Carl Jung and His Theories Essay

Carl Jung’s theories are interesting. He studied the personality as something very important to a person–it is embedded within us and is what emerges to the outside world so as to be seen by others. His three principles: opposition, equivalence and entropy is quite great and for me, really describe every humans’ way of interacting with their environment and the way they come to pursue and continue everyday life. I find it true enough that humans have this general life energy (libido) and uses it in everything they do. All of us are rational beings and we always have these drives to get on with things we often feel that need to be done. Through our consciousness and unconsciousness, we are able to get past every obstacle and track our â€Å"missions† in life. Carl Jung explained in his theories that humans do tend to become someone in order to be accepted by other people and to succeed in life. And for me, he is trying to convince all of us that every human, young or old, are born to have visions and views in life, different aspect within us, and a will to be free and be happy—yet all of these are not totally within our reach because of our differences. That’s why Jung, for me, was able to explain why and how people uses different mechanisms to live happily or even just be able to go on with life with his theories. I, as a person, can relate my personality to some of Jung’s theories. I can say that I am an: †¢Introverted feeling type because in this personality type, it is said that one is capable of deep emotions but avoid any outward expression of it. Yes, this describes me because I am the type of person that is strong on the outside yet fragile on the inside. I tend to really suppress all my emotions because I am afraid to be criticized and be rejected by the people around me especially that most of them are stereotypes. †¢Extraverted thinking type because an individual having this type represses one’s feelings and emotions, is objective in all aspects of life, rigid and cold, and scientist. As what I have said earlier, I hide my emotions to avoid criticism. Also, I always have plans in everything I do in order to achieve positive outcomes even in the simplest things I make, thus making me  rigid and cold since in line with achieving in life, I lean on focusing to myself and not with others. †¢Introverted thinking type because this personality type describes the person as intensely concerned with privacy and understanding to oneself rather than other people. I always prioritize privacy and I can’t live without it. I always keep secrets because I don’t trust the people around me that much and I can’t risk my privacy to them†¦ and due to this, I am more understanding to myself than others because my philosophy in life is to make the best out of myself first before others. Some may say that I am selfish and greedy but that’s what I am, I always give myself the most priority I could give. Every person is different and unique. You may find someone who is like you or like the person you know but lying deep within us is someone only us can discover—if we can. We must respect each other in every way because we are made equal and that everyone should be treated in the same way.

Response to “Superman and Me” Essay

â€Å"Superman and Me† is an article by Sherman Alexie that addresses his early experiences with literature. Illiteracy is a huge issue in some lower class groups. Alexie states that, as a Spokane child, his future would likely consist of minimum wage jobs (Alexie 89). The author portrays literacy as a method of escaping these circumstances. In â€Å"Superman and Me†, Alexie describes how he gains his ability to read and write. He begins his journey to literacy in the most unlikely of places: a Superman comic book. The author explains that his reading trials expanded beyond those colorful pages, and allowed him to read the novels his father brought home. Clearly, the fact that he was surrounded by literature seems to have led to him becoming literate. These efforts led to hardships. Cultural expectations of Native Americans challenged him throughout his childhood. It is amazing that he had so many of these struggles as a child. Regarding the time he spent in class, the author notes, â€Å"We were Indian children who were expected to be stupid† (90). Alexie describes his classmates as being brighter outside of the classroom. This contradiction is puzzling. It seems as though the children are seeking to fulfill a role expected of them by the mainstream. It would take a strange kind of culture to disapprove of reading and learning. Still, Alexie disregards such negative influences. The story is painting a bigger picture, as far as literacy goes. Just as Superman breaks through the door to his target, Alexie does so as well. The breaking of the door represents a mental breakthrough. Instead of superpowers, Alexie has knowledge. He knows that literature can open the door to new opportunities. This is why he wishes so strongly for those failing students to strive for more; they can become something more than Spokane reservation kids. â€Æ' Works Cited Alexie, Sherman. â€Å"Superman and Me.† The McGraw-Hill Guide: Writing for College, Writing for Life (Student Edition): Duane Roen, Gregory Glau, Barry Maid.

