advanced wind tunnels that are used to determine the characteristics of full scale aircraft. On the other hand, use of the wind tunnel in determining flight characteristics and performance of full scale aircraft remains an expensive exercise and time consuming proposition. Due to advancement in information systems and technology, high speed computing helps determine flight performance of aircraft designs through the use of virtual tunnels. This process involves a computer generated model that is plugged in a Computational Fluid Dynamics (CFD) program that determines flow characteristics. The results obtained are compared to those found from the real wind tunnel test and the real aircraft performance in flight. However, several studies have been conducted to demonstrate validity and efficacy of the virtual wind tunnel. In this discussion, the two processes are introduced during undergraduate Aircraft Design class. Scale models of different types of aircraft such as the trainer, transport, fighter, and UAV are studied. The scaled models are installed in low speed cross-section wind tunnel used to establish the lift and drag coefficients and pressure profiles. Design of a virtual model of the corresponding aircraft by use of SolidWorks is also done. The virtual models developed are imported to the SolidWorks Flow Simulation software. The low speed virtual wind tunnel is simulated in Flow Simulation to establish lift and drag coefficients as pressure profiles are established for various aircraft at different angles of pitch, yaw, as well as roll.

The Irish Culture Essay Example for Free

The Irish Culture Essay The Irish are the people living on the Island of Ireland. Their culture is not that huge as per many beliefs. This is due to the prominent divisions that are there between urban and rural people, between the Protestants and the Roman Catholics and also divisions between the Irish speakers and the English speakers. This division has gone ahead to even affect the new migrants and the native population (Mitchell, 1998). With such divisions, the Irish culture is bound not to be monumental, though it is significant to as far as international levels. The old pagan tradition is still considerably reflected in the Irish calendar up to date. The Christian traditions have also a significant effect even though they came much later. For instance, in other countries around the world, Christmas coincides with the winter solstice, something that was chosen deliberately (Comerford, 2003). In Ireland, Christmas just like most places have several local traditions, some of them are in no particular way connected with Christianity. One example is on 26th December where it is also known as St. Stephen’s day. There is a custom of â€Å"Wrenboys† who make door to door calls with assorted material’s arrangement. These equipments tend to vary with place which is meant to a dead wren that has been trapped in the furze. There is also the 1st of February which is the Brigid’s day. This day has also acquired different names which include Imbolic and Candlemas. This too does not have any Christian origins. Instead, it is seen as another observation that is religious in nature and was superimposed during the start of spring. There is also the Brigid’s cross that was made on this day out of rushes. It is used to be a symbol of a solar wheel that is pre- Christian. Sumhain in November is another festival that is still greatly observed to date and it is currently called Halloween. Halloween has gained popularity and is celebrated world wide. The other pre- Christian festivals that have their names as Irish months name include Bealtaine that is May and Lunasa which is August. Easter and Marian observances are part of the important church holidays (Mitchell, 1998). The most eventful and prestigious of all is the S. t Patrick’s day. It is marked as a national holiday in the republic of Ireland. To really ascertain its importance, the day is celebrated with a lot of festivals in the cities and within towns all around the country. Parades and marching bands are also availed to mark that day. Dancing is part and parcel of the Irish culture. In Irish dancing, two main kinds have been identified. They are the Riverdance and Real Irish dance. The Riverdance is very popular in that it is running up to the moment in major cities apart from Ulan Bater. It is even credited with the Irish economic boom by some economists. On the other hand, the Real Irish dance is performed in such a manner that men do not dress in frilly blouses and one is not allowed to communicate except in a note in print to the panel of adjudicators (Comerford, 2003). The work habits in the Irish community vary with different people. Farming is largely prevalent in Ireland even though it is one of the activities in the Irish culture that comes from way back in history. Therefore in arming, the men are the ones who handle most of the activities that are related to it. The women on the other hand do the marketing of the produces. The Irish farmers have come to be known for using the latest methods in agricultural production. The kind of produce that they make includes meat and dairy products. Cereals like wheat and barley are also chiefly produced. In production the Irish industry has done tremendously well in pharmaceuticals textiles, clothing, and even in fishery (Mitchell, 1998). Language is only one way of communicating. There are other forms of sending a message that bring forth communication. Gestures are one way of communicating. The Irish culture also has its own unique gestures. Women are allowed to sit first before the men. The women are supposed to sit with their legs crossed right at the ankle or even at the knees. It is considered informal to have ones ankles crossed over the knee. A good gesture also includes buying your friends or drinking partners a round of drinks when your turn comes. It is looked at as rather rude not to. Therefore the people tend to be disciplined and everyone knows what is expected of them at a particular situation no matter how informal it may seem or be. Shoving the line is frowned upon. Order is highly regarded and no one is supposed to be treated unfairly to an extent of having others shove the line. Using a firm handshake is also seen as a good gesture. Loose handshakes are associated with disrespect towards the person greeted or eve lack of interest. Therefore firm handshake symbolizes reverence (Comerford, 2003). In terms of governance, the Irish government of the time holds the office only and only when it still has the support of the majority of Dail Eireann members. The Taoiseach who is the head of the government can voluntarily resign and if he/she does so, the whole cabinet is considered to have resigned. Then a new nomination is put for Taoiseach before the parliament to approve a new one. The Irish government according to its constitution should constitute between 7-15 members. The head of the government is nominated by one of the houses of parliaments and the Irish president formally appoints him. For that post, each political party nominates its member who needs the support of the majority members of parliament to win (Mitchell, 1998). The Irish government is elected for a ruling term of five years. In this case since the current government was elected in 2007, it is expected to conclude its term in 2012 and go for a general election. In parliament, the senate and parliament debates are available and even published all the way through the session. The issues and questions tabled by the members of parliaments during the sitting are taken by the minister in whose docket it concerns. The replies are published at the end of each day’s parliamentary proceedings. Each committee meeting has an official report which is published in 2-3 working days and at most in a week’s time. Therefore Ireland has a democratic system of governance (Comerford, 2003). In essence, the Irish culture is a unique one and identifies the Irish people. It is richly religious with over 80% of its population being Roman Catholics. They have lots of days they observe that are not necessarily Christian oriented but that is what makes them uniquely Irish. References. Comerford, R. Ireland Inventing the Nation. New York: Hodder Books, (2003). Mitchell, Frank and Ryan, Michael. Reading the Irish landscape. London: SAGE. (1998).

Evaluating Derivatives Market in India

Evaluating Derivatives Market in India Introduction to Derivatives Market The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking-in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. However, by locking-in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of risk-averse investors. Derivative products initially emerged, as hedging devices against fluctuations in commodity prices and commodity-linked derivatives remained the sole form of such products for almost three hundred years. The financial derivatives came into spotlight in post-1970 period due to growing instability in the financial markets. However, since their emergence, these products have become very popular and by 1990s, they accounted for about two-thirds of total transactions in derivative products. In recent years, the market for financial derivatives has grown tremendously both in terms of variety of instruments available, their complexity and also turnover. In the class of equity derivatives, futures and options on stock indices have gained more popularity than on individual stocks, especially among institutional investors, who are major users of index-linked derivatives. Even small investors find these useful due to high correlation of the popular indices with various portfolios and ease of use. The lower costs associated with index derivatives vies-versa derivative products based on individual securities is another reason for their growing use. The following factors have been driving the growth of financial derivatives: Increased volatility in asset prices in financial markets, Increased integration of national financial markets with the international markets, Marked improvement in communication facilities and sharp decline in their costs, SCOPE OF THE STUDY The study is limited to â€Å"Derivatives with special reference to futures and option in the Indian context and the Networth Stock Broking Ltd., data for this study is from 27-DEC -2007 to 31-JAN- 2008 which represent sample for the study. The study cant be said as totally perfect. This study is only a humble attempt at evaluating derivatives market in Indian context. The study is not based on the international perspective of derivatives markets, which exists in NASDAQ, CBOT etc. HYPOTHESIS The Market data that has been used to see whether the Break Even Point (BEP) calculated can be used has an indicator to the investor to maximize the returns on its investment. OBJECTIVES OF THE STUDY 1. To understand the concept of derivatives in a more appropriate way. 2. To study various trends in derivative market. 3. To understand the scope and growth of derivatives in India. 4. To study the role of derivatives in Indian financial market 5. To study in detail the role of the future and options. METHODOLOGY 1. Data Collection : For this study the date collected is of secondary nature, The data of the Nifty index have been collected from â€Å"Economic Times† and internet. The data collected for January contract and the date consist from period 27th December, 2007 to 31st January, 2008. 