Headlights – A short story

You're paying attention? So there's been this accident so there's been this accident nearby. Very sad. On the telly. Mum watched it this odd expression on her face – strange isn't it – but then you know how these things affect her. Good thing really. That she wasn't there I mean. It was on our way home on our way home that it happened. The accident. Poor brown-haired green-eyed boy. How they described him on the telly. Obviously I didn't get a good look at him. Maybe you did. The car just didn't stop. So I'm sat here and – I just can't console her. Mum. Tried to comfort her – honest. I wish I could just explain things to her but she ignores me stone still. It hurts to see her like this. Just because the police haven't caught the driver yet. All my friends gathered into groups at the scene of the accident but I can't hear what they're saying. Sometimes I think they look at me. No one comes over though. It's not like I did anything wrong! You know that. So now I'm sat here and so now – Sat on the floor in my bedroom. Lara. Sat on my bed. Sat on my bed quiet as I play and sing. For her. You and Ladyface have left â€Å"to go get some drinks†. So subtle. You come back a little later. Later enough. Such a nice day it is with the Sun and all you know. Good that we all have some free time. And we've been talking talking like we should like friends. You won't come back though not now. That's just a memory. A goodbye-memory. You always liked memories talking about them all the time as you did. Said they were important. Can't forget each other we make each other. So I'm trying to remember – honest. No one wants to hear me talk about our memories though. Forever in my memory. Inside my head. Laughing and crying. We always did everything together always. Remember pretending to drive in the garden in the house? Racing round and round. Laughing. There are no accidents when you're five no accidents which a plaster doesn't mend. Learning to drive. Always thought you'd have been better on the road. And crying. You liked Lara as well – didn't know that to begin with. Taught to stop for red lights. â€Å"Hold my hand† sort of stuff. Did Mum teach you the same? Probably. So now I'm sat here and so now I hope – Hopes and dreams. You hoped to be a model. You were smart too. Smarter and better looking. You. So of course she liked you. But she liked me as well. I sang. Played. Laughed. Cried. You'll never be a model now though. Shame about that. Lara bought flowers for me the other day. Not for you. And all the heads were red – red like love. You know that? Red – a familiar colour. Better than black. Black metal. Getting sidetracked though. This all started with the accident. No. It didn't start with the accident. It started with two boys who played pretend cars in the garden and who wanted a girl. It started with guitars and songs and leaving â€Å"to get some drinks†. I don't know when things changed. Why did they change, Joe? Our parents and friends have changed now. Too much. It was just us. We were close. Before the drumbeat. The damned drumbeat in the chest. Then we weren't close. But one drumbeat isn't playing now. You liked playing the drums. Another problem. Girls always like drummers. Oh well not this time. So now our Mum's sat there alone stone still. Occasionally the stone is shivered by sobs. They know who did it. Just a matter of time. I'm so sorry. She holds her broken heart as no one is there to hold her. Only crying. I doubt there will be laughter evermore. I'm at the road now. Won't be long. I'm looking down at my wrist. There's that bracelet stained. Those little drops. Blood. Was that from our pact? Little boys like that sort of thing – big boys like girls. Looking both ways at the road like a good boy. Nothing. Good. Good evening. The air is still heavy with the smell of Lara. Laughter still ringing in my ears. Lara didn't cry. Not before. I step into the road. There are headlights now. They weren't there before. Nothing. Blackness. Then headlights. Headlights growing larger. It looks like your red Honda. Red – a familiar colour. Why are you accelerating? Why aren't I running? Crack. Red – a familiar colour. So now I'm sat crumpled here and so now I hope that you never escape. So now I'm sat crumpled here and so now I hope you're running the rest of your days. So now I'm sat crumpled here and so now I hope she'll hate you. We always did everything together always. So die with me.

Progressive Era Dbq

Charlie Shinske During the Progressive Era, pressure from labor, suffrage, and conservation movements profoundly changed the course of American history. Many of the reformers' ideas clashed with the male-dominated, capitalist economic structure present at the turn of the century. Some of the intended reforms opposed the current system, but the level of social unrest necessitated change. Businessmen and activists alike initiated the reforms during the Progressive Era.Government, due to the intention of calming the common man and quieting the seemingly more and more vocal middle  class, supported them from the year 1900 to 1920, Progressive Era reformers were successful in bringing about reform to the United States. Socially, America was gaining strength, with women such as Jane Addams, a women's rights activist, entering the progressive fight. The percent of eligible voters who cast ballots in Presidential elections were at a somewhat steady rate from 1904 to 1916, ranging from 59-6 5%, but in the 1920 election, only 49% of eligible voters actually cast ballots. Document J) Although some may argue that the percent decrease was due to most Americans not liking any of the elected Presidential candidates, and therefore not voting this is untrue because this was the first election in which women could vote, which threw of the ratio of voters and non-voters. In addition, all four candidates running for the title of President, Debs, Roosevelt, Wilson, and Taft, were all progressives, and wanted to reduce the number of trusts. This gave all voters, men or women, some incentive to vote.In the end of the election, Woodrow Wilson won, but not with the majority. During Wilson's presidency, some women spoke out saying that Wilson was â€Å"oppressing† them, and compared themselves to people being oppressed by Kaiser that were living Germany. (Document H) many female rights activists saw the government as putting them down that is why the passing of the 19th amendmen t caused such an uproar, women agreed and were excited with their new found power, but men were not happy (mostly because women promoted prohibition).During this thirty year period in American history our country made major strides in working conditions, moral values, and where we stood in the world’s commerce. We now had a wealthy middle class that could sort of fend for themselves and we were working on making sure that the food we ate and the water we drank was healthy enough for us to drink. The U. S. was starting to boom, then came the depression.