Decision Making and Favorite Poem Essay

My absloute favorite poem we studied was â€Å"The stone† The way Wilfrid Wilson Gibson tells about the sorrow a woman goes through after the loss of her loved one is unmatched by anyone else. My third and final favorite poem was â€Å"Song† by Garcia Lorca. â€Å"Song† tells of â€Å"The girl of beautiful face† who â€Å"goes gathering olives†. The way Lorica paints a picture of content in the girl is what strikes me most about this poem. Many eligible men come by to take her away to their country. â€Å"Four ride’s†¦ on Andalusian ponies [say] come to Cordoba, lass†. But â€Å"the girl pays no heed†. Man after man comes to bring her home but she does not accept. This is because she is happy where she is, and she does not need anyone to make her feel content. I also liked the way the author uses personification, he writes â€Å"with gray arm of the wind encircling her waist†. Here he implies that the wind can grab the girls waist, when in fact that is not true. The author also uses free verse because there are no patterns in his writing. His writing sounds more like a paragraph then a poem to me. My second favorite poem was â€Å"Ordinance On lining Up† by Naomi Lazard. This is due to the message behind Lazard’s words. I believe that the author’s message in the poem is that people have to make many life altering changes in their life. Each decision, a metaphorical â€Å"path† they have to take, each have their perks and each have their downfalls. An example of this is â€Å"In joining the line to the right you ill end life as a beggar. If you decide on the line to the left everything you believe will become nonsense†. I also liked the use of metaphor in this poem. In fact, this whole poem is a metaphor. There are two lines, one on the right and one on the left. The author is saying you must make a decision, and comparing the decision to two lines. She uses free verse in her writing. This poem is written like a paragraph that has been cut at random places. There are sentences that end in the middle of lines, and there are sentences that go for more then two lines. The reason I liked this liked this poem is because I could relate to it closely. Every day I must make big decisions and small ones. Which ever way I choose, I will never know the outcome of the other one, but that is the risk we take getting out of bead in the morning. One of the biggest decisions I have had to make so far is whether go to go to Stuyvesant or go to the high school next to my house. They both had positives and negatives. Stuyvesant was farther away from my home, and is a much harder school that would require much more focus and work. The other school was ten minutes from my house and would not be as taxing on my brain. Although I could relate to this poem greatly, the message behind is was very obvious and did not require much thinking. Because of this it was only my second favorite poem out of the sixteen we studied. The poem which intrigued me the most was the first poem we studied, â€Å"The Stone† by Wilfrid Wilson Gibson. This poem was my favorite simply because of the use of language and visual imagery. An example of this is, â€Å"three days before, a splintered rock had struck her lover dead† this quote paints a picture of death in my mind that is unlike any other sentence I have read before. Another reason I loved this poem so much was the way Gibson shows you the lovers feeling of sorrow after the death of her loved one. The author states, â€Å"She did not sigh nor moan. His mother wept: She could not weep. Her lover slept: She could not sleep. Three days, three nights, She did not stir: Three days, three nights, Were one to her, Who never closed her eyes From sunset to sunrise, From dawn to evenfall, Her tearless, staring eyes,That, seeing naught, saw all. This shows how the heart reacts to devastating news. She was in such shock and sorrow that she could not even bring herself to cry. Among the other poetic devises used, I epically like the way the author uses personification, â€Å"The two of us were chiselling, Together, I and Death. † The author uses the word death so freely, it almost makes me feel like death is such a common thing. Through Gibsons use in language, visual imagery and overall feel of the poem, he has created a timeless masterpiece.

Compare and Contrast the History of Coffee in Brazil, Colombia, and Essay

Compare and Contrast the History of Coffee in Brazil, Colombia, and Costa Rica in the Nineteenth and Twentieth century - Essay Example It has been proven that during monopoly, Coffee is one of the most favored, finest, and the richest product of the people until now. The reason why they always wanted this overwhelming product that made coffee to be the world's largest in trading. The major coffee importing countries are United States, Germany, Japan, Italy, and other European countries. These include the South and Latin America, as the major importing countries; such as Brazil, Colombia, and Costa Rica. Let us tackle the history of the three countries: the Brazil, Colombia, and Costa Rica, and on how their coffee products came to be different in the 19th century and 20th century It's Francisco de Mello Palheta who introduced coffee in Brazil. He got some coffee beans in France to be planted in 1727. Paran, Espirito Santos, So Paulo, Minas Geraes, and Bahi are the states in Brazil where coffee cultivars were grown. In the past, Brazilian coffee refers only to a low quality mixer. It is the time when the Organizations and Institution of the coffee industry such as International Coffee Organization (ICO) and the Brazilian Institute de Caf (IBC) set quotas for importing and exporting coffee products. They just only consider the price, quantity and the volume of the product because of the quota system. Brazilian coffee plays only as a mixer in the higher quality coffee to reach the demands of quota considering its quantity and not its quality. Because of these, other coffee sectors deteriorate while other rises. But , the new government in Brazil have observed the problem of these quota system, so they decided to broke this system to a new right to have a reformation on how coffee was processed and most importantly, to develop its economy and industry through a coffee product trade. The San Paulo, Rio de Janeiro, Minas Geraes, and Espiritu Santo are some of the districts in Brazil who are the coffee growers. Of these four states, San Paulo produces the largest quantity and certainly the finest quality.But according to the Diagnostico da Cafeicultura em Minas Gerais, the vast majority of farms in Brazil are less than ten hectares in size and only 4% of farms were larger than 50 hectares. It means even though Brazil has a small portion of farm to harvest coffee beans, still, Brazil is the world's largest coffee producer and that produces a large supply of coffee in the world. And they say that eighty percent of this is Arabica. Their coffee undergoes to the following processes: Wet processing (washed) Dry processing (natural) Semi-washed process (pulped natural) Of the three processes mentioned above, the vast majority still processed the dry method because we all know that Brazil is one of the countries in the world that has the appropriate weather to do this process. Many people observe that Brazil is one of the most advanced and well-cared-for processing systems in industry. They carefully pick and nurture even an individual bean, that a single bean can create a larger number of coffee beans. Government was interested in this coffee trade because the financial stability of the country depends

An appeal letter Essay Example | Topics and Well Written Essays - 250 words

An appeal letter - Essay Example I was at a coffee shop with a few friends. One of them got a phone call from his girlfriend who was having some issues with some other females. And I was asked to take my friends to the location to try and resolve the situation. Regrettably it turned out to be physical, and I happened to be the driver. Everything seems to collapse after the conviction of the crime. My dream, my ambitions, my bright future were quickly melted. It pains me when I have to reveal this awful time in my life. The conviction is always hunted me in everything that I dealt with, from applying for a job to buying a health insurance, or trying to get certificate license for Massage Therapist. There were times that I was depressed and wanted to give up. But with the comfort from family, advice from friends, and psychologist’s counseling, I stood up after falling down and became a strong man. However, these difficulties awaked my potential for enhancing academic and practical credentials, and provided the opportunity to become a resolute, goal-oriented person. I realized the importance of ‘strict to oneself’. I tried to get back to school and work hard, from a waiter, assembly technician, to a delivery man. I’m now majoring in Education and have completed about 40 units at Ashford University with 1000 hours practicing in massage therapy. My exposure to this practice provided me with a sense of fulfillment, a motivation to gain more knowledge in this field, and most significantly determination what I want to do for rest of my life. Getting the certificate license in massage therapy is the pedal for me to fulfill my dream. I’m not sure if my mistake will be forgiven, but with the ideal that all of us have in mind that we are living in the â€Å"country of opportunities† I’m hoping that the ‘Ethics & Standards Committee’ would allow me to take the exam. Given a chance I would able to fulfill, preserve and cherish the desire to