2. Analysis: The analysis consist of the tabulation of the data assessing the profitability positions of the futures buyer and seller and also option holder and the option writer, representing the data with s and making the interpretation using data. TIME PERIOD Data collected for analyzing this study is from 27-DEC 2007 to 31-JAN-2008. Time taken to complete this project is 45 days LIMITATIONS OF THE STUDY The study is conducted in short period, due to which the study may not be detailed in all aspect. Lack of time on performing the project in detail study. Unavailability of software package which will help in calculation Lack of software knowledge to determine the correct future estimations. The data collected is completely restricted to 31st January, 2008; hence this analysis cannot be taken universal. CHAPTER II INTRODUCTION TO CAPITAL MARKET COMPANY PROFILE Introduction To Indian Capital Market Indias financial market began its transformation path in the early 1990s. The banking sector witnessed sweeping changes, including the elimination of interest rate controls, reductions in reserve and liquidity requirements and an overhaul in priority sector lending. Persistent efforts by the Reserve Bank of India (RBI) to put in place effective supervision and prudential norms since then have lifted the country closer to global standards. Around the same time, Indias capital markets also began to stage extensive changes. The Securities and Exchange Board of India (SEBI) was established in 1992 with a mandate to protect investors and improvements into the microstructure of capital markets, while the repeal of the Controller of Capital Issues (CCI) in the same year removed the administrative controls over the pricing of new equity issues. Indias financial markets also began to embrace technology. Competition in the markets increased with the establishment of the National Stock Exchange (NSE) in 1994, leading to a significant rise in the volume of transactions and to the emergence of new important instruments in financial intermediation. For over a century, Indias capital markets, which consist primarily of debt and equity markets, have increasingly played a significant role in mobilizing funds to meet public and private entities financing requirements. The advent of exchange-traded derivative instruments in 2000, such as options and futures, has enabled investors to better hedge their positions and reduce risks. In total, Indias debt and equity markets were equivalent to 130% of GDP at the end of 2005. This is an impressive stride, coming from just 75% in 1995, suggesting issuers growing confidence in market based financing. However, the size of the countrys capital markets relative to the United States, Malaysias and South Koreas remains low, implying a strong catch-up process for India. While some form of financial derivatives trading in India dates back to the 1870s, exchange traded derivative instruments started only in 2000. Then, stock index futures, with the Sensex 30 and the SP CNX Nifty indices as the underlying, began trading at the BSE and NSE. Since their inception, the basket of instruments has expanded and now features individual stock futures, and options for stock index and individual stocks. NATIONAL STOCK EXCHANGE (NSE) The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. NSE Mission 1. NSEs mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of: 2. Establishing a nation-wide trading facility for equities, debt instruments and hybrids, 3. Ensuring equal access to investors all over the country through an appropriate communication network, 4. Providing a fair, efficient and transparent securities market to investors using electronic trading systems, 5. Enabling shorter settlement cycles and book entry settlements systems, and 6. Meeting the current international standards of securities markets. The standards set by NSE in terms of market practices and technologies have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. Its that force which is guiding the industry towards new horizons and greater opportunities. Equity shares By investing in shares, investors basically buy the ownership right to the company. When the company makes profits, shareholders receive their share of the profits in the form of dividends. In addition, when company performs well and the future expectation from the company is very high, the price of the companys shares goes up in the market. This allows shareholders to sell shares at a profit, leading to capital gains. Investors can invest in shares either through primary market offerings or in the secondary market. The primary market has shown abnormal returns to investors who subscribed for the public issue and were allotted shares. Stock Exchange: In a stock exchange a person who wishes to sell his security is called a seller, and a person who is willing to buy the particular stock is called as the buyer. The rate of stock depends on the simple law of demand and supply. If the demand of shares of company x is greater than its supply then its price of its security increases. In Online Exchange the trading is done on a computer network. The sellers and buyers log on to the network and propose their bids. The system is designed in such ways that at any given instance, the buyers/sellers are bidding at the best prices. The transaction cycle for purchasing and selling shares online is depicted below: TRANSACTION CYCLE Role of Clearing House The clearing house of the exchange interposes itself between the buyer(the long position) and the seller (the short position).this mean clearing house becomes seller to buyer and the buyer to seller. Because the clearing house is obliged to perform on its side of each contract, it is the only party that can hurt if any trader fail to fulfill his obligation. The clearing house protects its interest by imposing margin requirements on traders. Ever since its inception in 1993, Networth Stock Broking Limited (NSBL) has sought to provide premium financial services and information, so that the power of investment is vested with the client. We equip those who invest with us to make intelligent investment decisions, providing them with the flexibility to either tap into our extensive knowledge and expertise, or make their own decisions. NSBL made its debut in to the financial world by servicing Institutional clients, and proved its high scalability of operations by growing exponentially over a short period of time. Now, powered by a top-notch research team and a network of experts, we provide an array of retail broking services across the globe spanning India, Middle East, Europe and America. Currently, we are a Depository participant at Central Depository Services India (CDSL) and aim to become one at National Securities Depository (NSDL) by the end of this quarter. Our strong support, technology-driven operations and busines s units of research, distribution and advisory coalesce to provide you with a one-stop solution to cater to all your broking and investment needs. Our customers have been participating in the booming commodities markets with our membership at Multi Commodity Exchange of India (MCX) and National Commodity Derivatives Exchange (NCDEX) through Networth Stock.Com Ltd. NSBL is a member of theNational Stock Exchange of India Ltd (NSE) andthe Bombay Stock Exchange Ltd (BSE)on the Capital Market and Derivatives (Futures Options) segment. It is also a listed company at theBSE. Corporate Overview †¢ Networth is a listed entity on the BSE since 1994 †¢ The company is professionally managed with experience of over a decade in broking and advisory services †¢ Networth is a member of BSE, NSE, MCX, NCDEX, AMFI, CDSL †¢ Current network in Southern and Western India with 107 branches and franchise. Presence in major metros and cities †¢ Empanelled with prominent domestic Mutual Funds, Insurance Companies, Banks, Financial Institutions and Foreign Financial Institutions. †¢ Strong experienced professional team †¢ 20000+ strong and growing client base †¢ Average daily broking turnover of around INR 1 billion †¢ AUM with Investment Advisory Services of around INR 3 billion Products and services Portfolio v Retail and institutional broking v Research for institutional and retail clients v Distribution of financial products v Corporate finance v Net trading v Depository services v Commodities Broking Infrastructure †¢ A corporate office and 3 divisional offices in CBD of Mumbai which houses state-of-the-art dealing room, research wing management and back offices. †¢ All of 107 branches and franchisees are fully wired and connected to hub at corporate office at Mumbai. Add on branches also will be wired and connected to central hub †¢ Web enabled connectivity and software in place for net trading. †¢ 60 operative IDs for dealing room †¢ State of the Art accounting and billing system, on line risk management system in place with 100% redundancy back up. †¢ In house technology back up team to ensure un-interrupted connectivity. Online Trading There is nothing more exhilarating, more daring and more rewarding than making the right trade at the right time. Welcome to our Internet trading platform which brings you a world class experience of online trading. Clicknetworth is a software application suite that offers comprehensive facilities so users can watch Market Prices while they trade. The application is highly integrated which enables the user to place orders in live environment. The user screen is fully customizable by the user to display information based upon his/her own preferences Trading Platform Networth offers advanced and convenient online trading facility with N-easy and N-swift which are completely safe and secure. N-easy: A Powerful and user friendly browser based platform ideally suited for Investors N-swift: An Advanced EXE based application suite that is ideally suited for Traders Features:- * Clients can trade in NSE Cash, NSE FO and BSE Cash. * Single screen order / trade entry as you can add NSE-Cash, Derivative BSE scripts in the same Market Watch. * Features such as Lock the Screen, TOP 20 by Most Active Volume, Value, Gainers, Losers, Market Movement and more will help you customise your trading platform according to your specific focus. * Facility for Online Funds Transfer. Your credit limit increases instantaneously on completion of a successful transfer. Total holdings with NSBL and NSBL CDSL DP (POA) can be viewed and delivery sale can also be made. * Needless to mention other standard features as Real-Time market data, live order status, Real time position updates etc. CHAPTER III REVIEW OF LITERATURE DEFINATION OF DERIVATIVE Derivative is a product whose value is derived from the value of one or more basic variables, called bases (underlying asset, index, or reference rate), in a contractual manner. There are two types of derivatives that are trades on NSE; namely Futures and Options. The underlying asset can be equity, forex, commodity or any other asset. For example, wheat farmers may wish to sell their harvest at a future date to eliminate the risk of a change in prices by that date. Such a transaction is an example of a derivative. The price of this derivative is driven by the spot price of wheat which is the â€Å"underlying†. In the Indian context the Securities Contracts (Regulation) Act, 1956 (SC(R) A) defines â€Å"equity derivative† to include A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security. A contract, which derives its value from the prices, or index of prices, of underlying securities.The key to understanding derivatives is the notion of a premium. Some derivatives are compared to insurance. Just as you pay an insurance company a premium in order to obtain some protection against a specific event, there are derivative products that have a payoff contingent upon the occurrence of some event for which you must pay a premium in advance. Example: When one buys a cash instrument, for example 100 shares of ABC Inc., the payoff is linear (disregarding the impact of dividends). If we buy the shares at Rs50 and the price appreciates to Rs75, we have made Rs2500 on a mark-to-market basis. If we buy the shares at Rs50 and the price depreciates to Rs25, we have lost Rs2500 on a mark-to-market basis. Instead of buying the shares in the cash market, we could have bought a 1 month call option on ABC stock with a strike price of Rs50, giving us the right but not the obligation to purchase ABC stock at Rs50 in 1 months time. Instead of immediately paying Rs5000 and receiving the stock, we might pay Rs700 today for this right. If ABC goes to Rs75 in 1 months time, we can exercise the option, buy the stock at the strike price and sell the stock in the open market, locking in a net profit of Rs1800. If the ABC stock price goes to Rs25, we have only lost the premium of Rs700. If ABC trades as high as Rs100 after we have bought the option but before it expires, we can sell the option in the market for a price of Rs5300. Classification of Derivatives Types of Derivatives The most commonly used derivatives contracts in NSE are ,FUTURES and OPTIONS which we shall discuss in detail later. Here we take a brief look at various derivatives contracts that have come to be used. Forwards: A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the future at todays pre-agreed price. Futures: A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Futures contracts are special types of forward contracts in the sense that the former are standardized exchange-traded contracts. Options: Options are of two types calls and puts. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date. Swaps: Swaps are private agreements between two parties to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolios of forward contracts. Warrants: Options generally have lives of upto one year, the majority of options traded on options exchanges having a maximum maturity of nine months. Longer-dated options are called warrants and are generally traded over-the-counter. LEAPS: The acronym LEAPS means Long-Term Equity Anticipation Securities. These are options having a maturity of upto three years. Baskets: Basket options are options on portfolios of underlying assets. The underlying asset is usually a moving average or a basket of assets. Equity index options are a form of basket options. Participants and Functions v Hedgers face risk associated with the price of an asset. They use futures or options markets to reduce or eliminate this risk. v Speculators wish to bet on future movements in the price of an asset. Futures and options contracts can give them an extra leverage; that is, they can increase both the potential gains and potential losses in a speculative venture. v Arbitrageurs are in business to take advantage of a discrepancy between prices in two different markets. If, for example, they see the futures price of an asset getting out of line with the cash price, they will take offsetting positions in the two markets to lock in a profit. The derivative market performs a number of economic functions. First, prices in an organized derivatives market reflect the perception of market participants about the future and lead the prices of underlying to the perceived future level. The prices of derivatives converge with the prices of the underlying at the expiration of derivative contract. Thus derivatives help in discovery of future as well as current prices. Second, the derivatives market helps to transfer risks from those who have them but may not like them to those who have appetite for them. Third, derivatives, due to their inherent nature, are linked to the underlying cash markets. With the introduction of derivatives, the underlying market witnesses higher trading volumes because of participation by more players who would not otherwise participate for lack of an arrangement to transfer risk. Fourth, speculative trades shift to a more controlled environment of derivatives market. In the absence of an organized derivati ves market, speculators trade in the underlying cash markets. Margining, monitoring and surveillance of the activities of various participants become extremely difficult in these kind of mixed markets. Fifth, an important incidental benefit that flows from derivatives trading is that it acts as a catalyst for new entrepreneurial activity. The derivatives have a history of attracting many bright, creative, well-educated people with an entrepreneurial attitude. They often energize others to create new businesses, new products and new employment opportunities, the benefit of which are immense. Sixth, derivatives markets help increase savings and investment in the long run. Transfer of risk enables market participants to expand their volume of activity. Derivatives thus promote economic development to the extent the later depends on the rate of savings and investment. The first stock index futures contract was traded at Kansas City Board of Trade. Currently the most popular index futures contract in the world is based on SP 500 index, traded on Chicago Mercantile Exchange. During the mid eighties, financial futures became the most active derivative instruments generating volumes many times more than the commodity futures. Index futures, futures on T-bills and Euro-Dollar futures are the three most popular futures contracts traded today. Other popular international exchanges that trade derivatives are LIFFE in England, DTB in Germany, SGX in Singapore, TIFFE in Japan, MATIF in France, etc. Indian Derivatives Market Starting from a controlled economy, India has moved towards a world where prices fluctuate every day. The introduction of risk management instruments in India gained momentum in the last few years due to liberalisation process and Reserve Bank of Indias (RBI) efforts in creating currency forward market. Derivatives are an integral part of liberalisation process to manage risk. NSE gauging the market requirements initiated the process of setting up derivative markets in India. In July 1999, derivatives trading commenced in India CHRONOLOGY OF INSTRUMENTS 1991 Liberalisation process initiated 14-Dec-1995 NSE asked SEBI for permission to trade index futures. 18-Nov-1996 SEBI setup L.C.Gupta Committee to draft a policy framework for index futures. 11-May-1998 L.C.Gupta Committee submitted report. 7-July-1999 RBI gave permission for OTC forward rate agreements (FRAs) and interest rate swaps. 24-May-2000 SIMEX chose Nifty for trading futures and options on an Indian index. 25-May-2000 SEBI gave permission to NSE and BSE to do index futures trading. 9-June-2000 Trading of BSE Sensex futures commenced at BSE. 12-June-2000 Trading of Nifty futures commenced at NSE. 25-Sep-2000 Nifty futures trading commenced at SGX. 2-June-2001 Individual Stock Options Derivatives SWAPS A contract between two parties, referred to as counter parties, to exchange two streams of payments for agreed period of time. The payments, commonly called legs or sides, are calculated based on the underlying notional using applicable rates. Swaps contracts also include other provisional specified by the counter parties. Swaps are not debt instrument to raise capital, but a tool used for financial management. Swaps are arranged in many different currencies and different periods of time. US$ swaps are most common followed by Japanese yen, sterling and Deutsche marks. The length of past swaps transacted has ranged from 2 to 25 years. Swaps Pricing: There are four major components of a swap price. v Benchmark price v Liquidity (availability of counter parties to offset the swap). v Transaction cost v Credit risk Benchmark Price:Swap rates are based on a series of benchmark instruments. They may be quoted as a spread over the yield on these benchmark instruments or on an absolute interest rate basis. In the Indian markets the common benchmarks are MIBOR, 14, 91, 182 364 day T-bills, CP rates and PLR rates. Liquidity: which is function of supply and demand, plays an important role in swaps pricing? This is also affected by the swap duration. It may be difficult to have counter parties for long duration swaps, specially so in India Transaction costs include the cost of hedging a swap. Transaction cost: Say in case of a bank, which has a floating obligation of 91 days T. Bill. Now in order to hedge the bank would go long on a 91 day T. Bill. For doing so the bank must obtain funds. The transaction cost would thus involve such a difference. Yield on 91 day T. Bill 9.5% Cost of fund (e.g.- Repo rate) 10% The transaction cost in this case would involve 0.5% Credit risk: Credit risk must also be built into the swap pricing. Based upon the credit rating of the counterparty a spread would have to be incorporated. Say for e.g. it would be 0.5% for an AAA rating. Introduction to Futures Future contract is the simplest of all financial assets. A future contract is just an agreement between two parties to buy and sell an asset at a fixed price in the future. Futures markets were originally designed to solve the problems of forward markets. Future contracts are managed through an organized future exchange Future contracts are a type of derivative security because the value of the contract is derived from an underlying instrument. The exchange specifies standard features of future contract to facilitate liquidity in the futures contracts. The net value of a future contract is zero because future contract represents a zero sum game between a buyer and a seller. Future contracts are standardized to facilitate convenience in trading and price reporting. A futures contract may be offset before maturity by taking opposite position which means that future trading can be closed by entering into equal into an equal and opposite transaction. Future contract must specify at least five terms of the contract and they are: 1) The identity of the underlying commodity or financial instrument. 2) The future contract size. 3) The future maturity date. 4) The delivery or settlement procedure. 5) The future price. TYPES OF FUTURES A commodity future is a future contract in a commodity like cocoa, aluminum etc. A financial future is a futures contract in a financial instrument like Treasury bill, currency or stock index. Futures contracts are: v Futures contracts are organized/ standardized contracts, which are traded on the exchanges. v These contracts, being standardized and traded on the exchanges are very liquid in nature. v In futures market, clearing corporation/ house provides the settlement guarantee. v Every futures contract is a forward contract traded on exchange and clearing corporation/house provides the settlement guarantee for trades. v Are of standard quantity; standard quality (in case of commodities). Have standard delivery time and place. What Does Future Trading Apply to Indian Stocks? Future trading is a type of investments which involves speculating on the prices of securities in the future. Securities traded in future contract can be a stock (Reliance India Limited, TISCO, etc), Stock Index (NSE Nifty Index), commodity (Gold, Silver, Agricultural Products, etc) Unlike stocks and bonds, when we involve in future trading then we do not buy or own anything but we speculate the future direction of the price in the security we are trading. Suppose we speculate on Stock Index (NSE Nifty index). If we speculate that the future price of Stock Index can go up in the future then we would buy a future contract. If we speculate that the future price of Stock Index can go down then we would sell a future contract. Futures Trading accounts A future exchange allows only exchange members to trade on the exchange floor. There are various things to know about future trading accounts. The first thing is that a margin is always required. A margin is the amount of money that we put up to control a future contract. http://www.tradingpicks.com/futures.htm How to Trade in SP CNX NIFTY Futures? http://www.nse-india.com/content/press/futidx_invguide.pdf Trading on CNX Nifty futures is just like trading in other security. Before buying or selling we use to predict the direction of the market and based on that prediction we buy or sell the index. A profit is made when the closing price on the expiration day is higher than the value at which we had bought the index. If we had predicted a bearish market, and had sold the index then we make a profit. Trading cycle for SP CNX Nifty Futures The trading cycle for SP CNX Nifty future contracts is 3 months. On the trading day a new contract is introduced. This contract will be introduced for three month duration. As a result there will be 3 contracts available for trading in the