Research Prospectu Essay Example | Topics and Well Written Essays - 1250 words

Research Prospectu - Essay Example According to a report by consumer analysts Nielsen, 47% of the world’s social networking is being done through the mobile phones (State of the Media, 2). The recent report on facebook use indicated that 250 million of facebook users are accessing the social network site through mobile phones, and they were found to be more active than the non-mobile users. The social networking trend has increased especially in the last 5 years; with every 4 out of 5 active internet users visiting social network sites (State of the Media, 3).The social networking applications were found to be the third most used applications among the USA smart phone users. This transition of the mobile phone usage from the initial communication to the Mobile social networking trend has elicited a lot of interest, especially regarding the relationship between the social media and mobile phones that has seen this exponential growth in Mobile social networking. The purpose of this study is to investigate the neg ative implications of the growth of mobile phone use for social networking. Literature review Mobile phones and the social media have changed communication in the world. ... Statistics further indicate that 47% of the web browsers visit the social networking sites, and 62% of all users with social network accounts are involved in instant messaging and chatting with their friends, relations and even strangers they meet on the social networks (Killackey, Anda, Gibbs, Alvarez-Jimenez, Thompson, Sun, & Baksheev, 2011). The implication of these statistics is to send a message to the society that; should the internet or the social media platforms collapse one day, then, the world would have more distressed people, than would be caused by any other tragedy. The change in the social media trend can be accounted for by the development of the mobile technology, with the focus of the mobile developers and other operating system software manufactures focusing on the production of mobile devices and software that are compatible with the social networking features (Tsai, Han, Xu & Chua, 2009). Social media marketing is yet another concept that has arisen, considering that it is now possible for different people to access the social networks from anywhere and anytime, as opposed to when individuals were limited to accessing social networks through the computers (Mills, Egglestone, Rashid, & Vaataja, 2012). A study published regarding the analysis of application features usage for the smart phone indicated that 43% of the owners of the smart phones have engaged in games applications usage, while 26% of the owners are using the social networking applications (Pachler, Ranieri, Manca & Cook, 2012). This simply indicates that the growth of mobile social networking is high, compared to any other mobile application, since the games applications

Compare the twomain characters (Norma Rae and Bread and Roses Essay

Compare the twomain characters (Norma Rae and Bread and Roses - Essay Example s’ exploration of how exploitation exists particularly in industries filled with poverty-stricken workers, one can further discover the connection between lack of work options and poverty, and workplace discrimination, which consequently aggravates the worker’s situation and reduces the possibility of developing a positive outlook and recognizing the higher purpose. Norma and Maya depict the roles of female workers trapped in a world of poverty, employer greed, and exploitation. However, just as there are several similarities in the story, there are also obvious differences. Norma and Maya’s plights in their works may be similar, but their approaches in reacting to these plights are different. Norma’s basis in deciding to lead a union organizer is well-developed in the film, while Maya’s basis in stepping up against her employers is either underdeveloped or truly albeit shallow. In â€Å"Bread and Roses,† the issue that incites the janitors’ protest is meager salary. This is a legitimate foundation; however, the larger political consequences and framework are not discussed at all. The films depicts how the workers’ are not given their rights, but it never tackled exactly what rights they were fighting for. Another consideration here is the fact that these workers are illegal immigrants in the country. T his fact creates a hostile reaction from the viewers to the supposed-to-be protagonist. In addition, regarding both protagonists’ relationships with their families, Norma again can gain any viewer’s empathy as she displays her selflessness. Her motivation in working is the higher purpose of supporting her parents through their illness. This supposedly kept her positive in her work despite the hardships. Also, one has to remember that her main reason for wanting to lead a union organizer is her parents’ health situation. On the other hand, Maya appears to be both selfish and ungrateful, as her reasons for supporting the union are purely personal.

MI and Promoting Higher-Order Thinking Research Paper

MI and Promoting Higher-Order Thinking - Research Paper Example The specific intelligences function in the context of the environment. Hence, it is important to have a proper understanding of the capacities that are central to the various types of intelligence. Continuing research by several scholars in the field has been unraveling the implications of the theory for education generally, and higher-order thinking in particular. Higher-order thinking (HOT) essentially is a manipulation of knowledge and ideas involving synthesis, generalisation, explanation, hypothesis, conclusion or interpretation that will result in solving problems or achieving new discovery and understanding. As opposed to lower-order thinking which is promoted when pre-specified knowledge is imparted, and procedural routines are adhered to and followed. Even complex activities are performed by reproducing knowledge in a rote fashion. The key to higher-order thinking is thinking beyond memorizing and restating facts. According to Armstrong    (2000), â€Å"†¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦..for whatever you wish to teach, link your instructional objective to words, numbers or logic, pictures, music, the body, social interaction, and/or personal experience.† The students should be introduced to the notion of concepts to be able to distinguish the different types including concrete, abstract, verbal, nonverbal or process concept. For example, students with a poorly developed logical and mathematical intelligence need to be provided with verbal explanations of the math problems and procedures rather than merely working the problems repeatedly. Connecting the concepts leads to HOT. For example, the concept of â€Å"presents† could be linked to... MI and Promoting Higher-Order Thinking Culturally, too, it is the highly eloquent and coherent people that command much respect. The theory of multiple intelligences emphasizes the need to transform the classrooms that currently tend towards being heavily linguistic or logical-mathematical into those that are more inclusive, catering to all the types of intelligence. Teachers need to be trained to incorporate a wide variety of techniques including using music, cooperative learning, art activities, role play, multimedia, field trips, inner reflection, and so on, while presenting their lessons (Armstrong, 2000). The various intelligences are clearly delineated from emotions, personality, or sensory accruity (Gardner, 2006). Instead, Gardner sees them as a â€Å"computational capacity, that is, the ability to process certain kinds of information in the process of solving problems or fashioning products.† (2006). Under the multiple intelligences (MI) theory, a core set of operations has been identified for each type of intelligence. Connecting the concepts leads to HOT. For example, the concept of â€Å"presents† could be linked to â€Å"Christmas†, and further on to ‘winter†, â€Å"snow†, â€Å"seasons†, â€Å"spring†, â€Å"summer†, â€Å"holidays† and so on. The various types of intelligences under MI can be indulged in the above.For instance, while the verbal intelligence is used to describe the various topics forming the concept, visual and spatial intelligence could be involved in drawing and painting different pictures to depict each of the topics.