International Business Essay Example | Topics and Well Written Essays - 500 words - 4

International Business - Essay Example Modern society belong to the world of globalization and liberalization. Most of the countries changed the rules and regulations to accommodate Globalization and Liberalization. The boundaries of such countries are open to MNC’s irrespective of their origin or culture. But the main problem is such MNC’s have monopolized the market and small companies found it extremely difficult to survive in the market. The entry of MNC’s mostly welcomed by the consumers since they are getting quality products at affordable prices. But the small local companies are unanimously opposing the entry of MNC’s because of their inability to compete with the MNC’s. Now the question is how far a government can open their doors for the MNC’s? Can a government keep a blind eye towards the needs of small local companies? How can a government protect the interest of small local companies after signing agreements with regional trading blocs? â€Å"Regional integration agreements (RIA), also known as regional trading blocs, have become one of the major international relations developments in recent years. Most industrial or developing nations belong to one or more RIAs, and there are many. It has been said that more than one third of all world trade takes place within RIAs and that percentage increases daily. The merits and demerits of foreign culture will be induced through the MNC’s which will be a threat to the tradition and culture of the country.

The philosophical ideas of determinism, compatibilism and Essay

The philosophical ideas of determinism, compatibilism and libertarianism - Essay Example Determinism and compatibilism are two philosophical concepts which are strongly connected to human acts, behavior and events happening as a result. Determinism and compatibilism is voluntary in nature and when compared both these concepts has certain similarities. Determinism is a freedom which influences man to act in a certain manner which leads to further events or happenings. In the same manner, compatibilism is also an act which when performed in align with a person’s surroundings bring about positive after effects. In the same way, determinism is exclusively related to the freedom of human to act or react, just as compatibility. Compatibility is a philosophical idea which states that the free will is strongly linked with the pre- destined fate. Determination is also in a way, a strong belief within a person to act in a certain way to achieve a positive result in align with their fate. Comparision of Determinism and Libertarianism While determinism is a strong belief within a person to achieve some goal in align with pre- destined fate. Libertarianism is also a concept which believes that the human actions and events related to it are not within our control. Determinist believes that irrelevant to the action and thoughts of a person, the events happen according to a predetermined frame work of deeds. Same way, libertinism claims that actions of a person are not controllable and free will is just an opportunity for a person to prove his integrity and truthfulness to humanity and universe. Comparison of Compatibilism with Libertianism Compatibilism is a philosophical idea which believes that determinism and free will is connected deeply but the applicability of a person’s thought and actions is out of control in relation to uncontrollable external environment .On the other hand, libertinism is a concept which propagates complete freedom to human beings in any circumstances. Compatibility also detail about ethics and moral responsibility on a person, whereas libertinism states that ethical and moral responsibility of a person high due to the ultimate freedom given to him. Compatibility believes that freewill and determinism makes a complete combination. Obviously, Libertinism agrees with this matter as it advocates ultimate freedom to the human in every circumstance. According to (Wilmot) â€Å"Libertinism is the conviction that one has to be liberated from moral restraints in

The Business Environment of the Modern Day Society Research Paper

The Business Environment of the Modern Day Society - Research Paper Example Because of this transformation of the world, information from various corners of the world can be easily accessed by individuals and organizations without facing the problems of existence of a geographical barrier. The availability of various kinds of free data and other information content has automatically contributed in the rapid dispersion of various kinds of global trends. The fast maturity of markets around the world with response to the global trends resulted in creating unique demands from the consumers located in the developed as well as the developing markets. Business organization and companies in order to attain future growth in their areas of businesses increasingly try to focus on fulfilling the demand arising in the new as well as established markets located all over the world. However, before entering into a new market or trying to fulfil an existing or emerging demand in an already existent market, firms and organization often conduct external as well as internal env ironment analysis. While the internal analysis of the firms’ environment brings into focus the various advantages and disadvantages that are existent within the possibility of control of the firm, the external analysis outlines the positive and negative points that are beyond the controlling ability of the firm. Talking in a little detailed manner about the analysis of the external environment, it has to be said that the PEST analysis plays a very critical role. The PEST analysis comprises of evaluation of the external environment from the perspectives of political, economic, social and technological factors. It is important to mention that the PEST analysis is a highly effective tool for organizations that are looking forward to identify and control the weaker sides of the business environment so as to generate significant amount of potential leverage for their own product or service offerings (Henry 2). Talking more on the same note, it has to be said that by using the PEST analysis, the organizations look forward to capitalizing on their core competencies while addressing significant anomalies that might alter the balance existing in a competitive environment of business. It is relevant to mention the fact that when firms and organizations look forward to implementing a PEST analysis for analyzing and studying the current business environment, focus has to be given on a particular region on the basis of the firms’ product or service offerings. Also, an effective study of the business environment by the firm while using the PEST analysis will help the organization or firm to identify potential areas of business opportunity and threats (Ward and Daniel 28). Talking in a little elaborate manner about the factors that comprise of the PEST analysis, a brief description about each of the four factors has to be provided. While discussing the political factors, issues comprising of consumer protection law, contract and property rights, exchange rate p olicies, healthcare policies, political stability and trade regulations has to be taken into consideration. The economic factor will cover the analysis on the lines of availability and cost of workforce maintenance, growth factors of the economy, economic growth rate, rates of unemployment and inflation, stability of the exchange rate of the currency as well as existence and nature of the free market. While talking about the social factor of the PEST analysis, importance has to be given to issues like demographic factors, education, spirit of entrepreneurship as well as factor of wealth distribution. Finally while discussing about issues related to