market ( i.e., first contract is in near month, second in mid month and third in far month duration) Example If Trading in NIFTY Starts from January 2002 then following chart gives us the beginning and expiry date of the contract. Contract/Month Expiry/Settlement January 2002 January 28th February 2002 February 20th March 2002 March 19th After January 28th, the first trading day will be on January 29th. Contract/Month Expiry/Settlement February 2002 February 24th March 2002 March 30th April 2002 April 20th To trade futures in NSE, traders have to open an account with a future brokerage firm known as Future Commission Merchant (FCM). FCM records the trades, monitors them and advice t Evaluating Derivatives Market in India Evaluating Derivatives Market in India Introduction to Derivatives Market The emergence of the market for derivative products, most notably forwards, futures and options, can be traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of fluctuations in asset prices. By their very nature, the financial markets are marked by a very high degree of volatility. Through the use of derivative products, it is possible to partially or fully transfer price risks by locking-in asset prices. As instruments of risk management, these generally do not influence the fluctuations in the underlying asset prices. However, by locking-in asset prices, derivative products minimize the impact of fluctuations in asset prices on the profitability and cash flow situation of risk-averse investors. Derivative products initially emerged, as hedging devices against fluctuations in commodity prices and commodity-linked derivatives remained the sole form of such products for almost three hundred years. The financial derivatives came into spotlight in post-1970 period due to growing instability in the financial markets. However, since their emergence, these products have become very popular and by 1990s, they accounted for about two-thirds of total transactions in derivative products. In recent years, the market for financial derivatives has grown tremendously both in terms of variety of instruments available, their complexity and also turnover. In the class of equity derivatives, futures and options on stock indices have gained more popularity than on individual stocks, especially among institutional investors, who are major users of index-linked derivatives. Even small investors find these useful due to high correlation of the popular indices with various portfolios and ease of use. The lower costs associated with index derivatives vies-versa derivative products based on individual securities is another reason for their growing use. The following factors have been driving the growth of financial derivatives: Increased volatility in asset prices in financial markets, Increased integration of national financial markets with the international markets, Marked improvement in communication facilities and sharp decline in their costs, SCOPE OF THE STUDY The study is limited to â€Å"Derivatives with special reference to futures and option in the Indian context and the Networth Stock Broking Ltd., data for this study is from 27-DEC -2007 to 31-JAN- 2008 which represent sample for the study. The study cant be said as totally perfect. This study is only a humble attempt at evaluating derivatives market in Indian context. The study is not based on the international perspective of derivatives markets, which exists in NASDAQ, CBOT etc. HYPOTHESIS The Market data that has been used to see whether the Break Even Point (BEP) calculated can be used has an indicator to the investor to maximize the returns on its investment. OBJECTIVES OF THE STUDY 1. To understand the concept of derivatives in a more appropriate way. 2. To study various trends in derivative market. 3. To understand the scope and growth of derivatives in India. 4. To study the role of derivatives in Indian financial market 5. To study in detail the role of the future and options. METHODOLOGY 1. Data Collection : For this study the date collected is of secondary nature, The data of the Nifty index have been collected from â€Å"Economic Times† and internet. The data collected for January contract and the date consist from period 27th December, 2007 to 31st January, 2008. 2. Analysis: The analysis consist of the tabulation of the data assessing the profitability positions of the futures buyer and seller and also option holder and the option writer, representing the data with s and making the interpretation using data. TIME PERIOD Data collected for analyzing this study is from 27-DEC 2007 to 31-JAN-2008. Time taken to complete this project is 45 days LIMITATIONS OF THE STUDY The study is conducted in short period, due to which the study may not be detailed in all aspect. Lack of time on performing the project in detail study. Unavailability of software package which will help in calculation Lack of software knowledge to determine the correct future estimations. The data collected is completely restricted to 31st January, 2008; hence this analysis cannot be taken universal. CHAPTER II INTRODUCTION TO CAPITAL MARKET COMPANY PROFILE Introduction To Indian Capital Market Indias financial market began its transformation path in the early 1990s. The banking sector witnessed sweeping changes, including the elimination of interest rate controls, reductions in reserve and liquidity requirements and an overhaul in priority sector lending. Persistent efforts by the Reserve Bank of India (RBI) to put in place effective supervision and prudential norms since then have lifted the country closer to global standards. Around the same time, Indias capital markets also began to stage extensive changes. The Securities and Exchange Board of India (SEBI) was established in 1992 with a mandate to protect investors and improvements into the microstructure of capital markets, while the repeal of the Controller of Capital Issues (CCI) in the same year removed the administrative controls over the pricing of new equity issues. Indias financial markets also began to embrace technology. Competition in the markets increased with the establishment of the National Stock Exchange (NSE) in 1994, leading to a significant rise in the volume of transactions and to the emergence of new important instruments in financial intermediation. For over a century, Indias capital markets, which consist primarily of debt and equity markets, have increasingly played a significant role in mobilizing funds to meet public and private entities financing requirements. The advent of exchange-traded derivative instruments in 2000, such as options and futures, has enabled investors to better hedge their positions and reduce risks. In total, Indias debt and equity markets were equivalent to 130% of GDP at the end of 2005. This is an impressive stride, coming from just 75% in 1995, suggesting issuers growing confidence in market based financing. However, the size of the countrys capital markets relative to the United States, Malaysias and South Koreas remains low, implying a strong catch-up process for India. While some form of financial derivatives trading in India dates back to the 1870s, exchange traded derivative instruments started only in 2000. Then, stock index futures, with the Sensex 30 and the SP CNX Nifty indices as the underlying, began trading at the BSE and NSE. Since their inception, the basket of instruments has expanded and now features individual stock futures, and options for stock index and individual stocks. NATIONAL STOCK EXCHANGE (NSE) The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. NSE Mission 1. NSEs mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of: 2. Establishing a nation-wide trading facility for equities, debt instruments and hybrids, 3. Ensuring equal access to investors all over the country through an appropriate communication network, 4. Providing a fair, efficient and transparent securities market to investors using electronic trading systems, 5. Enabling shorter settlement cycles and book entry settlements systems, and 6. Meeting the current international standards of securities markets. The standards set by NSE in terms of market practices and technologies have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. Its that force which is guiding the industry towards new horizons and greater opportunities. Equity shares By investing in shares, investors basically buy the ownership right to the company. When the company makes profits, shareholders receive their share of the profits in the form of dividends. In addition, when company performs well and the future expectation from the company is very high, the price of the companys shares goes up in the market. This allows shareholders to sell shares at a profit, leading to capital gains. Investors can invest in shares either through primary market offerings or in the secondary market. The primary market has shown abnormal returns to investors who subscribed for the public issue and were allotted shares. Stock Exchange: In a stock exchange a person who wishes to sell his security is called a seller, and a person who is willing to buy the particular stock is called as the buyer. The rate of stock depends on the simple law of demand and supply. If the demand of shares of company x is greater than its supply then its price of its security increases. In Online Exchange the trading is done on a computer network. The sellers and buyers log on to the network and propose their bids. The system is designed in such ways that at any given instance, the buyers/sellers are bidding at the best prices. The transaction cycle for purchasing and selling shares online is depicted below: TRANSACTION CYCLE Role of Clearing House The clearing house of the exchange interposes itself between the buyer(the long position) and the seller (the short position).this mean clearing house becomes seller to buyer and the buyer to seller. Because the clearing house is obliged to perform on its side of each contract, it is the only party that can hurt if any trader fail to fulfill his obligation. The clearing house protects its interest by imposing margin requirements on traders. Ever since its inception in 1993, Networth Stock Broking Limited (NSBL) has sought to provide premium financial services and information, so that the power of investment is vested with the client. We equip those who invest with us to make intelligent investment decisions, providing them with the flexibility to either tap into our extensive knowledge and expertise, or make their own decisions. NSBL made its debut in to the financial world by servicing Institutional clients, and proved its high scalability of operations by growing exponentially over a short period of time. Now, powered by a top-notch research team and a network of experts, we provide an array of retail broking services across the globe spanning India, Middle East, Europe and America. Currently, we are a Depository participant at Central Depository Services India (CDSL) and aim to become one at National Securities Depository (NSDL) by the end of this quarter. Our strong support, technology-driven operations and busines s units of research, distribution and advisory coalesce to provide you with a one-stop solution to cater to all your broking and investment needs. Our customers have been participating in the booming commodities markets with our membership at Multi Commodity Exchange of India (MCX) and National Commodity Derivatives Exchange (NCDEX) through Networth Stock.Com Ltd. NSBL is a member of theNational Stock Exchange of India Ltd (NSE) andthe Bombay Stock Exchange Ltd (BSE)on the Capital Market and Derivatives (Futures Options) segment. It is also a listed company at theBSE. Corporate Overview †¢ Networth is a listed entity on the BSE since 1994 †¢ The company is professionally managed with experience of over a decade in broking and advisory services †¢ Networth is a member of BSE, NSE, MCX, NCDEX, AMFI, CDSL †¢ Current network in Southern and Western India with 107 branches and franchise. Presence in