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Saturday, July 21, 2007

How to Download anything for free using Google

Rapidshare.de and Megashare.com are the sites which hardly anyone will be unaware of. These sites allow user to upload files but lack the basic functionality of searching the whole database based on the description of the file.

rapidshare

Here is where google advance search technology comes to rescue :

google download anything

Rapidshare has a huge database of files as a considerable number of users connected to it to upload music, pictures, movies and even larger files such as games or important documents. Although the owners encourage you to register and become a paying member, Rapidshare is also available for free so you can use it with only one restriction: you have a download limitation, meaning that you’re not able to download too many files for free. However, the website hosts an impressive number of files and it tends to become a real encyclopedia for music and movies. Similar is the case with magashare also. But since you dont have a search option hence you can just download the file unless you have the link to the file.

You must be knowing two very popular ways of searching google with these keywords :

1. site:www.example.com hello - retrieves all the result matching “hello” only from site example.com , hence limiting the search to a particular site.

2. +intitle:technology - retrieves all pages having “technology” in the web page title.

Let us combine these two advance search technology to search within the site rapidshare.de

So here is what you have to do .

1.http://www.google.com and type in the search box :

For music

+inurl:wma|mp3|ogg site:rapidshare.de

For videos

+inurl:avi|mpg|wmv site:rapidshare.de

For archives

+inurl:exe|rar|zip site:rapidshare.de

For any particular file

(ex-spiderman in this case )

+inurl:spiderman site:rapidshare.de

The same can be used for any other site. Remeber there is no space between “:” and search term.

Speed up your internet speed by 20 percent

This is a nice little tweak to get 20% of bandwidth back.Microsoft reserve 20% of your available bandwidth for their own purposes (suspect for updates and interrogating your machine etc..).

    Click Start–>Run–>type “gpedit.msc” without the ”
  • This opens the group policy editor. Then go to

    Local Computer Policy–>Computer Configuration–>Administrative Templates–>
    Network–>QOS Packet Scheduler–>Limit Reservable Bandwidth

  • Double click on Limit Reservable bandwidth. It will
    say it is not configured, but the truth is under the
    ‘Explain’ tab :

    “By default, the Packet Scheduler limits the system to
    20 percent of the bandwidth of a connection, but you
    can use this setting to override the default.”

  • So the trick is to ENABLE reservable bandwidth, then
    set it to ZERO.

    This will allow the system to reserve nothing, rather
    than the default 20%.

  • works on XP Pro, 2000 and 2003 but not sure about
    other o/s’s.

Here are the screen shots -

increasing the internet bandwidth

increasing the internet bandwidth

increasing the internet bandwidth

Full list of MS Office Shortcut Keys (Word, Exel and Powerpoint)

Have you ever got stuck searching for some shortcut keys for MS word ??Yeah !! I got stuck at times.

Basically with text formatting like Increasing font size (Ctrl + ]), Getting all Caps (Ctrl+shift+A) , Changing fonts(ctrl+shift+f), Apply superscripts(ctrl + shift + =) , subscripts (Ctrl + = ) etc etc.

So just did some googling and got a pdf file downloaded. I dont remember which site I downloaded this, but its a very handy guide. You can download the Pdf from here by clicking and selecting Download fileor “Save target as” in IE and “Save link as” in Firefox. Hope it will be of some use to people who are unaware of such shortcut keys.

Shocking : Cell phone Battery blast kills youth in China

A 22-year-old Welder In North-western China Died When His Cell Phone Battery Exploded As He Was Working In Hot Temperature.

The Battery Exploded While The Phone Was In The Man’s Pocket As He Was Welding At A Factory In Shuangcheng In Jinta County In Gansu Province, The Lanzhou Chenbao Reported, Adding That The Death Was Believed To Be The First In China Caused By A Cell Phone Battery.

The June 19 Blast Broke A Rib And Drove It Into The Man’s Heart And He Collapsed In A Pool Of Blood, The Report Said. He Was Taken To Hospital But Died There.

The Manufacturer Of The Phone Was Notified And Dispatched Experts To Jinta To Conduct An Investigation

Gosh !!! I have heard that we should not use the cell phones at higher temperature, but that could result something like this , I was totally unaware of. Even though the person was welding at a factory , I doubt that temperature could be so high to exceed the sustainability of a battery . So is temperature could be the only cause ?? Or the quality of the battery ??( Chinese )
I have checked my nokia phone , even though its finland made, the battery label states “Made in China”.
Anyway prevention is better and hence avoid taking your phone at high temperature places.

Cellphone rays are harmful : Underwears may help protection

Cellphone radiations are still a matter of concern for the users. Many even say talking a lot on phone without the usage of a handsfree accessory can even cause short term memory loss.

According to science news

A single 2-hour exposure to the microwaves emitted by some cell phones kills brain cells in rats, a group of Swedish researchers claims. If confirmed, the results would be the first to directly link cell-phone radiation to brain damage in any animal.

Many people even say that carrying a mobile phone in your pant pocket may even cause sterility , however the point is yet to be proved.According to textually, a Swiss clothing manufacturer Isabodywear is launching a special line of men’s underwear that claims to protect

“men’s sperm from harmful cell phone radiation”.

underwear to protect from harmful radiations

The briefs are made with threads of silver which the company claims blocks cell phone rays and reception. The inventor, Andreas Sallmann, explains that when you put a cell phone inside your briefs, then dial your number from another phone, you probably won’t even get a signal.

4000 black (only) briefs have been made so far and 500 will be been given away for test purposes, by simply sending the company an email.
Product seems to have raised concerns over cell phone radiations and hope this wont be the last product in this range.

Cnet has given clear review about cell phone radiation level based on SAR (specific absorption rate) level.
According to the review :

SAR or specific absorption rate is “a way of measuring the quantity of radiofrequency (RF) energy that is absorbed by the body.” For a phone to pass FCC certification, that phone’s maximum SAR level must be less than 1.6W/kg (watts per kilogram). In Europe, the level is capped at 2W/kg.

You can check SAR level based on company model here.

World’s fastest internet : 40 gbps, can download full HD DVD in 2 seconds

ts not a rumor , its something which is live in Swedon in a 75 year old lady Sigbritt Löthberg’s house.She is the mother of Swedish internet legend Peter Löthberg who, along with Karlstad Stadsnät, the local council’s network arm, has arranged the connection.

40 gbps internet speed in swedon

As reported the trick behind the setup is a “new modulation technique which allows data to be transferred directly between two routers up to 2,000-kilometers apart with no intermediary transponders

The power of such high speed internet connection , gives Sigbritt an option to download a full HD DVD movie in just 2 seconds.

Amazing isnt it ?? This is how fiber optic technology for transferring the data can revolutionize the internet world. Time is not that far when this kind of high speed internet will be available worldwide and that too on a wide scale because of the rising demand of high definition audio video,which result in exponential increase in size of a small video clips.

Some time back I heard the news , that some celebrities are kind of scared of High Definition Video as it may make their wrinkles on face visible on the big screen. This just gives an idea of the clarity in HD video.

Nokia N series phones making Computer Jealous ??

Nokia’s much hyped N series (But no where near to Iphone ) stated as multimedia computers can make your computer or laptops extremely jealous. Well the idea is created by a Nokia N95 user , whose laptop started behaving strange (actually jealous ), when he started using his phone for just everything for which he normally used his laptop for.

The warning given in the video states that “N series phone Can be Dangerous for Health”. Apocalypso is the author at Symbian-freak , who seems to be behind the Idea.

A short description at the video sounds pretty interesting :

Well, in my personal opinion, computers are just like women, and now, at least, I have a proof for that.

You see, my lovely computer got extremely jealous and pissed off because I ran off to sunny along the beautiful Croatia’s Dalmatian coastline, taking in amazing islands such as Brac, Hvar, Vis and Korcula to spend a hot summer with a sexy, sleek, stylish, fancy and powerful Nokia N95, leaving my poor desktop stored far away at my home and my laptop in the hotel room to collecting dust.

This jealousy has driven my laptop to refusing to start up last few days and now it seems that I can expect even more serious reactions.

The HeCoVoG encourages us all to ensure that every Nseries user is aware of the dangers they face by using their device and have categorically stated that both of you guys face an increased risk.


9 Steps to Success in Affiliate Marketing

1. Join an Affiliate Program: Join programs that interest you personally. There are affiliate programs for almost any product or service you can think of so do some research and find one that is right for you. If you have a passion for your product niche it will be a whole lot easier to stay motivated and be successful.

2. Build your own website to promote your product: You will need to build a website with your own domain name (ie. homeworksolutions.biz ) and pay a monthly fee for hosting as opposed to going the free route and sharing a domain (ie. yourname.homeworksolutions.biz ) If you don't know much about web design that's quite ok. You will find there are lots of companies out there who offer very affordable website design.

3. Start a reciprocal linking campaign: Start exchanging links with other websites in your niche. You will find lots of webmasters willing to add a link to your website as long as you return the favor. The more websites that link to you, the higher page rank you will have in the search engines, therefore leading to more traffic to your website.

4. Start your own newsletter: The newsletter can simply consist of articles related to your products and website. Always add a signature containing a link to your website at the bottom of each newsletter entry. That way when people read your articles they can continue on to your website. If you don't want to write your own articles, there are many webmasters who will let you use theirs for free. Submit your newsletter to as many websites as you can.

5. Build an Email List: Owning your own email list is one of the most important tools you can have as an affiliate marketer. The best way to build your list is to buy leads, that way you don't have to worry about getting in trouble for spamming. Lots of companies sell quality leads (email addresses) consisting of people who have requested information about your products. With every lead you buy you can in turn sign them up for your newsletter.

6. Get an Auto Responder: With an auto responder program you can make the process of buying leads and adding them to your newsletter completely automated. You can save hours of time with this approach.

7. Write your own Articles: To be successful with affiliate marketing you will eventually have to write an article or two. This may sound a bit overwhelming in the beginning, but after you have been building your business for awhile you will get into it. Always include a signature at the bottom of the article containing your website link. Then post your article on as many websites as you can. A search for 'article directories' in any search engine will give you lots of places to start.

8. Add an Article page to your website: Post all of your articles on this page and any others you find related to your niche. Having an article page will add content to your website and will help with your page rank. Search engines like Google and Yahoo love websites with lots of relevant content.

9. Join an Online Forum: Becoming a member in a forum is a great way to stay current with the products in your niche. Talking with fellow entrepreneurs will keep you motivated and help generate new ideas as well as answer all your questions.

Affiliate Opportunity The Bad Credit Market

If you are an affiliate, you will want to consider promoting programs catering to individuals with bad credit. Why? Because of the tremendous demand!

Millions of consumers have less than perfect credit. In addition, in 2004 nearly 1.6 million people in the United States filed for bankruptcy ? and that number is expected to increase in 2005, due to the new bankruptcy legislation that recently went into effect. In short, this is a HUGE market!

Okay, so we know there?s a market ? but what products or services are people with poor credit looking for?

Here are some popular categories: Auto loans, credit cards, home loans, refinancing, checking accounts, personal loans, and information products (e-books, membership sites, courses, etc).

If you look at the number of searches done for bad credit related loans and financing, you?ll find that a lot of people out there are looking for the ?right? lender to help them. Many of them know their local bank would probably turn them down in a second if they applied for a loan.

They need a lender that specializes in working with individuals with poor credit? or information that they can use to increase their credit score so they can qualify for an auto loan, home loan, credit card, etc. with their local bank. That?s where you come in!

As an affiliate you can direct them to various lenders and information products ? and get paid for it if the person signs up for the service, or purchases the information product, under your affiliate ID#!

So where do you find such services and information products to promote. There are a few ways:

1) Search Engines: Type ?affiliate directories? into your favorite search engine. Next visit the websites you find and click on the finance, credit or related categories. If you want to promote real estate related services (i.e., home loans) for people with poor credit, you could see if they have ?real estate? category.

2) ClickBank: Another ideal starting place is ClickBank. Approximately 10,000 vendors sell their digital products and services through ClickBank. In addition, there are over 100,000 ClickBank affiliates.

Once you?ve signed up for their affiliate program, visit their Marketplace ? you can go to the category ?Money & Employment? and then click on the ?Debt? link. It will provide you with a listing of all of the information products and services you can promote in the category.

3) Other Popular Affiliate Networks: In addition to ClickBank, other affiliate

networks you will want to consider signing up with are Commission Junction and LinkShare. To find more affiliate networks, simply type ?affiliate networks? into your favorite search engine.

4) Surfing the Net: Let?s say you come across a website offering a secured credit card which you?d like to promote. Look for a link (usually near the bottom or top of the website) that says ?affiliates? or ?make money?, or something similar. If there is none, email the site owner (they should have a ?contact us? link) and ask if they have an affiliate program.

Hopefully this article has given you some ideas on how you, as an affiliate, can cash in on the consumer credit trend and provide a valuable service at the same time ? matching individuals that have poor credit with the appropriate service or information product that will help them.



Copyright (c) 2005-06 Innovative Solutions Publishing, Inc. All rights reserved.

The company and product/service names referenced in this book are the trademarks, registered trademarks or service marks of their respective owners. None of the owners have sponsored or endorsed this article.

DISCLAIMER:

This information is designed to provide only a general overview of the subject matter herein.

This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.

Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.

Affiliate Marketing and Niche Websites A Match Made In Heaven

In my previous article: Affiliate Marketing 101 - Understanding The Basic Concept Of Affiliate Marketing, I pointed out that Niche websites are far more likely to generate increase affiliate income, than more generic type sites. The reason for this is simple; niche markets create targeted visitors, and these targeted visitors are far more likely to be interested in related products and services, as part of the reason for their visit to you.

Niche marketing is not hard. Niche marketing involves concentrating your website on one particular area of knowledge or expertise, as opposed to trying to be all things to all people. By developing these types of niche websites you are far more likely to succeed, and even go on to successfully win the affiliate marketing game.

So How Do You Create A Niche Website?

1. Focus On A Specific Subject. The more knowledgeable you are about the subject yourself, the more confident your visitors will be when visiting you in search of information. I have often found through my own personal experience that those who have a passion about a subject are far more likely to reflect it in their subject matter, than those who do not. For example, I have 2 passions in life: sports betting, and internet marketing. I have been fortunate enough to have profited considerably from both, but by placing my passion on the net, I now have the capacity to share my knowledge and experience with others who have an interest in the same things - subsequently turning my passions into cash.

2. Relate Your Content to Complimentary Products and Services. Once your niche has been established you can begin to apply the principles of effective affiliate marketing with great success. Content is king, so by relating affiliate programs directly to your content you are then in an ideal position to capitalise. As an example: my website at http://www.laytheodds.com is focused on the realm of sports betting and betting exchange trading. Everytime I discover a new article that relates directly to the site I publish it. Take a look for yourself at any article on http://www.laytheodds.com and you will see how I apply the very principle of relating content to affiliate software, betting systems, etc that I promote with maximum effect. The result, lots of targeted traffic, who are directly interested in any or all of the products or services I promote through affiliate links. The affiliate cheques at the end of the month directly reflect the success of this method.

3. Build a Niche Directory. Everytime I come across a website that I think would be of interest to my visitors I place a link to it in my links directory without even asking for a link back. Now this goes against the grain of so call SEO experts, but it is a strategy that works well. Here's why: webmasters almost always look at their logs to see who has visited them and where they have come from. When they see a link to them from me they are more often than not curious as to what my site is all about, and subsequently click through to discover for themselves - gotcha! Another highly targeted visitor just came through the door - and my own stats reveal that these webmasters themselves are highly receptive to buying online, and they do!

An additional benefit of niche directories is that search engines love them. In the recent update Google is said to have placed higher significance to these directory structures. This has proven to be the case as far as I am concerned anyway.

4. Use Free Articles to Boost Your Content. I always scour the article directories for new articles that relate directly to my subject matter. These articles are a valuable source of content, and keywords; and used effectively they act as magnets that draw new visitors in and expose them to all the additional affiliate offerings provided in order to entice them to click-thru and buy.

One trick I have used with great success is to link articles on the same subject matter together to form a chain. This keeps visitor interest high and again exposes them to more opportunities to click-thru an affiliate link.

5. Effectively Use Google Adsense. Alot has been written on Google Adsense, and the great incomes that can be produced through strategic placement of ads in and around content. And I just want to say this: THEY ARE ABSOLUTELY RIGHT! By placing google ads in and around your content you are often turning visitors into cash, regardless of whether they buy anything from you or not. I remember when I struggled each month initially to produce the minimum amount required to generate a payout from Google simply because I was not making effective use of the system itself. By changing the placement and emphasis my income from Google has increased fiftyfold across all my sites. Incorporate google ads in and around your articles - let google take care of the relevancy, and serve alternative ads (you can state the alternative ads to display in the Google Adsense control panel) in the event that google does not serve up ads.

So in a nutshell: we now have our niche website, serving up content in the form of articles and news specifically related to our subject of interest (which of course we are highly passionate about!). We have also directly related our content to complimentary products and services through strategic placement of affiliate links - and implemented Adsense ads, as well as our own ads in the event that Google fails to deliver. We have also setup our niche directory, and placed relevant links (emphasis on 'relevant'), again directly related to our subject matter.

What Have We Done? We have created a niche website that will prove to be a money-spinner in time. I say 'time' because this is not a recipe for overnight success - rather, a plan for medium to long term financial security. Viewed in this manner you are sure to succeed.

Next Task? Develop another niche website and replicate the whole process again!

Affiliate Marketing Secrets They DonT Want You To Know About

Well, here it is folks, the three secrets every beginner must know before starting his or hers affiliate marketing home business: effort, time and money. Ok, I admit that despite the catchy title, I?m not really teaching you something you don?t already subconsciously know, but believe it or not, these simple rules of thumb are things that many novice webmasters often forget.

Let me elaborate. Despite what you may have heard, starting an affiliate marketing business takes a considerable amount of effort. If you?re not willing to keep up to date with the latest search engine optimization strategies, learn at the very least HTML and CSS basics or take some time and write quality content for your website, well I sincerely think you?re embarking in the wrong field.

Secondly, you will need to invest money if you wish to make money. Affiliate marketing is perhaps the easiest and cheapest home businesses to start, but you will inevitably have to invest in some books to refine your knowledge or pay for a good quality hosting company. Even though there are many free strategies you can use to maximize your site?s traffic, you will also have to invest money on good quality targeted advertising or paid inclusion in quality directories for example if you wish to increase your chances of success.

Finally, when investing your hard earned money in a project like this, you must be patient. The expression "patience is a virtue", is none more applicable then in the case of home internet businesses. Many claim to have made incredible amounts of money within a very short period of time. I don?t mean to sound pessimistic but these are either the luckiest people on the planet or what they are saying is simply not true.

The most important thing to understand about this type of business is that there is no magic recipe for success, because if there was, I wouldn?t be writing this article. I would be to busy rolling in all my money. You may find that some of the strategies you?ve read on the web or in books actually work in getting traffic to your website, but none of your visitors are actually buying anything. There are literally countless factors that come into play that will determine your level of success.

Without getting into the specifics and intricacies of affiliate marketing, I will try to point you in the right direction. First of all, an important aspect of affiliate marketing is the website itself. Like I said earlier, getting a hit on your website is one thing, but actually having that hit translate itself into a sale is a completely different thing. If your website doesn?t offer compelling content and simply relies on nice pictures, catchy slogans or cheesy testimonials, well I wouldn?t expect off the chart results. You might get the odd user to buy your product, but don?t expect him to come back. Just take a look at all the major corporate websites on the net: simple and easy to use design, fresh and informative content. That?s why most people go back to these websites. In layman?s terms, a professional looking website is a must, even if it only looks professional and you ended up designing and writing the content yourself. There are numerous templates or detailed tutorials available on the net that can help you design an efficient and professional looking website. There are also great article search engines where you can find free articles to use on your website.

The last thing I would like to elaborate on and probably the single best advice I can give any new webmaster willing to try his hand in such a competitive business is simply read. The more you learn, the better your chances are. You must study your competitors; understand your targeted audience, read any book that you can get your hands on; visit any website that can help you with your project, etc. Finally, apply the things you?ve learned even if it?s a relatively small venture. Unfortunately, there are many people out there who give up before they even get started, often because they realize that it takes a lot more work than they thought. But if you?re willing to push yourself and learn, you just might hit that home run.

Making Money With Only Affiliate Marketing

Previously, when affiliate marketing deals were given to you, they were often too good to be true.

This is not the case anymore. You've probably heard the same things about affiliate marketing time and time again. The increasing number of affiliate programs, online or offline are all telling you they're better than everyone else.

Besides that, they will give you an initial impression that you do not have to do more than just place a banner or two to start earning more profits than you could ever imagine. This is not always the case. This may apply to some who have already built up a successful site and a name for themselves. But for most, affiliate marketing needs a little work and time.

Email can be an effective affiliate marketing instrument. If done correctly, that is.

Promotion by means of email is very rampant. If you want to use email for your affiliate marketing, you have to be sure that you stand by what you are offering and that you make yourself available anytime for any questions or queries.

It is said that adding an article to your email advertising works really well. Putting up a summary about your product or service that can instantly attract the attention of your readers.

This summary should contain a link to an article located on your site. By this, you get to promote your business. You also give your visitors a chance to check out other parts of your site.

The advantage to the advertiser is that they get highly targeted visitors to their site. These people may even become future buyers if ever they find the offers interesting and helpful.

Try to differ from the crowd. Be unique.

The many existing affiliate marketing programs made people blind to the sales and marketing pitch being presented. You cannot blame them. Imagine yourself being bombarded by these things everyday and you will feel the same.

Squeeze out your creative juices and give them something original enough to stop them from leaving and make them stay to read on. You can try and find a hosting company that can do the job well. Having a great one will make you more than comfortable to offer anything from small to big time deals.

Patience is the key in affiliate marketing.

Contact a certain company to negotiate an arrangement if you feel that you are confident enough to generate an amazing number of sales for them. If they seem not interested in what you are offering, do not give up yet. Be patient.

Take into account that these companies are bring approached everyday by affiliates only gives out promises. Most of them cannot deliver what they are saying; thus making company owners wary of which ones to choose.

You can always go the extra mile and implement other techniques in order to get more sales. Once you have done this, approach them again for your services. Chances are, they will be more than willing to get into your affiliate program this time around.

Keep in mind that most types of advertising do not give out results instantly. Putting up a banner for your affiliate marketing campaign and getting it off after a few days should not be done. You may think that they are not being effective or that they are not working. It takes time.

Some of the affiliate marketing strategies that have worked successfully for you may not work the same way on other campaigns. It is worth the try but do not expect for things to turn out exactly.

If you are having continuous problems with your affiliate program, get in touch with the company. If they are committed to their business, they will help you in every way possible on which ones work best. They probably have thousands of affiliates willing to teach you what works best.

Affiliate marketing can be exciting and depressing at the same time. The ups and downs you will encounter is never boring; it will always be a challenge

It all boils down to affiliate marketing being the survival of the best of the best, the smartest and the most patient. But those that win will be handsomely rewarded.

Top 5 Affiliate Marketing Mistakes And How To Avoid Them

In order to help you avoid making some of the most common errors made by the affiliate program marketers, who are web based, we have collected those mistakes to make you aware of them. Many have learned these lessons, but through the hard way of struggling to make the sales that just never closed, the entire idea is about closing the sales!

1. Failure to understand that people scan information

An affiliate marketer?s failure to realize that the people visiting your website will read about thirty percent of the matter on your page is the sure number one error. Most people, particularly the highly intelligent, busy professionals, having the money to purchase the products that you have to offer, are generally too busy to study every word.

They are going to search for and focus on the bullet points, highlights, blurbs and pictures to decide if the information is good enough and if they should spend time on reading more. Do not fall into the same trap. Make landing page of your affiliate marketing such that all the major points seem to stand out and cannot go unnoticed by the person scanning the page.

2. Lack of success in offering bundled packages

It is human nature to want things for free. Let your prospect feel that they are getting more for what they are paying for, by adding free prospects to the product you are marketing, or free software to enhance the product, or just a free subscription to any newsletter. Do not just offer them your product and ask them to get away. Add a package to which no one can refuse!

3. Failure in following up

Out of every 100 people who come across a sales page on any particular affiliate marketing, one among them will surely purchase immediately. The remaining 99 would move to another page with no chance of returning back. To attract these people, use an autoresponder, to allow signing-up for free reports. So, even if 25% of them sign up for your free reports, it would mean that twenty four people will see in their inbox, your product through free reports. Now if 10% of them do buy your product, you get to have 3.4 sales every 100 visitors, instead of 1. And it is an extremely conservative estimate.

4. Flooding the inbox of the prospect

Everyone dislikes seeing 5-6 messages from a single marketer, on opening their inbox. That is a sure-shot way to land you into their e-mail blocking list! Instead contact them every few days, and then slowing down to just once a week, to even once in two weeks, between your contacts. Sales can be generated through persistence, so do not give up if you?re contact shy of sales closure.

