Linguistics and Language Essay Example for Free

Linguistics and Language Essay Language Comprehension †¢Language Production †¢Language Acquisition Psycholinguistics is a branch of cognitive science What will be covered in this class? †¢ How do we produce and recognize speech? †¢ How do we perceive words, letters, and sentences? †¢ How do we learn and recall information from texts? †¢ How can we improve texts to make them easier to understand? †¢ How does the brain function to process language? †¢ What are the causes and effects of reading disabilities? Is there language in other species? Central themes in psycholinguistics 1)  What knowledge of language is needed for us to use language? Tacit (implicit) knowledge vs. Explicit knowledge †¢ tacit: knowledge of how to perform something, but not aware of full rules †¢ explicit: knowledge of the processes of mechanisms in performing that thing 2)  What cognitive processes are involved in the ordinary use of language? How do we understand a lecture, read a book, hold a conversation? Cognitive processes: perception, memory, thinking, learning Some definitions of basic components of language: Semantics: The meaning of words and sentences Syntax: The grammatical arrangement of words in a sentence or phrase Phonology: The sound pattern of language Pragmatics: How language is used in a social context Examples from psycholinguistics Parsing garden path sentences The novice accepted the deal before he had a chance to check his finances, which put him in a state of conflict when he realized he had a straight flush. 1) The defendant examined by the lawyer turned out to be unreliable 2) The evidence examined by the lawyer turned out to be unreliable The process of parsing is the process of making decisions The effect of prior knowledge on comprehension The procedure is actually quite simple. First you arrange things into different groups. Of course, one pile may be sufficient depending on how much there is to do. If you have to go somewhere else due to lack of facilities, that is the next step; otherwise you are pretty well set. It is important not to overdo things. That is, it is better to do too few things at once than too many. In the short run this may not seem important, but complications can easily arise. A mistake can be expensive as well. At first the whole procedure will seem complicated. Soon, however, it will become just another facet of life. It is difficult to foresee any end to the necessity for this task in the immediate future, but then one never can tell. After the procedure is completed, one arranges the materials into different groups again. Then they can be put into their appropriate places. Eventually they will be used once more, and the whole cycle will then have to be repeated. However, that is part of life. Bransford amp; Johnson, 1973 Recall: No context: 2. 8 idea units out of a maximum of 18 Context afterwards: 2. 7 idea units Context before: 5. 8 idea units Child language development How many words do you know? Hint: Dictionary has about: 450,000 entries Test high school graduates: How many words do they know? About 45,000 english words About 60,000 including names and foreign words The average six year old knows about 13,000 words. Learning about 10 words per day since age 1. (One every 90 minutes) How much do we have to teach children to learn language? Do you have to teach a child to walk? Is it the same way of learning a language? My teacher holded the baby rabbits and we patted them I eated my dinner A brief history of psycholinguistics Wilhem Wundt (early 1900s) Interest in mental processes of language production Sentence as the primary unit of language †¢ Speech production is the transformation of complete thought processes into sequentially organized speech segments. Behaviorism (1920s-1950s) †¢ Rejected the focus on mental processes †¢ Measurement based on objective behavior (primarily in lab animals) †¢ How does experience (reward and punishment) shape behavior? B. F. Skinner: Children learn language through shaping (correction of speech errors) Associative chain theory: A sentence consists of a chain of associations between individual words in the sentence What’s wrong with the behaviorist approach? Noam Chomsky (1950s present) 1) Colorless green ideas sleep furiously 2) Furiously sleep ideas green colorless. 3)  George picked up the baby 4)  George picked the baby up. Almost every sentence uttered is a new combination of words The Poverty of stimulus argument: There is not enough information in the language samples given to children to account for the richnes and complexity of children’s language The pattern of development is not based on parental speech but on  innate  language knowledge Linguistic Diversity vs. Linguistic Universals Linguistic diversity There appears to be a lot of diversity among languages Even within languages there is diversity When are two languages different? We speak the same language if we can understand each other Exceptions: Norwegian and Swedish Cantonese and Mandarin Dialects within languages: The myth of pure language How/why do languages change? Why does there seem to be a correct English? Members of the dominant (most powerful) sub-culture tend to speak one dialect and may punish those who do not Linguistic Chauvinism Belief that one’s own language/dialect is the best of all possible languages Black English Vernacular (BEV) Study by William Labov Interviewed African-American street youth You know, like some people say if you’re good an’ sh*t, your spirit goin’ t’heaven . . . ‘n if you bad, your spirit goin’ to hell. Well, bullsh*t! Your spirit goin’ to hell anyway, good or bad. [Why? ] Why? I’ll tell you why. ‘Cause, you see, doesn’ nobody really know that it’s a God, y’know, ‘cause I mean I have seen black gods, white gods, all color gods, and don’t nobody know it’s really a God. An’ when they be sayin’ if you good, you goin’ t’heaven, tha’s bullsh*t, ‘cause you ain’t goin’ to no heaven, ‘cause it ain’t no heaven for you to go to. †¢ Place holders: There vs. It in the copula Copula: Is, Was optional †¢ Negatives: You ain’t goin’ to no heaven BEV just as linguistically complex as Standard American English We don’t see/understand the complexity in other languages Moral: All languages seem to permit as wide range of expressions as others Linguistic Universals What is in common with all languages? Sentences are built from words based on the same physiological processes †¢ All languages have words †¢ All humans have ways of making sounds. †¢ Languages tend to use a small set of phonemic sounds †¢ Phoneme: The minimal unit of sound that contributes to meaning How many phonemes in a language? English: 40 phonemes †¢ Range: Polynesian 11 to Khoisan 141 Discreteness Messages in human language (e. g. speech sounds) are made up of units of which there is a discrete (limited) number Arbitrariness The relationship between meaningful elements in language and their denotation is independent of any physical resemblance between the two. Words do not have to look or sound like what they describe Openness †¢ New linguistic messages are created freely and easily †¢ Languages are not constrained in a way so that there are a limited number of messages that can be created.