Banana is the best fruit for human being Essay Example | Topics and Well Written Essays - 500 words

Banana is the best fruit for human being - Essay Example Banana is a wholesome nutritious food and a rich source of carbohydrate, dietary fibers and natural sugars like glucose, fructose and sucrose (Andrews). Therefore, when consumed, banana gives instant, continuous and considerable boost of energy. In fact, researched has reveled that, â€Å"two bananas provide enough energy for a strenuous 90-minute workout† (Sanchez). Hence, most of the world’s leading athletes have included banana as an integral part of the diet. Banana is also rich in potassium which helps to prevent fat from accumulating in the arteries and thereby helps the heart to function normally (Schmidt). Vitamin C in the banana helps to absorb iron, create connective tissue and form blood (Schmidt). In addition, unlike other fruits and vegetables, banana has been found to retain its nutritional content even after being picked. Therefore, banana should be a vital item in everyone’s diet (Focus on Mexico). The rich presence of vitamins and minerals in banana help to address or prevent several illnesses and medical conditions. Being rich in potassium and low in salt, banana is a perfect fruit to help address high blood pressure (Helen). Research has also revealed that regular consumption of banana can reduce the risk of death by stroke by as much as 40%. In fact, the U.S. Food and Drug Administration has permitted the banana industry to officially claim that banana can reduce the risk of blood pressure and stroke (Helen). Individuals trying to quit smoking benefit from banana as Vitamin B6 and B12 in banana and the presence of potassium and magnesium in the fruit have been found to help the body to recover from the effects of nicotine withdrawal (Helen). The high fiber content in the fruit is also helpful in restoring normal bowel movement and prevents constipation (Helen). In addition to these benefits, banana has been found to help address depression, anemia, stress, ulcers and heart burn. These benefits reveal that banana should be included in

In this course you have been exposed to many current trends in Term Paper

In this course you have been exposed to many current trends in Business Intelligence. Two important emerging trends are the u - Term Paper Example Moreover, there are technologies such as reality mining which are also emerging in the business world. Reality mining is mainly used to analyze the collected machine-sensed environmental data with regard to social behavior of human beings (Doody & Shields, n.d., pp. 1-31). The paper intends to present an elaborative explanation of a few of the current technological trends being used in the business. Furthermore, the paper would also depict the various impacts of RFID technology and reality mining on the present day organizations. The paper would also discuss the merits as well as the demerits of the aforesaid technologies in business. Discussion Technologies have a very crucial role to play in the present altering business environment. There has been a continuous emergence of new technologies in the business world. A few of them such as RFID technology and reality mining would be explained in details below: Radio-Frequency Identification (RFID) Radio-Frequency Identification (RFID) i s one of the most important tools or technologies for business entities. This technology is quite effective and is capable of replacing the present modern day technology such as bar code. The technology offers strategic benefits to the business as it can track the record in case of supply chain activities more competently and effectively. This technology also provides real-time-in-transit visibility (ITV) and can also observe the general enterprise assets in the business (Sweeney II, 2010). A few of the present day examples of RFID is recognized in supply chain to create pallet tracking application which is used in companies such as Wal-Mart and its suppliers. The access control system such as keyless entry is also a RFID technology. Apart from this, applications like point-of-sale, automatic tool collection system, and animal tracking devices among others also use this technology (Hunt, Puglia & Puglia, 2007). Impacts of RFID on an Organization (Pros and Cons) The impact of RFID fo r the organization is based on how it is being handled by the organization. The ability of the technology to ensure services such as real-time and serialized data could prove to be quite essential to the organization. The best way to know the impact of the RFID on the organization is by assessing the area of the business where this technology is employed. The overall impact of RFID to the business can be assessed with the assistance of three distinct work flows. They are business processes, physical infrastructure as well as system and information. Proper execution of these three aspects alone would depict the major impacts of the technology in the organization (Sweeney II, 2010). On the other hand, the technology also has certain demerits that are quite vital to be analyzed. It has been observed that the technology of RFID reader at times faces difficulties to read the information if the tags are installed in liquids as well as in metal products. The problem occurs because liquid a nd metal surfaces replicate the radio waves, which makes the tags unreadable. Again, certain interventions can be observed in the proper use this technology if devices for example forklifts as well as walkies-talkies are in the surrounding area of the distribution centers (Shah & Murtaza, n.d. pp. 1-9). Effective Use of RFID Technology in Business By Harnessing the Benefits and Avoiding the Pitfalls The use of RFID technology in