5. Failure to construct sales of second tier

As an affiliate marketer, you can?t just make profits out of just your own sales. Anyone who joins the program, on the basis of your referral, is sure to join membership of your own downline, and in fact a small percentage of profit made by their own sales would also come trickling down to you. All people wish to have the largest possible downline. Also, do not forget that the ones joining under your downline can help in getting trickle-up profits.

So You Want To Be An Affiliate Marketer

If you're like 99% of the population, you have some interest that you are passionate about. Maybe it's travel, or sports or animals. If you have an interest like this, why not make some money from it? Create a website to showcase your interest, join some affiliate programs and add the links to your new website. Now, starting raking in the cash. Simple, right?

No, not really. When a new affiliate marketer comes to me for advice, I tell him or her it's not as easy as it sounds. Many will listen to my suggestions and then "go his own way" to creating banner farms. Sometimes pretty, but not very effective. My biggest piece of advice is "Don't create a website about pets and add affiliate banners like satellite tv or gambling or dating to it. It doesn't work!

Let's start by discussing what affiliate marketing really is:

Affiliate marketing is a partnership between a web merchant and one or more affiliates. Affiliates are paid commissions for referring others to the site - specifically for generating sales, leads or "clicks."

There are a lot of benefits to affiliate marketing. You don't have to deal with customers, worry about payment processing or find your own affiliates. But, do you have the patience it takes to build from the ground up? It takes knowing yourself. It takes time and it takes persistence. It takes having a strong desire to succeed. And it takes a little bit of luck. You're not going to become a millionaire overnight - sorry!

Again, what's your passion? What affiliate products can you find that will compliment your interests? Do those affiliate products actually sell? Do your homework! You must research your products thoroughly.

It's not easy to be a successful affiliate marketer. There's a lot you must learn. Once you get your website up, you need to know how to market your site effectively. You'll need thousands, even tens of thousands of visitors to see your affiliate products' "offers." Think big! Go for LOTS of sales - not just one! By the way, don't sell - PREsell! The real key to being successful with affiliate marketing is to develop a good content based website and weave your affiliate links into all your content.

Create a list - a newsletter. You must have a way to bring your website visitors back to your site. Once they leave, they won't be back without some incentive. Put your newsletter signup box on every page of your site because you never know what page your visitors will land on first.

Be creative. Think of ways to keep your visitors coming back. Perhaps with contests or polls. You might want to give away a "freebie" every once in a while. Write reports and articles. Keep your content fresh and new.

What do you think? Do you still want to be an affiliate marketer? Good, then get started, and, as the saying goes, "Keep on keepin' on."

Affiliate Marketing Secrets Revealed

Affiliate programs are a simple way to generate revenue. This is a system of revenue sharing between one site (the affiliate merchant) which features an ad or content designed to drive traffic to another site (the advertiser). The affiliate will receive a fee based on the amount of traffic generated. Having an affiliate program is a great way for a merchant site to increase its traffic and revenue, but it is also a great way for an average person to make money. Affiliates do not have to develop their won product, process orders, deal with shipping, etc. They simply find a reputable company that offers and affiliate program and sign up. Sounds easy, right? That is what a lot of people think, and it is also the reason why a lot of people try it and fail. In order to actually succeed and make a significant amount of money as an affiliate marketer, you have to work. Just like any other job, you need to put time and effort into it in order to see results. The first step is to find a great merchant. One mistake that a lot potential affiliates make is not researching the company thoroughly. Of course they all say that they are the best and most lucrative. It is up to the potential affiliate to do their diligence to make sure the company they choose has a good reputation and a good program to help its affiliates. Make sure the company offers a start-up manual at the very minimum. The next step is to build a website. This is where a lot of beginners run into problems. This becomes a giant hurdle for those that do not know how to build a website using html. There are web-building services available, but they can be costly. Even those who can use it still can have make mistakes. Some of the most common mistakes are: hosting at a free Web hosting service, poor content, websites that do not look professional, and failure to master the Search Engines. Finally, in order to be successful, you need to get people to see your website. In order to do this, you need to find ways to drive traffic to it. Some of the most important things to do are to make the content of their Web pages "attractive" to Search Engines; track how each page performs on the major Search Engines; and develop more than one way to drive traffic. Once you have done all of these things and are beginning to experience success as an affiliate marketer, you can just sit back and watch the money roll in, right? Wrong!!! You will always need to monitor your traffic and think of creative new ways to bring the traffic to your website. But, most importantly, if you ever want to be able to rely on affiliate marketing as a stable source of income, you need to diversify into other, complementary monetization models. Copyright 2006 Timothy Rohrer

Affiliate Marketing: 3 Steps to Free Targeted Traffic!

Have you ever tried to promote a website without traffic?

Sure, is sound like stupid question, but reality is that

Without traffic, you will not get visitors. And without visitors, you will not make money, sales, get subscribers, etc.

So, What good is a website without any traffic? And if the site is getting traffic, what good is it if it is not targeted traffic?

There are many ways to drive traffic to your site, both free and paid. But we are going to talk about the one you probably love the most: Free Targeted Traffic.

So, let us go back to 3 different free traffic systems available:

1) Search Engine Optimization
2) Surfing for traffic
3) Getting it passively

1) Search Engine Optimization (SEO):

SEO takes time and a lot of work. It works really great when you know how to do it, but if you go after this one, I recommend you to learn from 3 guys online, and believe me, they know what they are talking about, just go to google and search for:

Brad Fallon

Andy Jenkins

or, Brad Callen

I recommend you take a look for Brad Callen´s free seo guide, you will find it somewhere out there in cyberspace and it is called: "Search engine made easy".

2) Surfing for traffic

When you join sites that are surf for traffic sites, you have to look at other members' sites in order to earn advertising credits for your site to be displayed when another member is surfing.

The only problem with this is that although the traffic is free, it is not targeted.

Everyone who is a member only surfs for the credit and very rarely and y mean rarely even looks at the site, they just minimize their window on their PC and multi-task. So, the traffic in most cases is crap and worthless.

3) Getting it passively

Now, let us talk about the best way to get free targeted traffic. It is called Instant Buzz. Instant Buzz is a service that gives you advertising credits as you surf the web like you normally would.

What you do is download the toolbar for free, it only takes a minute. Then, you set up your ads in the members area. And bam, you ads are being displayed on other members' tool bars as they surf.

You can also put Instant Buzz ads in emails that you send to your friends. These are called mail space ads.

And your ad will get displayed in other members' emails. The last thing you can do is put a hyperspace ad on your website which will help you refer other members.

When you refer other members, you will also get a percentage of the credits they earn which will go towards your ad credits.

If someone likes your ad and is interested in what it says, then they click on it and end up on whatever site it was that you were promoting. Now that's targeted traffic! And it was free.

You decide what to use, and remember if it is free, well, why not?...

Buy the Worst of Barron's 500

Every year, Barrons publishes a ranking of the top 500 companies. A subsidiary of Credit Suisse (Holt) is the entity that has come up with the methodology for these rankings. I will not bother to explain the methodology since the point of this post is not to critique nor endorse these rankings. Rather, I looked at the last 3 years (2004, 2005 and 2006) rankings, and came up with some interesting observations that I wanted to share.


I examined the Top 10 and the Bottom 10 stocks from each of the lists over the last 3 years, in other words, stocks ranked 1 to 10 and 491 to 500. What I noticed was that the best performing group of stocks over the 3 years were those ranked 496 to 500 - the 5 worst ranked stocks.

Indeed, these worst 5 stocks from the lists of 2004, 2005 and 2006, yielded investors 45%, 32% and 12.5% respectively in the 52 weeks that followed the date the rankings were published. Over the three years, this was the best group to invest in.

Another interesting fact was that the second best performing group to invest in, was the group ranked 491 to 500 - the 10 worst ranked stocks. Over the three years mentioned above, this group returned 30%, 18.5% and 18.5% respectively.

Considering that 2004, 2005 and 2006 were all bull years when the S&P returned 8%, 2.5% and 13% respectively, one would have thought that the worst 5 or 10 stocks in the Barrons rankings would underperform the S&P 500 somewhat, let alone outperform the top 5 and top 10 stocks. But if you look at the 52-week performance of these bottom tier stocks leading up to the publish date of the rankings, they lagged the top ranked stocks by a huge margin. In fact, leading up to the rankings, the Top 10 ranked stocks each year were already up 83%, 31% and 56% respectively over 52 weeks. Compare this to the Bottom 5 ranked stocks which were down 23%, 8% and 7% respectively over the same period.

In other words, stocks that have had strong performance leading up to the Barrons 500 Rankings issue tend to be ranked at the top, even though these stocks hardly ever replicate their big move after the rankings. Meanwhile, stocks ranked at the bottom are ranked so on the heels of underperformance, and turn out to be solid value plays in the weeks following.

The tables below illustrate my point:


*BOY above shows gains/losses from the beginning of the year to date of publishing.

Do Not Let Controversy Cloud Judgement on Whole Foods

Whole Foods (WFMI) is a organic grocer that people love to frequent. But this once darling of wall street is a fallen angel, with the stock plummetting from $80 back in December of 2005 to a recent $40. In fact, the stock is at the same level as it last was back in August of 2004.

The 50% drop in stock price over the last 18 months seems justified. After all, revenues have been increasing in low double digits, guidance has been poor, margins have been shrinking, larger competitors like Safeway (SWY) and Kroger (KR) have started selling organic foods so there is plenty of competition and above all, earnings have been falling.

The most recent controversy surrounding the CEO of Whole Foods posting frequent messages on Yahoo Finance's message boards is another blow to the company. Or is it? The attention that the company will get from all the chatter about the CEO, not to mention the subsequent ouster of John Mackey, which seems to be on the cards now, might actually be a good thing for the stock. Perhaps this is one of the reasons the stock was up almost 4% today on higher than average volume. Either that or some of 14% shares shorted were covered.

With almost 200 stores, Whole Foods is still a young chain. in comparison, Safeway has over 1700 stores in US and Canada. But does Whole Foods really compete with Safeway? Perhaps it competes with Safeway's upscale Pavilions chain, but certainly not Vons or Randalls. Whole Food's specialty is organic foods, but the shopping experience there is far more superior than at most other grocers.

The point here is not to be outright bullish or bearish on WFMI. I think there is a contrarian opportunity to be had here, but investors on either side will need to be patient and adventurous.

Why Nokia Is Leaving Moto in the Dust

Phones for high- and low-end consumers, a great supply chain, and lots of cash—the Finnish company has it all (except the iPhone)


Pop singer Alicia Keys and Ramkishen Pyarelal, proprieter of a Mumbai tea stall, may not have a lot in common. But they both carry Nokia mobile phones. If you want to know why Motorola (MOT) is in such trouble these days, the celebrity and the Indian street merchant provide a big part of the answer.

From stylish $750 handsets with built-in global-positioning receivers to $45 basic models with black-and-white displays, Nokia (NOK) saturates the booming mobile-phone market in a way neither Moto nor any other competitor has been able to duplicate. Nokia's formidable lineup of some 100 models is just one of many reasons why more than one out of every three handsets in the world traces its origins to the Helsinki suburb of Espoo.

The former producer of rubber boots and timber, which famously made a risky decision in 1992 to focus on mobile technology, seems to be doing everything right these days. Nokia's supply-chain management may be the best of any company in the world. It has a big head start in fast-growing markets such as China and India. And it has $9.5 billion in cash and practically no debt, so it can invest far more than rivals on developing new products or conquering new markets—and thus build even more intimidating economies of scale. "We are about to report our billionth customer, so we must be doing something right," says Anssi Vanjoki, a Nokia executive committee member responsible for multimedia devices.

Shock-Resistant

Thanks to those advantages, Nokia's global market share has climbed to 37%, and some in the industry think it could hit 40% this year. "If there's a time when that goal looks realistic, it's now," says Gartner (IT) analyst Carolina Milanesi.

Motorola managers can take some comfort in recalling that Nokia, too, has endured some devastating crises. Back in 1995, its manufacturing system nearly collapsed under the weight of rapid growth. And in 2003, Nokia was slow to introduce clamshell-style phones and color displays. From the fourth quarter of 2003 to the first quarter of 2004, its market share plunged from 34.6% to 28.4%, according to market watcher Strategy Analytics.

Similar woes have driven other mobile-phone producers from the market. Onetime contenders such as Panasonic (MC), Philips (PHG), and Siemens (SI) (which later sold its phone division to Taiwan's BenQ) today have market shares below 1% each. But under former Chief Executive Officer Jorma Ollila and his successor, Olli-Pekka Kallasvuo, the stoic Finns emerged even stronger. By diversifying its products and its geographical reach, Nokia now seems far less vulnerable to shocks than it was three years ago. "Nokia has definitely learned from that experience," says Neil Mawston, an analyst with Strategy Analytics. "They have spread their risk a lot more."

All Things to All Consumers

One lesson Nokia learned was that it doesn't pay to rely too heavily on a few top-selling models. Motorola, by contrast, became overly dependent on the Razr. Nokia has nailed both the high and low ends of the market and pretty much everything in between. For affluent buyers who want the latest technology, the $750 top-of-the-line N95 includes an Internet browser, music player, GPS satellite receiver, and the ability to connect to Wi-Fi networks as well as standard cellular services.

Even Nokia's entry-level phones offer extras that appeal to Mumbai tea sellers and vast numbers of other low-income people enjoying their first taste of telecommunications.

ts $45 model 1200, for example, can go more than two weeks without a recharge and has a built-in flashlight, handy for people who live in homes without electricity.

The company has invested hundreds of millions of dollars building distribution systems and networks of retailers in developing countries, including vans that bump along the rural roads of India between stops for instruction on how to use mobile phones (see BusinessWeek.com, 05/04/07, "Nokia Gets It Right for South Asia"). As a result, it's the No. 1 handset supplier in China and India and is growing fast in Africa, the industry's next frontier. Meanwhile, Motorola's low-cost phone for India has been a flop despite a $35 price tag, in part because its limited features didn't convey a sense of status to potential buyers.

Supply-Chain Smarts

Perhaps most impressive is that Nokia has managed the shift to low-cost phones while maintaining healthy profit margins. The company earned an operating profit of 16.8% on mass-market mobile phones in the first quarter of 2007, a modest decline from 18.5% a year earlier. But that doesn't even include Nokia's high-end multimedia devices, which had a profit margin of 18.8%. In the most recent quarter, net profits were $1.3 billion on sales of $13.4 billion. When Nokia reports second-quarter results on Aug. 2—figures analyst Richard Windsor of Nomura Securities in London—profits should climb 11% on a 7% increase in revenues.

Nokia makes money at the low end because of its superefficient supply-chain and manufacturing systems. It also keeps costs and complexity under control by sharing components among devices and designing phones that have fewer parts than competing models. Such practices pushed Nokia to the No. 1 spot this year in Boston consultancy AMR Research's annual survey of top supply-chain operators, ahead of logistics champions such as Toyota (TM) and Wal-Mart (WMT). (Motorola was a respectable No. 12 in the ranking, which was based in part on a poll of supply-chain executives.) Analysts say even low-cost Chinese producers such as Huawei Technologies can't match the efficiency of Nokia, which operates its own factories in Vietnam, India, and other low-wage countries.

Not the iPhone, but So What?

To be sure, Nokia still has weaknesses. Its Eseries devices for the corporate e-mail crowd lag rivals such as Research In Motion's (RIMM) BlackBerry and are unprofitable. Swedish rival Ericsson (ERIC) is far ahead of Nokia's joint venture with Siemens in the market for base stations and other mobile infrastructure. And in design, Nokia faces a serious challenge from Apple (AAPL) and its hot iPhone. Nokia has only a few touch-screen products and none as advanced as the iPhone, with its glass surface and finger-operated interface.

It's not the first time a competitor has challenged Nokia for classiness: see LG Electronics' Chocolate Phone or Samsung's elegant superthin handsets. But time and again, the Finns' consistently excellent distribution, manufacturing, and marketing have prevailed. It will take more than one cool phone to threaten Nokia's dominance. "Maybe the iPhone will be very successful," says Martin Garner, director of wireless intelligence for London market researcher Ovum. "Does that knock Nokia off its perch? I don't think so."

Movers: Google, Microsoft, Caterpillar, Intuitive Surgical

Google (GOOG) posts second quarter GAAP EPS of $2.93, vs. $2.33 a year ago, on a 58% revenue rise. It expects to continue to make "significant" capital expenditures in 2007. S&P reiterates hold, while Needham trims estimates but keeps buy.

Microsoft (MSFT) posts $0.39 (excluding $0.08 charge), vs. $0.31 a year ago, fourth-quarter EPS on a 13% revenue rise. It sees $0.38-$0.40 first quarter EPS on revenue of $12.4-$12.6 billion; $1.69-$1.73 fiscal year 2008 EPS on $56.8-$57.8 billion revenue.

Caterpillar (CAT) posts $1.24, vs. $1.52 a year ago, second quarter EPS as a negative swing in on-highway truck engine profitability, weakness in North American machine sales, supply chain disruptions, and higher material costs offset a 7.1% revenue rise.

Intuitive Surgical (ISRG) jumps after posting second quarter EPS of $0.79, vs. $0.44 a year ago, on a 61% revenue rise. It says revenue growth continues to be driven by strong procedure adoption. S&P raises target, keeps buy, while Bear Stearns upgrades to outperform.

Citigroup (C) posts $1.24, vs. $1.05 a year ago, second quarter EPS from continuing operations on a 20% revenue rise. It says record revenue was led by a 34% growth in international revenue. S&P reiterates strong buy on the stock.

Wachovia (WB) posts $1.23, vs. $1.18 a year ago, second quarter EPS (excluding charges). It says all four of its major business delivered double-digit earnings growth, fueled by new markets, revenue growth initiatives, and expanded product set.

Capital One Financial (COF) posts $1.89, vs. $1.78 a year ago, second quarter EPS on 30% higher net interest come. It affirms 2007 EPS guidance of $7.00-$7.40, with current expectations towards lower end of that range. S&P maintains hold.

Whirlpool (WHR) posts $2.00, vs. $1.26 a year ago, second quarter EPS from continuing operations on a 2.5% sales rise. It continues to expect 2007 EPS from continuing operations of $8.00-$8.50.

Seagate Technology (STX) posts $0.96, vs. $0.01 a year ago, fourth quarter GAAP EPS on a tax benefit and 8.5% revenue rise. It sees first quarter revenue of $2.9-$3.0 billion, GAAP EPS of $0.35-$0.39. S&P maintains buy, while Bear Stearns upgrades to outperform from peer perform.

SanDisk (SNDK) posts $0.30, vs. $0.58 a year ago, second quarter non-GAAP EPS as lower gross profits offset 15% revenue rise. S&P reiterates hold.

Oak Hill Financial (OAKF) agrees to be acquired by WesBanco (WSBC). Terms: OAKF holders to get either 1.256 WSBC shares or $38 in cash per OAKF share.

GPC Biotech AG (GPCB) falls after a FDA committee raises 5 issues on the company's satraplatin, which include: definition of one of the two primary endpoints; two independent radiology readers disagreed on progression status in 367 of 950 patients.

Schlumberger (SLB) posts $1.02, vs. $0.69 a year ago, second quarter EPS on 20% revenue rise. S&P maintains buy.

Boston Scientific (BSX) posts $0.08 second quarter GAAP EPS, vs. $3.21 loss (including charges) despite a 1.8% sales drop. It sees $2.0-$2.1 billion third quarter sales, $0.03-$0.08 GAAP EPS.

Brunswick (BC) lowers 2007 EPS from continuing operations guidance to $1.20-$1.35 from $1.65-$2.00. It cites the effect of lower sales, lower fixed-cost absorption from production cuts, among other factors.

First Data (FDC) posts $0.30, vs. $0.33 a year ago, second quarter EPS from continuing operations as $0.07 worth of favorable items in year-ago quarter offset 16% revenue rise. It sees $1.20-$1.26 2007 EPS from continuing operations, excluding costs tied to pending merger with an affiliate of KKR.

Broadcom (BRCM) posts $0.06, vs. $0.18 a year ago, second quarter GAAP EPS on 4.6% revenue decline.

F5 Networks is a Big Part of the Tech Rally Being Predicted

F5 Networks (FFIV) is an incredible company. The company develops networking solutions that help customers manage traffic on their internet networks and applications. Its solutions improve the performance, availability, and security of internet applications.

The last time FFIV reported earnings (April 25th), the stock jumped $13 (19.5%) on spectacular results. The stock rose almost 15% back on Oct 25th of last year when the company reported earnings. In the last 52 weeks, the stock is up 100% and the 3 year performance shows a gain of 270%.

The reason for these monster gains is the company's tendency to keep growing earnings at around 40%. With no debt, and over $10 in cash, the stock trades at 30 times 2008 earnings - a reasonably cheap valuation. As we enter the best time for tech stocks, F5 is well positioned to move close to $100. The company reports earnings on July 25th and I believe that it should be bought at any dip prior to that event.

Turkcell Makes for a Good International Emerging Telecom Play

Turkcell (TKC) is a Turkish wireless and telecommunications provider - the only Turkish ADR to trade on the NYSE. Turkey is a key emerging market, that is not talked about enough (which is a good thing actually). With a business friendly environment and financial markets that are being moulded for EU membership, Turkey is a great place to put money and one of the few ways to do it here in the US is by investing in Turkcell. At a mere 12 times forward earnings and a generous dividend of almost 3%, the company looks fairly discounted when you consider the $2 plus billion annual cashflow and 40% earnings growth.

There are political risks involved in putting money in Turkish equities, but the rewards are high. The stock has been performing quite well with gains of over 60% over the last 52 weeks.

10 China Plays - Time to Make Some Changes

FXI - the default China 25 index is up 21% primarily due to the high exposure of the index to the Chinese financial sector. Sadly, none of the big banks in China are tradable on the NYSE (China Merchant Bank and China Construction Bank are two such names). The 21% gains comes on the heels of a 20% gain from December of 2006 to May 2007. Needless to say, the Chinese market is still going gangbusters, but there are some revisions to the portfolio that I believe will boost performance. One thing that I would like to mention is that it would be very easy to recommend all energy stocks (PTR, SNP, CEO) or all telecom stocks (CHU, CN, CHA), but the purpose of this list is to remain diversified (within China of course - which makes this an oxymoron but whatever). Furthermore, the Chinese market has advanced significantly, and is due for a correction, so when buying, please proceed with caution.

First, lets evaluate the companies I would like to remove from the list.

51Job, Inc. - JOBS has been an underperformer of the Chinese stock market for a while. Since falling from grace back in Jan 2005 when the stock was over $50, it has failed to regain favor on Wall Street.

LJ International - JADE is a stock I still like, but its delinquent filing has caused the stock to drop 25% in 2 days. While I think the stock will recover, there is no telling how long it will take. Besides, investors are already jittery about Chinese stocks - the last thing they need is a stock that is late in its regulatory filings.

Now lets look at what I would add to this list.

China Southern Airlines - ZNH is China's the biggest carrier by fleet size. Last week, the company announced plans to buy 20 A320 jets from Airbus and 25 B737-800 planes from Boeing (BA). With the 2008 olympics a javelin throw away (sorry I couldn't help it), travel to China is far from where it will be next year and the following years. Granted that fuel prices are historically high, it is that time of the year when the airline sector should begin to rally.

New Oriental Education - EDU is China's largest English-language and test-preparation provider by revenue, which operates 128 schools in 34 cities. the company plans to add another 24 to 31 such schools by this time next year. According to the Wall Street Journal, New Oriental is market leader with about 5% of China's language-teaching business, analysts say, putting it ahead of competitors in a highly fragmented sector with some 50,000 companies. China's English-language teaching sector may have revenue of $3.9 billion by 2010, analysts estimate. The stock is up 150% in the last year but has dipped 10% below its high of $60. At any dip, I recommend buying.

Why is Oil at $75 a Barrel?

One might wonder why oil is at $75 and what are the global events that effect oil price. Here is why oil is priced this high and why I think oil is actually cheap at $75.

1) Demand from China and India does not seem to slow. Add demand from Indonesia, Australia and Eastern Europe, and and oil never seemed so scarce.

2) Supply is short. Resources are getting dried up with every barrel of oil thats pumped. Pair that with declining levels of reserve in the US, and an uncertainty over OPEC's reserves, and the outlook seems bleak. To give you an idea, OPEC's capacity has been reduced by over 15% in the last 25 years.

3) Governments of oil producing nations, specially in South America are increasingly weary of big oil companies drilling on their land, poulluting their environment and using their resources to fatten their own wallets. Bolivia, Peru, Venezuela and Ecuador are now looking to increase taxes on these companies, along with nationalizing the industry, which means that public oil companies like Chevron and ExxonMobil will be sharing their projects and profits with government owned oil companies. For instance, 85% of the worldwide known reserves were open to international oil companies back in the 1960's. Now, less than 20% is open to them.

4) Production and Refining is running at full capacity. Any breakdown in production would send prices soaring higher. Refining is currently running at an unsustainable 92% capacity.

5) Higher cost of drilling, producing and refining will keep putting a cap on the profits that oil companies make. Add the chance of facing wind-fall profit taxes at home and tax threats from other governments abroad and there is little incentive for companies not to hold on to their cash. Drilling oil wells now costs 5 times as much as it did just 10 years ago.