John Forbes Nash Jr Essay Example for Free

John Forbes Nash Jr Essay John Forbes Nash Jr. (born June 13, 1928) is a mathematician who worked in game theory and differential geometry. He shared the 1994 Nobel Prize for economics with two other game theorists, Reinhard Selten and John Harsanyi. After a promising start to his mathematical career, Nash began to suffer from schizophrenia around his 30th year, an illness from which he has only recovered some 25 years later. John Nash was born in Bluefield, West Virginia as son of John Nash Sr. and Virginia Martin. His father was an electrotechnician; his mother a language teacher. As a young boy he spent much time reading books and experimenting in his room, which he had converted into a laboratory. From June 1945-June 1948 Nash studied at the Carnegie Institute of Technology in Pittsburgh, intending to become a technical engineer like his father. Instead, he developed a deep love for mathematics and a lifelong interest in subjects such as number theory, Diophantine equations, quantum mechanics and relativity theory. He loved solving problems. At Carnegie he became interested in the negotiation problem, which John von Neumann had left unsolved in his book The Theory of Games and Economic Behavior (1928). He participated in the game theory group there. From Pittsburgh he went to Princeton University where he worked on his equilibrium theory. He received a Ph. D. in 1950 with the dissertation Non-cooperative games. The thesis contained the definition and properties of what would later be called the Nash equilibrium; 44 years later, it would earn him the Nobel prize. His studies on this subject led to three articles, the first entitled Equilibrium Points in N-person Games, published in the Proceedings of the National Academy of Sciences (USA) (1950), and the others in Econometrica about The Bargaining Problem (April 1950) and Two-person Cooperative Games (January 1953). The only official economic lessons he followed were a series about international trade. In the summer of 1950 he worked at the RAND Corporation in Santa Monica, California, where he returned for shorter periods in 1952 and 1954. From 1950-1951 he taught calculus courses at Princeton, studied and managed to stay out of military service. During this time, he proved the Nash embedding theorem, an important result in differential geometry about manifolds. In 1951-1952 he became science assistant at MIT in Cambridge, Massachusetts. At MIT, he met Alicia Lopez-Harrison de Larde, a math student from El Salvador, whom he married in February 1957. Their son, John Charles Martin (b. May 20, 1959), remained nameless for a year because Alicia, having just committed Nash to a mental hospital, felt that he should have a say in what to name the baby. As was his parents, John became a mathematician, but, like his father, he was diagnosed a paranoid schizophrenic. Nash had another son, John David (b. June 19, 1953), by Eleanor Stier, but refused to have anything to do with them. An admitted bisexual, he carried on intimate relationships with men during this period. Although she divorced him in 1963, Alicia took him back in 1970. But, according to Sylvia Nasars biography of Nash, Alicia referred to him as her boarder, and they lived like two distantly related individuals under one roof until he won the Nobel Prize in 1994, then they renewed their relationship. They remarried on June 1, 2001. In 1958 John Nash began to show the first signs of his mental illness. He became paranoid and was admitted into the McLean Hospital, April-May 1959, where he was diagnosed with paranoid schizophrenia. After a problematic stay in Paris and Geneva, Nash returned to Princeton in 1960. He remained in and out of mental hospitals until 1970, and held a research position at Brandeis University from 1965-1967. Illustrative is the 30-year publication gap between 1966 and 1996 of any scientific work. In 1978 he was awarded the John Von Neumann Theory Prize for his invention of non-cooperative equilibriums, now called Nash equilibria. Nashs mental health improved very slowly. His interest in mathematical problems gradually returned, and with it the ability to think logically. He also became interested in computer programming. The 1990s brought a return of his genius, though it lived in a still feeble mind. In 1994 he received the Nobel Prize in Economics as a result of his game theory work at Princeton as a graduate student. He is still hoping to score substantial scientific results. Between 1945 and 1996 John Nash published a total of 23 scientific studies, plus an autobiographical essay, Les Prix Nobel (1994) [1] (http://www. nobel. se/economics/laureates/1994/nash-autobio. html), first published in Sweden. A film titled A Beautiful Mind, released in December 2001 and directed by Ron Howard, dramatically portrayed some events of Nashs life. It is (loosely) based on the biography of the same title, written by Sylvia Nasar (1999) and received four Oscars in 2002. A deleted scene from A Beautiful Mind reveals that Nash (re)invented the board game known as Hex or (at Princeton) Nash or John, as it was often played on hexagonal bathroom floor tiles. A Beautiful Mind has been criticized for its inaccurate portrayal of John Nashs life and schizophrenia. The PBS documentary A Brilliant Madness attempts to portray his life more accurately.