Leprosy in the Middle Ages Essay Example | Topics and Well Written Essays - 1000 words

Leprosy in the Middle Ages - Essay Example This essay focuses on the discussion of the Leprosy, or Hansen’s disease, that is an debilitating disease which has been prevalent for over 4,000 years, right from the ancient civilizations of China, India and Egypt. The researcher states that the earliest documented case of leprosy, supported by DNA evidence, is that of a man whose remains were discovered in a tomb next to the Old City of Jerusalem. The first recorded instance of leprosy is found in the Bible. It is probable that the disease spread to Europe from Egypt through Phoenician sailors in the 8th century. The word leprosy has its roots in the Greek lepra, meaning ‘a disease which makes the skin scaly'. The primary external symptom is pronounced skin lesions. It is caused by the bacteria Mycobacterium leprae. If unchecked, this chronic bacterial infection can progressively attack the skin, nerves, limbs and eyes, causing permanent damage, deformation, blindness, loss of neural sensation, and local paralysis. Th e mode of transmission of the disease is still not certain. Poor living conditions, diet and genetic factors may predispose an individual to contact leprosy. Treatment for leprosy began with the introduction of dapsone in the 1930s and complete cures were made possible by multidrug therapy in the 1980s. It is acknowledged that leprosy was a familiar disease in medieval Europe, and probably reached its peak during the twelfth and thirteenth centuries. In the Middle Ages, leprosy was a serious problem which elicited unique social and medical responses. ... In the Middle Ages, leprosy was a serious problem which elicited unique social and medical responses. Leprosy was a feared condition throughout the Middle Ages. This may be largely attributed to ignorance of its causes and medical implications, and the absence of any recognized treatment or cure. The Medieval diagnosis of leprosy, â€Å"was a prediction of disfigurement and death, and what is perhaps more terrifying, it separated a man from society because of the infection he carried outwardly and the moral corruption that lay within him† (Covey, 2001, 316). Biblical references supported this reaction to the disease. The numerous references to leprosy in the Bible largely give leprosy a connotation of being a disease of the unclean. This is evident in the passage from Leviticus 13: 44–46 which states, â€Å"Now whosoever shall be defiled with the leprosy, and is separated by the judgment of the priest, shall have his clothes hanging loose, his head bare, his mouth cove red with a cloth, and he shall cry out that he is defiled and unclean. All the time that he is infected and unclean, he shall dwell alone without the camp† (Covey, 2001, 316). In effect, the Bible condemned leprosy as a ‘defilement’ and sanctioned the banishment of lepers from society. The most common attitude toward leprosy was ostracism, rising from the fear that leprosy was a highly contagious disease. In the light of this fear of contacting leprosy through association with lepers, medieval laws enforced segregation of lepers in various manners in different places. The 1276 assizes of London restricted the freedom of movement of lepers by banning them from residing in the city. This was followed by

Economics Essay Example | Topics and Well Written Essays - 2000 words

Economics - Essay Example Apart from economic factors, cultural and political issues also affect inflation rate. The activities of workers’ union might create pressure on the wage rate preventing any downward movement of the same. Therefore production cost will not come down and hence increase in supply is restrained. An increase in supply of money or credit in the economy can make the incidence of inflation strong in an economy. The global financial crisis which resulted from the excess credit and increasing defaulters especially in the housing loan market led to inflationary pressures owing to increasing demand and cost of basic necessities around the world (Nanda). For the Gulf Countries where oil is a key commodity and factor responsible for growth, the rise in oil prices from 2005-2006 led to increase in related products. The increase in oil prices across the world has been occurring at a rate higher than the depreciation of the dollar. The spot price of oil rose by 171.9 percent ($65.66) and achi eved the highest point in August 2006 (reaching the peak at $76.01). Depreciation of dollar across a wide spread of currencies took place at 13.8 percent (Oxford Business Group 38-39). The paper attempts to compare two different Gulf Countries, Bahrain and UAE, with respect to the incidence and impact of inflation. Inflation The first outcome of inflation is usually reflected in the purchasing power of money. Hence there is a reduction in the real value of a good. Inflation rate which measures the price inflation has both positive and negative impacts on the economy. On one hand it reduces the real value of wealth in hands and on the other it creates an expectation of inflation in future and leads to a fall in savings and investments. If there is increased activity of accumulation of goods in apprehension that price might rise further, then there might be a crisis of supply of products in the market. If one considers the positive effects it may be reflected in adjustments of nominal interest rates which help in controlling recessions. Seeing from the demand side, low and moderate inflation are caused by demand side changes or alteration in the number of suppliers at times of crisis and increase in money supply. Going by the Keynesian viewpoint, demand-pull inflation is brought about by a rise in private and government expenditure leadings to high demand. This reflects a grot hint he economy since such higher demand and favorable market situation will lead to higher investment and growth. However cost push inflation which is brought about by supply side shock (fall in supply) could be owing to some natural calamities or high prices of inputs. For instance a sudden increase in oil prices might affect the supply side of those products for which oil is used as raw material or input. The built-in inflation is brought about by a wage-price circle where workers try to keep prices up in keeping with the market price and employers in turn pass this labor cost on to the consumers in the form of higher prices. The essential way out from inflation is the monetary policy and central banks resort to high interest rates and slowed money supply growth to control inflation. Keynesian school of economics suggest that demand can be increased during recession and decreased during boom in order to control inflation; this might be brought about by both monetary and fiscal policy adjustments (Ball). Inflation in Bahrain Inflation as not really an issue for Bahrain as it