major metros and cities †¢ Empanelled with prominent domestic Mutual Funds, Insurance Companies, Banks, Financial Institutions and Foreign Financial Institutions. †¢ Strong experienced professional team †¢ 20000+ strong and growing client base †¢ Average daily broking turnover of around INR 1 billion †¢ AUM with Investment Advisory Services of around INR 3 billion Products and services Portfolio v Retail and institutional broking v Research for institutional and retail clients v Distribution of financial products v Corporate finance v Net trading v Depository services v Commodities Broking Infrastructure †¢ A corporate office and 3 divisional offices in CBD of Mumbai which houses state-of-the-art dealing room, research wing management and back offices. †¢ All of 107 branches and franchisees are fully wired and connected to hub at corporate office at Mumbai. Add on branches also will be wired and connected to central hub †¢ Web enabled connectivity and software in place for net trading. †¢ 60 operative IDs for dealing room †¢ State of the Art accounting and billing system, on line risk management system in place with 100% redundancy back up. †¢ In house technology back up team to ensure un-interrupted connectivity. Online Trading There is nothing more exhilarating, more daring and more rewarding than making the right trade at the right time. Welcome to our Internet trading platform which brings you a world class experience of online trading. Clicknetworth is a software application suite that offers comprehensive facilities so users can watch Market Prices while they trade. The application is highly integrated which enables the user to place orders in live environment. The user screen is fully customizable by the user to display information based upon his/her own preferences Trading Platform Networth offers advanced and convenient online trading facility with N-easy and N-swift which are completely safe and secure. N-easy: A Powerful and user friendly browser based platform ideally suited for Investors N-swift: An Advanced EXE based application suite that is ideally suited for Traders Features:- * Clients can trade in NSE Cash, NSE FO and BSE Cash. * Single screen order / trade entry as you can add NSE-Cash, Derivative BSE scripts in the same Market Watch. * Features such as Lock the Screen, TOP 20 by Most Active Volume, Value, Gainers, Losers, Market Movement and more will help you customise your trading platform according to your specific focus. * Facility for Online Funds Transfer. Your credit limit increases instantaneously on completion of a successful transfer. Total holdings with NSBL and NSBL CDSL DP (POA) can be viewed and delivery sale can also be made. * Needless to mention other standard features as Real-Time market data, live order status, Real time position updates etc. CHAPTER III REVIEW OF LITERATURE DEFINATION OF DERIVATIVE Derivative is a product whose value is derived from the value of one or more basic variables, called bases (underlying asset, index, or reference rate), in a contractual manner. There are two types of derivatives that are trades on NSE; namely Futures and Options. The underlying asset can be equity, forex, commodity or any other asset. For example, wheat farmers may wish to sell their harvest at a future date to eliminate the risk of a change in prices by that date. Such a transaction is an example of a derivative. The price of this derivative is driven by the spot price of wheat which is the â€Å"underlying†. In the Indian context the Securities Contracts (Regulation) Act, 1956 (SC(R) A) defines â€Å"equity derivative† to include A security derived from a debt instrument, share, loan whether secured or unsecured, risk instrument or contract for differences or any other form of security. A contract, which derives its value from the prices, or index of prices, of underlying securities.The key to understanding derivatives is the notion of a premium. Some derivatives are compared to insurance. Just as you pay an insurance company a premium in order to obtain some protection against a specific event, there are derivative products that have a payoff contingent upon the occurrence of some event for which you must pay a premium in advance. Example: When one buys a cash instrument, for example 100 shares of ABC Inc., the payoff is linear (disregarding the impact of dividends). If we buy the shares at Rs50 and the price appreciates to Rs75, we have made Rs2500 on a mark-to-market basis. If we buy the shares at Rs50 and the price depreciates to Rs25, we have lost Rs2500 on a mark-to-market basis. Instead of buying the shares in the cash market, we could have bought a 1 month call option on ABC stock with a strike price of Rs50, giving us the right but not the obligation to purchase ABC stock at Rs50 in 1 months time. Instead of immediately paying Rs5000 and receiving the stock, we might pay Rs700 today for this right. If ABC goes to Rs75 in 1 months time, we can exercise the option, buy the stock at the strike price and sell the stock in the open market, locking in a net profit of Rs1800. If the ABC stock price goes to Rs25, we have only lost the premium of Rs700. If ABC trades as high as Rs100 after we have bought the option but before it expires, we can sell the option in the market for a price of Rs5300. Classification of Derivatives Types of Derivatives The most commonly used derivatives contracts in NSE are ,FUTURES and OPTIONS which we shall discuss in detail later. Here we take a brief look at various derivatives contracts that have come to be used. Forwards: A forward contract is a customized contract between two entities, where settlement takes place on a specific date in the future at todays pre-agreed price. Futures: A futures contract is an agreement between two parties to buy or sell an asset at a certain time in the future at a certain price. Futures contracts are special types of forward contracts in the sense that the former are standardized exchange-traded contracts. Options: Options are of two types calls and puts. Calls give the buyer the right but not the obligation to buy a given quantity of the underlying asset, at a given price on or before a given future date. Puts give the buyer the right, but not the obligation to sell a given quantity of the underlying asset at a given price on or before a given date. Swaps: Swaps are private agreements between two parties to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolios of forward contracts. Warrants: Options generally have lives of upto one year, the majority of options traded on options exchanges having a maximum maturity of nine months. Longer-dated options are called warrants and are generally traded over-the-counter. LEAPS: The acronym LEAPS means Long-Term Equity Anticipation Securities. These are options having a maturity of upto three years. Baskets: Basket options are options on portfolios of underlying assets. The underlying asset is usually a moving average or a basket of assets. Equity index options are a form of basket options. Participants and Functions v Hedgers face risk associated with the price of an asset. They use futures or options markets to reduce or eliminate this risk. v Speculators wish to bet on future movements in the price of an asset. Futures and options contracts can give them an extra leverage; that is, they can increase both the potential gains and potential losses in a speculative venture. v Arbitrageurs are in business to take advantage of a discrepancy between prices in two different markets. If, for example, they see the futures price of an asset getting out of line with the cash price, they will take offsetting positions in the two markets to lock in a profit. The derivative market performs a number of economic functions. First, prices in an organized derivatives market reflect the perception of market participants about the future and lead the prices of underlying to the perceived future level. The prices of derivatives converge with the prices of the underlying at the expiration of derivative contract. Thus derivatives help in discovery of future as well as current prices. Second, the derivatives market helps to transfer risks from those who have them but may not like them to those who have appetite for them. Third, derivatives, due to their inherent nature, are linked to the underlying cash markets. With the introduction of derivatives, the underlying market witnesses higher trading volumes because of participation by more players who would not otherwise participate for lack of an arrangement to transfer risk. Fourth, speculative trades shift to a more controlled environment of derivatives market. In the absence of an organized derivati ves market, speculators trade in the underlying cash markets. Margining, monitoring and surveillance of the activities of various participants become extremely difficult in these kind of mixed markets. Fifth, an important incidental benefit that flows from derivatives trading is that it acts as a catalyst for new entrepreneurial activity. The derivatives have a history of attracting many bright, creative, well-educated people with an entrepreneurial attitude. They often energize others to create new businesses, new products and new employment opportunities, the benefit of which are immense. Sixth, derivatives markets help increase savings and investment in the long run. Transfer of risk enables market participants to expand their volume of activity. Derivatives thus promote economic development to the extent the later depends on the rate of savings and investment. The first stock index futures contract was traded at Kansas City Board of Trade. Currently the most popular index futures contract in the world is based on SP 500 index, traded on Chicago Mercantile Exchange. During the mid eighties, financial futures became the most active derivative instruments generating volumes many times more than the commodity futures. Index futures, futures on T-bills and Euro-Dollar futures are the three most popular futures contracts traded today. Other popular international exchanges that trade derivatives are LIFFE in England, DTB in Germany, SGX in Singapore, TIFFE in Japan, MATIF in France, etc. Indian Derivatives Market Starting from a controlled economy, India has moved towards a world where prices fluctuate every day. The introduction of risk management instruments in India gained momentum in the last few years due to liberalisation process and Reserve Bank of Indias (RBI) efforts in creating currency forward market. Derivatives are an integral part of liberalisation process to manage risk. NSE gauging the market requirements initiated the process of setting up derivative markets in India. In July 1999, derivatives trading commenced in India CHRONOLOGY OF INSTRUMENTS 1991 Liberalisation process initiated 14-Dec-1995 NSE asked SEBI for permission to trade index futures. 18-Nov-1996 SEBI setup L.C.Gupta Committee to draft a policy framework for index futures. 11-May-1998 L.C.Gupta Committee submitted report. 7-July-1999 RBI gave permission for OTC forward rate agreements (FRAs) and interest rate swaps. 24-May-2000 SIMEX chose Nifty for trading futures and options on an Indian index. 25-May-2000 SEBI gave permission to NSE and BSE to do index futures trading. 