Underpricing in Turkey: a Comparison of the IPO Methods

Underpricing in Turkey: a Comparison of the IPO Methods Abstract This paper addresses the question of what kind of selling and underwriting procedure might be preferred for controlling the amount and volatility of underpricing in the Istanbul Stock Exchange (ISE). Using 1993-2005 firm and issue data, we compare the three substantially different IPO methods available in the ISE. One is very similar to the book building mechanism used in the U.S., another is the fixed price offer, and the third one is the sale through the stock exchange method. The empirical analysis reveals significant first day underpricing of 7.01% in fixed price offer, 11.47% in book building mechanism, and 15.68% in sale through the stock exchange method. Finally, we also show that fixed price offers can better control the impact of market information on underpricing than sale through the stock exchange method. 1. Introduction Extensive amount of research from a variety of different markets have documented the presence of first-day underpricing upon the listing of initial public offerings. The evidence is well documented by Loughran, Ritter, and Rydqvist (1994) and Ritter1 (1998), (2003) in many developed and emerging markets. In developed markets, in the absence of restrictions on intra-day price movements, first-day underpricing is observed in broad price bands. However, in emerging markets, in the presence of daily volatility limits, first-day underpricing is observed in narrow price bands. In contrast to the daily price limits, significant positive short run returns are observed in a number of emerging markets and substantial amount of money is â€Å"left on the table by issuers. Besides empirical evidence, most of the theoretical models explaining IPO underpricing are grouped under four broad headings by Ljungqvist (2005), these are (i) information asymmetry between the investors, the issuing firm an d the underwriter, these models assume that one of these parties knows more than the others, (ii) institutional reasons, institutional theories focus on three features of the marketplace: litigation, banks price stabilizing activities once trading starts, and taxes, (iii) control considerations, control theories argue that underpricing helps shape the shareholder base so as to reduce intervention by outside investors once the company is public, (iv) behavioral approaches, behavioral theories assume either the presence of irrational investors who bid up the price of IPO shares beyond true value, or that issuers suffer from behavioral biases causing them to put insufficient pressure on the underwriting banks to have underpricing reduced. These theoretical models almost always end with the conclusion that the average IPO is undervalued at the offer price, where the initial investors, in most cases, benefit from possessing information by receiving allocations of shares in IPOs and earn the largest first-day returns. The expectations of issuing firms, investors and underwriters in IPO pricing are considerably different. In an offering, the issuer generally wants to receive the highest possible price to maximize cash flows to the firm. Investors like to purchase shares at a deep discount so that they can realize positive returns *Baskent University, Faculty of Economics and Administrative Sciences, Baglica Kampusu, Ankara, 06530, Turkey, + 90 (312) 234 10 10 /1728, [emailprotected] 1 Ritter (1998), (2003) provides an update on the compilation of Loughran, Ritter, and Rydqvist (1994) in a short investment period. Underwriters, acting as an intermediary between investors and issuing firms, suffer from a dilemma, if an underwriter determines IPO prices too low, where the foreseen amount of money left on the table will be huge, the issuing firm may withdraw or switch to another underwriter. On the other hand, if an underwriter determines IPO prices relatively high, investors will hesitate to buy new issues, which would result in low commissions and an unwanted effort in aftermarket stabilization activities. Underwriters, however, have an incentive to underprice the shares to ensure that they can sell the offering, and, unsurprisingly, there is extensive evidence that IPOs are, on average, underpriced. Hence, pricing of stocks in IPOs may be the most critical stage of the IPO process. More recently, the literature on IPOs, both theoretical and empirical, focuses on the efficiency mechanisms of the following methods for pricing initial public offerings. At the center of this literature, book building, auctions and fixed price offers differ mainly in price-discovery and share allocation process. Book Building in which the underwriters do road shows and take non-binding orders from Auctions in which the company sets a price range to be used as a non-restrictive guideline for investors, than accepts bids, each specifying a number of shares and a price the investor is willing to pay for them, finally, the market-clearing price set by the investors approximates the real price the shares will command in the market. Fixed Price Offer in which the issue price is set first and than orders are taken from investors who typically pay in advance for part or all of the shares that are ordered. Sale through the Stock Exchange in which the sale is initially conducted in the primary market of the stock exchange by a designated underwriter. Those investors who buy the shares in the primary market must wait until the shares trade in the secondary market in order to sell their shares. The price designated at the time of registration with the securities exchange commissions is set as the opening price. Hybrid Offerings in which the underwriters combine the preceding IPO methods, and design auction/fixed price, auction/book building and book building/fixed price hybrids. For most hybrids, the most common combination is the book building/fixed price offer, where the underwriter uses the book building method to set the price and allocate shares to institutional and foreign investors, and retain the fixed price offer to the domestic retail investors who do not participate in the price-setting process. This paper addresses the question of what kind of selling and underwriting procedure might be preferred for controlling the amount and volatility of underpricing in the Istanbul Stock Exchange (ISE). In this regard, we first compare the three IPO methods available in Turkey. One is very similar to the book building mechanism used in the U.S., another is the fixed price offer, and the third one is the sale through the stock exchange method. Then, we estimate a binary probit on the issuers choice between fixed price offer and sale through the stock exchange method, however, because of the declining importance of the book building mechanism in Turkey, we excluded the book build IPO sample from our binary probit estimations. Finally, we determine the factors that are expected to have an effect on the IPO returns. Our results indicate that, the comparison of the two mechanisms yield that for certain values, namely first day underpricing, IPO amount and fractions of equity sold, fixed pric e offer outperforms the sale through the stock exchange method. To the best of our knowledge, this is the first empirical study on the comparison between fixed price offer and sale through the stock exchange method in the IPO literature. The uniqueness of the data and the availability of the sale through the stock exchange method in the ISE make it possible to conduct a study on the comparison between these two methods. The remaining part of this paper is organized in six sections. In the next section, we provide a comparison of the theoretical and empirical research conducted on IPO methods across many countries around the world. In section 3, we describe the three important Turkish IPO market selling procedures. In section 4, we describe the data and the methodology we used in our empirical tests. Section 5 documents the relationship between market conditions and underpricing of IPOs in different time series and the last section concludes. 