An advertisement of children Essay Example | Topics and Well Written Essays - 1000 words

An advertisement of children - Essay Example Children’s advertisers do certainly shape children’s understanding of the world, but not outright, and not all at once, rather, they analyze what it is the children already like, and then reinforce that through their marketing. The â€Å"Lego Friends† advertisement being studied in this essay is a perfect example of this. â€Å"Lego Friends† is a new type of Lego targeted towards girls, that, unlike original Lego, is not modular – you cannot build things not intended by the designers. It is more like Barbie than like Lego, in this way. This advertisement shows an incredibly well developed appreciation of the desire of young girls to relate to older girls, and to develop into fully grown women, through implied narrative, and the characters being sold. As mentioned previously, marketers have long found it necessary to attempt to understand their audience before making an advertisement. According to Eric Schlosser, marketers targeting children have to go to perhaps even more extraordinary lengths to â€Å"learn about their tastes† (Schlosser 225). Marketers â€Å"not only conduct surveys of children in shopping malls, they also organize focus groups for kids as young as two or three †¦ they advertise children’s artwork, hire children to run focus groups †¦ host slumber parties† and engage in a whole range of other activities to understand exactly what children want. And this advertisement demonstrates this fully. appeal to children. It opens with two girls making a heart symbol together with their hands. This immediately launches into an implied narrative of togetherness that children find appealing – the â€Å"best friend forever† narrative. This simple motion indicates to the children that they will be together forever. More than this best friends forever narrative, there is a more complex narrative underlying it. There is a subtle age difference constructed between the two girls – the left

Mining Rare Earth Metals Essay Example for Free

Mining Rare Earth Metals Essay I believe that Canada should be involved in the rare earth metals mining industry. Rare earth metals are an essential part of everyday modern life (and of growing importance). They are used from everything from cell phones to environmentally friendly technologies such as wind turbines and hybrid engines. The mining of these metals would provide many benefits to Canada. It makes great economic sense because right now China is a supply and demand crisis so they are exporting less metal every year. If Canada were to enter the mining not only would it create thousands of jobs in one area where unemployment is a little bit of a problem but we could also pick up the slack of Chinas export problem and make billions. Besides the obvious economic implications, I believe that mining these metals cold have serious political and environmental benefits for us. China uses dangerous chemical to melt the earth around it, which could potentially leave a lasting impression on the surrounding area and any vegetation that might grow there in the future. So if Canada were to mine these metals I think we would be more respectful of the landscape. In today’s society reducing your environmental footprint is huge and in terms of rare earth metals there are many ways in which we can reduce our own. It starts by properly recycling our reusable electronics so the metals can be extracted or re used. Other ways would be to buy used electronics and not get every new gadget that comew out so there is less of a demand for the mining of rare earth metals. Given the pros of mining and the fact that they outweigh the cons, I believe that Canada should be involved in rare earth metals mining.