9-June-2000 Trading of BSE Sensex futures commenced at BSE. 12-June-2000 Trading of Nifty futures commenced at NSE. 25-Sep-2000 Nifty futures trading commenced at SGX. 2-June-2001 Individual Stock Options Derivatives SWAPS A contract between two parties, referred to as counter parties, to exchange two streams of payments for agreed period of time. The payments, commonly called legs or sides, are calculated based on the underlying notional using applicable rates. Swaps contracts also include other provisional specified by the counter parties. Swaps are not debt instrument to raise capital, but a tool used for financial management. Swaps are arranged in many different currencies and different periods of time. US$ swaps are most common followed by Japanese yen, sterling and Deutsche marks. The length of past swaps transacted has ranged from 2 to 25 years. Swaps Pricing: There are four major components of a swap price. v Benchmark price v Liquidity (availability of counter parties to offset the swap). v Transaction cost v Credit risk Benchmark Price:Swap rates are based on a series of benchmark instruments. They may be quoted as a spread over the yield on these benchmark instruments or on an absolute interest rate basis. In the Indian markets the common benchmarks are MIBOR, 14, 91, 182 364 day T-bills, CP rates and PLR rates. Liquidity: which is function of supply and demand, plays an important role in swaps pricing? This is also affected by the swap duration. It may be difficult to have counter parties for long duration swaps, specially so in India Transaction costs include the cost of hedging a swap. Transaction cost: Say in case of a bank, which has a floating obligation of 91 days T. Bill. Now in order to hedge the bank would go long on a 91 day T. Bill. For doing so the bank must obtain funds. The transaction cost would thus involve such a difference. Yield on 91 day T. Bill 9.5% Cost of fund (e.g.- Repo rate) 10% The transaction cost in this case would involve 0.5% Credit risk: Credit risk must also be built into the swap pricing. Based upon the credit rating of the counterparty a spread would have to be incorporated. Say for e.g. it would be 0.5% for an AAA rating. Introduction to Futures Future contract is the simplest of all financial assets. A future contract is just an agreement between two parties to buy and sell an asset at a fixed price in the future. Futures markets were originally designed to solve the problems of forward markets. Future contracts are managed through an organized future exchange Future contracts are a type of derivative security because the value of the contract is derived from an underlying instrument. The exchange specifies standard features of future contract to facilitate liquidity in the futures contracts. The net value of a future contract is zero because future contract represents a zero sum game between a buyer and a seller. Future contracts are standardized to facilitate convenience in trading and price reporting. A futures contract may be offset before maturity by taking opposite position which means that future trading can be closed by entering into equal into an equal and opposite transaction. Future contract must specify at least five terms of the contract and they are: 1) The identity of the underlying commodity or financial instrument. 2) The future contract size. 3) The future maturity date. 4) The delivery or settlement procedure. 5) The future price. TYPES OF FUTURES A commodity future is a future contract in a commodity like cocoa, aluminum etc. A financial future is a futures contract in a financial instrument like Treasury bill, currency or stock index. Futures contracts are: v Futures contracts are organized/ standardized contracts, which are traded on the exchanges. v These contracts, being standardized and traded on the exchanges are very liquid in nature. v In futures market, clearing corporation/ house provides the settlement guarantee. v Every futures contract is a forward contract traded on exchange and clearing corporation/house provides the settlement guarantee for trades. v Are of standard quantity; standard quality (in case of commodities). Have standard delivery time and place. What Does Future Trading Apply to Indian Stocks? Future trading is a type of investments which involves speculating on the prices of securities in the future. Securities traded in future contract can be a stock (Reliance India Limited, TISCO, etc), Stock Index (NSE Nifty Index), commodity (Gold, Silver, Agricultural Products, etc) Unlike stocks and bonds, when we involve in future trading then we do not buy or own anything but we speculate the future direction of the price in the security we are trading. Suppose we speculate on Stock Index (NSE Nifty index). If we speculate that the future price of Stock Index can go up in the future then we would buy a future contract. If we speculate that the future price of Stock Index can go down then we would sell a future contract. Futures Trading accounts A future exchange allows only exchange members to trade on the exchange floor. There are various things to know about future trading accounts. The first thing is that a margin is always required. A margin is the amount of money that we put up to control a future contract. http://www.tradingpicks.com/futures.htm How to Trade in SP CNX NIFTY Futures? http://www.nse-india.com/content/press/futidx_invguide.pdf Trading on CNX Nifty futures is just like trading in other security. Before buying or selling we use to predict the direction of the market and based on that prediction we buy or sell the index. A profit is made when the closing price on the expiration day is higher than the value at which we had bought the index. If we had predicted a bearish market, and had sold the index then we make a profit. Trading cycle for SP CNX Nifty Futures The trading cycle for SP CNX Nifty future contracts is 3 months. On the trading day a new contract is introduced. This contract will be introduced for three month duration. As a result there will be 3 contracts available for trading in the market ( i.e., first contract is in near month, second in mid month and third in far month duration) Example If Trading in NIFTY Starts from January 2002 then following chart gives us the beginning and expiry date of the contract. Contract/Month Expiry/Settlement January 2002 January 28th February 2002 February 20th March 2002 March 19th After January 28th, the first trading day will be on January 29th. Contract/Month Expiry/Settlement February 2002 February 24th March 2002 March 30th April 2002 April 20th To trade futures in NSE, traders have to open an account with a future brokerage firm known as Future Commission Merchant (FCM). FCM records the trades, monitors them and advice t

Educating Rita :: English Literature

Educating Rita Question How does the play write show the audience the differences between the two characters by the way that they behave according to the stage directions and the way that they use language? What comments is he making by showing us these two very different characters. I will be writing about two scenes from a play called Educating Rita. The play is about two completely different characters from two completely different backgrounds, brought together by education. The two characters are Frank and Rita; Frank is a middle class university professor, who has been very well educated and has a partner called Julia. Rita is a married working class woman who has had little education little education throughout her life, so wanting two change this, by taking an open University course in English literature. Written by Willy Russell. The playwright shows the audience the differences between Frank and Rita even at the start of scene six by showing how professional, neat and tidy frank is, he writes, â€Å"Frank enters carrying a brief case and a pile of essays. He goes to the filing cabinet, takes his lecture notes from his brief case and puts them in his drawer. This also shows Franks life is run according to a timetable in the way everything is done calmly and in time. Like a very well established daily routine and that nothing out of the ordinary ever happens. The playwright shows that due to his education he can relax and enjoy him self calmly by reading and doesn’t need television to entertain him. â€Å"He picks up the packet of sandwiches, takes a bite and picks up a book and starts reading. And this seems to reflect the way he lives his life in general. Franks moment of relaxation is quickly shattered when Rita bursts through the door in a state of intense excitement, after visiting a profession theatre the night before for the first time. This shows Rita like a child because she is so excited about what she saw she cant contain her self and has to express her ideas and feelings. And because of her little education she finds it hard to say her ideas: â€Å"wasn’t his wife a cow, eh?† Frank is shocked at Rita’s dramatic entry because it doesn’t fit into his timetable like day. When Rita explains that she went to the theatre and then Frank sighs this shows he doesn’t think its anything big because he probably goes a lot of the time and also shows his greater experience of culture compared to Rita. Then he smiles and this is when he realises that this is a

Emma Goldmans Speech -- essays research papers

Few people are fearless speakers. As students, we generally feel the rumble of butterflies in our stomachs, but the most we have to lose is a good grade. For Emma Goldman, the stakes were considerably higher. She had the daunting task of speaking to secure her own freedom when she was placed on trial for obstructing the draft in 1917. The country was awash in patriotism, and she was prosecuted as an enemy of the state. When preparing her speech, she realized that a seated jury would be a microcosm of the country's national spirit. Jurors may have had children or loved ones committed or lost to the Great War. Her position, though heartfelt and eloquently expressed, with an attempt to express her own patriotism, was subversive and threatening to the population. Although many of her words may have angered the jurors, Goldman made the key points of every topic that she discussed very clear and easy to understand. She was able to talk about her stances, and use powerful language and various sources to help the jury understand why she held certain ideals. When describing her opposition to war, Goldman stated that "all wars are wars among thieves who are too cowardly to fight and who therefore induce the young manhood of the world to do the fighting for them." Also, Goldman goes to great lengths to clearly depict the fact that she was not acting in a violent manner. She used imagery, such as the officers who went to arrest her finding "Alexander Berkman and Emma Goldman, in their separate offices quietly seated at their desks, wielding not the gun or the bomb or the club or the sword, but only such a simple and insignificant thing as a pen." Goldman also makes it very clear why she does not believe that the war should co ntinue. She claims that it is "not a war for democracy. If it were a war for the purpose of making democracy safe for the world, we would say that democracy must first be safe for America before it can be safe for the world." By repeating this idea throughout her speech, Goldman emphasizes why she behaved in the manner that she did. She also explains that "the war going on in the world is for the further enslavement of the people." Goldman works to point out that "the fight began in Australia and conscription was there defeated by the brave and determined and courageous ... ..., [and] which expresses itself in prisons." During this point in American history, where the nation's pride was sweeping the nation, the last thing Goldman should have done was criticize the United States. These accusations against the country, although they were her belief, went against the accepted norms and rules of the time. By continuing to behave in such an antagonistic manner, Goldman makes the jury feel like it needs to vindicate its country and punish her. Emma Goldman's remarks may have infuriated the jury, and this may have proved too big an obstacle to overcome. Jurors may purport to be impartial, but they carry within them a belief system that is threatened by a revolutionary perspective. Goldman's organization and logic was compelling, and her persuasive skills were impressive. It was a wise decision to portray herself as pro- America. But Goldman's failure was to underestimate the depth of commitment that Americans had at this time to the War effort. To allow Goldman's opposition to the government system of conscription would mock the sacrifices of loved ones. Despite an eloquent defense, Goldman was not able to overcome this bias.