2. Comparison of the IPO methods in the literature: Theory and Evidence The efficiency of the IPO methods has been the subject of an academic research over a decade, both empirical studies and theoretical models have tried to explain the advantages of one method over another. The argument that is often made in favor of IPO methods is often empirical as well as theoretical. Researchers studying on the efficiency of the IPO methods try to answer the most challenging question, â€Å"Which one of the IPO mechanism is the most efficient?2. However, according to our comprehensive literature research, both empirical studies and theoretical models listed in Table have some mixed answers. 1. Book Building vs. Fixed Price Offer and/or Auctions Comparison of the IPO methods in the literature goes back to Benveniste and Spindt3 (1988), (1989) and Spatt and Srivastava (1991), they suggest that the American bookbuilding procedure is efficient since it encourages investors to reveal their beliefs about the issues value at a cost of initial underpricing. Book building allows investors to collect information about the value of the stock and price the issue more accurately. To compensate the investors who reveal information, underwriter will favor them when allocating shares. However, fixed price mechanism does not utilize any information about realized buyer valuationsin setting the issue price and is generally inefficient. Loughran, Ritter and Rydqvist (1994) present the first international evidence on the short-run and long-run performance of companies going public in many stock markets around the world. They document that the fixed price method is associated with greater underpricing because of the greater probability of the issue failing and the increased uncertainty associated with the longer time delay between offer and issuance time. Chowdhry and Sherman (1996) point out that two features of fixed price offers tend to lead to greater underpricing, relative to the book building method. The first one is the length of the bidding process, as the time gap between the offer and first day market price widens â€Å"price information leakage occurs, the second one is the common requirement that investors pay in advance for their entire order. Benveniste and Busaba (1997), extend Welchs4 (1992), model of information cascades in investment decisions and present a theoretical comparison of the fixed-price and book-building mechanisms. They exhibit that issuers with a greater concern for risk will prefer a fixed-price offer, because book- building might generate higher expected proceeds, and exclusively provides an opportunity to sell additional shares at full value but it also exposes them to higher risk. Ritter (1998) demonstrates that countries that use bookbuilding typically have less underpricing than countries using f ixed-price offerings, more underpricing under fixed-price offering procedures can be attributed to informational cascades. However, Loughran, Ritter and Rydqvist (1994) and Ritter (1998) point out that IPOs with discretionary allocation (Fixed Price Offering and Book-building) are underpriced more than those with non-discretionary allocation (Offer for sale and Auctions), especially in Auctions. Under discretionary allocation, the first day price increase averaged 37% in fixed price offerings, 12% in book building. Under non-discretionary allocation, the first day price increase averaged of 27% in Offer for sale and 9% in Auctions. 2 In terms of controlling the amout and volatility of underpricing, share allocation and pricing. 3 The literature on underpricing in initial public offerings goes back to Logue (1973), Ibbotson (1975), Chalk and Peavy (1987), Miller and Reilly (1987), Ritter (1984), Rock (1986), Allen and Faulhaber (1989), Benveniste and Spindt (1988, 1989), Grinblatt an d Hwang (1989), and Welch (1989). However, the mechanism by which initial issues are sold has largely been ignored until Benveniste and Spindt (1988), (1989). 4 Welch (1992) focuses on the fixed-price procedure used in some non-US countries, and shows that this procedure can cause informational cascades: investors who observe the investment choice made by previous investors can update their beliefs about the value of the issued shares. Sherman (2000), (2002) shows that fixed price offer, can lead to higher underpricing than book building. Contrary to the fixed price offer and the auction method, in book building underwriters discriminate investors in the allocation of shares to establish long-run relationship with intermediates. Book building gives the underwriter greater flexibility in designing a solution that reflects the individual issuers preferences. By controlling investor access to IPO shares, book building controls both the winners curse problem that affects discriminatory auctions and the free rider problem that affects uniform price auctions. Book building also reduces uncertainty for both issuers and investors. In a study that covers 47 countries, Sherman (2002) has found that in all countries in which the bookbuilding mechanism has been introduced, pre-existing auction systems have decreased in popularity or disappeared altogether. Ljungqvist, Jenkinson and Wilhelm (2000) use a unique dataset containing information on 2,051 initial public offerings in 61 stock markets around the world, during the period of 1992-1999. The authors examine the relative direct and indirect costs of offerings carried out by book building and fixed-price methods. They find that, the direct costs of book building are typically twice as large as direct costs for fixed-price offers. Compared to fixed price offerings, book building efforts though more expensive produce far less underpricing. Nevertheless, fixed price offering is still an extremely common method that is not likely to be abandoned by the underwriters completely. Compared to book building efforts, fixed price offering is an efficient, low cost way to distribute shares to retail investors, avoiding the high fixed costs of road shows. Aorsio, Giudici and Paleari (2000), Guidici and Paleari (2001) present an empirical study conducted on the Milan Stock Exchange companies bet ween 1985 and 1999. Authors distinguish between fixed- price offers and open-price offers with bookbuilding and find different underpricing levels and statistically significant determinants. They state that if the offering is preceded by book building, the underpricing is significantly lower (8.32 % vs. 28.33% in fixed-price offerings), this method allows the issuing parties to collect information from the institutions and to signal good news or bad news to retailers through the revision of the prospectus price range. Therefore, the cost of raising private information is reduced and the requested underpricing is lower. The evolution of the placing procedure, from fixed price to book building, has considerably improved the efficiency of Italian IPO market. Biais and Faugeron-Crouzet (2002) analyze and compare the performance of book building, fixed price offering, uniform price auction, internet-based Open IPO mechanism, and an auction like mechanism called the Mise en Vente in France. Conclusions emerging from their analysis are; Fixed price offerings lead to inefficient pricing and winners curse. Dutch auctions can also lead to inefficiencies, to the extent that they are conductive to tacit collusions by investors. The book building and an auction like mechanism Mise en Vente can lead to optimal information elicitation and price discovery. Chahine (2002) investigates the relationship