Effect of Macroeconomic on Stock Return

Effect of Macroeconomic on Stock Return This research paper is conducted to measure and analyze the effect of macroeconomic on stock return of industrial product sector as compared to performance of Kuala Lumpur Composite Index. Several variables will be used to identify the relationship between the dependant variable which are three pre-specified macroeconomic variables the term structure of recession, interest rate, exchange rate and stock price movement that might give impact to the independent variable which is listed stock of industrial product sectors components in Kuala Lumpur Composite Index. Holding Period Return method will be used to measure the impact dependent variables to independent variable in this research. Secondary data will be used for this research paper, which are about 50 companies in industrial product sectors components that listed in Kuala Lumpur Composite Index; will be acknowledged as the sample for the previous year period from 2005 until 2009 to measure the performance of the sector in economi c condition during the period. It is expected that during the period, the industrial sectors performance that listed in Bursa Malaysia maybe will be affected by the economic condition during the period which will give impact on their stock return. CHAPTER 1 INTRODUCTION 1.0 INTRODUCTION Macroeconomic and stock prices are difficult to predict most of the times. These changes it appears that reflect the shifting demand for that stock or changing facts that it because of expectations of a companys profitability or some of government policy that effect on stock. Therefore, investors speculate how stock are determined most of them will look for to inexpensive share or expensive share with low price earning. Shares in most large established corporations are listed on organized exchanges like the Bursa Malaysia or Shanghai Stock Exchange. Every time a stock is sold, the exchange records the price at which it changes hands. If, a few seconds or minutes later, another trade takes place, the price at which that trade is made becomes the new market price, and so on. Organized exchanges like the Bursa Malaysia will occasionally suspend trading in a stock if the price is excessively volatile and also must legalize trade according their regulation, if there is a severe difference between supply and demand or if they suspect that insiders are intentionally manipulating a stocks price. But in ordinary circumstances, nobody is on purpose to control price. The market price of a stock is basically the price at which a keen buyer and seller agree to trade. Price is volatile when the enormous volumes of stock traders are made awake of professional traders who buy and sell shares each and every one day long. Since these traders do not grab stocks over the long pull, they are not terribly interested in such long-term considerations as a companys profitability or the value of its assets. Or rather, they are interested in such factors mostly trusty as news that would affect a companys long-term prospects might cause other traders to buy the stock, causing its price to raise. If traders believe that others will buy shares, then he/she will buy as well, hoping to sell when the price rises. If others believe the same thing, then the wave of buying pressure will, in fact, cause the price to rise. This trend will continue forever. When we look back to the famous economist John Maynard Keynes which has revealed the economic principle had compared the stock market to a competition then popular in British tabloids, in which rival had to look at photos and choose the faces that other contestants would choose as the prettiest. Each contestant had to look for photos â€Å"likeliest to catch the imagination of the other competitors, all of whom be looking at the difficulty from the same point of observation. similarly, stock traders try to speculation which stocks other traders will buy. The successful trader is the one who anticipates and outfoxes the market, buying prior to a stocks price rises and selling before it falls. 1.0.1 Screening criteria of KLCI Investor can only invest in stocks through a stock exchange, an organized marketplace where stocks are bought and sold under strict rules, regulations and guidelines. KLCI has over 30 listed companies offering a wide range of investment choices to local and global investors. Companies are either listed on Bursa Malaysia Securities Main Market or ACE Market. The Stock Market was created by companies wishing to raise capital for their business. When someone says they have a listed company they indicate listed on Bursa Malaysia. All companies need cash to take advantage of growth opportunities. Many start-up companies however find themselves short of capital to fund expansion. One way to acquire this cash is to publicly float the company. This involves selling part of the company to private individual and institutional investors who are then able to freely exchange these stocks on an open market Most huge matter regarding to the criterias are, high market capitalization on stock itself, it reflects how much share have been issues and its price per share. Blue chip company is resistance to weak market and it has permanently growth for example nestle it has stable growth in term of profit and cash flow. 1.0.2 History of stock Market The Kuala Lumpur Stock Exchange which was incorporated on December 14, 1976 as a company limited by guarantee took over the operations of KLSEB in the same year. The Kuala Lumpur Stock Exchange Berhad was demutualized pursuant to the Demutualization Act and converted into a public company limited by shares on January 5, 2007. Upon the conversion, the organization vested and transferred the securities exchange business to a new wholly-owned subsidiary, Bursa Securities, and became an exchange holding company and were renamed Bursa Malaysia Berhad on April 14, 2007. On 18 March 2005, Bursa Malaysia made its first appearance on the Main Board of Bursa Malaysia Securities Berhad. On 6 July 2009, the Composite Index has been replaced by FTSE Bursa Malaysia KLCI index which reflect the top 30 companies in the exchange. On 4 August 2009, the exchange has combined the main board and the second board into a single market which is called the Main Market. Mesdaq is also renamed into ACE market which provides lower listing requirements. 1.1 BACKGROUND OF STUDY Every time a share in, say, nestle is traded for example, the new price is used to revalue all outstanding shares-just as the value of your home appreciates when the house down the block sells for more than a similar house sold last week. But the value of your home wouldnt be so high if every house on your block were suddenly put up for sale. Similarly, if all ten billion outstanding shares even a small fraction of them-were put up for sale, they wouldnt fetch anywhere near the current market price. (Pirie and Smith, 2003) have say that relationships between accounting information, book values and share prices have significant implications for share prices in Singapore. Foreign exchange rate and interest rate risks are important financial and economic factors affecting the value of common stocks. Research by (King and Wadhwani, 1990) found that the volatility transfer hypothesis suggests that random shocks can induce higher volatility in financial markets and because of contagion effects which are highest in more volatile markets, investors may look abroad to invest in alternative financial assets. This study was aimed to point out whether the stock price behaviors and macroeconomic variables such as foreign exchange rate and interest rate is reflected in listed company stock return in the KLCI or not. Because one of them is accounting factor and other are economic factor. 1.2 PROBLEM STATEMENT The problem studied in this research is about the movement of the stock market and selected individual stock prices for investors usage. Caution should also be exercised in interpreting their results as the period of study includes the 2008 financial crises. It is possible that the severity of the crisis has influenced the statistical results. These papers empirically compares and see the share price of the companies before, during and after the recession and it covers only two macroeconomic factor that have give some effect to the stock return. During this period we will see the flow of the price movement in the market by using fifthly (50) listed company in property sector. Previous studies on stock market by Deshmukh et al (1983) banks can affect their exposure to interest rate and foreign exchange rate changes when they act as financial intermediaries for their clients. As such, their role as financial intermediaries can affect the sensitivity of investor assets and liabilities to interest rate and foreign exchange rate changes 1.3 RESEARCH QUESTION This research is conducted to inquire: 1.3.1 If there any changes of stock return on listed KLCI industrial company effect of macroeconomic? 