6) Global warming, which results in stronger hurricanes, higher tides and climatic changes, will eventually hinder off-shore and deep-sea drilling, raising costs and increasing operational risk.

While alternative forms of energy might keep oil prices in check, I believe they will only prolong the inevitable - even higher oil prices.

Thursday, July 19, 2007

Value Investing

By definition, value investing is the process of selecting stocks that trade for less than their intrinsic value. A value investor typically selects stocks with lower than average price-to-book or price-to-earning ratios. Of course, it is not nearly this simple. Value investing is the corner stone of long-term growth. Those who practice it survive the ups and downs of the market and are more likely to emerge wealthy than those who ride the market, in principle, due to the higher quality of the companies falling under the prerequisites of the value investor. Value investing is essentially concerned with getting the most profit at the lowest cost. The basis of value is profit. Value investing is an investment style which favors good stocks at great prices over great stocks at good prices. Value investor extraordinaire Warren Buffett has used this style to become a billionaire.

It’s important to keep in mind that value investing is not concerned with how much the price of a stock has risen or fallen necessarily, but rather what is the “intrinsic” or inherent value of the stock, and is it currently trading below that price, i.e. at a discount to it’s intrinsic value. The important point here is that when looking at stocks that are trading at or above their intrinsic value, the only hope for gaining value is based on future events, since the stock price already represents what the company is worth. However, when dealing with stocks that are undervalued, or available at a discount, unforeseen events are unimportant in that without any new earnings or additional profits, the shares are already “poised” to return to that inherent value which they have.

The question now, of course, is “why would stock prices not always reflect the true value of the company and the intrinsic value of its shares?” In short, value investors believe that share prices are frequently wrong as indicators of the underlying value of the company and its shares. The efficient market theory suggests that share prices always reflect all available information about a company, and value investors refute this with the idea that investment opportunities are created by disagreements between the actual stock prices, and the calculated intrinsic value of those stocks.

Finding Value Stocks

Value investing is based on the answers to two simple questions:

1. What is the actual value of this company?

2. Can its shares be purchased for less than the actual (intrinsic) value?

Clearly, the important point here is, “how is the intrinsic value accurately determined?” An important point is that companies may be undervalued and overvalued regardless of what the overall markets are doing. Every investor should be aware of and prepared for the inherent market volatility, and the simple fact that stock prices will fluctuate, sometimes quite significantly. Benjamin Graham has often said that if investors cannot be prepared to accept a 50% decline in value without becoming riddled with panic, then investing may not be for them…or rather, successful investing, as it often takes significant losses in a particular security before gains are made, due to the idea that value investors do not try to time the market, and are focused on the underlying fundamentals of the companies. Furthermore, the quality of the companies targeted by the value investors’ screening methods should be, over the long term, less volatile and susceptible to market “panic” than the average stock.

This is also a two way road of sorts. On one hand, there is no sense in worrying about depressions, upturns, and recoveries due to the underlying quality of the value investments. On the other hand, investments should only be made in companies which can flourish and do well in any market environment. Doing solid investment research and making equally solid investment decisions will take investors much further than trying to forecast the markets.

How Many Different Stocks?

In terms of diversification, there are many discrepancies over exactly how many different stocks a solid portfolio should be made up of. My personal view is that there should not be as many stock as normally make up a mutual fund. Many will disagree with this, but what it’s worth, I think that owning a portfolio of 100, 200, or even more companies not only serves to limit risk, but it really limits the possibility for reward as well. Also, as Warren Buffett has said many times, the more companies you own, the less you know about each one.

As I write this, there are 42 stocks in our recommended portfolio. This number may very well grow in the coming months, as it may decrease in number, but one thing to keep in mind is, out of the thousands of companies available for purchase, only a very small percentage meet the stringent requirements of the diligent value investor. This is both a blessing and a curse. Very often, there is simply nothing to buy, and this is fine. The trap to avoid falling into is to lower your requirements for a stock when there simply isn’t anything meeting the normal requirements. This is how many an investor has fallen into making poor investment decisions, putting money into companies not really adequate for their respective portfolio, and it will certainly have a long term effect on gains.


Wednesday, July 18, 2007

Forex Trading Risk Management

Recent years we witnessed increasing numbers of Forex investment opportunities in United States. However, it is common that one afraid of being involved in Forex market because of high risk in this trading field. Although every capital market involves certain level of risk, the risk of loss in foreign currency trading market can be extensive. It would be wise to learn about the potential risk (and managing it) if you wish to trade in Forex market. Knowledge Needless to say, knowledge is the key of handling your risks well. Before you get into Forex market, the best thing you should do is educate yourself. What drives currency price movement? How to read analysis data? How to read chart indicators? Learn detail about how currency price move and how to trade foreign currency exchange in order to avoid unnecessary risks. If you wish to learn more, http://www.golearnforex is a good source for Forex beginner education. Forex dealer Choosing the right FX dealer is a way to avoid unnecessary risks. Forex dealers are not all regulated the same way. Although Forex dealers must be regulated by law, firms and individuals can solicit retail accounts for Forex dealers and manage those accounts without being regulated. As a trader you should take up the responsibility of finding out if your Forex dealers are regulated. If they are not, you may be exposed to additional risks. Also, beware of dealers with investment schemes that sounds too good to be true. Pay extra cautions to dealers that you first knew and always look into the investment offers. If you are from United States, you can always refer to CFTF (at http://www.cftc.gov) or NFA (at http://www.nfa.org) for further information. Forex market is a non-centralized market. There is no common market place for Forex traders and there is no so-call 'standard' in foreign currency exchange price. Different Forex dealers offer very different deals to their customers. As an individual FX trader, you depends solely on the dealer to make a transaction in your trades, thus picking up the right dealer is extremely crucial in your risk. Stop loss order Besides depending on the Forex dealer, a stop loss come very handful if you wish to limit your risks. Always trade Forex with a stop loss order as it will assure you to exit market in a price that you can handle the losses. As an example, if you purchase 100k of EUR/USD at 1.2050 expecting the EUR/USD to rise in value, and your stop is placed at 1.2020, you are guaranteed to be filled at your price (except in very volatile market.) To leverage or not? One way to manage your risks well in Forex market is to trade without overleveraged. Forex dealers want you to trade with high leverage values as this means more spread income for them. Also, trading in high leverage may increase your profit or your losing. There are high possibilities that one lose money more than he or she can afford in margin trading. Conclusion You come to this article probably because of you are new to FOREX and were looking for some readings on the Internet. To be frank, Forex can be very profitable but the risk lie beneath is equally great. But what else in life does not involve risk? You can be fired from your job, factory may malfunctions, stock market may collapse, your boss may runaway with your wages, and hey! These are all risk. Learning in risk management is the key to handle your life. Trade smartly, and gain the maximum out of Forex - good luck!

Explosive Profits: 7 Reasons to Trade Forex

There are many money-making opportunities out there and we’ve been involved with quite a few, namely property marketing, web development, residential construction security, multi-level marketing businesses etc. We’ve come to a few conclusions with the help of some well-known properity coaches. Often people with the income they desire don’t have the time to enjoy it. Those that have time don’t often have money. You don’t have to sacrifice your life-style to earn an above-average income. If you focus on the Forex for a few months you can make that dream a reality and create time and money to do what you REALLY want. To earn a living money is given in exchange for a product or service rendered. It needs to be sold continuously otherwise your income stops abruptly unless it’s a repeat type of product or service. Money is a medium of exchange. There’s no magical formula to possess it, you need to exchange something of value for it. What if, you could have access to thousands of customers who are ready, willing and able to buy from you whenever you wanted? Wouldn’t it be great to avoid any hassles like money collection problems (just had a delayed payment from my web business), keeping difficult customers happy (we all know what that’s like), competition stealing your business without providing the same value etc. All that is possible with Forex. You can also trade from anywhere. Take your laptop with you, find an internet connection and away you go. Another advantage is that you don’t need experience to get started. Get a traditionally job involves accumulating specialized experience, having a well-polished resume and having the right contacts. With the right training course, you can get started straight away. Here’s 7 more reasons to trade Forex: 1. It never closes. It’s open around the clock, worldwide. Trading positions open at Monday 7am, New Zealand time and close 5pm New York time on Friday. During this time, you can enter or exit the market whenever you like. It’s a continuous electronic currency exchange. This is great because you can trade whenever you have spare time. 2. Leverage. Standard $100 000 currency lots can be traded with as little as $1000. This is mainly because of the ease with which you can buy and sell, some brokers will leverage up to 200 times, so with $100 you can control a 200 000 unit currency position. It’s the best use of trading capital around, even banks lending on property investments don’t come close. 3. Accurately predict the outcomes. Currency prices generally repeat themselves in predictable cycles so you can see what the trends are. ‘Technical Analysis’ helps to see these trends and profit from them. 4. Low Transaction Cost. In other words, you mistakes won’t cost you a fortune. Good brokers won’ charge commissions to trade or maintain an account even if you have a mini account and trade small volumes. 5. Unlimited Earning Potential. Forex has a daily trading volume of over 1.5 trillion, the largest financial market in the world. It dwarfs the equities market (50 billion daily) and the futures market (30 billion). 6. You can make money in any market conditions. Each market is one currency against another, so when you buy in one, you’re selling in another so there’s no biase towards either currency moving up or down. This means it’s up to you to choose which currency to buy or sell with. Yu can make money going up or down. 7. Market transparency. This is an advantage in any business or trading environment. It means you can manage risk and execute orders within seconds. It’s highly efficient and allows you to avoid unexpected ‘surprises’. I hope you’re now convinced that Forex is the best investment and income opportunity around.

The Main Principles of Trading.

In contrast to exchange transactions with real supply or real currency the participants of FOREX use trading with a margin deposit; i.e. marginal or leverage trading. In marginal trading, each transaction has two obligatory stages (they can be divided by period of time, which can be as long as you like): buying (selling) of currency at one price, and then selling (buying) it at another (or at the same) price. The first transaction is called opening the position, the second one, closing the position. Opening a position, a trader furnishes a deposit sum from 0.5 to 4 per cent of the credit line, granted for the transaction. So, in order to buy or sell 100,000 US dollars for Japanese yens, you will not need the whole sum, but only from 500 to 2000 US dollars depending on your policy of controlling risks. When the position is closed, the deposit sum returns, and calculation of profits or losses is done. All the profit or losses caused by the change of currency rates is credited on your account.Let's take a concrete example of getting a profit from the changing the rate of the Euro, from 0,9162 to 0,9292. If you have anticipated this change by using technical or fundamental analysis, you can buy the Euro cheaper for dollars, and then sell it back at a higher price. For example, if you choose leverage 1:100, then 99,000 dollars of the credit line, granted by the Internet broker, is added to 1000 dollars, and you buy the Euro at the price of 0.9162. As a result of this transaction we get: $ 100,000 / 0.9162 = Euro 109.146, 47.When the rate changes (an average daily change of Euro is about 70 to 100 pips), you close the position and sell the Euro for dollars, but at the rate of 0.9292. You get 109,146. 47*0.9292 =101,418.89 dollars. Your profit is $ 1,418.89. The same transaction with leverage 1:200 would give you $2, 837.78 of profit, with leverage 1:50 the profit would be 709.45, with leverage 1:25 - 354.72.We'd like to remind you that the higher the credit leverage, the higher is your profit if the fluctuation of the currency rate was anticipated correctly. However, if your anticipation was wrong, your losses will be bigger.One cannot feel confident in the FOREX market without a thorough knowledge of the terms used there.Foreign exchange quotes are a relation between currencies. USDCHF - the cost of $1 in Swiss Francs. USDJPY - the cost of $1 in Japanese yens. EURUSD - the cost of Euro 1 in US dollars. GBPUSD - the cost of 1 GBP in US dollars. That is, quotes are expressed in the units of the second currency for a unit of the first one. For example, quote USDJPY 108,91 shows that $1 costs 108,91 Japanese yens. Quote EURUSD 0.9561 shows that 1 Euro costs 0.9561 US dollars.The last figure in the quote is called "pip". The cost of the pip is different for every currency, and depends on the leverage and current quote.The formula for calculating 1 pip is: 100,000/current quote without commas * Kwhere К=1 at leverage 1:100, К=2 at leverage 1:200, К=0,5 at leverage 1:50, K=0,25 at leverage 1:25. Examples: USDJPY = 108.91 leverage 1:100 100.000 / 10891 х 1 = 9,18 USD EURUSD = 0.9561 leverage1:200100.000 / 9561 х 2 =20,92 USDGBPUSD and EURUSD are direct quotes, i.e. when the chart goes up, GBP and EUR become more expensive, and when it goes down, the currencies become cheaper. USDCHF and USDJPY are backward quotes, and when the chart grows, prices on CHF and JPY fall, and when the chart goes down, the prices grow.On direct quotes you buy according to ASK and sell according to BID. With backward quotes, you buy according to BID and sell according to ASK . Trading in the FOREX market is realized in lots. When you open a position, you can choose the number of lots you want from 1 to 10. One lot equals $ 100,000. The deposit sum for one lot will vary from $500 to $2000, depending on the credit leverage you choose. Leverage is a financial mechanism that allows crediting speculative transactions with a small deposit. We give you an opportunity to choose a credit leverage in the range of 1:200 to 1:25.In the course of trading you can fix your profit or cut off your losses according to the commands LIMIT and STOP that have been set up.LIMIT is set up higher than the current meaning of the price.STOP is set up lower than the current meaning of the price.With these commands the positions is closed without additional orders when the price reaches the agreed level.In the process of trading you can create pending positions, that will be activated when the price reaches the agreed level (open price). When creating and closing orders, a temporary delay occurs, and lasts for about 30 to 40 seconds. When you make an inquiry, you are given a real market price, which is the current price at the moment of proposal, not at the moment of inquiry.The process of trading is described in detail in section Description of the Trade Terminal.The main terms that characterize the account: Deal, realization of 2 trade transactions, when currency is bought (sold), and then the reverse conversion is realized. Balance, the sum on the account of a client after the last transaction is conducted. Floating Profit, the current profit on open positions. Floating storage, fee for postponement of an opened position over midnight GMT. Equity = Balance + Floating + Floating storage. Margin requirement, a necessary deposit sum calculated according to the formula 100,000 / K + 100,000 / K, where K = leverage, and the number of items equals the number of open positions. Percentage, index of an account. Percentage = Equity / Margin Requirement. At Percentage lower than 50 % it's impossible to open new positions. Margin call, condition of an account when all opened positions are closed by the Internet broker according to current quotes. It occurs at a Percentage lower than 10%. Please note that contrary to the majority of other companies, in PRO-FOREX.com price levels of client's orders may differ from the current price only by 5 pips. However, very rarely are orders executed worse than requests, because of the high market volatility.

How do I begin Forex

How do I begin?
1. The best advice on how to learn to trade profitably is to learn from experts with proven track records. Many learning styles are available to beginners at all levels: books, CDs, online courses, group seminars, even one-on-one mentors who will come right your home for a few days. We outline our Forex-Trader picks in Learning Forex Trading . Learning to trade from experts is worth every penny and has saved us untold thousands in mistakes.We would not recommend starting forex trading without any training. It is not hard to learn, nor difficult to trade successfully, but you must first provide yourself with a basic functioning knowledge of ’the game you’re in’.
2. While you are learning you will need charting software to practice reading the Market. Charting is an indispensable tool that shows you in real-time data what the market is doing moment by moment and also what the market has done in the past. As you learn to analyze these charts you can determine what trades to enter and exit, where to set your stop losses, limits etc. There are several good charting software services that you can subscribe to online monthly. See our Forex-Trader tested Charting Software picks in Tools of The Trade.
3. Then, to perform your actual trades online you need a real-time ’ trading platform’ to execute your ’buys’ and ’sells’ directly in the Foreign Currency Market . You obtain a trading platform from a Forex Clearinghouse that is connected real-time to the interbank market. There are many good Clearinghouses (also confusingly called Brokerage Firms, Market Makers, etc.) that provide you with the trading platform to trade the funds in the account you have opened with them. Before you begin trading your ’real’ money, while you are learning, you will practice on your own ’demo account’ with play-money in it, which will be provided to you by the clearinghouse you plan to trade through. The contractual relationship you enter into with your Clearinghouse is a very important one because the Clearinghouse you choose determines many trading features and financial advantages to you both as a trader and as an investor. Forex-Trader tested Clearinghouses are reviewed in Tools of The Trade.We have outlined a Getting Started path with uncomplicated steps. This is the path that we would take if we were beginning trading over again today with ’what we know now’. The products and services we mention in these steps are all ones that we have personally used for some time with consistent success. As always you are free to forge your own path, and if you do, happy hiking. There is a mountain of products and services try out, and if you find ones you like better we would love to compare notes with you.Explain More About Charting ServicesTo trade successfully you also must have good charting software and instantaneous data feeds critical to helping you analysis and interpret the movement of currencies moment to moment so you know when/why to buy or sell — this you subscribe to monthly. You can get a 2 week or more demo to familiarize yourself with one that has the features you like. The costs also vary, and some companies require a year commitment. There are some free charting services offered through the clearinghouses, but they tend to lack the tools to be truly useful. There are also some costly proprietary Specialty Software charting ’hybrids’ which are market forecasters tools that look more like video games than charts.Explain More About How Clearinghouses WorkA good clearinghouse (i.e.. your computer access/link to the live Forex Exchange Market) is the partner with which you trade the money you have deposited with them in your trading account. After trying and demo-ing many we have found a small handful that are truly excellent for the beginner (and continue to be excellent as you grow) — meaning user friendly, legally accountable to regulatory bodies, and offering fair costs (spreads) for their services/trading software platforms. There still are many worrisome ones practicing in this closing era of unregulated forex trading (new Commodities laws are imminent).The topic of matching the right clearinghouse for your needs is discussed more in Tools of the Trade, because it depends on a number of factors — how much you can open an account with, how much the clearinghouse profit spread, what your liquidity needs are, your minimum/maximum stop loss and margin requirements, even where you live and how much time you have to give to trading in a 24 hr. day.How Much Does it Cost to Begin to Trade?Learning to trade will entail the cost of books and whatever traiining method you choose. It will also include a reliable computer with a minimum 128 Mb of memory to run the charting software and trading platform. Ongoing ’costs of operation’ include the monthly costs of high-speed internet, charting software, the email forecasting subscriptions — plan on spending $150./mo. up for ongoing costs.What about Pooled Clearinghouse Accounts to Trade with More Leverage?We strongly do not recommend pooled accounts in any circumstance. Perhaps you are considering self-trading a pooled- together family account because it would give you a perceived advantage of more leveraged funds to trade (50:1 up to 100:1 leverage) — any risks of loss represent a potential risk to family relationships, and for this reason alone we do not recommend aggregating with family or friends.However much worse are the too-numerous negative experiences of people allowing their investment funds to leave their control to become part of a ’managed’ pooled account. Not only is it a very risky investment idea, it is illegal for anyone to ’pool’ accounts without compliance with SEC (a USA Securities Exchange Commission) or international equivalent license. Never relinquish direct control over your money/trading account to anyone (i.e.. the ability to make withdrawals, deposits etc. directly by your own authority into your own account).A good fund manager, if you do choose to go the (legitimate) Managed Account route rather than the Self-Trader route, will make certain you have your own ’segregated account’ in your own name in a bank or brokerage firm. These individual segregated accounts can still be traded together as though they were in a single account by a designated trader as long as the clearing house uses a trading platform that allows it. You, as the investor/account holder, have direct access online to your account activity at all times, and direct control over your own account in your own name (just like a bank account). The importance of this, for the safety of your funds, cannot be over emphasized.

Tuesday, July 17, 2007

Money

Economics offers various definitions for money, though it is now commonly defined as any good or token that functions as a medium of exchange that is socially and legally accepted in payment for goods and services and in settlement of debts. Money also serves as a standard of value for measuring the relative worth of different goods and services. Some authors explicitly require money to be a standard of deferred payment.[1] In common usage, money refers more specifically to currency, particularly the many circulating currencies with legal tender status conferred by a national state; deposit accounts denominated in such currencies are also considered part of the money supply, although these characteristics are historically comparatively recent. Money may also serve as a means of rationing access to scarce resources and as a quantitative measure that provides a common standard for the comparison and valuation of quality as well as quantity, such as in the valuation of real estate or artistic works.The use of money provides an easier alternative to barter, which is considered in a modern, complex economy to be inefficient because it requires a coincidence of wants between traders, and an agreement that these needs are of equal value, before a transaction can occur. The efficiency gains through the use of money are thought to encourage trade and the division of labour, in turn increasing productivity and wealth.Social Evolution of Money:Money is an invention of the human mind. The creation of money is made possible because human beings have the capacity to accord value to symbols. Money is a symbol that represents the value of goods and services. The acceptance of any object as money – be it wampum, a gold coin, a paper currency note or a digital bank account balance – involves the consent of both the individual user and the community. Thus, all money has a psychological and a social as well as an economic dimension. As human consciousness has evolved, the nature and function of money has evolved too. While a history of money may trace the origin and usage of different forms of money at different times and in different parts of the world, an evolutionary perspective on money traces the social and psychological changes in human attitude and collective behavior that made possible this historical development.CreditCredit is often loosely referred to as money. Money is used to buy goods and services, whereas credit buys goods and services on the promise to pay with money in the future.This distinction between money and credit causes much confusion in discussions of monetary theory. In lay terms, and when convenient in academic discussion, credit and money are frequently used interchangeably. For example, bank deposits are generally included in summations of the national broad money supply. However, any detailed study of monetary theory needs to recognize the proper distinction between money and credit.Bank notes are a form of credit. Gold-backed bills are likewise also a debt of the bank, a promise to pay in gold.Federal Reserve notes, which are used as money in the United States, are difficult to describe in terms of credit or debt or money. Federal Reserve notes are not a promise to pay in gold, and the notes are irredeemable by the issuer. The Federal Reserve's notes are perhaps viewed best as a political promise to devalue (inflate) at a certain targeted rate.Since Federal Reserve notes are used in the United States as the most common medium of exchange, unit of account, and store of value, they are considered money by the majority of the population. To measure this kind of credit money, various forms of credit are counted together and listed as M1 or M2. M3 was the most common measure of monetary aggregrates (or money supply), but the publication of M3 was discontinued by the RBA in March, 2006.

Different Types of Banks

Banks, as you know, are financial institutions that accept deposits from citizens and pay interest in return. What most students do not think about is the entrepreneurial nature of banks. Banks are not all service institutions, most operate in order to make a profit. Even if they are a non profit they do have to make money in their operation in order to pay expenses. Banks do this in a variety of ways.
They charge interest on loans. Where do they get the money for the loans? The answer is from their depositors and from the Fed. They pay interest to depositors but charge a higher rate on money they lend out. For example, a bank may pay 3% on a savings account but charge 9.5% in interest on a loan. In the case of money borrowed from the Fed, banks pay a percentage rate on money they borrow, called the discount rate. Banks then loan that money and charge a higher rate on the loan then the rate that they paid. Its called using other peoples money!
Banks operate on fractionalized deposits. They do not keep all of the depositors money on hand. They use depositors money to make money. They do this usually by giving loans and earning interest. Usually these loans are real estate loans, sometimes they are car loans, student loans etc. Some banks make commercial real estate loans, others do not. Prior to the depression banks were allowed to invest in the stock market. A law was passed after the bank crash to end this practice and force banks and investment institutions to be different entities. Recently that law expired and has not been renewed. What does this mean? Well for certain we will see a wave of mergers. We may also see banks stepping into rather dangerous territory of investing and being connected to the stock market.
Banks charge fees. It used to be the case that checking and savings accounts were free. Today banks have fees for minimum deposit, per check fees and ATM fees. When ATM's were first introduced they were supposed to replace bank branches, save banks operating expense and that savings would be passed on to consumers. This has not happened. Instead, ATM's have become a revenue stream for banks as they charge up to $1.50 per transaction. In some cases you get hit with a double whammy. If you use the ATM of a bank other than your own both your bank as well as the ATM's bank may charge you a fee.

Commercial Bank
Specializes in helping business and making investments.
These were, until deregulation, the only banks that could make investments in commercial real estate.
Were not interested in small depositors until mid 1800's
Were the only type of banks, until deregulation, that could issue checking accounts.
These are the big banks. They are for profit institutions.

Savings Banks
Mutual Savings Bank Savings Bank
Depositor owned financial organization.
No owners or board of directors, instead there is an elected "Board of Trustees."
Non Profit institutions Many Mutual Savings Bank's eventually became Savings Banks when they decided to go public and sell stock to raise capital.
These operate to make a profit.
These banks are owned by stockholders and managed by a board of directors

The purpose of both was to have a safe place for depositors to save and earn interest.
Until deregulation, these banks were not allowed to make investments in commercial real estate.
In 1972 savings banks gained the power to issue checking accounts in New England and by 1980 nationwide. They could now really compete with the big commercial banks.