between underpricing and the investors interest prior to and after the IPO day on 305 French issues. Empirical results show that book-built issues have a lower underpricing, on median, but a higher variance level, than the auction-like and fixed-price offerings. Despite the high initial underpricing of some book-built issues, book-building procedure appears to better control the information gathering from investors participating in the offering, and to be a more efficient pricing system than the auction-like procedure. Paney (2004) examines the initial returns, characteristics of issuers and long run performance of Indian IPOs on a sample of 84 Indian IPOs between 1999 and 2002. In terms of initial returns or underpricing, Paney (2004) finds that fixed price offering yields higher initial returns on average, as compared to book building. In terms of issuer characteristics, Paney (2004) finds that fixed price offering are used by issuers of fering large proportion of their capital by raising a small amount of money. In contrast, book building is opted for by issuers, offering small portion of their stocks and mobilizing larger sums of money. Kutsuna and Smith (2004) present an empirical study conducted on the Japanese IPOs between 1995 and 1999. Using a sample of 163 book-built and 321 auctioned IPOs by JASDAQ companies, authors document that average total issue cost, measured as a percent of aftermarket price, was significantly higher in the book-building regime than in the earlier auction regime. However, when results are weighted by issue size, the estimated aggregate costs of auctioning and book building are similar. This outcome favors book building over auctions for two reasons. First, auction-method estimates do not reflect opportunity costs related to underinvestment. Second, issue cost estimates ignore other benefits of the more-accurate pricing that book building affords. Anand (2005) examines the differences between book building and Dutch-auction, and shows that the bookbuilding method of offering securities is superior to the Dutch-auction IPOs. Stated by Anand (2005), while the Dutch-auction may seem to lea d to efficient price discovery based on investor demand, recent transactions suggest that price discovery is not always accurate and that, indeed, underpricing occurs even in the Dutch auction. Further, even if the Dutch auction is more fair than the bookbuilt process in terms of allocating securities, the Dutch auction can lead to less capital market efficiency overall and can therefore be questioned as a basis for promoting this type of offering. Jagannathan and Shermans (2005) research on the efficiency of IPO mechanism show that hybrid bookbuildings5, unlike auctions, have proved effective in many different countries, cultures, time periods, and market conditions. Jagannathan and Sherman (2005) propose a new IPO mechanism that could overcome the problems with standard auctions. A method that retains the advantages of bookbuilding, while modifying it to increase transparency. Although not a direct comparison between book building, auctions and fixed-price offers, Cornelli and Gol dreich6 (2001), (2003) examine a unique data set of international book building allocations and find that the underwriter favors both regular investors and investors that supply information on the value of the issue. Degeorge, Derrien and Womack (2005) have presented empirical evidence from Frances IPO market that underwriters employing the bookbuilding process implicitly committed to providing more favorable coverage to the companies they took public in the aftermarket. Authors find convincing empirical evidence that in addition to placing the IPO shares with investors, underwriters employing book-building implicitly commit to providing more favorable coverage to the companies they take public in the aftermarket. Specifically, analysts, affiliated with the lead underwriter of the offering, issue more favorable recommendations for recent book-built IPOs than for auctioned offerings. 2.2. Fixed Price Offer vs. Book Building and/or Auctions The pricing of Initial Public Offerings (IPOs) in the short-run has been analyzed by several theoretical and empirical studies referring to the major international stock markets. Extensive research has revealed that the fixed-price offering all over the world suffer from IPO underpricing especially in these major markets. However, studies conducted by Busaba and Cheng (2001), Bierbaum and Grimm (2003), Chemmanur and Liu (2003), Hsu and Hung (2005) present some evidence on the efficiency of fixed price offering over book building and auctions. Busaba and Cheng (2001) show that the bookbuilding process elicits much information from informed traders at the IPO stage by promising larger allocation of valuable stocks to investors who truthfully reveal their information, and therefore reduce the impact that such informed traders have in the after- 5 In the hybrid bookbuilding offers, all retail investors are allowed to place orders in a public offer tranche, and all have an equal chance of getting shares. The prices, however, are set by professional investors who are given incentives to attend the road show. Jenkinson and Jones (2004), cast some doubts about the findings of Cornelli and Goldreich (2001) upon the extent of information production during the bookbuilding period. market trading. In contrast, the fixed price method, that does not elicits such private information at the IPO stage, enables informed traders to use such information in the after-market at the expense of the uninformed traders. In this regard, if the underwriter building a book can not successfully target a subset of the informed investors, a simple fixed price strategy that involves allocating the issue to retail investors produces higher proceeds on average. The comparatively high adverse selection problems associated with the fixed-price method will spill over from the IPO stage to the after-market. This in turn means that liquidity will be relatively more important for IPOs carried out via a fixed- price method than via bookbuilding. Authors show that, compared with a fixed-price offering, the bookbuilding process elicits more information from informed traders at the IPO stage, and therefore reduce adverse selection problems in the after-market trading. However, by the same toke n bookbuilding may require larger informational rents to be paid at the IPO stage. This suggests that underpricing should be larger for IPOs carried out via bookbuilding than via a fixed-price method. Bierbaum and Grimm (2003) compare the fixed price and the uniform auction in a game theoretic framework. The comparison of the two mechanisms yields that for certain parameter values, namely a low variance of the asset and, at the same time, a sufficiently high probability of low demand, fixed price method outperforms the auction in terms of revenue. Moreover, the revenue in the fixed price mechanism is typically less volatile than the revenue in the auction. Chemmanur and Liu (2003) model the effect of costly information production on issuers choice of a fixed-price offer or a uniform-price auction with exogenous entry of bidders. Their model predicts that IPO auctions will exhibit a significantly lower mean and variance of underpricing compared to fixed- price offerings. This is due to the fact that the offering price in an IPO auction aggregates the information produced by outsiders to a significant degree, so that this offering price is greater for higher intrinsic-value firms and lower for lower intrinsic-value firms in IPO auctions than in fixed- price offerings. At the same time, there is less information production in IPO auctions compared to fixed-price offerings where the offering price is set by insiders to induce the optimal degree of information production, so