1.3.2 If there any changes of stock return on listed KLCI industrial company effect of volatile market share price? 1.3.3 Which investment could offer better stock return to investor if using Holding Period Return? 1.4 RESEARCH OBJECTIVES This research is conducted to determine: 1.4.1 Macroeconomic factor have give impact to the stock return. 1.4.2 Changes of share price have give impact to the stock return. 1.4.3 The investment that could offer better performance using Holding Period Return. 1.5 SIGNIFICANCE OF STUDY This research is an observed study upon the macroeconomic factors and changes of stock price that give impact to the stock return of industrial product listed in KLCI. The study is significance for researcher, government and investors. Researchers can be benefit from this study by the information and acknowledge they from the previous to the current and future trend of movement either macroeconomic factors and changes of stock price that give impact to the stock return. As for the government, they can assist in organizing and stabilizing the economy to make the market will always gain some profit to the investors in attract more investment to come to Malaysia. Investors will gain benefit by knowing the current condition of Malaysia stock market as well as the shares before they can invest their pool of money in Malaysia especially in the industrial company. 1.6 SCOPE OF STUDY Macroeconomic and share price is the environment in which all firms operate. The ability to forecast the macroeconomic and share price can translate into spectacular investment performance. Some of the key economic variables are inflation, interest rate and exchange rate. In economics, a recession is a business cycle contraction, a general slowdown in economic activity over a period of time. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; while bankruptcies and the unemployment rate rise. Recessions are generally believed to be caused by a widespread drop in spending. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation. High interest rates reduce the present value of future cash flow, thereby reducing the attractiveness of investment opportunities. For these reason, real interest rate are the key determinants of business investment expenditures because sensitive to interest rate affect to interest payment. The foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world. Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates. In the foreign exchange market there is little or no inside information. Exchange rate fluctuations are usually caused by actual monetary flows as well as anticipations on global macroeconomic conditions. Significant news is released publicly so, at least in theory, everyone in the world receives the same news at the same time. This study takes place in the subsistence of macroeconomic and changes of stock price in Malaysia as its field is the one to be explored. Moreover 50 listed companies were acknowledged as the sample for the previous five year period. The data of this research will be obtained from DataStream. 1.7 LIMITATION OF STUDY There are several drawbacks in pursuing this research. It includes: 1.7.1 Scope of study The research reference is restricted in the scope of Malaysia due to the field of study. As we know, Malaysia is an emerging country, thus the performance is still not matured compared with the developed countries, like the United States. 1.7.2 Period of the study This study is conducted by using the data from 2005 to 2009. Approximately 50 form 100 companies that listed in Bursa Malaysia, but not all the companies data was provided in that certain period. This constraint is affecting the calculation of portfolio performance. The length of the study also affected this study indirectly. This study used to use five years period of time. The result for five years study would be different if this study managed to use the longer period of time. 1.7.3 Secondary data In this study, we used the secondary data gathered from DataStream, Bursa Malaysia and the other articles references. Some of the data were not up to date to be the good references. For example, when we referred to Bursa Malaysia, some of the data is not currently in use and in DataStream; the problem was some of the data was not available (N/A). It became a limitation to the study because we cannot get the accurate result. 1.8 DEFINITION OF TERMS 1.8.1 KLCI Kuala Lumpur Composite Index or Bursa Malaysia is place where all sector company list their stock to get capital gain from investor that buy their stock. 1.9 SUMMARY There are many reason why this research been conduct but to know the real effect to the stock return many variable been use to meet the objective. For example interest rate, exchange rate, recession and stock price movement is the variables that have effect to the company or investor stock return. CHAPTER 2 LITERATURE REVIEW 2.0 INTRODUCTION Macroeconomics is a branch of economics that deals with the performance, structure, behavior and decision-making of the entire economy, be that a national, regional, or the global economy. Along with microeconomics, macroeconomics is one of the two most general fields in economics. Researcher study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific markets. 2.1 GENERAL LITERATURE REVIEW 2.1.1 MACROECONOMICS The effect of macroeconomic fundamentals on stock market volatility has generated a lot of interest. Research by Liljeblom and Stenius (1997) find that it is argued that if the value of corporate equity on the whole depends on the health of the economy, then uncertainty in macroeconomic conditions would affect volatility in stock returns assuming consistent discount rates. Studies have also shown that stock market volatility is driven by uncertainty in macroeconomic fundamentals Fama (1981, 1990), Fama and French (1989) and Chen et al. (1986). It is argued that there is an inverse relationship between interest rates and stock returns. Thorbecke (1997) and Smal and de Jager (2001) observe that a reduction in interest rates induces an injection of liquidity into the economy. This extra liquidity could be channeled to the stock market, driving up the demand and prices of stocks. Patelis (1997) notes that interest rate changes are helpful in predicting stock market returns over a long period. Thus, there is evidence to conclude that interest rate policies should also target stock market price movements. Goodfriend (2003) also notes that, since there is no stable correlation between stock-price returns and short-term interest rates, it would be difficult for interest rates to target stock-price changes appropriately. Bernanke and Kuttner (2003) also note that stock markets do not react much to interest rate changes. Throughout the years, the global economy has been transformed from a simplified financial architecture to a complex intertwined set of financial systems. From the Bretton Woods system to the advent of flexible exchange rate systems in 1973 until the present days, the environment of international markets had experienced substantial changes in the form of excessive variability in exchange rates, greater capital mobility and punctuated by a series of financial crises worldwide in recent years. Meese (1990) who studied the currency fluctuations in the post-Bretton Woods era found that the changes of macroeconomic variables alone could not explain major currencies movements. MacDonald and Taylor (1994) however noticed relationships between macroeconomic variables and exchange rate. A recent study by Rapach and Wohar (2002) meanwhile produced mixed results for the monetary model of exchange rate determination. In December, 2007 economic recession that began in the United States spread much of the industrialized world, and has caused a uncertainty of economic activity. This global recession has been taking place in an economic environment characterized by various imbalances and was sparked by the outbreak of the financial crisis of 2007–2009. However, Mitchell and Netter (1989) argue that the three-day decline preceding the crash was a large enough decline that it became the fundamental news and that shook the market. The theoretical model of Jacklin et al. (1992) (among others) shows how a surprise significant drop in the market could have provided information to the market that would directly lead to a crash. Among all macroeconomic factor stock price movement is also effect by changes in economic environments. CRR (1986) results are tested to see whether the factors priced in the US market are applicable in Turkey stock market, with adding new variable unemployment rate, because we expected a relation with the stock returns. 