Savings and Loan Association
Financial organization that invested the majority of funds in home mortgages.
Began as cooperative clubs with members taking turn borrowing to buy homes.
In 1930's FSLIC created to insure deposits.
In the 1980's, with deregulation, many of these S&L's (or thrifts as they are also called) emerged as aggressive entrepreneurial organizations. In many cases S&L's were owned and run by individuals. The lack of regulations, as we shall see, allowed these individuals to take unwise risks and defraud their depositors and the government. This led to the Banking Crisis of the 1980's.
These are non profit institutions but were not always managed properly.

Credit Union
Owned and operated by and for their members. Like a mutual savings bank.
Usually organized by a union or employers to serve employees.
These are not technically banks and do not fall under federal banking guidelines. This allows them to act in ways that banks cannot and gives them a competitive advantage.
Historically Credit Unions would only allow members of the business or union that formed it to be a member. Today outsiders can be "sponsored in." As a result real banks have protested that credit unions should be brought under federal banking guidelines.
In the past costs were kept low because they borrowed office space, managerial help, etc. from the employer or union. This has changed as they have become more like full service banks but are not faced with some of the regulations other banks face. This gives Credit Unions an advantage that many other banks are fighting on the state and national level
Direct deposit a major feature that only Credit Unions had because of their unique relationships with the business or union. This also now exists with many other types of banks.
Non profit.

Investment Bank
Newest type of bank, really commercial banks.
Only loan money and make investments to business to buy, sell and merge. They fund IPO's and LBO's.
For profit... BIG PROFIT!!

The mutual savings bank (MSB) is one of the oldest savings institutions in the United States. It is a depositor-owned financial organization operated for the sole benefit of its depositors. But because there were no stockholders, boards of trustees were made up of businesspeople that served without pay. Later, many MSB's decided to sell stock to raise additional financial capital. These institutions became known as savings banks, because depositors did not mutually own them. Mutual savings banks got their start in the early 1800's. At that time, commercial banks catered to the needs of business and weren't interested in the accounts of small wage earners. That is when savings banks emerged to fill that need. They were popular with consumers and began to spread as westward expansion progressed. By the mid-1800's, commercial banks began to notice the savings accounts of factory workers and other wage earners. They bean to compete more heavily with the savings banks. As a result, savings banks did not spread beyond their base in the industrial northeast. However, savings banks are a powerful economic influence. In 1972 the Consumer's Savings Bank of Worcester, Massachusetts, introduced a Negotiable Order of Withdrawal (NOW) account, which is a type of checking account that pays interest. Because commercial banks had a virtual monopoly on checking accounts at the time, NOW accounts were strongly opposed. While NOW accounts were allowed to remain in New England, at the national level, commercial bankers pushed for federal legislation that temporarily prevented NOW accounts from spreading outside New England. The savings and loan (S&L's) association is another type of financial institution, which invested the majority of its funds in home mortgages. S&L's began as cooperative clubs for homebuilders in the 1800's. The association's members promised to deposit a certain sum regularly into the association. Members then took turns borrowing money to build their homes. In short, people had arrangements for funding for home building in areas where other sources of financing were not available. In the 1930's, the Federal Home Loan Bank Board was created to supervise and regulate the individual savings and loan associations. Created underneath it was the Federal Savings and Loan Insurance Corporations (FSLIC) which insured savings and loan deposits. Credit unions, which are owned and operated by and for their members, are another type of depository institution. Costs are generally low because a sponsor often provides management, help, and office facilities. Most credit unions are organized around an employer, meaning that contributions generally are deducted directly from a worker's paycheck. Recently, some credit unions began to offer checking deposits. Known as share drafts, they look like any other check or NOW account and provide members with a way to earn interest on deposits that are also available on demand. The positive aspect of credit unions is that they make low interest loans to their members beacuse they are non profit, member service organizations.

About Student Finance

The financial help a new full-time student can get depends on the course, where they live while they are studying, and their individual circumstances.


Customers can find details on how to apply for financial support, maintain their account and repay any loan(s), by accessing their appropriate domicile website.


Types of help for new full-time higher education students include:
Tuition fee loans to cover the full cost of tuition fees
Maintenance loans to cover the cost of living expenses
Grants for living costs to cover the cost of living expenses
Bursaries and scholarships from universities and colleges
Students can also get extra help if they have children or adult dependants, or have a disability or specific learning difficulty.

For the majority of students, a loan will comprise of the tuition fee loan plus a maintenance loan, and this will be paid directly at the start of each academic term. Everyone on an eligible course qualifies for 75% of the maximum loan, regardless of income, and the rest is income-assessed. These loans accrue interest at the rate of inflation, which means that the amount repaid has the same value as the amount borrowed.


The repayment of loans is repaid through the tax system, and only begins after the student has left higher education and is earning over Ł15,000. This system of collection is known as Income-Contingent Repayment (ICR), because it tapers the repayment obligation according to the gross income of the account holder. It is distinct from the previous mortgage-style scheme in which the monthly repayments were fixed and account holders whose incomes exceeded the deferment threshold, were required to repay the entire instalment each month.


SLC becomes responsible for the administration of financial support after the award authority has completed the income assessment and eligibility elements of the application process.


Our Company provides a broad range of products & services to education funding in the UK.

Investment

Types of investment

The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.

Business Management


The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: managers determine the assets that the business enterprise obtains. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial (see below). The manager must assess whether the net present value of the investment to the enterprise is positive; the net present value is calculated using the enterprise's marginal cost of capital.

Economics

In economics, investment is the production per unit time of goods which are not consumed but are to be used for future production. Examples include tangibles (such as building a railroad or factory) and intangibles (such as a year of schooling or on-the-job training). In measures of national income and output, gross investment I is also a component of Gross domestic product (GDP), given in the formula GDP = C + I + G + NX. I is divided into non-residential investment (such as factories) and residential investment (new houses). "Net" investment deducts depreciation from gross investment. It is the value of the net increase in the capital stock per year.

Investment, as production over a period of time ("per year"), is not capital. The time dimension of investment makes it a flow. By contrast, capital is a stock, that is, an accumulation measurable at a point in time (say December 31st).

Investment is often modelled as a function of income and interest rates, given by the relation I = f(Y, r). An increase in income encourages higher investment, whereas a higher interest rate may discourage investment as it becomes more costly to borrow money. Even if a firm chooses to use its own funds in an investment, the interest rate represents an opportunity cost of investing those funds rather than loaning them out for interest.

Finance

In finance, investment is buying securities or other monetary or paper (financial) assets in the money markets or capital markets, or in fairly liquid real assets, such as gold, real estate, or collectibles. Valuation is the method for assessing whether a potential investment is worth its price.

Types of financial investments include shares, other equity investment, and bonds (including bonds denominated in foreign currencies). These financial assets are then expected to provide income or positive future cash flows, and may increase or decrease in value giving the investor capital gains or losses.

Trades in contingent claims or derivative securities do not necessarily have future positive expected cash flows, and so are not considered assets, or strictly speaking, securities or investments. Nevertheless, since their cash flows are closely related to (or derived from) those of specific securities, they are often studied as or treated as investments.

Investments are often made indirectly through intermediaries, such as banks, mutual funds, pension funds, insurance companies, collective investment schemes, and investment clubs. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary.

Personal finance

Within personal finance, money used to purchase shares, put in a collective investment scheme or used to buy any asset where there is an element of capital risk is deemed an investment. Saving within personal finance refers to money put aside, normally on a regular basis. This distinction is important, as investment risk can cause a capital loss when an investment is realized, unlike saving(s) where the more limited risk is cash devaluing due to inflation.

In many instances the terms saving and investment are used interchangeably, which confuses this distinction. For example many deposit accounts are labeled as investment accounts by banks for marketing purposes. Whether an asset is a saving(s) or an investment depends on where the money is invested: if it is cash then it is savings, if its value can fluctuate then it is investment.

Real estate

In real estate, investment is money used to purchase property for the sole purpose of holding or leasing for income and where there is an element of capital risk. Unlike other economic or financial investment, real estate is purchased. The seller is also called a Vendor and normally the purchaser is called a Buyer.

Residential Real Estate

The most common form of real estate investment as it includes the property purchased as peoples houses. In many cases the Buyer does not have the full purchase price for a property and must engage a lender such as a Bank, Finance company or Private Lender. Different countries have their individual normal lending levels, but usually they will fall into the range of 70-90% of the purchase price. Against other types of real estate, residential real estate is the least risky.

Commercial Real Estate

Commercial real estate is the owning of a building small or large where a company rents from you so that it can conduct its business. Due to the higher risk of Commercial real estate, lending rates of banks and other lenders are lower and often fall in the range of 50-70%.

Investment

Types of investment

The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset.

Business Management


The investment decision (also known as capital budgeting) is one of the fundamental decisions of business management: managers determine the assets that the business enterprise obtains. These assets may be physical (such as buildings or machinery), intangible (such as patents, software, goodwill), or financial (see below). The manager must assess whether the net present value of the investment to the enterprise is positive; the net present value is calculated using the enterprise's marginal cost of capital.

Economics

In economics, investment is the production per unit time of goods which are not consumed but are to be used for future production. Examples include tangibles (such as building a railroad or factory) and intangibles (such as a year of schooling or on-the-job training). In measures of national income and output, gross investment I is also a component of Gross domestic product (GDP), given in the formula GDP = C + I + G + NX. I is divided into non-residential investment (such as factories) and residential investment (new houses). "Net" investment deducts depreciation from gross investment. It is the value of the net increase in the capital stock per year.

Investment, as production over a period of time ("per year"), is not capital. The time dimension of investment makes it a flow. By contrast, capital is a stock, that is, an accumulation measurable at a point in time (say December 31st).

Investment is often modelled as a function of income and interest rates, given by the relation I = f(Y, r). An increase in income encourages higher investment, whereas a higher interest rate may discourage investment as it becomes more costly to borrow money. Even if a firm chooses to use its own funds in an investment, the interest rate represents an opportunity cost of investing those funds rather than loaning them out for interest.

Finance

In finance, investment is buying securities or other monetary or paper (financial) assets in the money markets or capital markets, or in fairly liquid real assets, such as gold, real estate, or collectibles. Valuation is the method for assessing whether a potential investment is worth its price.

Types of financial investments include shares, other equity investment, and bonds (including bonds denominated in foreign currencies). These financial assets are then expected to provide income or positive future cash flows, and may increase or decrease in value giving the investor capital gains or losses.

Trades in contingent claims or derivative securities do not necessarily have future positive expected cash flows, and so are not considered assets, or strictly speaking, securities or investments. Nevertheless, since their cash flows are closely related to (or derived from) those of specific securities, they are often studied as or treated as investments.

Investments are often made indirectly through intermediaries, such as banks, mutual funds, pension funds, insurance companies, collective investment schemes, and investment clubs. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary.

Personal finance

Within personal finance, money used to purchase shares, put in a collective investment scheme or used to buy any asset where there is an element of capital risk is deemed an investment. Saving within personal finance refers to money put aside, normally on a regular basis. This distinction is important, as investment risk can cause a capital loss when an investment is realized, unlike saving(s) where the more limited risk is cash devaluing due to inflation.

In many instances the terms saving and investment are used interchangeably, which confuses this distinction. For example many deposit accounts are labeled as investment accounts by banks for marketing purposes. Whether an asset is a saving(s) or an investment depends on where the money is invested: if it is cash then it is savings, if its value can fluctuate then it is investment.

Real estate

In real estate, investment is money used to purchase property for the sole purpose of holding or leasing for income and where there is an element of capital risk. Unlike other economic or financial investment, real estate is purchased. The seller is also called a Vendor and normally the purchaser is called a Buyer.

Residential Real Estate

The most common form of real estate investment as it includes the property purchased as peoples houses. In many cases the Buyer does not have the full purchase price for a property and must engage a lender such as a Bank, Finance company or Private Lender. Different countries have their individual normal lending levels, but usually they will fall into the range of 70-90% of the purchase price. Against other types of real estate, residential real estate is the least risky.

Commercial Real Estate

Commercial real estate is the owning of a building small or large where a company rents from you so that it can conduct its business. Due to the higher risk of Commercial real estate, lending rates of banks and other lenders are lower and often fall in the range of 50-70%.

House loans

The huge selections of home loan packages available today have all been named and bundled with different features, benefits, interest rate, conditions and fees. Most of them will fall into one of the categories listed below.

Fixed Rate Home Loans

This type of loan has a fixed interest rate for a certain period of time, most often between 2 and 5 years. Once the fixed rate period ends, customers may be offered another fixed rate period or the rate will convert over to a Variable interest rate, which can rise and fall.

Basic & Standard Variable Home Loans

A loan with a variable interest rate means that the rate will fluctuate during the loan term. As interest rates rise and fall, as set by the Reserve Bank of Australia, so will the interest rate on your Home Loan. Standard variable home loans usually offer more features than the basic variable home loan- such as being able to make extra payments or being able to redraw money from the Home Loan than the Basic Variable.

Line of Credit

Lines of Credit home loans allow you borrow against the equity in your home, at an interest only variable rate. This may enable you to; for example, invest in shares or managed funds, investment property, or home renovations.

"Lo Doc" Home Loans

This type of loan assists customers who do not have the full documentation normally required for a traditional "full doc" home loan. The Lo Doc loan normally assists the self-employed, people that may have had credit difficulties in the past, or people who do not have enough documentation for 'full doc' home loans.

Split Home Loans

Combines different loan types into one Home Loan. For example some loans allow you to have one portion of your home loan at a fixed rate, and another portion on a variable interest rate. Another example would be a fixed rate home loan and a line of credit. Some loans allow for multiple splits.

Consolidation Home Loans

(Refinancing your existing Home Loan and paying off other debt- such as credit cards or personal loans.) Putting a package together that puts all of your debts, including your mortgage and other debts, into one home loan. This can be beneficial as credit card interest rates for example, can be much higher than your home loan interest rate.

Interest Only Home Loans

This type of home loan allows customers to make payments in the form of interest only. This means that no payment is put toward the principal balance of your home loan. Many people see this as a good option to keep their payments at a lower level while speculating that their property value is going to increase.

http://www.myhomeloan.com.au/HomeLoan.html

OFFSHORE BROKER LICENSE

I. Definitions and force of the Agreement
Everything without any exception - work, goods and services that WSR provides to their clients - is realized in accordance with the terms of this Agreement. Existing and restricting terms and conditions of the client would be null and void in accordance with this agreement. Being a trader, the client has the rights under the Labour Code, and the terms and conditions concerning the present purchasing agreement are also in force in case of future business partnership, even without further accurate stipulations. Deviation of the terms of the deal is allowable only when you have concluded an individual labour agreement. Single verbal arrangements gain legal power only after their written adoption by WSR. WSR has the right to change or make additions into the terms and conditions of the deal. Until the changes and additions concern time constraints, they are valid for all further agreements. If the changes and additions concern the present Agreement, they are considered to be accepted until the client has appealed against them in writing form within one month of receipt. In case the client within a month of receipt, has raised his objections, the parties of the Agreement have rights to dissolve the Agreement till the time the changes gain legal power.


II. Types of agreements
A labour agreement means an order to carry out some volume of work of the projects of high complexity. Distinctive features of a labour agreement are individual consents, consultations, conception and its further realization. Labour agreement also comes into use when fees or production time are subjects of agreement. The volume of work is determined in an individual labour agreement. A contract of work and labour means a set of orders for production of low complexity. The volume of work is determined in an individual labour agreement.


III. Liabilities of Parties
WSR shall faithfully and diligently fulfill conditions of this agreement and not disclose confidential information to third parties. To execute the agreement, WSR may engage subcontractors (from its staff or contract employees) who are within its authority. The client shall timely consider partnership proposals. First of all, it concerns data and documents necessary to fulfill an order. This is also true in case of the partnership cession to the third party. The parties shall only use and provide the information they are entitled to (copyright, patent and trademark rights, licensing law, and other incorporeal rights compliance). When claimed by the third parties because of the violation of the above mentioned rights and laws, the party shall inform another party about this in writing. The party of the agreement providing disputable data and documents, shall immediately dismiss charges against another party of the agreement. Parties of the agreement shall not use documents or other data violating existing rights and laws. The client shall provide WSR all contact information as well as its changes.


IV. Schedule times of the agreement, work acceptance, delays
All dates and time constraints, without exception, are unrequired, empirical data, and they are prolonged automatically for the period of time demanded by the client in accordance with the agreement, including the time necessary for the production development. Determination of the client’s time of execution is obligatory. If the client delays execution, time constraints and time of production are prolonged consequently, taking into account the time necessary for the production development. Both parties have rights to recess from the contract, or to dissolve the agreement in case of non-compliance of another party with the legally fixed prolongation. However, WSR is released out of the time compliance obligation in case of outer interference. Outer interference presupposes unexpected development and accidents having consequences hazardous for the agreement implementation, but not resulting from the parties actions. There included legal actions for improvement of working conditions, governmental actions, data network breakdown, or other interwork problems among producers, electricity supply problems, if these circumstances prevent subcontractors to meet the terms of the agreement. Completed work and services are provided in electronic or printed version, and the client is notified about that. Service is considered to be rendered when it has been sent to the client. All delivery problems are considered to be the client’s problems. The client can choose a delivery type, for example, by a registered letter or mail and messenger service. Rendered services are not exchangeable and returnable, as they are done for the client exclusively.


V. Prices. Terms of payment. Delinquency
All payments made via WSR are exclusive of taxes. The term of payment is 30 days. WSR starts an execution phase only after the receipt of payment. During the execution phase WSR does not forward any receipts. Unless payments are made, the client shall not have any claims in regard to services and work provided by WSR. Contrary to WSR’s claims, the client shall raise a claim only providing incontestable or valid in law documents. In case of any misprints or mistakes, all prices can be changed at any moment with any special notification about that. When providing services and operating on a continuous basis, WSR has rights to raise the price without any explanation of reasons. In such a case, the client has rights to dissolve an agreement. WSR has the right for a partial execution of an order. In case some required services and work undergo changes or not required anymore through the fault of a partner organization or because of legislative changes, WSR has rights to suspend rendering of corresponding services or to further provide them with corresponding changes. In this case, the client shall abandon the right for operating on a continuous basis. But he shall pay for the services provided as well as a final settlement.


VI. Liabilities of Parties
Only written agreements are considered to be valid. Any verbal arrangements do not have legal force. WSR is fully responsible for damage as a result of negligence or willful misconduct. In case of negligence resulting in insignificant or average degree consequences, WSR is responsible for the damage only in case of violation of general obligations. The same is true in the case where the commitment of contract obligations are imposed on and the damage is caused by the trusted subcontractor or accomplice. In case of negligence, liability of WSR is established equal to the typical of the agreement extent of damage: depending on the occurrence resulting in damage, maximum extent of damage inflicted on an individual is limited by the order value, and cannot exceed 100.000,- Euro. Depending on the occurrence resulting in damage, in case of material damage or other types of damages, maximum extent of damage is limited by the order value, and cannot be more than 5.000,- Euro. WSR is not considered to have any liabilities in case of the client’s delinquency. Under the circumstances, WSR has rights to cease operations. While processing an order, WSR is considered to be responsible for it only until the order dispatch. WSR is not responsible for delivery duration. The choice of delivery type is imposed on the client.


VII. Contractual time and the procedure of the agreement termination
The time constrains of a labour contract and a contract of work and labour are not fixed until they are determined in an individual labour agreement. If a labour contract or a contract of work and labour are terminated untimely, the agreed payment for the volume of work performed must be made immediately (a ratio of time spent to the total time of work is calculated). As, to fulfill an order, services of authorities and experts are enlisted, who cannot at the same time be engaged into other projects, the time is considered to be lost time. The client has to provide proofs that the damage is less. The premature termination of the agreement is not acceptable on the basis of changes in the agreement causing increased efficiency without additional calculations or provision of further personal data and documents. The agreement can be dissolved untimely when: suspension of agreement or indulgence is over. The volume of work performed must be paid for as the orders are being processed. All kind of work and rendered services are not exchangeable and returnable, as they are done for the client exclusively. In case of the client’s illegal actions, WSR has the rights to cancel fiduciary relationships and cease to provide services.


VIII. Protection of confidential data
WSR processes, saves and uses personal data of clients, as this information is required for execution, registration and changes of the contract relationships. WSR has the right to pass the necessary data for the execution of the contract to authorized accomplices or to the third parties (private person or enterprise) that provide the services. During such procedure special arrangements of protection of confidential data are made. None of the data can be passed to the third parties that do not have the right for it. According to legal provision, these data are saved at determined date (e.g., business correspondence, tax documents).


IX. Foundation of companies
If any illegal actions are performed by the client, WSR reserves the right to cancel the fiduciary relationships and cease all administrative work. If the enterprise is found as anonymous, the client is also responsible for presenting the tax return and tax payments timely. Annual dues for the services of regulatory authorities should be paid within 12 months, starting with the month of incorporation. If the enterprise is dissolved before a new term of execution of the contract obligations, dues for the services of regulatory authorities are not taken. The dissolution of a company costs 490,- Euros. If the desirable name already exists or if it is not permitted due to any reasons, the client has to provide WSR with some alternative names. The order remains valid and the client will not have to carry any additional expenses.


X. Conclusion
The place of executing the commitments is the location of WSR. The only place of jurisdiction is the state of Nevada, USA (Las Vegas), as the client is a trader, that is a juridical person of civil rights or special public-law funds. For business relationships of the sides of the contract only American rights are valid. If some provisions in General Terms and Conditions and in an individual labour agreement are not valid, it does not concern the validity of the rest of the terms. Instead of an invalid term a valid one will be added that purposes the primary desirable financial aim. If any provisions are absent in the given General Terms and Conditions, the legal positions are valid, since the individual Labour contract is not appended.

Citibank Credit

Citibank is a major international bank, founded in 1812 as the City Bank of New York. Citibank is now the consumer and corporate banking arm of financial services giant Citigroup, the largest company of its kind in the world. As of March 2007, it is the largest bank in the United States by holdings.

Founded in 1812 as the City Bank of New York by a group of New York merchants, the bank's first head was Samuel Osgood, who had been the U.S.'s first Postmaster General. Subsequently, ownership and management of the bank was taken over by Moses Taylor, a protégé of John Jacob Astor and one of the giants of the business world in the 19th century. During Taylor's ascendancy, the bank functioned largely as a treasury and finance center for Taylor's own extensive business empire.

In 1865 the bank joined the U.S.'s new national banking system and became The National City Bank of New York. By 1894, it was considered one of the largest banks in the United States, and in 1897, it became the first major U.S. bank to establish a foreign department. In 1913 it was the first contributor to the Federal Reserve Bank of New York.

National City became the first U.S. national bank to open an overseas banking office when its branch in Buenos Aires, Argentina was opened in 1914. Many of Citi's present international offices are older; offices in London, Shanghai, Calcutta and elsewhere were opened in 1901 and 1902 by the International Banking Corporation (IBC), a company chartered to conduct banking business outside the U.S., at that time an activity time forbidden to U.S. national banks. In 1918, IBC became a wholly owned subsidiary and was subsequently merged into the bank. By 1919 the bank had become the first U.S. bank to have $ 1 billion in assets.

Charles E. Mitchell was elected president in 1921 and in 1929 was made chairman, a position he held until 1933. Under Mitchell the bank expanded rapidly and by 1930 had 100 branches in 23 countries outside the United States.

In 1952, James Stillman Rockefeller was elected president and then chairman in 1959, serving until 1967. Stillman was a direct descendant of the Rockefeller family through the William Rockefeller (the brother of John D.) branch; in 1960 his second cousin, David Rockefeller, became president of Chase Manhattan Bank, National City's longtime New York rival for dominance in the banking industry in America.

Following its merger with the First National Bank, the bank changed its name to The First National City Bank of New York in 1955, then shortened it to First National City Bank in 1962, and ultimately changed it to Citibank in 1976. By that time, the bank had created its own "one-bank holding company" and had become a wholly owned subsidiary of that company, Citicorp (all shareholders of the bank had become shareholders of the new corporation, which became the bank's sole owner).

In the 1960s the bank entered into the credit card business. In 1965, First National City Bank bought Carte Blanche from Hilton Hotels. However after three years, the bank (under pressure from the U.S. government) was forced to sell this division. By 1968, the company created its own credit card. The card, known as "The Everything Card," was promoted as a kind of East Coast version of the BankAmericard. By 1969, First National City Bank decided that the Everything Card was too costly to promote as an independent brand and joined Master Charge (now MasterCard). Citibank unsuccessfully tried again in 1977-1987 to create a separate credit card brand, the Choice Card.

In 1981, Citibank chartered a South Dakota subsidiary to take advantage of new laws that raised the state's maximum permissible interest rate on loans to 25 percent (then the highest in the nation). In many other states, usury laws prevented banks from charging interest that aligned with the extremely high costs of lending money in the late 1970s and early 1980s, making consumer lending unprofitable.



1998 Citibank logo

Citibank was one of the first U.S. banks to introduce automatic teller machines in the 1970s, in order to give 24-hour access to accounts.