Digestive Enzyme Experiment Essay Example | Topics and Well Written Essays - 2000 words

Digestive Enzyme Experiment - Essay Example There are two (2) main reasons why the digestion of starches starts in the mouth (i.e. salivary amylase) and eventually stops as soon as the partially digested starches could reach the stomach. First, it is important to know that digestion of food nutrients can occur using either mechanical digestion or chemical enzymes and that starch is a polysaccharide that can be digested only via chemical reactions (Eliasson, 2006, p. 475; Sullivan and Cooley, 2004, p. 45). Second, the stomach is responsible for mechanical digestion (Rechtman, 2004, p. 114). Since starch cannot be digested mechanically, it is impossible for starch to be digested in the stomach. Basically, starch is a good example of complex carbohydrates (Shetty, 2010, p. 24; Chopra, 2005, p. 91). Because of the long chains of glucose that are heavily tied up together, carbohydrates such as starch can only be broken down by enzymes such as the salivary amylase (Sullivan and Cooley, 2004, p. 45). Eventually the reaction of saliva ry amylase can break down starch into a much simple carbohydrates which then can be absorbed in the small intestine (Eliasson, 2006, p. 475). In general, salivary amylase is not the only enzyme that can be use to digest starch. Other enzymes such as the pancreatic amylase as well as maltase can also be used in the chemical digestion of starch (McGuire and Beerman, 2013, p. 130; Eliasson, 2006, p. 475). For instance, as soon as the pancreas releases pancreatic juice like pancreatic amylase, it can further break down the polysaccharides.

Customer Service Careers Essay Example for Free

Customer Service Careers Essay What does Customer Service mean to you? Is it simply taking care of your daily customers’ needs? What about the concept that your employees are also your customers? Does that change your outlook on the idea of customer service? This essay will explain the internal customer concepts of human relations. Human relations, in definition, are â€Å"the skill or ability to work effectively through and with other people†. (Lamberton, p.4) As a manager, you need to understand the needs and wants of your employees. You should have an effective training program that is set up with clear guidelines and expectations. Providing feedback during the training and throughout employment is crucial. This allows for open communication between management and employees. Future goals can be discussed and additional training available to aid them on those journeys. Areas of improvement can also be discussed without singling out the negative. Read more:  Customer Service in Leisure and Recreation In human relations it is very important to know the values instilled by the company. It is also important to help the employees â€Å"understand and accept the values of others without compromising their personal integrity†. (Lamberton, p.114) Communication and compromise are vital in any organization. It is not necessary to disregard your values for someone else’s, merely understanding where they are coming from and finding common ground to build on. You’re job in human relations is help bridge those gaps and assist in dealing with those conflicts. â€Å"Something powerful happens when people see themselves as part of healthy, functional community and have a positive experience of that.† (Everett, p.78) Positive attitudes, job satisfaction, high morale, and positive reinforcements are just a few examples of ways to succeed. Involving employees in decisions and setting realistic goals will help to improve  motivation as well. Employees need to feel that they matter as individuals, not just a part of the company. Managers are crucial in developing mutual respect, self-esteem, and solving conflicts. The better your communication skills are the more likely you are to be successful. Also, being able to maintain a positive attitude increases the morale of your internal customers, or employees. References Everett, Melissa (2007) Making a Living While Making a Difference: Conscious Careers for an Era of Interdependence Lamberton, Lowell, Minor, Leslie (2010) Human Relations: Strategies for success