Factors Influencing Family Physicians Prescribing Health And Social Care Essay

Due to turning international concern about the quality of ordering in primary attention, research workers and policy shapers have made interventional schemes to better prescribing. Drug outgos are large load and threaten of wellness attention budgets. It is disputing undertaking to better ordering form in medical pattern. The ordering wont by general practician is a complex activity and depends on the interplay of many factors. In recent decennaries, these factors have been shown to act upon household doctor prescribing form ( 1 ) . ( 1 consequence of advertisement ) Analyzing factors associated with household doctors ‘ prescribing is considered to be of high value since high per centum of drugs are prescribed by primary attention doctors. These factors interact in non additive and unpredictable ways ( 2 ) . ( 2 factors act uponing GP Allan ) . As consequence of assorted influences, ordering wont alterations of the single doctor normally occur easy. ( 3 ) ( drug prescription forms Bjerrum ) . For the range of this reappraisal we classify factors associated with household doctors ‘ ordering into four classs. The first class includes factors related to doctors ; age, sex, old ages of experience, and uninterrupted medical instruction. The 2nd class includes factors related pattern scenes ; size of pattern, figure of patients, guidelines and usage of drug pharmacopeia. The 3rd class includes factors related to drugs: advertizement and cost. The 4th class includes factors related to patients ; age, sex, comorbidity and multiple health care suppliers. Therefore, the purpose of this reappraisal is to place and to measure factors impacting household physician ordering behavior. The research inquiry formulated to province, what are the factors impacting household physician ordering behavior.MethodsIn this literature reappraisal we chose loosely inclusive hunt scheme with two phases. In phase one, a hunt has been conducted utilizing the undermentioned cardinal words: â€Å" prescription † , â€Å" prescribing † , â€Å" prescribing forms † ordering attitudes † , â€Å" ordering factors † , â€Å" ordering indexs † , primary attention ordering † and â€Å" GP prescribing † . In 2nd phase, after calculating out the factors associated with doctors ordering forms based on first phase, a 2nd hunt has been conducted utilizing the undermentioned footings â€Å" guidelines and ordering † , â€Å" drug cost † , â€Å" drug advertisement † , â€Å" drug formulary † , â€Å" polypharmacy † , repetition prescriptions † and â€Å" new drug † . We searched midplane, Pub med and Eric from 1990 to 2009. From articles fulfilling preliminary inclusion standards, the mention lists were reviewed. Based on the initial reappraisal our concluding inclusion and exclusion standards were determined. Study Selection The inclusion standards are: a ) articles assessed ordering in primary attention scene, B ) article recovering information from prescription database. We excluded articles written in linguistic communication other than English, surveies that assessed specific drug group or drugs for specific disease. There were no geographic restrictions.ConsequencesWe found 31 surveies that met our standards. All surveies used a database for informations aggregation, 12 and 13 prospective and retrospective surveies severally ( table 1 ) .Factors related to doctor:It has been found that there is a important relation between certain primary attention physician features and their prescribing behaviour. Younger primary attention doctors have higher rates of new drug use. Female sex and recent graduation i.e. less old ages in pattern are associated with high drug use rates ( 4,5,6,7,8,9 ) ( 1, 4,18, 19,31,32 ) .One survey showed that no influence of physician age or figure of old ages in pattern on polyp harmacy in peculiar ( 6 ) ( 18 ) . High prescribers did non differ significantly from low prescribers in age, figure of old ages in pattern, average pattern size or patient age. ( 9 ) ( 32 ) Gill et Al has found no effects of doctor ‘s ethnicity and topographic point of graduation on ordering forms ( 10 ) . ( 2 ) , However, two surveies demonstrated that doctors who were foreign trained tend to hold high prescribing rates and cost ( 9 ) ( 28,32 ) . Besides medical school found to be a factor associated with higher new drug use ( 7 ) ( 19 ) . Continuous medical instruction ( CME ) has an consequence acceleration of new drug acceptance ( 5 ) ( 4 ) . An educational intercession plans improve ordering forms and may ensue in important clinical benefits ( 11,12 ) ( 3, 25 ) . It is besides noticed that ordering wonts are influenced by scientific documents, specialist recommendations and meetings ( 3 ) ( 14 ) . Financial inducement found to hold a impermanent consequence on altering prescription behaviour ( 13 ) ( 26 ) . One survey showed that guidelines had a small consequence on antihypertensive drug usage. ( 14 ) ( 13 ) Adoption of new drug is of import ordering factor. Among five drugs studied Steffensen et Al found hapless understanding between early, intermediate and late prescribers. Late prescribing was associated with female doctors. ( 5 ) ( 4 )Factors related to patternThere is a additive correlativity between the figure of prescribed drugs and figure of general practicians in the pattern ( 15, 16 ) ( 12, 15 ) . Physicians with big pattern prescribed more drugs than those with little pattern ( 4, 16 ) ( 1, 15 ) . In footings of polypharmacy, one survey showed 56 % of ordering fluctuation between general practicians could be explained by forecasters related to pattern construction, work load, clinical work profile and ordering profile ( 17 ) ( 6 ) . It has been noticed that high work load patterns tend to hold a high prescribing rates. ( 4,18 ) ( 1,27 ) , However in patterns with big figure of listed patients, doctors prescribed fewer drugs per patient compared to patterns with low figure of listed patents. ( 6 ) ( 18 ) McCarthy et Al found a important correlativity between the figure of drugs prescribed and the figure of physician working in the pattern. ( 15 ) ( 12 ) The diffusion clip of new drug after its release is longer in partnership pattern compared to individual handed pattern, the average diffusion times are 41 and 119 yearss for partnership and individual handed patterns severally. ( 5 ) ( 4 ) Fee-for-service type of pattern was considered to be associated with higher rates of new drug use. ( 7 ) ( 19 ) . Doctors practising in rural countries and holding high proportion of aged have lower new drugs use rates than those practising in urban countries. ( 7 ) ( 19 ) . Use of drug formulary and agreed verbal prescribing policy had no important association with the figure of drug prescribed. ( 15 ) ( 12 ) . Computerized reminders have some consequence on physician ordering behaviour. ( 19 ) ( 24 )Factors related to drugsDoctors ‘ interaction with drug industry found to get down every bit early as medical school. ( 20 ) ( 373.26 ) .It has been found that every bit many as 80 % of GP ‘s in both partnership and individual handed patterns had prescribed new drug 6 hebdomads and 21 hebdomads after its release severally. ( 5 ) ( 4 ) Tamblyn et Al addressed that the new drugs have 8 to 17 fold differences in use rate, and were prescribed by 1.3 % -22.3 % of doctors. ( 7 ) ( 19 ) . There is a additive relationship between polypharmacy and underprescribing. The higher the figure of the drugs, the higher the estimated chance of underprescribing is. ( 21 ) ( 23 ) . Provision of drug cost information in a computing machine based patient record system was found to hold no consequence on overall prescription drug cost to patients, nevertheless there was differences in single drug categories. It besides has been found that doctors are unfamiliar with the costs ofA medicines they normally prescribe. ( 22 ) ( 33 ) One survey has indicated that a important proportion in volume and costs is straight affected by hospital-initiated prescriptions. ( 9 ) ( 32 ) Repeat ordering accounted for the huge bulk of all points every bit good as prescribing costs. It accounted for 75 % and 81 % of all points and ordering costs severally. ( 23 ) ( 7 ) Among aged patients, the mean prescription was 99.4 % per 100 general practician contacts ; 72.1 % were repeat prescriptions. ( 24 ) ( 17 ) . Ashly et Al has found that ordering and professional behaviour appear to be affected by the present extent of physician-industry interactions. ( 25 ) ( 29 ) Reducing interactions between doctors and pharmaceutical gross revenues representatives has resulted in improved prescribing. ( 8 ) ( 31 )Factors related to patientsThe drug use rate additions with patient ‘s age. Patient ‘s age has more important consequence on drug use rate compared to patient ‘s sex ( 26, 27 ) ( 11, 16 ) . Repeat prescriptions significantly increase with patient ‘s age. It has been found every bit high as 72 – 90 % for patients aged 85 and over ( 23,24 ) ( 7,17 ) . In footings of patient ‘s sex, female patients were found to be given more drug points but less repetition prescription than male patients ( 27 ) ( 16 ) . In aged population, more than 60 % of perennial prescribing was for female patients. ( 24 ) ( 17 ) . Among patients aged 79 and under, female patients were pre scribed to significantly more times than males ( 28 ) ( 9 ) . Buck et Al found that female sex was associated with potentially inappropriate medicines ( 29 ) ( 22 ) . Patients with greater figure of chronic conditions, multiple health care suppliers and multiple clinic visits have higher hazard of developing polypharmacy and relentless polypharmacy ( 30 ) ( 8 ) . Ordering rates every bit good as costs increase with morbidity. ( 31 ) ( 10 ) .DiscussionIn this literature reappraisal we observed that doctors ordering behaviours are affected linearly or reciprocally by many factors. Doctors A important relation has been found between certain physician features and ordering behaviour. The findings that younger male doctors had higher ordering rate may be related to a causal nexus between some physician features, ordering behaviour and patient results. It is non clearly known why sicker patients would seek immature or male doctors, but these doctors may prefer more aggressive intervention than female doctors and older co-workers. ( 4 ) ( 1 ) Higher rates of drug use among younger doctors may be related the leaning for aggressive intercession, more established ordering behaviour in older doctors or targeted selling patterns. ( 32,33 ) ( 19 — -47,48 ) The determination that male doctor had higher rates of new drug use was supported by other surveies. ( 34 ) ( 19 — -8 ) Female sex, little list size, lower diagnostic activity per patient and restrictive attitude toward pharmacotherapy tantrum into topology of conservative doctors. Supported by some surveies, con servative doctors described as being light users of drugs. ( 35, 36 ) ( 4 — -9,19 ) It is surprising that for those doctors who qualified from different states, their ethnicity had no consequence on their prescribing behaviour. ( 10 ) ( 2 ) This could be related to secondary socialisation which occurs in approximately 5 to 6 old ages. ( 37 ) ( 2 — -2 ) Socialization through graduate student preparation and practicing in group pattern alterations ordering behaviour. ( 38 ) ( 2 — — -3 ) There was no