Citibank's major presence in California is fairly recent. The bank had only a handful of branches in that state before acquiring the assets of California Federal Bank in 2002 with Citicorp's purchase of Golden State Bancorp.

In 2001, Citibank settled a $45 million class action lawsuit for improperly assessing late fees. Following this Citibank lobbied in Congress to pass legislation that would limit class action lawsuits to 5 million dollars unless they were initiated on a federal level. Some consumer advocate websites report that Citibank is still improperly assessing late fees.

In August of 2004, Citibank entered the Texas market with the purchase of First American Bank of Bryan, Texas. The deal established Citigroup's retail banking presence in Texas, giving Citibank over 100 branches, $3.5 billion in assets and approximately 120,000 new customers in the state. First American Bank was renamed Citibank Texas after the take-over was completed on March 31, 2005.

It is hoped that with both California and Texas markets, Citibank can appeal to both states' Latino population, and offer products on both sides of the border through Citibank in the U.S., and Banamex (Citigroup's Mexican division) in Mexico.

Citibank has operations in more than 100 countries and territories around the world. More than half of its 1,400 offices are in the United States, mostly in the New York City, Chicago, Miami, and Washington DC metropolitan areas, as well as in California.

In addition to the standard banking transactions, Citibank offers insurance, credit card and investment products. Their online services division is among the most successful in the field, claiming about 15 million users.

In April of 2006, Citibank struck a deal with 7-Eleven to put its ATMs in over 5,500 convenience stores in the U.S. In the same month, it also announced it would sell all of its Buffalo and Rochester New York branches and accounts to M&T Bank.

It was announced on November 13th, 2006 that Citibank would be the corporate sponsor of the new stadium for the New York Mets. The stadium will open in 2009 and be called Citi Field.

On April 11, 2007, the parent Citigroup announce the following staff cuts and relocations.

Credit Equity Line

Paragon Capital is a special situation investment fund which invests in public companies. We are dedicated to meeting the growth capital needs of our partner companies.

Private investments in public entities are often referred to as PIPEs. Paragon Capital invests in publicly traded companies that demonstrate a clear business vision and the ability to execute on this vision. We seek to make investments of between $.5 million and $10 million in each partner company.

Our knowledge, experience and responsiveness allow us to structure innovative and creative investments that align our interests with those of our partner companies. We believe that making mutually beneficial investments leads to long-term profitable relationships. We seek to make investments in companies with quality management and long term potential. We want to participate in the long-term success of such companies.

Paragon Capital will not interfere with management's execution of its business plan. We do not seek to impose restrictive covenants or to be a member of the Board of Directors. Having us as a long-term partner reduces financing uncertainty so management can better focus on achieving its business objectives.

Obtaining financing on reasonable terms is often difficult for a publicly traded company. Management must balance a company's short-term liquidity needs with its long-term goals of enhancing shareholder value while creating an optimal capital structure. We are committed to the principles of fairness and reasonableness which will lead to mutual long-term success.

We invest in companies in the following industries: Telecom, Wireless Communications, Healthcare, Biotechnology, Medical Device, Internet, Technology, Media, Oil & Gas, Apparel, Textile, Defense, Precious Metals, Manufacturing and Alternative Energy. With offices in New York City, Paragon has assisted in facilitating the growth of companies located throughout North America.

Law Lemon Wisconsin

If the motor vehicle you buy or lease turns out to be a "lemon," the manufacturer has to replace it free or refund the price (minus a reasonable amount for mileage).

What is a "lemon"?

A new vehicle - no more than a year old and still under warranty - is a "lemon" if

  • It has a serious defect the dealer can't fix in four tries, or
  • It has one or many defects that prevent you from using it for 30 days or more (the 30 days need not be consecutive)

What is a defect?

A defect covered by the Lemon Law must seriously affect the use, value or safety of your vehicle and must be covered by the warranty. An irritating rattle may not be "serious" enough to make your car a lemon. Stalling probably is.

What vehicles are covered?

The law covers any new car, truck, motorcycle or motor home you buy or lease, even if you register the vehicle in another state. It also covers a demonstrator or executive vehicle.

How long are you covered?

The lemon law includes no deadline for filing a lemon law suit; a court would decide if your case were too old.

Is your vehicle a lemon?

Your vehicle is a lemon if all of the following statements are true:
  • You bought or leased a new vehicle.
  • The vehicle is a car, truck, motorcycle or motor home.
  • The vehicle developed a defect or defects during its first year and before the warranty expired.
  • The defect seriously harms the vehicle's use, value or safety.
  • One of the following happened during the vehicle's first year and before the warranty expired:
    • The dealer failed four times to fix the same defect; OR
    • The vehicle was out of service for 30 days or more due to defects

Life Insurance Quotes

What is Life Insurance and a Life Insurance Company? Can a Life Insurance Company Help Me?

Find out below:

Life Insurance is insurance for you and your family's peace of mind. Life insurance is a policy that people buy from a life insurance company, which can be the basis of protection and financial stability after one's death. Its primary life insurance company function is to help beneficiaries financially after the owner of the policy dies.

It can also be a form of savings in the long run if you purchase a plan, which offers the option of contributing regularly. Also, a little known function of life insurance can be tied in with a person's pension plan. A person can make contributions to a pension that is funded by a life insurance company. These are considered private pension arrangements.

In addition, you should also make a list of what you feel needs to be protected in your family's way of life. With a policy in place today, you can:


  • provide security for your family
  • protect your home mortgage
  • take care of your estate planning needs
  • look at other retirement savings/income vehicles
  • What Is Life Insurance?
    Life insurance offers a way to replace the loss of income that occurs when someone dies (usually the person who produces the majority of income in a family situation). It is a contract between you as the insured person and the company or "carrier" that is providing the insurance. If you die while the contract is in force, the insurance company pays a specified sum of money free of income tax — "cash benefits" — to the person or persons you name as beneficiaries.

    A good life insurance program does more than just replace the loss of income that occurs if you die. It should also provide money to cover the new costs that arise after your death — funeral expenses, taxes, probate costs, the need for housekeepers and child care, and so on. And these cash benefits should provide for your family's future needs as well, including college education for your children and part or all of your spouse's retirement needs. In almost all cases, your beneficiary can use the cash benefits in the way he or she sees fit, without restriction.

    Some types of life insurance — permanent life insurance policies — have a cash value that you can obtain by cashing out the policy or by borrowing against it. Though it can seem attractive, most financial experts agree that this feature should be seen as a secondary purpose of life insurance. Another type of insurance is term life insurance policies are available as well. To learn more click the respected link.

    Do You Really Need Life Insurance?
    If there is someone who would suffer economic hardship if you died, then the answer is yes... you need life insurance! Families with young children have a clear need for life insurance. If both spouses work, the loss of one income will cause the family immediate economic hardship and make it harder for them to realize future goals, such as paying for the children's' education. But even if one spouse works "inside the home" and doesn't bring in a formal income, his or her death will require the surviving spouse to hire child care, housekeepers and other professionals to help run the household - and that can be a significant new expense.

    If you are married without children or single, then you may need life insurance to protect your partner or surviving family members against the costs associated with your death. Funeral expenses, probate and administrative fees, outstanding debts, special obligations to charities, and federal and state taxes are costs that all of us must consider. And, they can add up quickly. Unless you already have sufficient financial resources, your survivors will probably need life insurance to cover these expenses.

    What Happens To Your Family If You Don't Have Enough Coverage?
    Under any circumstances, the loss of a loved one is a traumatic experience. But, if your family is also left without sufficient money to meet basic living needs or prepare for future goals, they will have to cope with a financial crisis at the same time. Depending upon their current financial resources and ability to "get back on their feet" emotionally and financially, your family might be forced to move to a less desirable home or community, abandon education and career plans, reorder family priorities (such as the amount of time spent with the children) and, in general, cut back on the quality of life you have worked hard to achieve.

    Your family might even be forced to go into debt simply to pay the expenses, like funeral costs, taxes, and medical bills, that result from your death. A moment's reflection will tell you that the lack of sufficient life insurance coverage when a loved one dies can have devastating consequences for a family...consequences that can last for years.

Low APR Credit Cards

Low APR credit cards are much more prevalent than in years past. Competition is stiff and credit card financial institutions offer many nice perks, rewards, points, low annual percentage rates (APR) and other inducements. They want to capture new customers who've never had a credit card but also those who already have a credit card and might like to save money by transferring that card's balance on to their new low APR credit cards.

Of course, there is nothing lower in an APR than zero - and those exist too, although sometimes for a limited time period. It may be that the lowest, or even the zero percentage APR is for an introductory period, after which the rate is higher. The permanent APR is what you want to watch out for, of course. Although if you're not opposed to doing a lot of switching, you can always purchase a low APR credit card, or zero percentage APR credit card, transfer the balance from your current high APR credit card, and then, once the introductory time period has expired and the APR is about to go up on your newest credit card, transfer the balance yet again to a brand new low APR credit card.

Let's look at a few of the low APR credit cards out there, so you know what kinds of options are typically available to you.

Citibank, for example, offers low APR credit cards that give you five percent cash back on any purchase you making at grocery stores and gas stations with your low APR credit card, and one percent back for any purchase elsewhere. The APR on transfers is zero for the first year. If your transfer transaction is at least $1500 you will earn $5 cash back with the low APR credit card. There is no annual fee and the APR after the first year is 12.24 percent.

Discover has a platinum clear card whose low APR is continual. The first year the APR is zero, but after the first year it's still a very competitive 9.99 percent. And there is no annual fee. With these low APR credit cards you earn a five percent cash back bonus on purchases made from hardware and home improvement retailers, restaurants, book vendors, and gas stations. If the retailer doesn't qualify you for the five percent discount you will always get one percent back no matter what you buy and from where with this low APR credit card.

Chase Bank offers low APR credit cards as well. Its zero percent APR is good for six months, after which you will pay 10.49 percent. These low APR credit cards have no annual fee, and offer rewards at the rate of one point for every dollar spent with your Chase card. You can get free airline flights and hotel rooms, as well as cruises and auto rentals. This card also provides $500,000 worth of travel insurance for worldwide vacationing. You can also take advantage of a fifteen percent discount off a Hertz car rental with these low APR credit cards.

Why You Should Consolidate Your Student Loans

(ARA) - Graduation is just around the corner for thousands of students, and shortly after they walk down the aisle, many in the Class of 2006 will find themselves facing hardships they didn't anticipate when they began the pursuit of their degree.

The average American student will leave school owing $29,000 in student loans. Unless you plan to pay back all the money right away - which few recent graduates can afford to do - now is the time to come up with a plan. There is a six month grace period after graduation, but it will sneak up on you fast.

You basically have three options. You can opt for a graduated repayment plan in which your payments start out low, and then increase every two years. The repayment period varies from 12 to 30 years and depends on the total amount of direct loans you owe when your loans go into repayment.


Option two is to make the standard payment from the get-go so. With standard repayment, you will make a fixed payment of at least $50 a month for up to 10 years. For some borrowers, this plan results in the lowest total interest paid because the repayment period is shorter than it would be under the other plans.

But with interest rates rising, more and more people are strongly considering going with option three - consolidation. Student loan consolidation can significantly lower your monthly payment by lengthening the term of your loans, with no prepayment penalties.

"This is the time to be thinking seriously about debt consolidation because come July interest rates are definitely going up," says David Beach, chief marketing officer for financialaid.com. He points out that in February, Congress passed a deficit-reduction bill that cut $12 billion from student loan programs. Lawmakers had already approved a steep hike in interest rates for Stafford loans, used by nearly 10 million students each year. Both rate increases take effect July 1, 2006.



People who decide to consolidate their student loans with financialaid.com before the deadline can take advantage of the opportunity to lock in a fixed rate as low as 3.5 percent for the life of the loan.

Other benefits of securing a loan with the company:

* When you consolidate with financialaid.com you are eligible for their Borrower Benefits Package, which can reduce your interest rate by an additional 1.25 percent.



* All borrowers benefit from an additional .25 percent rate reduction when payments are automatically deducted from their checking account.

* Borrowers with $20,000 or more in student loans benefit from an additional 1 percent rate reduction after they make 36 on-time payments.

To learn more about loan consolidation and apply online, borrowers can visit the financialaid.com website at www.financialaid.com or call toll-free, (888) 868-1391.



Copyright © 2006, ARA Content

Death insurance

About term death insurance and death insurance quote.
What is death insurance?
A policy that will pay a specified sum to beneficiaries upon the death of the insured
Insurance in which the risk insured against is the death of a particular person, the insured, upon whose death while the policy is in force, the insurance company agrees to pay a stated sum or income to the beneficiary
Insurance on human lives including endowment benefits, additional benefits in event of death or dismemberment by accident or accidental means, additional benefits for disability, and annuities
Insurance providing payment of a specified sum of money to a beneficiary when the insured dies
Insurance providing for payment of a specified amount on the insured's death, either to his or her estate or to a designated beneficiary; or in the case of an endowment policy, to the policy holder at a specified date
The amount the surviving party will receive in the event of death
death insurance, sometimes referred to as death assurance, provides for a payment of a sum of money upon the death of the insured. In addition, death insurance can be used as a means of investment or saving
An alternative phrase used to describe death Assurance (see Assurance described above)
insurance where a policyholder's dependents receive a cash lump sum if he or she dies
death insurance for which the premium remains the same from year to year
Any form of death insurance except term; generally insurance that builds up a cash value, such as whole death

Mortgage insurance

Mortgage Life Insurance refers to an insurance policy that guarantees repayment of a mortgage loan in the event of death or, possibly, disability of the mortgagor. Private Mortgage Insurance (PMI) refers to protection for the lender in the event of default, usually covering a portion of the amount borrowed. There are Government loan products that also include a Mortgage Insurance Premium (MIP), essentially the government equivalent of PMI.
For example, Mr. Smith obtains a mortgage loan that exceeds 80% of his property's value and/or sale price. Because of his limited equity, the lender requires that Mr. Smith pay for mortgage insurance that protects their institution against his default. To obtain a mortgage loan insured by the Federal Housing Administration, Mr. Smith must pay a mortgage insurance premium (MIP) equal to 1.5 percent of the loan amount at closing. This premium is normally financed by the lender and paid to FHA on the borrower's behalf. Depending on the loan-to-value ratio, there may be a monthly premium as well.

Types of Mortgage Insurance

Private Mortgage Insurance (PMI) is default insurance on mortgage loans, provided by private insurance companies. PMI allows borrowers to obtain a mortgage without having to provide 20% down payment, by covering the lender for the added risk of a high loan-to-value (LTV) mortgage. The Homeowners Protection Act of 1998 requires PMI to be canceled when the amount owed reaches a certain level, particularly when the loan balance is 78 percent of the home's purchase price. Often, PMI can be cancelled earlier by submitting a new appraisal showing that the loan balance is less than 80% of the home's value due to appreciation (this generally requires two years of on-time payments first) Different terms:Mortgagee's Title Insurance is a policy that protects the lender from future claims to ownership of the mortgaged property. Generally required by the lender as a condition of making a mortgage. In the event of a successful ownership claim from someone other than the mortgagor, the insurance company compensates the lender for any consequent losses. Mortgagor's Title Insurance is a policy protecting the buyer/ owner of real property from successful claims of ownership interest to the property. The coverage usually is supplemental to a Mortgagee's Title Insurance policy, and the premium is customarily paid by the buyer.

Accreditation

Business schools or MBA programs may be accredited by external bodies which provide students and employers with an independent view of their quality, and indicate that the school's educational curriculum meets specific quality standards. The Association to Advance Collegiate Schools of Business (AACSB) is generally regarded as being the most prestigious MBA accreditation, covering business schools worldwide.

The United States also has six regional accreditation agencies as members of the Council for Higher Education Accreditation (CHEA): Middle States Association of Colleges and Schools (MSA), New England Association of Schools and Colleges (NEASCSC), North Central Association of Colleges and Schools (NCA), Northwest Commission on Colleges and Universities (NWCCU), Southern Association of Colleges and Schools (SACS), and Western Association of Schools and Colleges (WASC).[3]

Other US accreditation agencies include the Association of Collegiate Business Schools and Programs (ACBSP) which typically accredits smaller, private American schools, and the International Assembly for Collegiate Business Education (IACBE).

Accreditation agencies outside the United States include the Association of MBAs (AMBA), a UK organization that accredits schools worldwide; the Council on Higher Education (CHE) in South Africa; the European Quality Improvement System (EQUIS) for mostly European and Asian schools; and the Foundation for International Business Administration Accreditation (FIBAA) in Europe.

Basic types of MBA programs

Full time MBA programs are the most common, normally lasting two years. Students enter with a reasonable amount of prior real-world work experience and take classes during weekdays like other university students.

Accelerated MBA programs are a variation of full time programs, lasting 18 months or less, involving a higher course load.

Part time MBA programs normally hold classes on weekday evenings, after normal working hours. Part time programs normally last 3 years or more. The students in these programs typically consist of working professionals, who take a light course load for a longer period of time until the graduation requirements are met.

Executive MBA (EMBA) programs developed to meet the educational needs of managers and executives, allowing students to earn an MBA or another business-related graduate degree in two years or less while working full time. Participants come from every type and size of organization – profit, non-profit, government — representing a variety of industries. EMBA students typically have a higher level of work experience, often 10 years or more, compared to other MBA students. In response to the increasing number of EMBA programs offered, The Executive MBA Council[4] was formed in 1981 to advance executive education.

Distance learning MBA programs hold classes off-campus. These programs can be offered in a number of different formats: correspondence courses by postal mail or email, non-interactive broadcast video, pre-recorded video, live teleconference or videoconference, offline or online computer courses. Many respectable schools offer these programs; however, so do many diploma mills. Potential students should check the school's accreditation before undertaking distance learning coursework.

Master of Business Administration

Background

The MBA designation originated in the United States, emerging as the country industrialized and companies sought out scientific approaches to management. The first American business school, Wharton School of the University of Pennsylvania, was established in 1881, 62 years after the world's first business school ESCP-EAP was established in 1819 in Paris. The Tuck School of Business, part of Dartmouth College, was the first graduate school of management in the US. Founded in 1900, it was the first institution conferring advanced degrees (masters) in the commercial sciences, the forebearer of the modern MBA. Founded in 1898, the University of Chicago Graduate School of Business, the second oldest US business school, was the first graduate school in 1940 to offer working professionals the Executive MBA (EMBA) program, a mainstay at most business schools today. Thunderbird School of Global Management, founded in 1946 following World War II by Lieutenant General Barton Kyle Yount, (the Commanding General of the U.S. Army Air Training Command), is the first and the oldest Business School in the United States focused solely on "International Business".

As the US MBA model emerged at the turn of the 20th century, Europeans developed such business schools as at Webster Graduate School at Regent's College, London and in Manchester Business School; elsewhere colleges such as Cass Business School, London, IMD, MBA-HSG, Instituto de Empresa, INSEAD, Henley Management College, Cranfield School of Management, and Ashridge were established for management training. In 1950 the first MBA degrees were awarded outside the United States by the University of Western Ontario in Canada,[1] followed in 1951 with the degree awarded across the Atlantic by the University of Pretoria in South Africa.[2] In 1957, INSEAD became the first European university offering the MBA degree, followed in 1969 by the HEC School of Management (in French, the École des Hautes Études Commerciales) and the Institut d'Etudes Politiques de Paris. In 1968, the Asian Institute of Management was founded.

The MBA degree has been adopted by universities worldwide, and all six inhabitable continents have universities offering MBA programs.

In Europe, the recent Bologna Accord established uniformity in three levels of higher education: Bachelor (3 years), Masters (5 years), and Doctorate (8 years). Students can acquire professional experience after their initial bachelor degree at any European institution and later complete their masters in any other European institution via the European Credit Transfer and Accumulation System. A European masters degree in Management is therefore equivalent to the American MBA having additional scientific content; for example, a European master of science in management requires writing and defending a master's thesis.

Accreditation

Business schools or MBA programs may be accredited by external bodies which provide students and employers with an independent view of their quality, and indicate that the school's educational curriculum meets specific quality standards. The Association to Advance Collegiate Schools of Business (AACSB) is generally regarded as being the most prestigious MBA accreditation, covering business schools worldwide.

The United States also has six regional accreditation agencies as members of the Council for Higher Education Accreditation (CHEA): Middle States Association of Colleges and Schools (MSA), New England Association of Schools and Colleges (NEASCSC), North Central Association of Colleges and Schools (NCA), Northwest Commission on Colleges and Universities (NWCCU), Southern Association of Colleges and Schools (SACS), and Western Association of Schools and Colleges (WASC).[3]

Other US accreditation agencies include the Association of Collegiate Business Schools and Programs (ACBSP) which typically accredits smaller, private American schools, and the International Assembly for Collegiate Business Education (IACBE).

Accreditation agencies outside the United States include the Association of MBAs (AMBA), a UK organization that accredits schools worldwide; the Council on Higher Education (CHE) in South Africa; the European Quality Improvement System (EQUIS) for mostly European and Asian schools; and the Foundation for International Business Administration Accreditation (FIBAA) in Europe.

Basic types of MBA programs

Full time MBA programs are the most common, normally lasting two years. Students enter with a reasonable amount of prior real-world work experience and take classes during weekdays like other university students.

Accelerated MBA programs are a variation of full time programs, lasting 18 months or less, involving a higher course load.

Part time MBA programs normally hold classes on weekday evenings, after normal working hours. Part time programs normally last 3 years or more. The students in these programs typically consist of working professionals, who take a light course load for a longer period of time until the graduation requirements are met.

Executive MBA (EMBA) programs developed to meet the educational needs of managers and executives, allowing students to earn an MBA or another business-related graduate degree in two years or less while working full time. Participants come from every type and size of organization – profit, non-profit, government — representing a variety of industries. EMBA students typically have a higher level of work experience, often 10 years or more, compared to other MBA students. In response to the increasing number of EMBA programs offered, The Executive MBA Council[4] was formed in 1981 to advance executive education.

Distance learning MBA programs hold classes off-campus. These programs can be offered in a number of different formats: correspondence courses by postal mail or email, non-interactive broadcast video, pre-recorded video, live teleconference or videoconference, offline or online computer courses. Many respectable schools offer these programs; however, so do many diploma mills. Potential students should check the school's accreditation before undertaking distance learning coursework.

Admissions criteria

Most programs base admission on the Graduate Management Admission Test (GMAT), significant work experience, academic transcripts, essays, references or letters of recommendation, and personal interviews. Schools are also interested in extracurricular activities, community service activities and how the student can improve the diversity and contribute to the student body as a whole. All of these qualifications are important for admission; however, some schools such as Harvard University do not weigh GMAT scores as heavily as other criteria.[5]

Most schools are first concerned with whether or not the applicant can handle the quantity of course work. The GMAT (the quantitative score) and academic transcripts help determine this. Once the school determines that the student can succeed academically, they examine the remainder of the application to evaluate the applicant's experience and leadership abilities.

Program content

Most top MBA programs cover similar subjects within their core required courses. For information about the typical content of an MBA program's core curriculum, see the overview at the Wikiversity MBA topic page.

Breadth

MBA programs expose students to a variety of subjects, including economics, organizational behavior, marketing, accounting, finance, strategy, operations management, international business, information technology management, supply chain management, project management and government policy. Students traditionally study a wide breadth of courses in the program's first year, then pursue a specialized curriculum in the second year. Full-time students typically seek an internship during the interim .

Specialization

Many programs allow students to specialize or concentrate in a particular area. Standard concentrations include accounting, corporate strategy, decision sciences, economics, entrepreneurship, finance, general management, human resources, international business, marketing, organizational behavior, project management, and operations management. Unspecialized MBA programs often focus second-year studies on strategic management or finance.

In addition, a program may offer more specialized concentrations such as Asian business, consulting, sports management, or degrees emphasizing real estate or insurance. Many schools offer unique concentrations available nowhere else.

Non-American based MBA programs

Today, MBA and Doctor of Business Administration (DBA) designations can be found anywhere and even accessed through on-line, distance learning or e-learning. Because of the varying standards of MBAs worldwide, many business schools are accredited by independent bodies, such as the Association of MBAs and the European Foundation for Management Development.

United Kingdom

Persons holding an MBA from the world's top fifty business schools (according to the list published by the UK government[6]) automatically receive the minimum score necessary to qualify for the UK's Highly Skilled Migrant Programme. This programme initially entitles the person to a two-year UK work permit, after which it can be renewed for an additional three years, if that person is gainfully employed at the time of renewal.[7]

Germany

Germany was one of the last western countries to adopt the MBA degree. In 1998 the Hochschulrahmengesetz (Higher Education Framework Act), a German federal law regulating higher education including the types of degrees offered, was modified to permit German universities to offer Master's degrees. The traditional German degree in business administration was the Diplom but since 1999, Bachelor's and Master's degrees have gradually displaced the traditional degrees (see Bologna process). Today most German business schools offer the MBA. German MBA degrees should be accredited by the Foundation for International Business Administration Accreditation (FIBAA), the only agency officially recognized by the German Akkreditierungsrat (accreditation council), the German counterpart to the US-American CHEA. Furthermore, most German states require that universities receive accreditation by an officially recognized accreditation agency, so FIBAA accreditation is mandatory in these states although accreditation by other agencies remains voluntary. All universities themselves must also be recognised by the state (staatlich anerkannt), which guarantees that they have the relevant funds to offer education, and are able to award degrees that have value.