Relationship Between Trade Volume and Stock Price Variation

Relationship Between Trade Volume and Stock Price Variation Relationship between trading volume  and the stock price  variation in the London Stock Market Chapter 1 Introduction Trading volume is the signal of activity occurring in a stock that is a product of some sort of stimulus. Stock price variations represent changes in stock pricing as a result of the same factor, outside stimulus. With the foregoing being the case, it is apparent that there is a definitive link between these two facets as they represent the activity that is the purpose of listing companies, to let the market determine their value. Nguyen and Daigler (2006) add illumination to the preceding by using a Wall Street adage that states â€Å"it takes volume to make prices move†, and that â€Å"volume is relatively heavy in bull markets and light in bear markets†. Karpoff (1987, pp. 109-126) adds that is a link that exists between trading volume and price change, and that there is a link between trading volume and the fluctuation level of price change. Thus, from the foregoing, trading volume and stock price variations are linked in their activity. Therefore, it is the nature of this linkage that represents the nuance of the question. The question is, what are the dynamics of that relationship and how does it work? Does trading volume move and affect stock price variations, or is it stock price variations that help to impact upon trading volume? How does trading volume increase or decrease and what are the stock price reactions that can be gleaned from these movements as represented by what cause and effect relationships. These contexts will be explored and examined, taking into account the market mechanism in which they occur, the London Stock Exchange, and how such dynamics interact upon each other. The London Stock Exchange was founded on 3 March 1801 and represents one of the world’s largest and most active stock exchanges, and its formation provided a market for securities as well as regulations in the manner in which business in the case of public companies should be conducted through monitoring and adjudication by a committee that was â€Å"†¦ enforced by the threat of expulsion †¦Ã¢â‚¬ . (Michie, 1999, p. 35). Stock markets represent an organized and regulated system where capital allocation occurs through the trading of securities that represent the shares of listed companies (Baumol, 1965, pp. 2-10). Companies that develop new products, build a reputation in consumer or industrial markets, earn dividends and returns, and allocate their resources to build internal value that is translated into stock pricing. The foregoing represents simplistic explanation of a process that in reality is an extremely complex matter. The anticipated and â€Å"†¦ exp ected future dollar benefits to be received by stockholders are dividends†, which represent the means via which returns on stockholder investment are transferred directly back to the shareholders (Bolten, 2000, p. 9). Thus shareholders and potential investors in companies look at a company’s past, present and future projected earnings as a factor in whether to acquire, retain and or hold onto a stock. There are numerous factors at work in the market a company operates in, as represented by competitive positioning, the overall economic situation, demand for products, goods and or services in the industry sector the company operates in, new developments and a host of other variables that can and do affect company performance, earnings and the ability to pay dividends, all of which represent risk. The importance of the preceding is that these risks can either result in positive or negative developments, thus, if a stock is projected to and or is returning dividends lower than when the stock was acquired, its price will reflect this and subsequently be lower, with the opposite also being true (Bolten, 2000, p. 10). However, the preceding alone does not explain and or portray stock pricing on its own as there are other variables that will be discussed and examined in this analysis to draw correlations to the relationship between trading volume and stock price variations. Trading volume represents the number of shares that are traded during a given time period (investorwords.com, 2007) thus the preceding is relatively straightforward and easy to visualise. However, there are other underlying factors that represent deeper and more complex determinants that are part of stock trading volume. The varied facets of stock pricing, reflecting the relative success and or position of the company in terms of is sales, competitive posture, earnings performance, dividends, management, future industry prospects, product innovations, public relations activity along with the correlation of price/earnings ratios and numerable other factors that have a bearing on and in this process (Lo and Wang, 2000, pp. 267-300). The forces inherent in the stock market itself as represented by shorting activity, bid/ask spreads, institutional, professional and individual traders as well as economic forecasts and interest rates all have differing influences and effects within the pre ceding dynamics (Lo and Wang, 2000, pp. 267-300). The foregoing is a summary of the highly complex process of stock price variations that are effected and influenced by the complex variable of factors that interact upon each other. There are a number of theories on trading volume, just as there are for stock price variation. Mingelgrin et al (2001, pp. 877-919) along with Anshuman et al (2001, pp. 3-32) put forth that when stocks are experiencing trading volume that is unusually high, or low, earn either positive, or negative abnormal returns rise or retreat during the next month. This is explained as being a result of what they term as the combined return effect that is due to the increased, or decreased, stock visability after the aforementioned high or low trading volume. In this theory, Mingelgrin et al (2001, pp. 877-919) and Anshuman et al (2001, pp. 3-32) argue that stock visability can affect price as a result of a number of rationales. Mayshar (1983, pp. 114-128) draws the conclusion that when a stock experiences either high volume, the effect suggests either optimisum, in the case of buying activity, or negativeism, in the case of selling, that triggers additional activity based upon the premise of at tracting, in the case of buying, additional investors or added buying by present stock holders causing the demand curve to shift upwards. Such effect can be the result of positive news regarding the company concerning sales, meeting profit and or sales targets, and or estimates, positive economic news, and other variables with the reverse, selling sctivity, is also true. Other theories and approaches to the explanation of trading volume can take the form of investor trading styles, beliefs and or theories. Some, investors, utilize trading styles that are based upon the characteristics of the stock correlated against the company’s size and or momentum at a particular point in time (Admati, and Pfleiderer, 1998, pp. 3-40). There are investors, such as professional traders that utilize technical analysis as well as quantitaive strategies for trading whereby if the conditions fit their parameters they invest in large blocks of stock, thus drawing attention to the stock inviting similar or more analysis and potential buying activity (Barberis and Shleifer, 2003, pp. 161-199). The basic unifying theory behind this type of investor trading style is that they tend to hold and acquire stocks that fit their defined characteristics. Conversely, when a stock selection no longer fits these pre-defined style paramters, they tend to be sold, thus creating an other type of trading volume swing if their share holdings are large enough, through the influencing of other shareholders, many of which utilize computer trading programs that detect and alert them to stock momentum swings (Barberis and Shleifer, 2003, pp. 161-199). Stock trading represents the opportunity for investors to