that a lower amount of information is reflected in the opening price of the shares listed in the stock market. Thus, Chemmanur and Liu (2003) demonstrated that, in many situations, firms will prefer to go public using fixed-price offerings rather than IPO auctions in equilibrium, since such offerings allow the firm to induce the optimal extent of information production. Hsu and Hung (2005) present an empirical study conducted on the Taiwanese companies between 1996 and 2000. Using a sample of 280 pure fixed-price offers and 84 hybrid auctioned, authors find that, Taiwanese hybrid auctions are associated with less under-pricing and with a lower variance of under-pricing than versus the pure fixed-price offers, but these differences are not statistically different. On the other hand, we find that the market index returns prior to the IPO pricing date have a strong influence on the under-pricing of Taiwanese IPO auctions and of the pure fixed-price offers. Authors provide empirical evidence of how Taiwanese issuers make the choice of IPO method. Taiwanese issuers that float large IPOs, or which have a pricing conflict with underwriters, will likely use a hybrid auction to distribute shares. On the other hand, when the relative risk level of IPO auctions to fixed-price offers has increased, the issuers will likely avoid an IPO auction. Empirical evidenc e also explains why Taiwanese IPO auctions have lost market share to fixed-price offers. Further results reveal that Taiwanese IPO auctions are not associated with less under-pricing and with a lower variance of under-pricing, nor are they better at incorporating recent market information into the IPO price than the pure fixed-price offers. Authors examination on issuers choice of hybrid auctions or fixed-price offers indicates that Taiwanese issuers condition their choice of IPO method not only on firm characteristics, but also on IPO size and on market conditions. This is why Taiwanese issuers prefer a pure fixed-price offer to a hybrid auction are based on market volatility and the pricing conflict. In doing so, under a volatile market where Taiwanese hybrid auctions have become much riskier relative to the pure fixed-price offers, issuers will prefer a pure fixed-price offer to a hybrid auction, resulting in a lower popularity of Taiwanese hybrid auctions. As listed in Table 1, Fixed Price Offering seems to be the less favorable method comparing to Book building and Auction Methods. It is a fact that, the worldwide introduction of book building method during the 90s has promoted efficiency in the major equity markets. However, Sherman (2002) states that stock markets listing few IPOs each year, fixed price offering is still be the optimal method. 2.3. Auctions vs. Book Building and/or Fixed Price Offer Using a sample of 108 French firms marketed on the Second Marchà © between 1984 and 1991, Leleux and Paliard (1995) show that initial returns are significantly higher for firms issuing through the fixed- price procedure than for firms using auction-like procedures. Leleux and Paliard (1995) state that the auction mechanism is associated with less underpricing and thus more efficient, since this procedure is able to incorporate more information from recent market momentum into the pricing of the IPO. Beierlein (2000) compares the book-bu ilding method to two commonly used auction mechanisms, the discriminatory price auction and the uniform price auction in terms of underpricing and the long run performance of IPOs relative to the market. Using data from Japan, Israel and the U.S., author finds evidence that the U.S. book building is less efficient than the auction mechanisms are. Specifically, underpricing is significantly higher in the U.S. than it is in Japan or Israel and bookbuilding appears to incorporate less demand information into the offer price than the auction mechanisms do. Bennouri and Falconieri (2001) suggest that auction mechanisms are the optimal way to sell new shares because auction procedures are more informationally efficient than bookbuilding. Assuming ex ante uncertainty about the firm true value, then auction mechanisms are able to elicit and incorporate more information from the market as well as from investors into the pricing of IPOs. Draho (2001) suggests that underpricing in bookbuilt IPOs is due to the uncertainty about the price on the secondary market rather than about the firm value, as most of the literature assume. Nonetheless, his results indicate auction-like mechanisms as the most efficient ones, since they are open to all investors who are moreover required to submit price-quantity bids. McDonald (2001) examines the efficiency mechanisms of the sealed-bid uniform-price auctions over book building method in a theoretical framework and concludes that the uniform-price auction, due to its generalized Vickrey auction properties, is indeed an efficient auction mechanism especially for the sale of IPOs over the Internet. Biais, Bossaert, and Rochet, (2002) study the optimal IPO mechanism by which the seller can extract private information to maximize the expected net IPO proceeds. They find that the optimal mechanism they characterize is similar to auction-like IPO procedures used in the U.K. and in France. Kaneko and Pettway (2003) examine the Japanese initial returns before and after the introduction of book building, and find that underpricing in book building method is significantly higher than auctions, especially during hot markets. Results suggest that the move from auction-priced to underwriter-priced IPOs using book building in Japan has significantly reduced the wealth of issuing companies while increasing the wealth of underwriter-selected investors. Derrien and Womack (2003), use the French IPO data for the 1992-1998 period and compare the three underwriting/selling mechanisms available on the French market. One is very similar to the book building mechanism used in the United States. Another is a fixed price procedure. The third one is an auction-like procedure. Authors show that the auction procedure is better than the others at controlling underpricing in general as well as the variance of underpricing of the issued shares in â€Å"hot versus â€Å"cold markets. Fixed price offering method is indeed inefficient and leads to greater underpricing compared to IPOs sold through book-building and auctions. However, the main empirical comparison in this paper is between the two main procedures auction and book building. Authors find evidence that during hot markets auctioning is associated with less underpricing than book building. They attribute the result to the auction methods ability to incorporate more information about recent market performance into the offer price. This result provides empirical support for the theoretical work by Biais, Bossaerts, and Rochet (2002) who suggests the auction procedure is optimal. In line with the evidence of Derrien and Womack (2003) that an auction procedure is more efficient in incorporating recent market momentum in the offer price compared to fixed price procedure, Vandemaele (2003) uses the French IPO data for the 1984-1995 period and points out the factors that may influence issue procedure choice. Results indicate that, firms facing relatively high valuation uncertainty are high likely to opt for an auction-like procedure and the likelihood of opting for an auction increases as the investment bank reputation associated with the issue decreases. Although not a direct comparison between auctions, book building and fixed-price offers, studies in Pettway and Kanekos (1996) examination on Japanese auctions, Kandel, Sarig and Wohls, (1999) examination on Israeli auctions, and Liu, Wei and Liaws (2003) examination on Taiwanese auctions seem to suggest that IPO auctions lead to less under-pricing. Biais and Faugeron-Crouzet (2001) show that a uniform price auction can prevent tacit collusion among bidders and can truthfully elicit information from investors in much the same way as book building. Bulow and Klemperer (1998) also show that it can be optimal in an auction to set a price at which there is excess demand. 2.4. Research on IPOs in the Istanbul Stock Exchange (ISE) Firms in Turkey may offer their shares to the public through, book building, fixed price offer and sale through the stock exchange method, however, they are mainly underwritten and sold using the fixed- price offering method; a method which is very common world w ide is becoming much less common, particularly for more active markets. Recent empirical studies, focused mainly on the initial returns and under pricing, condu