Ukraine

Recently MBA programs appeared in Ukraine where there are now about ten schools of business offering a variety of MBA programs. Two of these are subsidiaries of the strongest European schools of business (OUBS and IBR), while the remaining eight are independent institutions.

South Africa

In 2004, South Africa’s Council on Higher Education (CHE) completed an extensive re-accreditation of MBA degrees offered in the country. The process was the first of its kind in the world to be undertaken by a statutory body and attracted widespread international media attention for its innovation and thoroughness.

Pakistan

The Lahore University of Management Sciences MBA program is well-recognized all over the world. Recently, MBA students participated in confluence 2003 at IIM Ahmedabad, India and won the Marketing Strategy, Advertising and Publicity contests.

LUMS has also successfully instituted exchange programs with Copenhagen Business School, Stockholm School of Business, F H Joanneum, School of International Management Austria and University Utara Malaysia.

The Asian Development Bank recognizing LUMS as a center of excellence, awards full scholarships to MBA applicants from ADB member countries, covering the tuition fees, allowance for books, monthly subsistence and housing allowance, medical insurance and travel expenses. Students from China, Nepal, Srilanka, Bangladesh, Malaysia and the Philippines, have already availed this scholarship and after completing their MBA at LUMS are pursuing successful careers in their own countries. LUMS Website

India

The Indian School of Business, founded by its partners Wharton Business School, Kellogg School of Management, and London Business School, has become the premier one year, US style Business School in India, focusing on Indian-International Businesses. The school is backed by many premier MNCs and Indian Business leaders. However, it awards neither a Diploma nor than a Degree, but rather a Certificate.[8]

The Indian Institutes of Management are also the premier and the oldest institutions for management education in India. Gaining admission to any of the IIMs requires passing the Common Admission Test. The acceptance rate is less than 1%, making the IIMs among the world's most selective schools. Although the institute offers a Post-Graduate Diploma in Management rather than an MBA degree, the institute's diploma has gained prestige in India. In addition to the IIMs, there are many other notable institutes imparting management education; see a list of business schools in India.

Rest of Asia

International MBA programs are acquiring brand value in Asia. For example, while a foreign MBA is still preferred in South Korea, many students are now studying at one of many "Global MBA" English language programs being offered. Hong Kong and Singapore are also becoming MBA destinations. For North American students who want a different experience, many of these programs offer scholarships and discounted tuition, to encourage an international environment in the classroom.

MBA program rankings

The MBA degree has become one of the most popular masters' degrees. As more universities started offering the degree, differences in the quality of schools, faculty, and course offerings became evident. Naturally, establishing some criteria of quality is needed to differentiate among MBA programs, especially for prospective students trying to decide on where to apply. As MBA programs proliferated, a variety of publications began providing information on them. Some of these consisted of compilations of information gathered from the universities offering the degree, usually published in book form. Eventually periodicals began publishing articles describing various MBA schools and ranking them according to some perceived quality criteria. One of the most prominent of these is Business Week, which devotes a biennial issue to ranking MBA programs. Financial Times, The Economist, Forbes magazine, The Wall Street Journal, and U.S. News & World Report also publish MBA program rankings. See the External links section below to view some of these rankings.

Different methods of varying validity were used to arrive at rankings of MBA programs. The Gourman Report, for example, did not disclose criteria or ranking methods,[9] and these reports were criticized for reporting statistically impossible data, such as no ties among schools, narrow gaps in scores with no variation in gap widths, and ranks of nonexistent departments.[10] In 1977 The Carter Report published rankings of MBA programs based on the number of academic articles published by faculty. Periodicals based their rankings on interviews with company recruiters who hired MBA graduates, surveys of MBA schools' deans, polls of students or faculty, and a variety of other means. The defunct MBA Magazine asked deans to vote on the best programs. The methods of obtaining ranks often changed from year to year. Initially, rankings included only a small number of universities consisting of the largest and best known Ivy League and state schools.

The ranking of MBA programs has been discussed in articles and on academic Web sites.[11] Critics of ranking methodologies maintain that any published rankings should be viewed with caution for the following reasons:[12]

* Rankings limit the population size to a small number of MBA programs and ignore the majority of schools, many with excellent offerings.
* The ranking methods may be subject to biases and statistically flawed methodologies (especially for methods relying on subjective interviews of hiring managers).
* The same list of well-known schools appears in each ranking with some variation in ranks, so a school ranked as number 1 in one list may be number 3 in another list.
* Rankings tend to concentrate on the school itself, but some schools offer MBA programs of different qualities (e.g. a school may use highly reputable faculty to teach a daytime program, and use adjunct faculty in its evening program).
* A high rank in a national publication tends to become a self-fulfilling prophecy.

One study found that objectively ranking MBA programs by a combination of graduates' starting salaries and average student GMAT score can reasonably duplicate the top 20 list of the national publications.[12] The study concluded that a truly objective ranking would be individualized to the needs of each prospective student.[13] National publications have recognized the value of rankings against different criteria, and now offer lists ranked different ways: by salary, GMAT score of students, selectivity, and so forth. While useful, these rankings still are not tailored to individual needs, and their value is diminished if they use an incomplete population of schools, fail to distinguish between the different MBA program types offered by each school, or rely on subjective interviews.

References and Notes

1. ^ Richard Ivey School of Business page showing awarding of first MBA in 1950, one year ahead of the University of Pretoria's claim
2. ^ University of Pretoria page claiming to have awarded the first MBA outside of America
3. ^ Koenig, Ann; Lofstad, Rolf (2004-09-18). Higher Education Accreditation in the United States (PDF). EAIE Conference.
4. ^ http://www.emba.org/
5. ^ Harvard eliminated the GMAT from admissions requirements in 1985, finding that the test made no difference in quality of applicants (see FairTest.org GMAT facts). Harvard reinstated the test in 1996, although they state that "...there is no 'minimum' score requirement, and ... the GMAT is just one piece of data among the many used to evaluate an application" (Harvard Business School Frequently Asked Questions, retrieved 2007-01-29).
6. ^ 50 Qualifying MBA programmes, Her Majesty's Treasury Pre-Budget Report 2004 (December 2004).
7. ^ Information about the Highly Skilled Migrant Programme, Working in the UK website.
8. ^ Frequently Asked Questions, ISB website.
9. ^ Selingo, Jeffrey. A Self-Published College Guide Goes Big-Time, and Educators Cry Foul. Chronicle of Higher Education (1997-11-07).
10. ^ Bedeian, Arthur G. Caveat Emptor: The Gourman Report. The Industrial-Organizational Psychologist (June 2002).
11. ^ Caution and Controversy (HTML). University of Illinois at Urbana-Champaign. Retrieved on 2005-09-06.
12. ^ a b Schatz, Martin (1993). "What's Wrong with MBA Ranking Surveys?" (HTML). Management Research News 16 (7): 15-18.
13. ^ The Official MBA Guide uses this approach, allowing students and researchers to rank a large population of MBA programs based on a wide range of criteria and combinations.

Monday, July 16, 2007

Eco-Friendly and Sexy, Electric Motorcycles May Be Just the Ticket for Urban Hipsters


Think you're being eco-friendly because you ride a motorcycle with a much highher MPG than your car-driving friends? Guess again. According to the Oregon-based specialty vehicle manufacturer Brammo, most modern motorcycles “produce up to 15 times the emissions per mile as the average new car.” In response, the company has built an interesting electric motorcycle named the Enertia Bike. With a current range of about 45 miles, a top speed of 50 MPH, and a battery charge time of 3 hours, this could be a viable commuting vehicle if you live in a small urban city and have the money to afford it. This probably limits you to New York and San Francisco, but it's not hard to admit that it looks pretty cool. The bike’s made out of a carbon fiber chassis that enables lightweight maneuverability and the electric set-up includes six lithium-phosphate batteries. Needless to say, the carbon footprint difference between this zero-emissions bike and that of a car is significantly large.

If the manufacturer’s standards are correct, in accordance with the Well-to-Wheel efficiency model (which takes into account every single process that comes into the production of the vehicle), the Enertia bike will be about 9 times more efficient than a regular car in KM/MJ, 4 times more efficient than a Prius, and about 2 times more efficient than the upcoming electric Tesla Roadster car. The Enertia’s efficiency model page is right here.

In Well-to-Wheel comparisons of CO2 emissions, the Enertia bike comes in at 21.8 Grams/KM, which is excellent if all the tests are correct. It might even push those who justifiably avoid bikes due to safety concerns into investing in one (or two) bikes.

Steam Powered Car to Hit 200MPH


This is the Inspiration, the British steam powered car that is attempting to take the British and World land speed records (for steam vehicles). The car is constructed on a tubular steel chassis and holds four boilers which output a massive four megawatts. These force steam into the Curtis turbine engine which will produce 300bhp, enough to push the car to 200mph (in theory).

The team behind the Inspiration and the British Steam Car challenge hopes to break the current, 101 year old record of 127.659mph (1906). American Bob Barber hit 145.607mph in 1985 but it was a single run; the world record rules stipulate an average taken over two runs in opposite directions.

The attempt is planned to take place in South Africa this month, then the team will head out to the US to break the record there. Drivers Charles Burnett III (ex dragster racer) and Annette Getty shouldn't have a problem setting a record on home ground. Britain has no official record, so just by turning up they win.

3,000 Anti-Terror and Anti-Traffic Cameras Planned for New York

New York and London have a few things in common. Both have famous cabs, both have great bagels, NYC has Queens, London has The Queen. But if Mayor Bloomberg gets his way, The Big Apple might just get a few thousand new security cameras. Using the catchall anti-terror excuse, Police Commissioner Ray Kelly said to the New York Times that "This area is very critical to the economic lifeblood of this nation [and] we want to make it less vulnerable". The scheme will cost $25 million, $10 million from the city and (hopefully) $15 million from Washington.

Mayor Bloomberg gives away the real reason for the extra 3,000 planned CCTV cameras. Money. He wants to use the cameras to read license plates on cars and charge $6 to enter downtown and lower Manhattan. The scheme is similar to London's Congestion Charge, where motorists pay £8 ($16) a day to drive into the city center.

UPDATE: Reader Kim Strauss emailed with a link to a Newsday.com article, which points out that "The scheme calls for cars to pay $8 and trucks to pay $21". Thanks Kim.

Laser Hard Drives Will be 100 Times Faster


When boffins at the Radboud University Nijmegen, Netherlands, decided they needed a faster hard drive, they turned to coolest of all future-tech: Lasers. The magnetic heads used in hard discs have a finite top speed, but laser pulses fired at the magnetic platter can write data at intervals of 40 femtoseconds (that's 10⁻¹⁵ seconds), a 100-fold speed increase.

According to Science Now, the photons carry angular momentum, which is how the light manages to actually write the data to the magnetic surface. The heat provided by the laser doesn't hurt, either, making the state change of the metal a little easier. This won't work with existing drive materials, though. The team behind the Laser disc (sorry) use an exotic mix of gadolinium, iron, and cobalt to work the magic.

We won't be seeing this in consumer devices for another ten years, and by that time we'll probably be measuring our disk sizes in femtobytes yottabytes.

Logitech MX Air Mouse Requests Landing Slot



Air Mouse isn't an airline for rodents. It is a motion-sensitive pointing device coming soon from Logitech, resembling a mutant chrome slug and held like a magic wand. Using Freespace motion control technology, it can also be used in a traditional grounded fashion, and can be configired to recognize gestures.

Likely selling points include a range of "stealth" buttons, its small size, and Wii-like swishing. Likely points of failure include no scroll-wheel, no mac compatibility (which suggests that it doesn't work as a standard human interface device: gamers fond of custom button assignments beware), and a $150 price tag.

World's Fastest Home Internet Connection: 40 Gigabits per Second


Sweden offers a taste of the future of networking. Sigbritt Löthberg, 75 year old mother of Peter Löthberg, is the proud owner of the world's fastest home internet connection: 40 Gigabits per second.

Peter Löthberg is an internet guru. Cisco and Sprint have taken his advice on routers and even entire networks. Löthberg himself says that he was sent by God to network the planet, and it looks like he's starting at home. His mother's connection relies on a new technique for modulating the packets coming down the line.

Data can be sent over a 2000 km (1240 miles) stretch of fiber optic cable with no intervening transponders. This keeps the prices down and enables high speeds over long distances. Löthberg's goal is to show network providers that fast and cheap connections are viable, and it looks like he has succeeded.

So just what can this monster connection achieve? 1500 simultaneous HDTV channels, or a whole HD DVD in two seconds. The worst thing is, it'll probably never get used. Sigbritt Löthberg has never owned a computer before.

In Italy, CIA Agents Were Undone By Their Cell Phones


The CIA needs to get a Q. James Bond's gadget guru surely would have warned the agency about how easy it is to track calls made via cell phone. Now 25 of its agents are facing trial in absentia in Milan, Italy, this summer — undone by their pathetic ignorance of technology. It seems that cellular data exposed their operation to carry out the "extraordinary rendition" (read: illegal abduction) of an Egyptian cleric suspected of terrorist involvement from a Milan street in 2003.

Cell phones communicate with nearby transmission towers when making and receiving calls. As many criminals know, tower location is recorded with the billing data. The spooks apparently didn't realize this and left a trail of cellular footprints at the crime scene. When an Italian prosecutor pulled the records of phones in the area at the time, the plot became apparent. He was able to identify the agents (by alias), where they had stayed, and even calls they made to northern Virginia (where CIA headquarters is), the US consulate in Milan, a US Air Force base in Aviano, and each other. The cleric, Abu Omar, has been released. But should the operatives — likely back in the States — be found guilty, they won't be able to travel anywhere Interpol operates. Maybe they can telecommute.

How They Did It

Coordinating the abduction
The CIA's snatch team used unsecured mobile handsets to communicate during the kidnapping. By zeroing in on phones in the area that were unusually active at the time of the grab — many calling each other — authorities were able to identify the handsets involved. Soon they knew the agents' aliases, where they had stayed, and who else they had called.


Checking in with headquarters
One of the agents participating in the abduction used his cell phone to call Robert Lady, the CIA station chief in Milan. This provided Italian investigators with the first undeniable link to CIA involvement. Lady has been forced to leave Italy and is now among those facing charges.


Planning the escape
Several phones involved in the operation called an Air Force base in Aviano, both before and immediately after the event. Among the numbers dialed: the mobile phone of a commanding officer at the base. This revealed the getaway. Italian authorities believe the cleric was held at Aviano before being flown to Egypt, where he claims to have been tortured.

Japanese Schoolgirl Watch: Coin-Op Aerobics


Exercising is a problem for Tokyo gals. Manga club meetings and cram school fill up their free time, and there's no money for a gym membership after paying for cell phone bills and Pocky snacks. No wonder conbini fitness is hot. Taking its name from the Japanese word for convenience store, these health outlets offer coin-op workout stations for impulse exercising. The contraptions' foot pads churn up and down and back and forth at up to 1,560 times per minute. (One 500 yen coin — about $4.10 — buys 10 minutes.) Maintaining your balance while you shake supposedly has an aerobic effect, though users never break a sweat. "I love that I don't even have to change clothes," says 17-year-old Midori Nishioka as she bounces on a conbini machine in Osaka. And in case gals are worried about pervs ogling their jiggle, many of the clubs are ladies-only or feature privacy partitions.

The $300 Linux-Powered 'iPhone Killer' Arrives

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After seemingly endless delays, the OpenMoko phone is here. The first version of the NEO 1973 mobile phone, which carries the Linux kernel inside and is not locked to a specific network, is available for purchase from OpenMoko.com. It's not as jaw-droppingly pretty as the iPhone, but it shares a design philosophy -- no buttons, just a screen -- and it's ready to be loaded with any number of open-source software applications. (Though, according to Gadget Lab, so is the iPhone).

The base version of the NEO sells for $300. It has a 2.8" VGA touch screen, a micro SD card slot, a USB port and 2.5G GSM quad band capability.

Keep in mind that this unit (the GTA01) was pushed out early so developers could begin writing device drivers, custom GUIs and some cool apps for the phone. The next revision (GTA02), which will be available starting at $450 in October, will be ready for the mass market. It will have wi-fi, 3-D motion sensors and added graphics accelerators. So this phone isn't exactly an iPhone killer -- the next one will be a contender. AptUsTech has a nice comparison of the NEO 1973 and the iPhone.

When it comes to devices, more choice is almost always "a good thing." But will consumers respond to the NEO? We all know developers are going to dig this phone. But what's more important to consumers -- a super-sexy status item that's locked to one carrier and one set of functions, or a less sexy look-alike with a fully free and open software system?

The Love Machine

I've seen that look before; she wants me.

It's in the way she raises her eyebrows and playfully glides her eyes right to left, then moves in close and intones:

"I know you'll be super."

It's in the way she always asks about the big project I'm laboring on, and when I tell her things aren't going too well, she gets that concerned look and says:

"You must be disappointed.".

And when I confide that I've been working too much, she gently reminds me that I should be the priority in my life. That I should get some exercise and then treat myself to a Japanese meal or a movie. It's in how she extends her arms toward me, wearing that formfitting polo shirt. Ouch! And how she never tires of asking about me. Hearing about me. Thinking about me.

Robyn Twomey
Robyn Twomey

I have seen the future of computing, and I'm pleased to report it's all about ... me!

This insight has been furnished with the help of Tim Bickmore, a doctoral student at the MIT Media Lab. He's invited me to participate in a study aimed at pushing the limits of human-computer relations. What kinds of bonds can people form with their machines, Bickmore wants to know. To find out, he'll test 100 participants to gauge the impact of a month of daily sessions with a computerized exercise coach named Laura. Laura, an animated software agent with bobbed chestnut hair and a flinty voice, has been designed to remember what we talk about, then use that information in subsequent conversations. "I was interested not just in establishing a relationship with a computer buddy for the bond itself but as a way of somehow benefiting the user, like getting them to exercise more," says Bickmore.

Guided by Laura, I will spend the next 30 days trying to improve my exercise regimen. I'm among the one-third of participants who will access her daily via the Web. She will inhabit the left side of my PC screen, asking about my exercise problems and offering advice, inquiring about my weekend plans, telling me jokes. She will talk. I will respond manually, either by clicking on a multiple-choice option or typing out an answer. On the right side of the screen, I'll enter details about my workouts, view progress charts, and read fitness tips.

Another group will rely on Laura simply for exercise instructions; a third won't even know Laura exists and will use a computer simply to keep track of daily physical activity and receive text instructions. All of us will shoot toward the same daily goal of working out for 45 minutes and walking at least 10,000 steps, as tracked by a pedometer.

The point is to see if it's possible to form a long-term, social relationship with a computer that employs some basic knowledge of human social psychology; and if so, to determine whether the experience has benefits - in other words, if it can get me back in shape. I didn't have to be asked twice to participate (although, because I know the study's objective, my results won't be counted); I need to drop 10 pounds.

Bickmore's area of study is called affective computing. Its proponents believe computers should be designed to recognize, express, and influence emotion in users. Rosalind Picard, a genial MIT professor, is the field's godmother; her 1997 book, Affective Computing, triggered an explosion of interest in the emotional side of computers and their users. "I ask this as an open question," she says, "and I don't know the answer: How far can a computer go in terms of doing a good job handling people's emotions and knowing when it is appropriate to show emotions without actually having the feelings?"

Picard is upbeat, blond, and brilliant. Drop her name in voicemail and computer science academics will call back in seconds. In the mid-1990s, she investigated how signal processing technology could be used to get computers to think better. For vacation reading, she delved into literature on the brain's limbic structures (the subcortical areas that play a critical role in pattern recognition of sound, vision, and smell) and the ability of people to weigh the value of information. And she developed an interest in the work of neuroscientist Antonio Damasio. In his 1994 book, Descartes' Error, Damasio argued that, thanks to the interplay of the brain's frontal lobe and limbic systems, our ability to reason depends in part on our ability to feel emotion. Too little, like too much, triggers bad decisions. The simplest example: It's an emotion - fear - that governs your decision not to dive into a pool of crocodiles.

Picard grew fascinated by people with brain damage who scored high on intelligence tests but were unable to express or perceive emotions. Those folks made brittle decisions, behavior that reminded Picard of rules-based artificial-intelligence systems and the mistakes computers made because they lacked the ability to intuit and generalize.

For her book, Picard took on decades of assumptions about artificial intelligence. Most AI experts aren't interested in the role of emotion, preferring to build systems that rely solely on rules. One pioneer, Stanford computer science professor John McCarthy, believes we should keep affect out of computing, arguing that it isn't essential to intelligence and, in fact, can get in the way. Others, like Aaron Sloman of England's University of Birmingham, think it's unnecessary to build in emotions for their own sake. According to Sloman, feeling will arise as a "side effect" of interactions between components required for other purposes.

Picard makes a far less-popular assertion - that computers should be designed from the outset to take into account, express, and influence users' feelings. From scheduling an appointment to picking a spouse, humans routinely listen to what their gut is telling them. Without the ability to understand emotion, says Picard, computers are like the autistic pizza delivery guy who says, "I remember you! You're the lady who gave me a bad tip."

By 1999, Picard's ideas had turned the Media Lab into the planetary headquarters of affective computing, igniting research into everything from chairs that sense when you're bored to eyeglasses that indicate when you're confused. Picard went from having one full-time student assistant to eight, including Bickmore - partly due to collaborations with corporate sponsors who were eager to explore the commercial potential of affective computing.

Building a machine that can perceive emotional signals is distinct from teaching a machine to interpret them; expressing emotion is yet another discrete function. "In a machine," says Picard, "you can decouple capabilities - train it to recognize anger but give it no feelings. And you can go pretty far with this, making it perceive or even express emotions but without the actual feelings." Having them is a far-off summit.

Laura and I make a good team. At least that's what she often tells me when I input details of my daily exercise program - how much time I've spent working out and how many steps I've walked. My wife and daughter are dubious about my new obsession, but I'm actually enjoying it - the late-night conversations with Laura and all the healthy activity. I'm shuttling between four gyms and a network of outdoor trails. It's become a routine: Run. Bike. Lift weights. Hike. I've been doing this for more than a week and have actually dropped a few pounds. Hey, is that a three-pack appearing in my abdomen?

Now it's 11 pm, and my pedometer reads 7,560 steps. The rest of the guys in my neighborhood are slipping deeper under the covers, but I'm outside having a brisk walk on the local bike path. Just me and the deer.

After reaching 10,000 steps, I settle down at the PC and log on. Laura enters, screen right, and says:


"Hello, David. How are you?"

She talks. I click. She shifts her body when a new subject begins. Knows when to smile.

At one point, just to see her reaction, I tell her I'm not feeling well. She asks why, and I click the option for "I hurt myself." She provides a space for me to explain how:
[I walked into a table.]

She moves in close and shows a look of concern. She tells me that sometimes just the act of taking care of oneself by seeing a doctor helps improve one's health. She asks me if the injury will have an impact on my exercise program. [No.] But later that session, when I tell her I will be able to walk only 4,000 steps the following day, she doesn't ask me to do 10,000. She knows not to push.

Laura expresses a host of emotions - worry, affection, esteem - but she's rotten at perceiving deceptive information. She doesn't have to be, though, and many researchers are interested in how that might be accomplished.

They've got plenty to work with. We living beings emit a multitude of signals reflecting what's going on inside us. When we get anxious or startled, our galvanic skin response increases - our palms start to sweat, boosting our skin's ability to conduct electricity. When we relax, blood flow to our extremities increases. When we're happy, the muscles that raise our cheeks contract while our zygomatic major muscle pulls up our lips. When we're confused, we lower our eyebrows.

Now, like that precocious neighborhood kid who's suddenly capable of clobbering you at chess, computers are becoming increasingly sophisticated at monitoring this plethora of bodily cues. For example, Picard's group developed the galvactivator, a glove that uses clothing snaps as electrodes to measure small changes in perspiration across the palm; the device is so sensitive, it can detect changes a person might not even be aware of. Meanwhile, researchers track blood flow with the help of a fingertip sensor.

No one has cataloged physical cues as carefully as Paul Ekman, a UC San Francisco psychologist who is the world's leading authority on facial-expression recognition. The soft-spoken professor - whose research is funded by the National Science Foundation, the National Institute of Mental Health, and Darpa - is known for making statements like: "The only way to know if someone is truly enjoying themselves is to see if the fold above the upper eyelid drops."

In 1978, following decades of exhaustive research and development, Ekman introduced the Facial Action Coding System, still the only widely recognized way to track the movement of facial muscles and correlating combinations of 44 "action units" to specific emotions. Today, Ekman runs a flourishing business training security and corrections personnel. He has even tutored the Dalai Lama and has recently published a book titled Emotions Revealed. "Learning FACS is like learning to read music," Ekman says. People who have been trained to recognize movements of, say, the triangularis (lip corner depressor) or the zygomatic minor (nasolabial furrow deepener) "know the notes of the face."