profit on the upward movement of companies when their strategy is based upon price appreciation as opposed to dividend returns (Dow, 1999). Termed income stocks, dividend buying can occur at any time, but tends to happen mostly after an established period of earnings and dividend growth, whereas growth, or price appreciation trading is generally tied to positive company developments, news, acquisitions, new markets, innovation and changing industry conditions (Dow, 1999). Growth or price appreciation investors sell winners and sell losers or tend to hold or utilize what is known as averaging to buy additional stock as a lower price so that when it moves upward they can either retrieve losses or break even (Odean, 1998, pp. 1775 – 1798). The varied motivations, trading strategies, theories, trading styles and additional aspects are factors tied to company performance, news, market fundamentals, market cycles, stock price s, and other variables which shall be further examined in terms of the various components of trading volume and stock price variation. Chapter 2 – Trading Volume The factors influencing and affecting trading volume can range from the effects of institutional investments, professional traders, trading programs, company momentum, earnings growth, new product introductions and similar positive company news and or developments, economic forecasts, interest rates, speculation, price appreciation or growth, income or dividend investing, price earnings ratios and positive company fundamentals. Each of the preceding represents a factor or factors that investors utilizes in making a determination to buy or sell, thus creating trading volume. The first of these, institutional investing, represents one of the most influential forces in stock market trading as delegated portfolio management, as it is termed, represents investments made by pension and mutual funds representing huge sums of financial resources seeking growth, or price appreciation, returns (Naik and Maug, 1996). This group is the most influential of all the preceding categories as a result of their research staffs, analysts, corporate analysis programs, tracking programs and other measures as portfolio managers have access to the most complete cross section of economic, industry, individual company and overall stock market data. As a result of the large sums of money that portfolio managers control, their buying and selling activities are closely watched and observed by their peers, thus representing tremendous sums of money that can move into and out of stocks based upon developments that these individuals believe represent buying opportunities, or conditions earmarking sale (Naik and Maug, 1996). Portfolio managers in the U.S., as a result of their fiduciary responsibilities have a number of constraints governing their investment decisions and choices which represent â€Å"†¦ protective covenants †¦Ã¢â‚¬  put into place to mitigate agency problems concerning the actions of investment firms and their portfolio managers who are acting in the public trust (Almazan et al, 2004, p. 289). The preceding is a product of the pressures of the compensation based earnings incentives that portfolio managers operate under, and the risk taking decisions they are subject to. The incidence of peer watching in this industry is an important facet of their investment making decisions as opposed to the belief that they tend to act on individual information and analysis, which is the case for the brightest and most respected of this group, but by and large portfolio managers tend to be followers (Naik and Maug, 1996). The foregoing provides an explanation as to why there are huge monet ary movements into and out of stocks triggered by investment decisions of a key respected group. U.S. pension fund strategy tends to invest more heavily â€Å"†¦ in lower volatility domestic bonds than their UK counterparts †¦ (which tend to) †¦ have a far larger weighing in higher volatility equities† (Blake et al, 1998). In terms of regulations imposed upon UK portfolio managers represents the less restrictive â€Å"†¦ of externally imposed restrictions †¦ on their investment behavior †¦Ã¢â‚¬  found anywhere in the world (Blake et al, 1998). UK portfolio managers are basically â€Å"†¦ unconstrained by their liabilities †¦Ã¢â‚¬  and â€Å"†¦ trustee sponsors †¦Ã¢â‚¬  basically do not infer with their daily operations and investment choices, which is different from â€Å"†¦ their counterparts in continental Europe and elsewhere †¦Ã¢â‚¬  (Blake et al, 1998). This means that UK portfolio mangers can invest in basically â€Å"†¦ any security in any asset class in any currency †¦ and in any amount †¦Ã¢â‚¬ , however there are trustee resistances to derivatives as well as statutory differences regarding â€Å"†¦ self investment in the sponsoring company† (Blake et al, 1998). The preceding is in sharp contrast to portfolio mana gers in the United States who face substantial regulatory controls and litigation threats â€Å"†¦ over imprudent investment behavior †¦Ã¢â‚¬  (Blake et al, 1998). This relatively open and unconstrained investment climate gives UK portfolio managers a large degree of latitude, thus the effects of their investment decisions, monetary movements and reactions of peers and laggards, meaning those who tend to follow the buying and selling behaviours of the more astute managers, has a more profound effect on trading on the London Stock Exchange than in the United States and many other markets. The effect of the follow the leader approach, as put forth by Naik and Maug (1996), does have its supporting points. Fund managers are usually benchmarked against the performance of other fund managers, thus their having usual downward deviations as compared with the industry as a whole can have consequences in terms of their careers and or rankings, whereas standard returns represent the expected performance of the industry and thus investors in the fund are not negatively impacted (Naik and Maug, 1996). The preceding is referred to as a â€Å"†¦ relative performance evaluation element †¦Ã¢â‚¬  and this represents important factors that thus influence the decisions of the portfolio manager’s on how he allocations assets (Naik and Maug, 1996). The importance of the examination of the operational facets that portfolio managers operate under is important in the discussion of the relationship between trading volume and stock price variations in the London Stock Exchan ge as a result of the huge sums of money that portfolio managers control and how such impacts upon the decisions of other investor areas, professional traders, trading programs, style investors, and private investors as a result of their clout. The impact of the preceding is found in the highly concentrated nature of the fund management industry in the United Kingdom whereby a poor fund performance stands out more than in the United States, thus they stand the risk of losing substantial market share as a result of poor performance (Blake et al, 1998). Thus, while UK portfolio managers have less outside regulatory constraints, the market dynamics with regard to the reduced number of funds thus makes them more risk averse, thereby the decisions they make are viewed as being sound by their peers and the general public (AON, 2005). In equating the relative influence that UK portfolio managers have in the market is reflected by the fact that â€Å"†¦ fund assets for UK companies are around 27% (2004) of the market capitalization† of a company, as opposed to approximately 16% in the United States (AON, 2005). The preceding means, according to an analysis conducted by AON, that the theoretical â€Å"†¦ impact on the share price of UK companies †¦ (by funds is) †¦ 7% †¦Ã¢â‚¬  as compared to the impact of funds on share price in the United States that is estimated at 4%. To gain a perspective on the foregoing, one needs to have a broad picture of the ratio of pension funds in relationship to the Gross Domestic Product (GDP) for Organization for Economic Co-operation and Development (OECD) countries, which stood at an estimated 