Gay, Lesbian and Bisexual Issues - Michael Levin vs. Richard Mohr :: Argumentative Persuasive Essays

Homosexuality - Michael Levin vs. Richard Mohr Homosexuality has been on debate for numerous years. It is mentioned in the Bible which is thousands of years old. But recently two philosophers have spoken how they feel about Homosexuality. Michael Levin and Richard Mohr's views on the subject are in conflict with one another. Levin argues that homosexuality is abnormal because it is a misuse of body parts that have evolved for use in heterosexual intercourse (Levin 354). Furthermore, because natural selection has made the exercise of heterosexuality rewarding to human beings, homosexuality has a high probability to unhappiness. Mohr refutes Levin's stance about homosexuality myths and stereotypes. He rejects arguments that homosexuality is immoral or unnatural. Levin exemplifies the point that homosexuality is misuse of body parts with the case of Mr. Smith, who likes to play "Old MacDonald" on his teeth so devoted is he to this amusement, in fact, that he never uses his teeth for chewing but instead takes nourishment intravenously. This is a clear example where Mr. Smith is misusing his teeth. In addition to misuse, Levine states that this man will have a dim future on purely physiological grounds (Levin 355). Since Mr. Smith isn't using his teeth for chewing, his digestive system will suffer from disuse. The result will be Mr. Smiths deteriorating health. Levin incorporates the evolution process into this example. He states that Mr. Smith descended from creatures who enjoy the use of such parts. Creatures who do not enjoy using such parts of their bodies will tend to be selected out. In particular, human males who enjoyed inserting their penises into each other's anuses have left no descendants. Homosexuality is likely to cause unhappiness because it leaves unfulfilled an innate and innately rewarding desire (Levin 355). Mohr takes a completely different stance on homosexuality. According to Mohr, homosexuality is perfectly unobjectionable. The unnaturalness charge that Levin give homosexuality carries a high emotional feeling. This feeling is usually expressing disgust and evincing queasiness. An example of such feelings are some people's response to women who do not shave body hair. Many of the people who have a strong emotional reaction, without being able to give good reasons for them, we think of them not as operating morally, but rather as being obsessed and maniac (Mohr 367). So the feelings of disgust that some people have to gays will hardly ground a charge of immorality. The idea of "natural" is a key defense in Mohr's debate. He states that natural is that it fulfills some function in nature. According to Levin, homosexuality on this view is unnatural because it violates the function of

Speaking In Tongues Essay -- Communication

Communication has been the hub of society sense the beginning of man. It is the way people pass information from one to the next. Animals have been known to communicate with other animals or humans. A dog will urinate in order to mark his/her territory. This action translates possession to other animals, and the dog will act aggressively defending his/her territory if needed. Other animals have actions that will translate possession, hunger, and love. Humans translate these same ideas by body language (which is non-verbal communication) and speech (which is verbal communication). Humans place their main interest in verbal communication, which consist of communication with sounds from the mouth. With any type of communication there are different languages. Many people are unaware that there are many different types of Sign Language. The languages that people speak are generally learned at an early age. After a child is born the parents beginning to speak to it, and automatically the child begins to learn how to communicate with their mouth. Understandably, whatever language, or languages, the parents speak, will be the language the child learns. However, as a person ages the ability of learning a new language depreciates, and the task becomes exceedingly difficult. Understanding this to be common knowledge, it is not surprising to read about the reaction the Jews expressed on the day of Pentecost when the apostles stud before t hem speaking in languages they had never spoken before. Today the term for this particular act is called â€Å"Speaking in Tongues,† and there has been much debate over this issue. The idea raises many questions such as: â€Å"What is a tongue?† â€Å"How did someone acquire this ability?† â€Å"What is the purpose?† And, â€Å"... ... known as the Bible. Keep in mind, if the televangelists who claim to heal by the power of God were able to do so, then why do they wait for people to come to them? Why are they not traveling from one hospital to another healing the sick and raising the dead? It is for the same reason people cannot speak in a language they have not learned, miracles have ceased (1 Corinthians 13:10). The idea of speak in an unlearned language, or speaking in tongues, is a much debated topic among religious enthusiast. This topic, like many others, will continue to be debate until the final trumpet sounds and the church rise to meet Christ in the hair. However, if one was to choose to forget everything he or she has learned about the subject, and study the scriptures for themselves, then they would discover the truth. All miracles, including speaking in tongues, have ceased.

Agamemnon Essay -- essays research papers

In Aeschylus’ Agamemnon there are many different opinions about what kind of king and commander Agamemnon was. Some argued that he was good, while others dispute that his motives were wrong. Clytemnestra, Agamemnon’s wife, gained a strong hatred for him, after he sacrificed his own daughter so he could go to war. Many believe that this was not necessary and could have been overcome. The chorus seems to agree with this to an extent, and feels that Agamemnon could have prayed and requested that he not sacrifice his daughter.   Ã‚  Ã‚  Ã‚  Ã‚  Clytemnestra, after Agamemnon was at war for a few years, began to cheat on Agamemnon with his cousin, Aegisthus. When the two got word of Agamemnon’s return from Troy they began to plot against Agamemnon. Clytemnestra prayed to the Gods to let Agamemnon make it home because she wanted to punish him herself. Even though most of the other ships did not make it home after the storms, Agamemnon’s did. Many believe this is because of the prayer that was prayed by Clytemnestra.   Ã‚  Ã‚  Ã‚  Ã‚  Clytemnestra first set Agamemnon up by placing a purple carpet on the ground for him to walk on. By doing this Clytemnestra was hoping to get Agamemnon to upset the gods so it wouldn’t be a sin for her to carry out her plan. Agamemnon even acknowledges that he shouldn’t walk on the carpet saying that, were he to walk on it, he would display unseemly pride and incur the wrath of the gods: â€Å"Such state becomes the gods and none be...

Health Benefits of Namaz or Salah.