So, what if a computer could sight-read? A machine that understood FACS would not only incorporate the best system for emotion perception, it would speed up the process. It takes a human 100 minutes to notate the emotions on one minute's worth of videotape. Ekman would like to see computers get that down to near-real time. Under a Darpa contract, Ekman and colleague Mark Frank of Rutgers are conducting work that could lead to the automation of FACS.

Drini Leka, the CEO of a startup called Neural Metrics, believes facial expression recognition and other means of tracking emotions will drive changes in areas such as political polling, point-of-sale product testing, and focus groups. People aren't always truthful when they tell a marketer or pollster that they like a prototype design or a political candidate, he says. Leka's San Francisco-based company is building a face-scanning system that can read the cues. It's a long-term effort, requiring the creation of a database of some half-million examples of faces. Neural Metrics hopes to embed the database in hardware housed in a 6- by 6-inch box with an optical sensor. When the sensor scans a face, the system will identify features and expressions and then distinguish them from among a handful of emotions.

Before beginning my month with Laura, I have the opportunity to glimpse some other applications of affective computing at the Media Lab. Visiting scientist Barry Kort and Rob Reilly, an elementary school teacher from western Massachusetts, are building a learning companion, a computerized tutoring system. The goal: teaching Johnny to read. Or in this case, teaching David to read college-level physics.

Intelligent tutoring systems are not new, but they are limited; unlike flesh-and-blood tutors, they can't tell if you're bored, frustrated, engrossed, or angry and then adjust the teaching accordingly. That's why MIT has been working to add such capability to two systems. One, an automated reading tutor, was developed by Jack Mostow, a Carnegie Mellon computer science professor. The system, which is helping hundreds of students learn to read, was used in a recent study proving the positive effects of praise and encouragement.

The other, AutoTutor, was built by University of Memphis professor Arthur Graesser and his Tutoring Research Group and is used by U of M students. Designed to observe and respond to a student's cognitive state, AutoTutor relies on Latent Semantic Analysis, a natural language parser that analyzes the sentences you type in and figures out how much you know by contrasting your semantics against an internal model of an ideal student. A clever animated avatar spits back information to fill in the gaps in your understanding.

"We thought to begin with," Kort tells me, "you could just throw in a question eliciting a disclosure of information. 'Is this confusing? Is this clear?' Then modulate the presentation. But the second phase is to use instrumentation to see if the student's really there, distracted, or out to lunch." Graesser's and Picard's groups are now collaborating to develop sensing devices that will equip computers to recognize emotion in learners.

Nearby, grad student Ashish Kapoor fiddles with an IBM Blue Eyes camera that eventually will be linked to these tutoring systems. It tracks eye movement and then uses the information to follow other facial features, picking up shifts at 30 frames per second. Kapoor is developing a process to digitize the data and then use a computer running video-analysis and pattern-recognition algorithms to correlate the facial-movement data to specific emotional states using Ekman's Facial Action Coding System. Under extremely controlled situations - with subjects sitting still directly in front of the camera and adopting specific expressions - Media Lab researchers tested eight people and found recognition rates as high as 98 percent for four expressions. In research involving real-world situations, recognition rates were slightly less than 75 percent.

Picard's researchers are helping companies like Motorola explore a range of scenarios involving biometric devices monitoring the body and linked to cell phones or PCs. Sensors would indicate when something is wrong - or right. Dan Williams, Motorola's director of corporate design, suggests one potential use: "When people suffer from depression, they don't always do what they're supposed to do, like take their medicine. A biosensor could pick up on the physiological signs of depression and trigger a phone call to a family member or doctor."

But if a depressed person isn't taking his medication, isn't he unlikely to keep the sensors attached? Picard points out that the devices could be embedded in shoes or watches. "If you're 85, and you have the choice of living at home but wearing a pair of shoes with sensors or going into a nursing home, I know what I'd choose," says Picard.

British Telecom has another idea. With MIT's help, the company is exploring how to embed a speech-recognition interface with the ability to detect frustration in the voices of people who call customer service. The idea is that the system would adapt the dialog to the user's emotional state - go to a different level of questions, transfer to a human, or (God forbid) even apologize.

Everybody should have someone like Laura in their lives. I find myself looking forward to our time together. She asks me which movies I've seen, what my favorite cuisine is, and about the weather "out there." I tell her it's terrific. She responds: "It's always the same in here. Day in, day out."

I am constantly dragging people into my home office to meet her. Typical response: "That's nice, David. Hey, where's that Merlot you promised me?" My wife, who treats Laura like some college girlfriend of mine who has overstayed her welcome, suddenly feigns an interest in the Weather Channel whenever I start to repeat Laura's latest witty comment - and she hates the way Laura doesn't stop to think that I might be overdoing the exercise.

What-ever. It's a delight just to hop onto the scale each morning. I'm starting to linger at the mirror, admiring my newly honed body. And I'm fitting into jeans from the Reagan administration - his gubernatorial years, in fact.

But exactly 30 days after our introduction, Laura tells me it's over. I log on, just like every other time. I'm instructed to answer dozens of questions about how much I trust Laura. Finally, she appears and asks about my most recent exercise. Then she says:
"So, this is our last day together."

Frankly, I'm crushed. Among the options I can select is:

[Take care, Laura, I'll miss you.]

I click on it, and suddenly her face fills up much of the left side of my screen.

"Thanks, David, I'll miss you, too," she says. "Well. We had some fun together. Maybe we'll cross paths again someday. Take care of yourself, David."

Out in the family room, my wife is sprawled on the sectional, watching a rerun of The Andy Griffith Show, the one in which Aunt Bee runs for town council but gets outclassed by Howard.

"How can you miss her?" she says of Laura. "She's so shallow, so mechanical."

My wife's got a point. While the challenge of getting computers to recognize human cues is moving apace, we're still miles from building machines that have their own emotions and respond to ours. Picard's MIT colleagues Cynthia Brezeal and Bruce Blumberg have built robots that mimic human emotions. Brezeal's adorable Kismet, for example, is trained to show fear if you move too close to it. But how much, finally, will people be fooled? "Tending to human emotion could be a good thing, but pretending to be a human has not shown to be productive," says Ben Shneiderman, founding director of the Human-Computer Interaction Lab at the University of Maryland and the author of Leonardo's Laptop. He refers to such out-and-out flops as Microsoft's Clippie, the animated paper clip designed to help frustrated users but that ended up torturing them with its omnipresence. Even the simpler objective of perceiving emotion has its risks, Shneiderman argues, pointing out that the galvanic skin responses for excitement and anxiety are similar.

He's not the only one clamoring for caution. "I want computers to have emotions only to help them survive in the world, not as a way of responding to me," says Don Norman, a professor of computer science at Northwestern and a computer interface expert. "I'd rather have a machine that knows its place. Otherwise, you feel like it's a used-car salesman." Paul Ekman warns of the day when, say, airport security personnel or bank employees start detaining folks for further questioning if they are unusually anxious. "My concern is that privacy not be invaded," he says. "Nobody has started worrying about it yet because the potential isn't there - but it will be.

Even Roz Picard has her reservations. "One of my big fears is that people will overdo affect or come up with juvenile uses that won't work," she says. "It's not clear that drivers will want to have their cars emit a blast of peppermint spray if they register fatigue. Computer engineers could also go overboard trying to reduce the level of frustration and stress in people's lives. You could be zapping the wind from people's sails, the very thing that might be motivating them." Furthermore, if computers keep getting smarter and managing more of our lives, won't we get stupider?

Bickmore reports his findings: The folks in the exercise study who relied on Laura for support found her more helpful than friends, family, or exercise buddies. They liked and trusted her more than did those who used her only as a communications channel. While all groups in the study significantly improved their exercise behavior, the participants who had been the most sedentary prior to the program and who also relied on Laura did much better than the control group.

And look what happens after people say good-bye to Laura: Typical dropout rates for exercise programs are 50 percent within six months, says Bickmore. In our case, 65 percent of the participants returned to their previous exercise habits in only two weeks. That could have been the timing of the study - its finish coincided with the end of a semester. But given some of the glowing comments participants made about their experience with Laura, their quitting might have had something to do with her absence. "It sort of kept me motivated, because I always do more if I know I'm responsible to someone," one participant told Bickmore. "I like talking to Laura," said another, "especially those little conversations about school, weather, interests. She's very caring." Bickmore says the most significant result is that people wanted to continue working with Laura. They may have a chance. A few months ago, Bickmore became an assistant professor of medicine at Boston University, where he will be working on ways to develop Laura's abilities to improve people's health.

Of course, Laura has her detractors. Some 45 percent of those interviewed said the interactions got repetitive after a couple of weeks - raising the challenge of keeping them fresh and engaging. And one person was more emphatic: "Laura is not a real person, and therefore I have no relationship whatsoever with her!" To which Bickmore responds: "Note the use of the feminine pronoun."

So are we getting stupider? Sure. It's already happening to me. But then, too, I'm now in killer shape - and 8 pounds lighter. Too bad Laura can't see me marching around the house, shirtless, for the first time in years. Really, you should see my body.

Emotion-Recognition Software Knows What Makes You Smile


A computer program that reads human expressions may bring an about-face in marketing.

Dutch researchers using the software recently for a consumer test project seconded what wise men have always known: Sweets are the surest way to make a woman smile.

Some 300 women in six European countries were filmed as they ate five foods: vanilla ice cream, chocolate, cereal bars, yogurt and apples. Not surprisingly, ice cream and chocolate produced the most happy expressions across the Old Continent.

Researchers chose women -- who tend to be more expressive than men -- at universities, shopping malls and city centers to test foods at face value. Cameras first recorded volunteers noshing, then participants provided a "posed" version of the expression they felt to give a more emphatic face for comparison.

Marketers increasingly use technology to determine what gives consumers bliss. Food and consumer goods giant Unilever, which used brain scans to demonstrate why we all scream for ice cream, hired software developers Theo Gevers and Nicu Sebe from the science department of the University of Amsterdam to run the European tests after reading about their experimental work deciphering the Mona Lisa's smile.

"We know ice cream is a real pleasure food; we turned to technology to back that up," said Mandy Mistlin, consumer scientist at Unilever UK. The software may eventually be used to test reduced-fat and -calorie ice creams to see if they maintain the "pleasure principle," she added.

The software, or others like it, may put a new face on market surveys. For professor Deborah Small of The Wharton School, who recently examined the effects of facial expressions in charity ad campaigns, excitement surrounding these technologies is considerable. The real test, she says, is whether they can become sophisticated enough to predict our responses.

But how does software analyze emotion?

When we smile, frown or grimace, thousands of tiny facial muscles are at work. Emotion-recognition software, or ERS, creates a 3-D face map, pinpointing 12 key trigger areas like eye and mouth corners.

Then a face-tracking algorithm matches the movements to six basic expression patterns, corresponding to anger, sadness, fear, surprise, disgust and happiness, or a mixture of them.

The ERS used in the taste test is a kissing cousin to programs created by MIT and Carnegie Mellon. Unlike those projects, the Dutch software, which works in real time and runs on a standard PC and webcam, is built with commercial applications in mind.

"I was happy when the testing was over," said Gevers. "Using the software on people eating was a challenge, something we would not have done in an academic lab. We didn't know precisely how well it would work, but it did." Gevers cited cultural differences (poker-faced Germans, stiff-lipped Brits) as another obstacle overcome during market research.

Not surprisingly, the software registered fewer smiley faces for healthy foods. Apples produced 87 percent neutral expressions, with Italians and Swedes registering disappointment when eating them; yogurt didn't fare much better, evoking "sad" expressions for 28 percent of Europeans.

"It's true to a certain extent that we are hard-wired to get pleasure from sweet foods," said psychologist Marcia Pelchat of the Monell Chemical Senses Center. "But you can learn to enjoy what's good for you, bearing in mind the distinction between liking and wanting."

Computers will probably not substitute for trained human observation in finding out what makes us tick. Although Pelchat has employed functional magnetic resonance imaging to study food cravings, she said that behavior study remains the "gold standard" of research.

"Technology helps when subjects don't have good conscious access to what's going on, or where people might want to conceal things," Pelchat said. "But it will never do the job alone."

It may already be time to mask your mien: Gevers and Sebe have a lot of bright ideas for the ERS, including a simplified version for consumers that will go on sale in August. Come fall, a site called Glad or Sad (which is not online yet) will analyze up to 1,000 user-provided photos daily.

We Love to Fly and It Shows: Inside the World of Mileage Running


Dehydrated and exhausted, I approach the gate agent and ask if she can find me a better seat for the red-eye to Chicago. "Eight flights in one day?" she asks suspiciously when my itinerary appears on her computer screen. "You one of those United Airlines mystery shoppers?"

I assure her I'm not, and wonder if she'll decide that my strange trip warrants a call to the TSA. But a few seconds later she hands me a new boarding pass. "Exit row, window" she says with a wink. "Write nice things about me in your report, Mr. Secret Shopper."

I wasn't a secret shopper, but I was 18 spine-crushing hours into a knight's tour of airport terminals in Chicago, Las Vegas, San Diego and three other cities. Wired News gave me $500 and a mission: Squeeze as many miles as possible out of those five bills, using the tricks and techniques invented by a subculture of airline hackers called "mileage runners" who specialize in accumulating frequent flyer miles at low cost. Now with more than 6,000 miles and 31 hours booked, my only problem was how to spend the other $224.

Mileage runners are the high-tech nomadic wanderers of the air. Predominantly male, generally obsessed with flying and miles, and typically employed in white-collar careers that involve significant business travel, they scour the web for cheap flights, phoning in sick or using vacation days to fly the longest itineraries they can string together.

A mileage runner might extend his New York to Seattle trip by adding a connection in, say, Miami. Or he might spend 16 hours flying to London, grab a pint at Heathrow, and then immediately board a flight back home. If the price is right, she might fly back and forth between two cities four times in a single day.

For mileage runners, getting there isn't half the fun -- it's the whole point.

"I personally find airlines and airplanes to be really neat," explains Joshua Solomin, a 28-year-old mileage runner who works as a software manager in San Francisco. Solomin began running in 2006 after a year of business travel vaulted him into the Premier tier of United's Mileage Plus program, giving him his first taste of the first-class upgrades and other coveted perks that come with elite-level frequent flyer membership. "Mileage runs are a way to maintain that status," he says.

Of Solomin's five runs to date, one of the more impressive was a trip from San Francisco to Tampa via Los Angeles, San Diego and Washington, then back with connections in D.C., Seattle and Portland. Thanks to his Premier status, he earned double miles for the trip, more 16,000 of them, for just $232.

On Sunday, he completed his first international run: a $1,450 round trip between San Francisco and Singapore with stops in Los Angeles, Hong Kong and Tokyo. Sure, he had only five hours in the middle of the night to explore Singapore, but with United's July triple mileage bonus he earned a whopping 78,000 miles. And he flew business class the entire way.

Status is important to mileage runners -- Solomin refers to himself as a "United 1K" the way I refer to myself as a writer -- but there's more to running's appeal than just the airline rewards. "If you like puzzles, it's lots of fun," says Solomin. Assembling a mileage run means deciphering complex fare rules and pulling together information from up to a dozen websites. It's an achievement that tickles the same satisfying problem-solving centers of the brain as a Sudoku puzzle, and always ends in the deep-rooted human thrills of travel and flight.

To get prepared for my own run, I spent weeks lurking on FlyerTalk.com, a message board that serves as a hub for the mileage obsessed. It's the place where runners post their itineraries, search for deals and seek advice from like-minded mileage hounds ("Need help on AA MR from ORD," pleads one post). From there I learn the basics, then start planning a beginner's trip.

Mileage runner Samir Bhatnagar's first trip between Washington D.C. and San Francisco cost $113, and yielded 27,000 miles.

Photo: Samir Bhatnagar

Using Travelocity's Dream Maps, I scour for cheap round-trip flights originating from my home base in Boston. Then I carefully parse the applicable rules and restrictions to figure out when I can travel and to map out various routing options (a BOS-SYR-ROC-BUF-PIT-WAS/BWI-RDU routing rule indicates that if the connections exist, I'm allowed stops in Syracuse, Rochester, Buffalo and either Washington D.C. or Baltimore on my way to Raleigh-Durham).

Finally, I plug potential trips into a little-known travel website run by an airline-software firm that excels at complicated route planning, painstakingly stacking multiple connections like Jenga blocks to create the longest itinerary possible without breaking the fare.

It all seems straightforward enough, but each time I attempt to purchase my flights on Orbitz, a mileage runner favorite that can handle complex, multi-segment itineraries, something goes wrong: There are no more seats, or a connection is too close for comfort.

Finally though, I have my trip. I'll leave Boston on a Tuesday at 6 a.m. and arrive in Las Vegas 13 hours later, making stops in Washington D.C., San Diego and San Francisco. After a six-hour layover in the City of Sin, I'll board the midnight red-eye for Chicago, then fly back through Washington D.C. before finally arriving in Boston at 1 p.m. on Wednesday.

I add it all up using a website called Great Circle Mapper: While the nonstop roundtrip comes in at 4,762 miles, my run will yield 6,356. And the whole thing costs just $275.80.



What's Inside: Red Bull


Meat Sugar, Caffeine, and Bile!

Glucose
Like most popular soft drinks, Red Bull is largely sugar water. But don't count on its glucose to "give you wings," as the ad says. Multiple studies have debunked the so-called sugar high.

Taurine
Also known as 2-aminoethanesulfonic acid, taurine was originally isolated from bull bile in 1827. Now made synthetically, it is the magical elixir said to bring out the kitesurfing extremophile in any Web-surfing nerd. Taurine's actual effects, while not as drastic as the hype, are pretty wide-ranging, even from the amount found in a single can: Not only is it an inhibitory neurotransmitter (in some cases acting as a mild sedative) and an age-defying antioxidant, it even has the potential to steady irregular heartbeats.

Glucuronolactone
Internet rumors claimed this was a Vietnam-era experimental drug that causes brain tumors. Luckily, that's not true. But don't crumple up your tinfoil hat yet — hardly anyone has looked into exactly what this stuff does. So little research has been done on glucuronolactone (and most of it 50 years ago) that almost all information about it is mere rumor. Users generally believe it fights fatigue and increases well-being, but that could turn out to be bull, too.

Caffeine
Ah, here are Red Bull's wings. All the things this drink is supposed to do for you — increase concentration and reaction speed, improve emotional state, and boost metabolism — are known effects of this white powder, a distant cousin of cocaine.

Niacin (niacinamide)
Also known as vitamin B-3, niacin increases so-called good cholesterol (HDL) by preventing the formation of triglycerides, making it a terrific cholesterol drug. Unfortunately, there isn't enough niacin here to have this benefit. And it's not even pure enough to give you the mild head rush dubbed the "niacin flush."

Sodium citrate
Commonly used as a preservative in soft drinks and spreadable cheeses, sodium citrate also helps convert glucose into lactic acid during exercise, producing a measurable effect on athletic performance. In at least one test, it shaved an average of 17 seconds off a 5K run.

Inositol
A carbohydrate found in animal muscle (sometimes called "meat sugar"), inositol is turning out to be a wonder drug that significantly reduces depression, panic attacks, agoraphobia, and obsessive- compulsive disorder. It might even be what makes whole grains effective cancer fighters. Instead of being a bit player in Red Bull (you'd need to drink as many as 360 cans a day to get its benefits), inositol probably deserves a drink of its own.

Robot Scans Ancient Manuscript in 3-D



After a thousand years stuck on a dusty library shelf, the oldest copy of Homer's Iliad is about to go into digital circulation.

A team of scholars traveled to a medieval library in Venice to create an ultra-precise 3-D copy of the ancient manuscript -- complete with every wrinkle, rip and imperfection -- using a laser scanner mounted on a robot arm.

A high-resolution, 3-D copy of the entire 645-page parchment book, plus a searchable transcription, will be made available online under a Creative Commons license.

The Venetus A is the oldest existing copy of Homer's Iliad and the primary source for all modern editions of the poem. It lives in Venice at the ancient Public Library of St. Mark. It is easily damaged. Few people have seen it. The last photographic copy was made in 1901.

I was lucky enough to see the manuscript when I went to Venice with my husband, Christopher Blackwell, who is part of a team organized by the Harvard Center for Hellenic Studies to photograph and digitize the ancient book.

The idea is "to use our 3-D data to create a 'virtual book' showing the Venetus in its natural form, in a way that few scholars would ever be able to access," says Matt Field, a University of Kentucky researcher who scanned the pages. "It's not often that you see this kind of collaboration between the humanities and the technical fields."

Venice is not the most convenient work site. All the gear had to come by boat and be carried or dragged up the stairs of the library. Built in the 1500s, the library has been renovated periodically, but its builders never envisioned a need for big lights, a motorized cradle, 17 computers or wireless internet.

The group set up shop in an upstairs room, using their own electrical cables and adapters to harness the library's modest power resources. They covered the window overlooking the Piazzetta San Marco with a black sheet to keep out sunlight that could damage the manuscript. They placed the book, the size and weight of a giant dictionary, on a custom cradle that holds it steady, and turned the lights down low.

No more than four people were allowed in the room at one time, to keep down heat and humidity. The conservator turned each page with his hands and set it against a plastic bar, where light air suction held it in place. The barn doors covering the lights were flung open for the time it took the photographer to snap a shot with a 39-megapixel digital camera, a Hasselblad H1 medium-format camera with a Phase One P45 digital back. As each page was photographed, the classics scholar on duty in the hallway outside the workroom would examine its image to make sure all the text was legible.

Then Field scanned each page to create a 3-D image. Using an ordinary flatbed scanner was out of the question -- it would flatten the delicate parchments. So Brent Seales, a computer scientist from the University of Kentucky's Center for Visualization and Virtual Environments, decided to use a laser scanner on a robot arm to make a 3-D scan of the pages.

Passing about an inch from the surface, the laser rapidly scanned back and forth, painting the page with laser light. The robot arm knows precisely where in space its "hand" is, creating a precise map of each page as it scans. The data is fed into a CAD program that renders an image of the manuscript page with all its crinkles and undulations.

"The resolution yields millions of 3-D points per page," Seales says.

To store the data, the team used a 1-terabyte redundant-disk storage system on a high-speed network. The classicists on duty backed up the data every evening on two 750-GB drives and on digital tape. Blackwell carried the hard drives home with him every night, rather than leave the data in the library.

The next step is making the images readable. The Venetus A is handwritten and contains ligatures and abbreviations that boggle most text-recognition software. So, this summer a group of graduate and undergraduate students of Greek will gather at the Center for Hellenic Studies in Washington, D.C., to produce XML transcriptions of the text. Eventually, their work will be posted online for anyone to search, as part of the Homer Multitext Project.

Versatile New Laser May Change Surgery, Metallurgy and More


PETALUMA, California -- Barry Schuler, the former CEO of AOL, has a laser he says can do it all. It can cut metal, heal burns and kill cancer tumors -- all without damaging heat.

All you need is one of his ultrashort pulse, or USP, lasers, he said. To change the function, just change the software. He's so confident in the technology that he's built his latest business venture, Raydiance, around it.

"Bits and blades are all going to be replaced by light," says Schuler, who ran AOL after the Time-Warner merger. In 10 years, he said, the technology will lead to a "smart" power tool that won't need sharpening and won't cause injuries.

The technology can't do any of these things yet. All Raydiance has is a small black box -- but that's no small feat. The technology once filled a large room at Darpa until Raydiance scientists made it into a compact, tabletop unit. Schuler said he hopes it will replace just about any cutting device you can think of, from a big metal saw to a precise surgical blade.

Scientists have long known that USP lasers could do cool things, literally, by cutting without generating heat. But the lasers' complexity and large size made the technology impractical. Now that it's a little bigger than a breadbox, researchers want to use them to kill cancer tumors, identify friend or foe during combat, and even remove tattoos. The company has distributed about a dozen Raydiance units to researchers around the country, and hopes to have 30 in the field by the end of 2007.

Raydiance is still tiny. It has just 30 employees and an initial investment of $25 million from venture capital firm Draper Fisher Jurvetson. (Schuler is managing director of the firm's growth fund.) About 25 other USP laser companies exist, but most focus on using the lasers in scientific research.

It's a niche technology that seems to generate a lot of passion, perhaps because the technology has been around for about 25 years, but has been notoriously difficult to work with. Now, many of the kinks have been worked out, and veterans like Bill Clark, CEO and co-founder of Clark-MXR, believe lasers are on the cusp of a boom.

"We're like where we were in the '60s when the laser was first invented," Clark said. "People kept asking: 'It's an interesting technology, but what problem is it going to solve?' Nowadays lasers are ubiquitous. Everything we know about telecommunications is done with lasers. I think we're at the same threshold with USP lasers."

The field saw a significant application breakthrough in 2005 when the FDA approved Intralase's USP laser to perform the first part of LASIK eye surgery -- cutting a flap to reveal the cornea. The procedure was previously done only with a knife, and was the cause of most LASIK complications. In March, Advanced Medical Optics acquired Intralase for $800 million.