43% in 2004 (Roldos, 2004). The preceding represents significant influence that funds hold over the market and thus the share prices of companies by their investment decisions. Pension funds and other institutional investors have and do play an important part in the â€Å"†¦ substantial growth and structural changes in capital markets †¦Ã¢â‚¬  as a result of their providing a means for smaller investors to pool their risks thereby providing them with increased diversification as well as reduced risk and enhanced return (Roldos, 2004). The impact and influence of UK pension funds represent ownership of 16% of listed UK companies, or  £230 billion (FairPensions, 2007). The growth in the power of pension funds and other institutional funds is and has replaced savings in banks as the means for individuals to build retirement income thus representing the growth in the importance, impact and power of funds in the stock and other asset investment markets (Roldos, 2004). The preceding is a significant in that funds will continue to experience their growth patterns thus increasing their impact in investment vehicles and the corresponding influence over pricing and valuations. The importance, impact and influence of institutional funds, which in this context shall refer to pension as well as other fund types, which are at the core of the important relationship between economic development and finance which entails an understanding of the theories, rules, institutions and systems that interact with and impact financial markets and thus stock performance. One theory, ‘efficient market hypothesis’, is defined by Fama (1970, pp. 383-417) is one whereby security prices always reflect the available information regarding the fiscal standing of a listed company. Fama (1970, pp. 383-417) indicates that there are three types of ‘efficient market hypotheses’; the weak, strong and semi-strong forms. The ‘weak form’ suggests that past returns and or prices are a reflection of future returns and or prices, and this form has seemingly held true as a result of the inconsistencies in the performance of technical analysts (Fama, 1970, pp. 383-417). Fama (1970, pp. 383-417) expanded upon the ‘weak form’ concept, including the predicting of future returns utilizing macroeconomic variables and or accounting tools, with the factor of predictability representing the case for arguments against this form. The ‘strong form’ suggests the prices of securities are a reflection of all available data, even that which resides in the private sector, which is open to question in that the well known insiders trading profits are not immediately or readily incorporated into trading prices as put forth by Seyhun (1986, pp. 1337-1345). The ‘semi-strong’ form puts forth that the prices of securities is a reflection of all public information that is available, thereby indicating that securities are not over or under valued, which means that trading is not capable of generating superior returns (Fama, 1970, pp. 383-417). Pinkerton et al (1996, pp. 247-266) tested this hypothesis through intraday tests concerning the release of public information that provided evidence that such developments impacted the price of stocks within minutes, thereby validating this hypothesis in most instances. However, those changes were a result of selected availability to the information by traders and institutional investors whose buying or selling of stock represented the fuel for corrections, thus not proving the theory to hold true as to public information availability adjustments. This was proven via studies conducted concerning announcements such as earnings, stock splits, divestures, takeovers and capital expenditures whereby stock pricing adjustments, in general, happen in a day as opposed to the theory as put forth by the efficient market hypothesis. The ‘efficient market hypothesis’ makes the strong assertion that since new information is available and thus incorporated into the stock price, that such information (new) thus helps to spark increased buying or selling based upon the nature of such information. Ball and Brown (1968, pp. 159-178) conducted a study in the foregoing area with respect to earnings and indicated that the normal prediction of this area represents accountants calculating income from divisions, cost, production, overhead, depreciation, taxes, research and development, leases, and all manner of computations to arrive at projected earnings for a company based upon the information supplied at a given point in time. New and probable income and or market events are generally keep in the accounting area as scenarios that they can utilize to make adjustments to earning when any of the prior predicted occurrences happen, thus there is a delay in the transference of this new information into real terms, hence the statement of stock price corrections taking about one day to manifest themselves, which is contrary to the efficient markets hypothesis. Muscarella and McConnell (1985, pp. 399-422) in their study of capital expenditures found that unanticipated increases in this ar ea had a positive outcome on the market value of a company, and that the reverse was also true. Thus the announcement of such events first sends analysts scrambling to their computers to work in the new variables, thereby effecting a delay in the stock price, with immediate buying taking place as portfolio managers understanding the plus or minus connotations of such announcements and thus getting in of the anticipated stock rise before it happens, meaning volume drives the price before the figures are known and then the price settles in. Chapter 3 The Process of Buying and Selling Stocks To understand the dynamics with regard to the stock trading process, an understanding of the mechanisms is important. Every security that is traded on the London Stock Exchange has a market maker who thus provides a quote representing the buy and sell price of the stock, with the difference between the bid and offer spread representing where they make their profit (StockExchangeSecrets.com, 2007). Marker makers on the London Stock Exchange utilise the SEAQ, which brokers utilize to find out the current quotation, bid/ask price on a particular security (Pagano and Roell, 1990, pp. 63-115). The SEAQ is the Stock Exchange Automated Quotation System that is driven by quotes whereby it updates on a continues basis the bid and offer quotes established by market makers (Pagano and Roell, 1990, pp. 63-115). However the largest and heaviest traded securities use the SETS, Stock Exchange Electronic Trading System), that is utilized to trade blue chip UK stocks that matches buy and sell orders using a price/time basis (Pagano and Roell, 1990, pp. 63-115). The changes in the bid and offer price are reflective of changes that the market makers use based upon their information about the impacts of stock buying and selling as well as the formulas for a company’s market capitalisation, earnings and other variables. In most instances, the run up in price as a result of buying after an announcement tends to be in line with what the relative value of the announcement has in terms of the company’s position, price earnings ratio, market capitalisation and the weight of the past accomplishments of the company over a long period of time. In other words, when a stock initially goes public, investment bankers utilize highly complex formulas along with valuation methods to determine the value of a company via how many shares are to be offered and the price of those shares (investopedia, 2007). The initial price of a stock is a product of the calculated determination of the varied formulas and the relative attractiveness of a stock in terms of its anticipated public acceptance and build-up through advance interest on the part of institutional and private investors (GlobalInvestment Institute, 2007). As the company settles in to performance and achieving results, the stock price begins to change in what can be termed price adjustments as a result of the establishment of more history on the company and the public’s