direct nexus between postgraduate preparation degree and ordering behaviour. The degree of postgraduate preparation can be a factor in finding how readily physicians accept commercial beginnings of ordering information. Handouts from pharmaceutical companies were rated as really of import or of import beginnings of CME by significantly fewer certified members than non-certified members of the College of Family Physicians of Canada. ( 39 ) ( presc by can — — 59 ) Interventional CME for intervention of chronic diseases for illustration bronchial asthma resulted in some betterment in ordering behaviour. ( 11 ) ( 3 ) CME and other societal facts have been found gas pedals for new drug acceptance. ( 40, 41 ) ( 4 — -9,19 ) It has been suggested that there is a nexus between increasing age, non-attendance at CME classs, and inappropriate prescribing. ( 42 ) ( presc by can — 24 ) . But there was no adequate information, nevertheless, to research this hypothesis farther. Other surveies do non back up this account. ( 43,44, 45 ) ( presc by can 44-47 ) The intent of the execution of clinical guidelines is to better quality of attention. However, surveies have showed that the US National Committee on Prevention, Detection, Evaluation, and Treatment of High Blood Pressure ( JNC ) guidelines apparently had small consequence on the form of antihypertensive drug prescribing. ( 14, 46, 47 ) ( 13, 13 — — 21 ) Two possible grounds, foremost is that doctors may be loath to alter drug therapy because of already good controlled blood force per unit area. Second ground may be that ordering behaviour was influenced by pharmaceutical maker promotional activities. ( 14 ) ( 13 ) Practice Puting Practice puting features have been shown to act upon ordering behaviour. The informations clearly demonstrated a relation between polypharmacy and pattern puting features. Practices with big figure of patients have fewer drugs prescribed per patient compared with patterns with low figure of patients. ( 48, 49 ) ( 18-22,23 ) This determination was consistent with other surveies. ( 6 ) ( 18 ) Busy working doctor were more inclined to order multiple drugs than doctors with low work load. ( 50, 51 ) ( 18 — — 24,25 ) It has been noticed that new drugs have been adopted by partnership patterns faster than unassisted patterns. ( 5 ) ( 4 ) The type of pattern besides influences doctors ‘ usage of drugs. Salaried physicians practising in government-funded community wellness centres had better ordering forms than doctors in fee-for-service group patterns. ( 52 ) ( pres bycan 5 ) Free-for-service patterns were associated with higher rates of new drug use. ( 7 ) ( 19 ) the ma gnitude of this association was non big plenty to anticipate major cost salvaging related to new drug use. ( 53 ) ( 19 — -52 ) . It has been noticed that fee for service patients were more likely to follow JNC guidelines than the patients with wellness care organisation insurance. Therefore, the patients with wellness care organisation insurance had no penchant for promoting their doctors to choose more cost-efficient drugs. In contrast, fee for service patients appeared to hold more penchant for choosing lower cost drugs. ( 14 ) ( 13 ) Although, fiscal inducements represent a non-voluntary scheme to implement alteration in medical pattern, it had a limited, impermanent consequence on the prescribing behaviour. ( 13, 54 ) ( 26, 26 — — -18 ) Working in rural countries influenced ordering behaviour. Lower rates of new drug use among doctors working in rural countries may be due comparative isolation of rural doctors from co-workers who may hold influence in the determination to order new intervention. ( 55 ) ( 19 — — 22 ) Merely one survey concluded that there was no important difference in figure of different drugs prescribed by patterns runing a formulary from that found among patterns with no formulary. This could be due to, that all doctors in those patterns may non follow with the formulary, or pharmacopeias contained a narrow scope of drugs. ( 15 ) ( 12 ) However, this determination was non supported by other surveies. The usage of pharmacopeia has been found to act upon ordering behaviours and cut down costs. ( 56, 57 ) ( 12 — -1,3 ) Drugs There are many factors related to drugs that may act upon physician prescribing behaviour. Early usage of new drugs may non be compatible with appropriate prescribing. Newness should non be seen as a virtuousness in a pharmaceutical merchandise and that it is important that physicians think more carefully before ordering a new drug. ( 58 ) ( presc by can ) Small proportion of doctors prescribed new drugs even for drugs that were known as supplying significant betterment over bing intervention. ( 7,59 ) ( 19, 19 — -8 ) Costss of wellness attention are escalated by increased disbursement and usage of prescription medicines. There was no adequate grounds that physicians ordering behaviors affected by consciousness of drug cost ( 60 ) ( 20 ) . It may be that physician ordering behavior isA insensitive to be information. other factors such as drugA efficaciousness, , patient conformity, side effects and peer recommendationsA may be more of import. ( 61 ) ( 20 — -5 ) Particul arly for chronic attention medicationsA that have proven to be effectual for an single patient, A cost may be a minor factor. However, several studiesA have shownA that instruction of doctors about drug monetary values can alter prescribingA behavior and cut down cost by bettering selectionA of cost-efficient drug intervention. ( 62,63,64 ) ( 33-18,19,20 ) In qualitative surveies drug monetary value was a perennial subject and was mentioned as the chief ground for taking first line intervention. Price was besides mentioned as the ground for drug switch. ( 2 ) ( factors Allan ) It has been noted that when doctors were cognizant that patients would hold to pay out of their ain pockets for prescriptions, or they learned from patients ‘ ailments to them, they modified their prescribing behaviour consequently. ( 58 ) ( pres by can ) At primary attention degree, every bit high as two tierces of all prescriptions were repeated. One possible ground may be the impact of infirmary prescribing in volume was most obvious with repetition prescriptions for patients with chronic upsets. ( 9 ) ( 32 ) Second possible ground is that big proportion of repetition prescription issued during indirect contact. ( 24 ) ( 17 ) In UK survey, it has been found that 23 % of the patients had been having repetition prescriptions for more than a twelvemonth without seeing their household doctors. ( 65 ) ( 17 — -2 ) Practices with high figure of patients on repetition prescriptions were found to hold an increased hazard of polypharmacy. It has been noticed that patterns utilizing a broad scope of different drugs had a high prevalence of polypharmacy. ( 66 ) ( 18 — -31 ) Doctors ‘ beginnings of information about pharmaceutical agents are likely to be a major factor in ordering behaviour. The drug representatives visited doctors on frequent bases utilizing a broad assortment of promotional techniques including drug samples, gifts, and educational stuffs. Accepting drug samples was associated with penchant and prescription of new drug ( 25,67 ) ( 29, 29-40 ) In one survey, it has been found that 85 % of medical pupils believe it is improper for politicians to accept a gift, whereas 46 % found it improper for themselves to accept gift of similar value from a pharmaceutical company. ( 68 ) ( 29 — -9 ) All educational stuffs sponsored by pharmaceutical industries including support for travel or lodging to go to educational symposia, industry-paid Meals, pharmaceutical representative talkers, CME sponsorship and honoraria, research support influenced prescribing. ( 25 ) ( 29 ) The determination that advertising on clinical package had small consequence on ordering behavior was similar to other surveies consequences when analyzing the relationship between ordering and advertising in diary. One survey found no relation between the advertisement and for a drug and the sum and prescribing by doctors. ( 69 ) ( 5 — -11 ) Patients It is sensible that patterns with high proportion of aged patient had high rates of drug use. The observation that some of patterns had sicker patients than others ; this observation may be due to that sicker patients chose specific patterns or physician ordering behavior may hold made their patients sicker. ( 4 ) ( 1 ) It is non clear why sicker patients chose peculiar patterns. One survey has found that patterns with high proportion of aged patients were associated with greater likeliness of prescribing of new drugs, but lower new drug use. It has been suggested that doctors faced patients with coexisting disease. ( 70, 71 ) ( 19-53,54 ) The determination that patients in the distant parts had low prevalence of drug prescribing may hold been because of limited entree to medical services. ( 72 ) ( Quesinable presc ) Females were prescribed more medicines than males. When gender-specific medicines are excluded the differences are less marked. ( 73 ) ( 9-16 ) When female-specific cura tive groupings and interventions are removed, differences still exist between male and female prescribing.DecisionsDoctors ordering behavior appears to be influenced by multiple factors. Majority of surveies in this reappraisal retrieve their informations from wellness database. However, these comprehensive wellness databases have no information on the indicants for drug intervention or ascertainment of comorbidity that may hold affect ordering behaviour. Therefore, properties of the pattern population demand to be considered as possible prejudices. Data is missing on combination of each factor to patient outcomes, this spread in the literature needs to be addressed. Therefore, it is hard to mensurate the rightness of doctors ordering. Physicians ordering behaviour can be improved by execution of easy progressing alterations. Finally, ordering is a clinical determination ; surveies ; of clinical determination devising are about people, behaviour and contexts. They need both quantita tive and qualitative attacks. Davidson et al. , 1995 Canada 336 general patterns Gill et al. , 1997 United kingdom 310 general practicians Denig et al.,1998 Nederlands 181 general practicians Steffenson et al. , 1999 Danmark 95 general practicians Handerson et al. , 2008 Astralia 1336 general practicians Bjerrum et ak. , 2000 Danmark 173 general practicians Harris et al. , 1996 United kingdom 115 general patterns Chon et al. , 2009 Taiwan 11338 prescriptions Mortin et al. , 2002 Newzeland 31 general patterns McGavock et al. , 1988 United kingdom 23 general patterns Fernandez et al. , 2008 Spain 5474274 prescription McCarthy et Al 1992 United kingdom 362 general practioners Guo et al. , 2003 USA 7.3 million prescriptions Bjerrum et al. , 2002 Danmark Bjerrum et al. , 2001 Danmark 173 general practioners Rberts et al. , 1993 United kingdom 90 general patterns Straand et al. , 1999 Norway 1677 prescriptions Bjerrum et al. , 1999 Danmark 173 general patterns Tamblyn et ak. , 2003 Canada 1661 general practicians Omstein etal. , 1999 USA 22883 prescriptions Grimmsmann et al. , 2009 Germany 730 general patterns Buck et al. , 2009 USA 61251 patients Kuijpers et al. , 2008 Nederlands 150 patients Martens et al. , 2007 Nederlands 53 general practicians Straand et al. , 2006 Norway 600 general practicians