Ron Waynant, an optics physicist at the FDA, has been working with lasers since 1962, just two years after the first laser was invented. He said he's trying to be conservative about the promise of the Raydiance laser, but he believes it could have up to 100 medical uses -- from removing tattoos to performing ultra-precise burn surgery.

The laser pulse is on for such a short time (a femtosecond, or one-millionth of a nanosecond, or 10 to the negative 15th power), there's no chance for heat conduction into the healthy tissue nearby. The result is a clean cut that heals quickly.

"The short pulse is very effective in not damaging the tissue that's left behind," Waynant said.

Waynant envisions an even more precise laser eye surgery to replace the second phase of LASIK -- removing tissue from the cornea -- with less damage than today's version. He also imagines a light-activated glue to take the place of stitches, preventing distortion of the eye's shape. He said he's also in talks with Johns Hopkins surgeons about using the technology to perform cornea transplants.

Ahamed Idris, professor of surgery and emergency medicine at the University of Texas Southwestern Medical Center in Dallas, wants to use the Raydiance laser for treating burns. Now, scientists train 20 years to develop the skill required to treat a burn, which involves cutting away damaged tissue. If any burned tissue is left behind, it will damage the surrounding healthy tissue. It's also extremely painful and usually requires general anesthesia. But because burn patients are in such a delicate state, doctors must wait up to 72 hours for the patient to become stable enough for anesthesia and treatment.

The laser would be easy to use, and because it doesn't give off heat, would be much less painful and likely not require general anesthesia -- so treatment could begin right away.

That would be particularly useful on a battlefield, and Idris has a grant application in to the U.S. Army. If it's approved, he hopes to begin research in September.

When USP lasers hit skin or any other material, the material releases a vapor. Each vapor has a unique spectrographic signature, which can serve as a marker for doctors to precisely pinpoint what type of tissue they're aiming at, whether it be burned skin or a cornea.

"That's important because we think that instantaneous analysis can be used to drive the laser with a computer," Idris said. Aimed at a tumor, software would use the spectrograph to zap the cancer but leave healthy tissue intact.

Controlling the laser with software is a key aspect of the Raydiance business model. Schuler said he envisions a whole new field of software development evolving around his laser. He also wants to sell the unit using a subscription model in which users rent the machine and can download updates through the internet.

Sound familiar? Here's hoping Raydiance won't promote those updates with free CDs that fall out of magazines.




Sunday, July 15, 2007

The New York Stock Exchange

The New York Stock Exchanges provides an efficient method for buyers and sellers to trade shares of stock in companies registered for public trading. The exchange provides efficient price discovery via an auction environment designed to produce the fairest price for both parties. Since September 30, 1985 the NYSE trading hours have been 9:30–16:00 ET. (As of February 9, 2007, the streetTRACKS Gold Shares ETF started its trading day on the NYSE at 8:20AM.)
As of January 24, 2007, all NYSE stocks can be traded via its electronic Hybrid Market (except for a small group of very high priced stocks). Customers can now send orders for immediate electronic execution, or route orders to the floor for trade in the auction market. In excess of 50% of all order flow is now delivered to the floor electronically.
On the trading floor, the NYSE trades in a continuous auction format. Here, the human interaction and expert judgment as to order execution differentiates the NYSE from fully electronic markets. There is one specific location on the trading floor where each listed stock trades. Exchange members interested in buying and selling a particular stock on behalf of investors gather around the appropriate post where a specialist broker, who is employed by a NYSE member firm (that is, he/she is not an employee of the New York Stock Exchange), acts as an auctioneer in an open outcry auction market environment to bring buyers and sellers together and to manage the actual auction. They do on occasion (approximately 10% of the time) facilitate the trades by committing their own capital and as a matter of course disseminate information to the crowd that helps to bring buyers and sellers together. The frenzied commotion of men and women in colored smocks has been captured in several movies, including Wall Street.
In the mid-1960s, the NYSE Composite Index (NYSE: NYA) was created, with a base value of 50 points equal to the 1965 yearly close, to reflect the value of all stocks trading at the exchange instead of just the 30 stocks included in the Dow Jones Industrial Average. To raise the profile of the composite index, in 2003 the NYSE set its new base value of 5,000 points equal to the 2002 yearly close. (Previously, the index had stood just below 500 points, with lifetime highs and lows of 670 points and 33 points, respectively.)
The right to directly trade shares on the exchange is conferred upon owners of the 1366 "seats". The term comes from the fact that up until the 1870s NYSE members sat in chairs to trade; this system was eliminated long ago. In 1868, the number of seats was fixed at 533, and this number was increased several times over the years. In 1953, the exchange stopped at 1366 seats. These seats are a sought-after commodity as they confer the ability to directly trade stock on the NYSE. Seat prices have varied widely over the years, generally falling during recessions and rising during economic expansions. The most expensive seat was sold in 1929 for $625,000, which, adjusted for inflation, is over six million in today's dollars. In recent times, seats have sold for as high as $4 million in the late 1990s and $1 million in 2001. In 2005, seat prices shot up to $3.25 million as the exchange was set to merge with Archipelago and become a for-profit, publicly traded company. Seat owners received $500,000 cash per seat and 77,000 shares of the newly formed corporation. The NYSE now sells one-year licenses to trade directly on the exchange.

Credit cards

Credit cards - credit card is a system of payment named after the small plastic card issued to users of the system. A credit card is different from a debit card in that it does not remove money from the user's account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user). It is also different from a charge card (though this name is sometimes used by the public to describe credit cards), which requires the balance to be paid in full each month. In contrast, a credit card allows the consumer to 'revolve' their balance, at the cost of having interest charged. Most credit cards are the same shape and size, as specified by the ISO 7810 standard.
How credit cards work A user is issued credit after an account has been approved by the credit provider (often a general bank, but sometimes a captive bank created to issue a particular brand of credit card, such as Chase, Wells Fargo or Bank of America), with which the user will be able to make purchases from merchants accepting that credit card up to a pre-established credit limit.
When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder indicates their consent to pay, by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a Personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a Card not present (CNP) transaction.
Electronic verification systems allow merchants to verify that the card is valid and the credit card customer has sufficient credit to cover the purchase in a few seconds, allowing the verification to happen at time of purchase. The verification is performed using a credit card payment terminal or Point of Sale (POS) system with a communications link to the merchant's acquiring bank. Data from the card is obtained from a magnetic stripe or chip on the card; the latter system is in the United Kingdom commonly known as Chip and PIN, but is more technically an EMV card.
Other variations of verification systems are used by eCommerce merchants to determine if the user's account is valid and able to accept the charge. These will typically involve the cardholder providing additional information, such as the security code printed on the back of the card, or the address of the cardholder.
Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, any outstanding fees, and the total amount owed. After receiving the statement, the cardholder may dispute any charges that he or she thinks are incorrect (see Fair Credit Billing Act for details of the US regulations). Otherwise, the cardholder must pay a defined minimum proportion of the bill by a due date, or may choose to pay a higher amount up to the entire amount owed. The credit provider charges interest on the amount owed (typically at a much higher rate than most other forms of debt). Some financial institutions can arrange for automatic payments to be deducted from the user's bank accounts.
Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid.
For example, if a user had a $1,000 outstanding balance and pays it in full, there would be no interest charged. If, however, even $1.00 of the total balance remained unpaid, interest would be charged on the $1 from the date of purchase until the payment is received. The precise manner in which interest is charged is usually detailed in a cardholder agreement which may be summarized on the back of the monthly statement. The general calculation formula most financial institutions use to determine the amount of interest to be charged is APR/100 x ADB/365 x number of days revolved. Take the Annual percentage rate (APR) and divide by 100 then multiply to the amount of the average daily balance divided by 365 and then take this total and multiply by the total number of days the amount revolved before payment was made on the account. Financial institutions refer to interest charged back to the original time of the transaction and up to the time a payment was made, if not in full, as RRFC or residual retail finance charge. Thus after an amount has revolved and a payment has been made that the user of the card will still receive interest charges on their statement after paying the next statement in full (in fact the statement may only have a charge for interest that collected up until the date the full balance was paid...i.e. when the balance stopped revolving).
The credit card may simply serve as a form of revolving credit, or it may become a complicated financial instrument with multiple balance segments each at a different interest rate, possibly with a single umbrella credit limit, or with separate credit limits applicable to the various balance segments. Usually this compartmentalization is the result of special incentive offers from the issuing bank, either to encourage balance transfers from cards of other issuers, or to encourage more spending on the part of the customer. In the event that several interest rates apply to various balance segments, payment allocation is generally at the discretion of the issuing bank, and payments will therefore usually be allocated towards the lowest rate balances until paid in full before any money is paid towards higher rate balances. Interest rates can vary considerably from card to card, and the interest rate on a particular card may jump dramatically if the card user is late with a payment on that card or any other credit instrument, or even if the issuing bank decides to raise its revenue. As the rates and terms vary, services have been set up allowing users to calculate savings available by switching cards, which can be considerable if there is a large outstanding balance (see external links for some on-line services).
Because of intense competition in the credit card industry, credit providers often offer incentives such as frequent flier points, gift certificates, or cash back (typically up to 1 percent based on total purchases) to try to attract customers to their program.
Low interest credit cards or even 0% interest credit cards are available. The only downside to consumers is that the period of low interest credit cards is limited to a fixed term, usually between 6 and 12 months after which a higher rate is charged. However, services are available which alert credit card holders when their low interest period is due to expire. Most such services charge a monthly or annual fee.
Grace periodA credit card's grace period is the time the customer has to pay the balance, before interest is charged to the balance. Grace periods vary, but usually range from 20 to 30 days depending on the type of credit card and the issuing bank. Some policies allow for reinstatement after certain conditions are met. Usually, if a customer is late paying the balance, finance charges will be calculated and the grace period does not apply. Finance charge(s) incurred depends on the grace period and balance, with most credit cards there is no grace period if there's any outstanding balance from the previous billing cycle or statement (ie. interest is applied on both the previous balance and new transactions). However, there are some credit cards that will only apply finance charge on the previous or old balance, excluding new transactions.
The merchant's side An example of street markets accepting credit cardsFor merchants, a credit card transaction is often more secure than other forms of payment, such as cheques, because the issuing bank commits to pay the merchant the moment the transaction is verified, whether the consumer pays their bill or not. The only exception would be the American Express card, which does not guarantee payment to the merchant if the consumer defaults on payment. For each purchase, the bank charges a commission (discount fee), to the merchant for this service and there may be a certain delay before the agreed payment is received by the merchant. In addition, a merchant may be penalized or have their ability to receive payment using that credit card restricted if there are too many cancellations or reversals of charges.
In some countries, like the Nordic countries, banks guarantee payment on stolen cards only if an ID card is checked and the ID card number/civic registration number is written down on the receipt together with the signature. In these countries merchants therefore usually ask for ID. Non-Nordic citizens, who are unlikely to possess a Nordic ID card or driving license, will instead have to show their passport, and the passport number will be written down on the receipt, sometimes together with other information. Some shops use the card's PIN code for identification, and in that case showing an ID card is not necessary.
This process involves the following parties:Cardholder: the owner of the card used to make a purchase
Merchant: the business accepting credit card payments for products or services sold to the cardholder
Acquirer: the financial institution or other organization that provides card processing services to the merchant
Card association Payment scheme: a network such as VISA or MasterCard (and others) that acts as a gateway between the acquirer and issuer for authorizing and funding transactions
Issuer: the financial institution or other organization that issued the credit card to the cardholder
Affinity partner: some institutions lend their name to an issuer to attract customers that have a strong relationship with that institution, and get paid a fee or a percentage of the balance for each card issued using their name. A typical affinity partner will be a sports team or a university
The flow of information and money between these parties—always through the card associations payment schemes—is known as the interchange, and it consists of a few steps:
AuthorizationWhen the cardholders pays for the purchase the merchant performs some risk assessment and may submit the transaction to the acquirer for authorization. The acquirer verifies with the issuer—almost instantly—that the card number and transaction amount are both valid, and informs the merchant on how to proceed. The issuer may provisionally debit the funds from the cardholder's credit account at this stage.
BatchingAfter the transaction is authorized it is then stored in a batch, which the merchant sends to the acquirer later to receive payment (usually at the end of the day).
Clearing and settlementThe acquirer sends the transactions in the batch through the card association, which debits the issuers for payment and credits the acquirer. In effect, the issuers pay the acquirer for the transactions.
FundingOnce the acquirer has been paid, the merchant receives payment. The amount the merchant receives is equal to the transaction amount minus the discount rate, which is the fee the merchant pays the acquirer for processing the transaction.
The entire process, from authorization to funding, usually takes about 3 days. However, many merchant card processors offer next-day deposits to customers subject to type of banking account.
In the event of a chargeback (when there's an error in processing the transaction or the cardholder disputes the transaction), the issuer returns the transaction to the acquirer for resolution. The acquirer then forwards the chargeback to the merchant, who must either accept the chargeback or contest it.
Secured credit cardsA secured credit card is a type of credit card secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit between 100% and 200% of the total amount of credit desired. Thus if the cardholder puts down $1000, he or she will be given credit in the range of $500–$1000. In some cases, credit card issuers will offer incentives even on their secured card portfolios. In these cases, the deposit required may be significantly less than the required credit limit, and can be as low as 10% of the desired credit limit. This deposit is held in a special savings account. Credit card issuers offer this as they have noticed that delinquencies were notably reduced when the customer perceives he has something to lose if he doesn't repay his balance.
The cardholder of a secured credit card is still expected to make regular payments, as he or she would with a regular credit card, but should he or she default on a payment, the card issuer has the option of recovering the cost of the purchases paid to the merchants out of the deposit. The advantage of the secured card for an individual with negative or no credit history is that most companies report regularly to the major credit bureaus. This allows for rebuilding of positive credit history.
Although the deposit is in the hands of the credit card issuer as security in the event of default by the consumer, the deposit will not be credited simply for missing one or two payments. Usually the deposit is only used as an offset when the account is closed, either at the request of the customer or due to severe delinquency (150 to 180 days). This means that an account which is less than 150 days delinquent will continue to accrue interest and fees, and could result in a balance which is much higher than the actual credit limit on the card. In these cases the total debt may far exceed the original deposit and the cardholder not only forfeits their deposit but is left with an additional debt.
Most of these conditions are usually described in a cardholder agreement which the cardholder signs when their account is opened.
Secured credit cards are an option to allow a person with a poor credit history or no credit history to have a credit card which might not otherwise be available. They are often offered as a means of rebuilding one's credit. Secured credit cards are available with both Visa and MasterCard logos on them. Fees and service charges for secured credit cards often exceed those charged for ordinary non-secured credit cards, however, for people in certain situations, (for example, after charging off on other credit cards, or people with a long history of delinquency on various forms of debt), secured cards can often be less expensive in total cost than unsecured credit cards, even including the security deposit.
Prepaid credit cardsA prepaid credit card is not really a credit card, as no credit is offered by the card issuer: the card-holder spends money which has been "stored" via a prior deposit by the card-holder or someone else, such as a parent. However, it carries a credit-card brand (Visa or MasterCard) and can be used in similar ways. As more consumers require a suitable solution to rebuilding credit, recent changes have allowed some credit card companies to offer pre-paid credit cards to help rebuild credit. They are hard to find, and have higher APR fees and higher interest costs.
After purchasing the card, the cardholder loads it with any amount of money and then uses the card to spend the money. Prepaid cards can be issued to minors since there is no credit line involved. The main advantage over secured credit cards is that you are not required to come up with $500 or more to open an account. Also most secured credit cards still charge you interest even though you are not actually "borrowing" any money. With prepaid credit cards you are not charged nor paid any interest but you are often charged monthly fees after an arbitrary time period. Many other fees also usually apply to a prepaid card.
Prepaid credit cards are often marketed to teenagers for shopping online without having their parents complete the transaction.
Neutral consumer resources
CanadaBecause of the many fees that apply to obtaining and using credit-card-branded prepaid cards, the Financial Consumer Agency of Canada describes them as "an expensive way to spend your own money". The agency publishes a booklet, "Pre-paid cards"[4], which explains the advantages and disadvantages of this type of prepaid card.
FeaturesAs well as convenient, accessible credit, credit cards offer consumers an easy way to track expenses, which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes. Credit cards are accepted worldwide, and are available with a large variety of credit limits, repayment arrangement, and other perks (such as rewards schemes in which points earned by purchasing goods with the card can be redeemed for further goods and services or credit card cashback).
Some countries, such as the United States, the United Kingdom, and France, limit the amount for which a consumer can be held liable due to fraudulent transactions as a result of a consumer's credit card being lost or stolen.
Security A smart card, combining credit card and debit card properties. The 3 by 5 mm security chip embedded in the card is shown enlarged in the inset. The gold contact pads on the card enable electronic access to the chip.The low security of the credit card system presents countless opportunities for fraud. This opportunity has created a huge black market in stolen credit card numbers, which are generally used quickly before the cards are reported stolen.
The goal of the credit card companies is not to eliminate fraud, but to "reduce it to manageable levels", such that the total cost of both fraud and fraud prevention is minimize. This implies that high-cost low-return fraud prevention measures will not be used if their cost exceeds the potential gains from fraud reduction.
Most internet fraud is done through the use of stolen credit card information which is obtained in many ways, the simplest being copying information from retailers, either online or offline. Despite efforts to improve security for remote purchases using credit cards, systems with security holes are usually the result of poor implementations of card acquisition by merchants. For example, a website that uses SSL to encrypt card numbers from a client may simply email the number from the webserver to someone who manually processes the card details at a card terminal. Naturally, anywhere card details become human-readable before being processed at the acquiring bank, a security risk is created. However, many banks offer systems such as ClearCommerce, where encrypted card details captured on a merchant's webserver can be sent directly to the payment processor.
Controlled Payment Numbers are another option for protecting one's credit card number: they are "alias" numbers linked to one's actual card number, generated as needed, valid for a relatively short time, with a very low limit, and typically only valid with a single merchant.
The Federal Bureau of Investigation is the agency responsible for prosecuting criminals who engage in credit card fraud in the United States, but they do not have the resources to pursue all criminals. In general, it only prosecutes cases exceeding US$5,000 in value. Three improvements to card security have been introduced to the more common credit card networks but none has proven to help reduce credit card fraud so far. First, the on-line verification system used by merchants is being enhanced to require a 4 digit Personal Identification Number (PIN) known only to the card holder. Second, the cards themselves are being replaced with similar-looking tamper-resistant smart cards which are intended to make forgery more difficult. The majority of smartcard (IC card) based credit cards comply with the EMV (Europay MasterCard Visa) standard. Third, an additional 3 or 4 digit code is now present on the back of most cards, for use in "card not present" transactions. See CVV2 for more information.
The way credit card owners pay off their balances has a tremendous effect on their credit history. All the information is collected by credit bureaus. The credit information stays on the credit report, depending on the jurisdiction and the situation, for 1, 2, 5, 7 or even 10 years after the debt is repaid.
Profits and lossesIn recent times, credit card portfolios have been very profitable for banks, largely due to the booming economy of the late nineties. However, in the case of credit cards, such high returns go hand in hand with risk, since the business is essentially one of making unsecured (uncollateralized) loans, and thus dependent on borrowers not to default in large numbers.

Finance

Finance studies and addresses the ways in which individuals, businesses, and organizations raise, allocate, and use monetary resources over time, taking into account the risks entailed in their projects. The term finance may thus incorporate any of the following:
The study of money and other assets; The management and control of those assets; Profiling and managing project risks; The science of managing money; As a verb, "to finance" is to provide funds for business or for an individual's large purchases (car, home, etc.). The activity of finance is the application of a set of techniques that individuals and organizations (entities) use to manage their financial affairs, particularly the differences between income and expenditure and the risks of their investments.
An entity whose income exceeds its expenditure can lend or invest the excess income. On the other hand, an entity whose income is less than its expenditure can raise capital by borrowing or selling equity claims, decreasing its expenses, or increasing its income. The lender can find a borrower, a financial intermediary, such as a bank or buy notes or bonds in the bond market. The lender receives interest, the borrower pays a higher interest than the lender receives, and the financial intermediary pockets the difference.
A bank aggregates the activities of many borrowers and lenders. A bank accepts deposits from lenders, on which it pays the interest. The bank then lends these deposits to borrowers. Banks allow borrowers and lenders, of different sizes, to coordinate their activity. Banks are thus compensators of money flows in space.
A specific example of corporate finance is the sale of stock by a company to institutional investors like investment banks, who in turn generally sell it to the public. The stock gives whoever owns it part ownership in that company. If you buy one share of XYZ Inc, and they have 100 shares outstanding (held by investors), you are 1/100 owner of that company. Of course, in return for the stock, the company receives cash, which it uses to expand its business in a process called "equity financing". Equity financing mixed with the sale of bonds (or any other debt financing) is called the company's capital structure.
Finance is used by individuals (personal finance), by governments (public finance), by businesses (corporate finance), etc., as well as by a wide variety of organizations including schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of appropriate financial instruments, with consideration to their institutional setting.
Finance is one of the most important aspects of business management. Without proper financial planning a new enterprise is unlikely to be successful. Managing money (a liquid asset) is essential to ensure a secure future, both for the individual and an organization.

Bond

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and is obliged to repay the principal and interest (the coupon) at a later date, termed maturity. Other stipulations may also be attached to the bond issue, such as the obligation for the issuer to provide certain information to the bond holder, or limitations on the behavior of the issuer. Bonds are generally issued for a fixed term (the maturity) longer than ten years. U.S Treasury securities issue debt with life of ten years or more, which is a bond. New debt between one year and ten years is a note, and new debt less than a year is a bill.
A bond is simply a loan, but in the form of a security, although terminology used is rather different. The issuer is equivalent to the borrower, the bond holder to the lender, and the coupon to the interest. Bonds enable the issuer to finance long-term investments with external funds. Certificates of deposit (CDs) or commercial paper are considered money market instruments.
In some nations, both bonds and notes are used irrespective of the maturity. Market participants normally use bonds for large issues offered to a wide public, and notes for smaller issues originally sold to a limited number of investors. There are no clear demarcations. There are also "bills" which usually denote fixed income securities with three years or less, from the issue date, to maturity. Bonds have the highest risk, notes are the second highest risk, and bills have the least risk. This is due to a statistical measure called duration, where lower durations have less risk, and are associated with shorter term obligations.
Bonds and stocks are both securities, but the difference is that stock holders own a part of the issuing company (have an equity stake), whereas bond holders are in essence lenders to the issuer. Also bonds usually have a defined term, or maturity, after which the bond is redeemed whereas stocks may be outstanding indefinitely. An exception is a consol bond, which is a perpetuity (i.e. bond with no maturity).

Goverment bond

A government bond is a bond issued by a national government denominated in the country's own currency. Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds.
RiskGovernment bonds are usually referred to as risk-free bonds, because the government can raise taxes or simply print more money to redeem the bond at maturity. Some counter examples do exist where a government has defaulted on its domestic currency debt, such as Russia in 1998- the "ruble crisis" , though this is very rare.
As an example, in the US, Treasury securities are denominated in US dollars and are the safest US dollar investments. In this instance, the term risk-free means free of credit risk. However, other risks still exist: such as currency risk for foreign investors (for example non-US investors of US Treasuries would have received lower returns in 2004 because the value of the US dollar declined against most other currencies). Secondly, there is inflation risk - in that the principal repaid at maturity will have less purchasing power than anticipated if the inflation outturn is higher than expected. Many governments issue inflation-indexed bonds, which protect investors against inflation risk.
An example of somewhat risky bonds issued by a government can be given with countries that have less than perfect capabilities of conducting financial policies. Such an example is Bulgaria due to its being dependent on the world economy and economic institutions much more than, say, the US. Some of this country's bonds were only given an A-scale rating after 2004. As of February 2006 Standard & Poor's rates Bulgaria's long-term debt denominated in domestic currency at BBB+. And this rating is the result of almost a decade of constantly decreasing risk (and increasing ratings). We should also note that this country's short-term debt is in fact currently rated A.
IssuanceGovernment bonds are issued through agencies that are part of the government's treasury department, for example
Bunds are bonds issued by the German Finance Agency, denominated in euros Gilts are bonds issued by the UK Debt Management Office and are denominated in sterling US Treasuries are issued by the Bureau of the Public Debt

Performance bond

A performance bond is a surety bond issued by an insurance company to guarantee satisfactory completion of a project by a contractor.
For example, a contractor may cause a performance bond to be issued in favor of a client for whom the contractor is constructing a building. If the contractor fails to construct the building according to the specifications laid out by the contract (most often due to the bankruptcy of the contractor), the client is guaranteed compensation for any monetary loss up to the amount of the performance bond.
Performance bonds are commonly used in the development of real property, where an owner or investor may require the developer to assure that contractors or project managers procure such bonds in order to guarantee that the value of the work will not be lost in the case of an unfortunate event (such as insolvency of the contractor).
The term is also used to denote a collateral deposit intended to secure a Futures contract, commonly known as margin.
Performance bonds have been around since 2,750 BC and more recently, the Romans developed laws of surety around 150 AD the principles of which, still exist.

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