reaction to it via the laws of supply and demand, meaning the number of shares available and stock price correlations (Hischey, 1985, pp. 326-335). The overall facets determining the price of a stock is a complex set of variables. It represents an estimate that is performed of the cash, that includes the company’s future earnings, which can be extracted from the company factored by the fact that cash in the near term is more valuable that cash represe nting five years hence Chan et al (1990, pp. 255-276). In so doing, estimates are run to reach a determination of the risk involved in the receipt of said future cash, or business, along with the time period or periods necessary to accrue the calculated sum(s) (Brainard and Tobin (1968, pp. 99-122). Technical factors as well as the individual and collective sentiments representative of the market place that can thus be termed supply and demand, with technical factors a representation of facts that can be predicted or quantified. The foregoing represent aspects such as the aforementioned position of the company in its industry sector, the rating of its products, goods and or services relative to said industry, positioning of its competitors, its technical and innovative prowess, historical record in its market sector and effectiveness in combating its rivals, the extent of its products and market penetrations in comparison to its competitors as well as its capabilities and resources to deal with and respond to unforeseen events (Brainard and Tobin (1968, pp. 99-122). An example of a company in a solid current market position with sound prospects for the future is Dyson. Its revolutionary Dual Cyclone vacuum represented the first real innovation in the industry in decades, along w ith its revolutionary design, performance and value. The history of dramatic growth and successful expansion into international markets, coupled with its reputation, earnings and positioning as the top selling manufacturer in Western Europe as well as the leading company in the sales of upright vacuums in the large U.S. market in just 16 years represents an example of the preceding (UGS, 2007). The preceding illustrations concerning trading volume have been undertaken to provide the foundational background for a foundational understanding of stock price variation and trading volume on the London Stock Market. As indicated in the examples, factors, theories and explanations utilized represent a complex set of differing variables that are interconnected, yet separate aspects acting within the same context. And number of separate facets can trigger a surge in trading volume of an upward or downward nature that is usually first tied to investor sentiment, and in the case of institutional investors, their individual calculations, projections and analysis of company positions, financials and other factors. And for all of the preceding, it represents a series of initial educated guesses, backed up by technical information, market savvy, and doses of follow the leader, in the case of institutional firms. Chapter 4 – Relationship Between Trading Volume and Stock Price Variations on the London Stock Exchange The importance, impact and influence of trading volume as a compoent in the determination of stock price variations that has been examined through the effects of institutional investing trading volumes, regulations, the follow the leader and peer perspectives, impact of institutional funds as a factor of company and market percentages, efficient market hypothesis, and how stocks are brought and sold. Stock trading volume is linked to the activities conducted by companies as a component of their reputation, future business and earning prospects, the activities of public relations activities to keep the company in the minds of the investing and general public, the effectiveness of its products, goods and services in relationship with its competitors in its industry, and the relative position of the firm in its life cycle. Just as is the case with products that have what are termed their market introduction phase, period of growth, market maturity and sales decline that varying in lengt h and timing (Day, 1981, pp. 66-67), such is also true for companies. The company life cycle (QuickMBA, 2007) represents the stages that a company passes through which can vary in the period of time it remains in certain stages as a factor of its industry type as well as management innovation. The preceding has importance in an examination of stock price variations as well as trading volume in that newer firms will experience more stock price volatility than mature companies that are settled into their industries, such as General Motors, British Airlines, Marks and Spencer, and ASDA/Wall- Mart, as opposed to Dyson, Cambridge Display Technology and innocent. The relative position of a company in its life cycle standing of initial growth / emerging, rapid growth, mature and declining positioning represents a large difference in how the institutional and well as individual investor will view it in terms of it being speculative, growth, long term investment or income, meaning dividends (investopedia, 2007). The preceding represents facets that are reflecte d in its volatility, as initial growth / emerging companies represent a different investment as opposed to a mature company that has been around for decades and has an established stock price. As the later groups, mature and declining companies do not represent the optimum examples to examine stock price variation and their relationship to trading volume, they will be excluded from this examination, as their stock prices are relatively stable, show minor price variation swings and have steady established volume ranges whereby new developments, announcements, news and events, unless extremely dramatic, do not produce large stock price changes. And as is the case with trading volume, stock price variations can have a number of variables that represent differing factors in determining price at any given time. As explained in Chapter 3, The Process of Buying and Selling Stocks, the internal mechanisms of the London Stock Exchange operates in pretty much the same fashion as other major exchanges in that it utilizes market makers, bid and offer spreads and computerized quotation systems to provide brokers with information. As explained by Hischey (1985, pp. 326 – 335) companies are a product of their past and present industry performance as well as their reputation and appeal to the public representing supply and demand for its stock in correlation to that performance and projections of its performance in the future. Chan et al (1990, pp. 255-276) advises that the preceding also includes technical calculations of risk, and future performance along with cash positions and value. The ability of the company to demonstrate i ts potential to handle stable and unstable economic conditions as well as known and unforeseen events arising from competitors along with marketplace conditions, and its past history in the handling of these variables are also factors that are determinants of stock pricing (Brainard and Tobin, 1968, pp. 99-122). The correlation between the preceding and the effects of trading volume on stock pricing and how this impacts it, variations, represents a context that calls into play the aspects of trading volume referred to in Chapter 2 – Trading Volume, as well as Chapter 3 – The Process of Buying and Selling Stocks, and how these factors impact on stock price variations. Karpoff (1987, pp. 109-126) as well as Rogalski (1978, pp. 268-274) agree on the fact that there is a positive correlation between trading volume and price changes and that volume is related to price change magnitudes. The mixture of distributions hypothesis represents a dynamic method illustrating returns and trading volume when the information process regarding arrival has been identified (Andersen, 1996, pp. 169-204). Volatility in stocks represents the standard deviation of change in price that occurs in a specific time period (martinsewell.com, 2006). The mixtur