Namaz The Best Exercise (STD: V, VI, VII, and VIII) What is Namaz? Namaz is the Urdu word for Prayer. The Arabic word for Prayer is Salah. Namaz is the form of Worship of Allah S. W. T performed by Muslims. Namaz is one of the most important of the 5 pillars of Islam. Allah S. W. T has mentioned the benefits and the importance of Namaz as many as 500 times in the Holy Qur’an. Apart from the spiritual benefits that Namaz offers to Muslim worshippers, it is also one of the best forms of exercise that one can do on a regular basis. Namaz has been made compulsory for Muslims 5 times daily the five times are: Fajr: Early morning just before sunrise. It consists of 4 Rakats. Zuhar:: Afternoon paryers post the period of Zawaal (when sun is perpendicular to earth). It consists of 12 Rakats. Asar:: Post afternoon and before Sunset. It consists of 8 Rakats. Maghrib: Just after Sunset. It consists of 7 Rakats. Isha: Late evening after the Sunset is complete and darkness of the night is complete and the cooling effect of the atmosphere begins. It consists of 17 Rakats A Rakat is one complete cycle of Standing, Bending, Prostrations and subsequent Sitting or Standing up again in the Namaz. Each posture of the Namaz has a standard defined procedure and recitations that are observed by every Muslim irrespective of where he lives or what race he belongs to. Muslims follow the methods as taught to us by Prophet Muhammad (Sallallahu-Alaihi-Wasallam). Praying Namaz requires one to be clean in all respects, be it’s the physical self, the surroundings or the intent. No matter how hard a person prays or for how long he lies in prostration (Sajda), unless his intention are clean and motives selfless, the Namaz will not be accepted by Allah. It is required that a person ensures the surrounding is clean and free from sins where he intends to offer Namaz. The Prophet (Sallallahu-Alaihi-Wasallam) advised that except for the washroom or where one relieves himself and the graveyard, Allah has made the whole world as a place of worship for his believers. Namaz makes us disciplined and brings feeling of regularity and gives a direction to our daily life, 5 times a day, if we make it a routine to get up on hearing the Azaan, do the Wuzu (ablutions) and head for prayers, either in a congregation or alone, we feel a sense of Time Management in our daily chores. Interestingly there are various similarities between some of the postures of Namaz and Yoga! Now let us see some beneficial effects of different Namaz postures. Different Namaz Postures And Their Benefits: Posture 1 Name: Niyyat (Takbeer-e-Tahreema) First Takbeer in standing position to begin prayer Instructions: Bring hands, palms open, up to ears, and place thumbs behind earlobes, as â€Å"Allahu Akbar† (God is Great) is uttered. Beneficial Effects: It relaxes our body, straightening back improves posture and improves concentration. It also sharpens our vision by focusing on the floor. Posture 2 Name: Quayam Instructions: After you have touched your earlobes and said Takbeer bring down your hands and place your hands below the navel In this posture your sight should be fixed where you are going to perform Sajdah (Prostration), Place right wrist over the left, Wrap your left wrist with the thumb and the little finger. Rest the remaining fingers on the left forearm; Make sure your hands are tied below the navel, Beneficial Effects: It relaxes legs and back and extends concentration. It stimulates heart, thyroid and other important function of our body. Posture 3 Name: Ruku' (pronounced Rukoo) Instructions: Bend down at waist, placing palms of hands with fingers spread over knees. Back is parallel to ground, such that if a glass of water were on the back, it would not spill. Eyes looking down, directly ahead. Beneficial Effects: Blood is pumped down into upper torso as our muscles are stretched it also tones our muscles. This posture improves personality, generating sweet kindness and inner harmony. Posture 4 Name: Qauma Instructions: Stand straight again with you hands by your sides Beneficial Effects: It relaxes body and releases tension. Posture 5 Name: Sajdah Instructions: Go down to a kneeling position by placing both hands on knees, lowering oneself slowly and easily onto knees, then touch the head upon the ground so that the following seven body parts are in contact: forehead, two palms, two knees, toes of both feet. The end position of this posture is given below. Beneficial Effects: It prevents growth of flabbiness in the mid section and increase flow of blood in the head, including eyes, ears, nose and lungs; allows mental toxins to be cleansed by blood. It increases elasticity of joints. Posture 6 Name: Jalsa Instructions: Sit on your left foot which should be flat the ground, keep your right foot upright with toes faceing the Qiblah and place your hands near the knees in a manner that the fingers face the Qiblah Beneficial Effects: It cleanses respiratory, circulatory and nervous system and brings lightness in body and emotional happiness. Posture 7 Name: Second Sajdah Instructions: Go down to a kneeling position by placing both hands on knees, lowering oneself slowly and easily onto knees, then touch the head upon the ground so that the following seven body parts are in contact: forehead, two palms, two knees, toes of both feet. The end position of this posture is given below. Beneficial Effects: It prevents growth of flabbiness in the mid section and increase flow of blood in the head which allows mental toxin to be cleansed by the blood. It increases elasticity of joints. Posture 8 Name: Quood (Qa'dah-e-Akhira) Last sitting Completing the Salat: Beneficial Effects: It detoxifies liver and stimulates action of large intestine. It improves digestion. Posture 9 Name:Salaam Saying peace to end the Namaz Instructions: Turn your head to the right shoulder and say Salam, then turn your head to the left and say Salaam Beneficial Effects: It is one of the best neck exercises. http://www. janathimessage. co. uk/kids/learning/namaz. html www. chishti. org Namaz The Best Exercise (STD: I, II, III, and IV) Muslims pray five times a day, which each prayer made of a series of postures and movements, each set of which is called a rak'ah. For praying Namaz we should not only keep ourselves clean but our surroundings and the place of worship should also be clean. Namaz teaches us to be disciplined and understand the importance of Time Management. It is the perfect combination of Ablution (Wudu) and Namaz that keeps our soul and body clean and healthy. Interestingly there are various similarities between some of the postures of Namaz and Yoga! Now let us see some beneficial effects of different Namaz postures. Posture 1 Name: Niyyat (Takbeer-e-Tahreema) Beneficial Effects: It relaxes our body, straightening back. It also sharpens our vision by focusing on the floor. Posture 2 Name: Quayam Beneficial Effects: It relaxes legs and back and extends concentration. Posture 3 Name: Ruku' (pronounced Rukoo) Beneficial Effects: Blood is pumped down into upper torso as our muscles are stretched it also tones our muscles. This posture improves personality, generating sweet kindness and inner harmony. Posture 4 Name: Qauma Beneficial Effects: It relaxes body and releases tension. Posture 5 Name: Sajdah Beneficial Effects: It increase flow of blood in the head, including eyes, ears, nose and lungs; allows mental toxins to be cleansed by blood. It increases elasticity of joints. Posture 6 Name: Jalsa Beneficial Effects: It cleanses respiratory, circulatory and nervous system and brings lightness in body and emotional happiness. Posture 7 Name: Second Sajdah Beneficial Effects: Knees forming a right angle allow stomach muscles to be developed. Posture 8 Name: Quood (Qa'dah-e-Akhira) Beneficial Effects: It improves digestion. Posture 9 Name:Salaam Saying peace to end the Namaz Beneficial Effects: It is one of the best neck exercises. http://www. janathimessage. co. uk/kids/learning/namaz. html www. chishti. org