2.2 THEORETICAL FRAMEWORK Four factors are selected to test the relationships of these factors and stock return. The factors are recession, interest rate, exchange rate and stock price movement. 2.2.1 Recession Recession is one of the macroeconomic factors that effect to the listed company stock return in KLCI. Some of the researcher say that recession have give negative impact to stock return but some researcher found that recession is no relation with stock price. CRR (1986) shown that the tested macroeconomic variables do not affect the share price in the UK stock market. 2.2.2 Exchange Rate. Exchange rate is most been use by investor to do transaction to buy stock in market, because of that exchange rate is consider one of the factors that effect to the stock return. Movements of exchange rate are always a concern for various parties. In international currency markets, exchange rate plays a significant role and the variability of exchange rate, whichever way it sways, tends to give a significant impact on the economy. 2.2.3 Interest Rate. Interest rate also one of the factor that give impact to the stock return because some researcher say that interest rate give negative impact to the stock return. Anthony Kyereboah-Coleman and Kwame F. Agyire-Tettey (2008) mention that there negative real interest rates for extended period. 2.2.4 Stock Price Movement. Stock price move is most related to the stock return because every time changes in stock price effect to the outcome of stock return for investor investment but some of the researcher say that there is no effect on stock return. For example Martinez and Rubio (1989) tested the Spanish market return and they found that there were no significant pricing relationship between stock returns and the macroeconomic variables. 2.3 SUMMARY Literature review is the part where it shows where it show whether the variable will be strongly acceptance or not. From the previous study that has been done it has shown that, most of the variable has its own importance not only in affecting some issue but also in solving it. This literature reviews shows the effect of this study on the stock return as the dependent. It also has many researches done with the difference result. CHAPTER 3 METHODOLOGY AND DATA 3.0 INTRODUCTION This chapter discusses the research methodology used in the study. Methodology is one the important method that had been use to test the hypothesis on this study in order to get the finding at the end of the study. Research design and research methodology is most of the important part for this study since it provide a lot of useful information on how to get the data, how to conduct the survey and provide additional information in order to get better result and finding for this study. This chapter explains how the data for conduct the study is collected and carried out. It also explain on the method that is going to be use to get the finding at the end of the study. It also focus on the data sources, sample involved in the study and the methodology to be use in this study. In this study the variables that had been used was economic recession, exchange rate, interest rate and stock price which collected on the monthly basis for the period of 5 years ended in December 2005 until December 2009. This study consists of 50-industrial product firm and using time series period from 2005 to 2009. Focus for this study was more on the Regression Model analysis to test the finding. Since this study was investigate and identify the relationship between macroeconomic and stock price movement to profitability so using the regression data analysis model had done it for the past 5 years.. There are several key items such as data collection method, sampling frame, sources of data, variables and measurement, research design, theoretical framework, hypothesis statement, data analysis, and treatment which will clarify in detail in this chapter. 3.1 DATA COLLECTION The price indices at monthly frequency are collected for sectors in Bursa Malaysia: industrial product sector. All the closing prices of these sector indices sourced from the secondary data from Thomson Financial DataStream over five-year period from year 2005 to year 2009 (5 years). Meanwhile, for the independent variables of recession rate, exchange rate, interest rate and stock price will be extracted from Thomson Financial DataStream and Bank Negara Malaysia official release. 3.2 SAMPLING FRAME To secure an acceptable result, this study decided to use 50 samples out of all companies that went public and were listed on the second board within year 2005 to 2009. The decision to use this sample was due to the inability to collect more data due to the time constrain during research. Furthermore, this study wants to see the stock return for investor in industrial product sector. And at the same time, it also wants to observe the relationship between recession rate, exchange rate, interest rate and stock price. 3.3 SOURCES OF DATA The selected 50 stock sample being chose from the main board of BM KLCI .The data are collected on monthly actual stock price was collected from the Thomson Financial DataStream, which is provided the information about the companies financial situations over years. Each stock is already being issued from the companies issued until today. These samples were represented by 50 companies from the industrial product sector. 3.4 VARIABLES AND MEASUREMENT There are two types variables has been used in this study there are; the dependent and the independent variables. 3.4.1 Dependent Variables The dependent variable for this study is stock return of each company industrial product sector. 3.4.2 Independent Variables The independent variables will be measured by recession rate, exchange rate, interest rate and stock price. 3.5 RESEARCH DESIGN This research is designed to see the relationship between dependent variable with independent variables. In this study, it analysis in hypotheses testing that will explain the certain significant correlations between KLIBOR and Treasury Bills rates and the stock performance 3.5.1 Purpose of the Study The purpose of this study is to determine the relationship between all the dependent and independent variable. By using descriptive study can know relationship between both of variable. Descriptive study will be able to describe the characteristics of the variable of the situation. By using data from DataStream would be able to compare monthly return for each of the companies. Besides that, this study also can help investor to make decision making and offer the idea for future problem and research. 3.5.2 Types of Investigation The study involved the correlation study types of investigation. The study involves determining the important variable associated with the situation. The important variable is between the recession rate, exchange rate, interest rate and stock price. Correlation studies done in the study are called field studies. This studies will conducted to establish cause and effect to the stock return using the same measurement in the market are called field experiments. The experiment done to establish the cause and affect of the studies so that can make corrective action to make any decision in the investment. 3.5.3 Unit of Analysis In this study, the unit of analysis is group of company and also industry. The group of company that involve fifthly (50) of the properties companies that has been selected in the main board of BM KLCI. The companies selected depend on the year of the companies is establish. The industry that has been selected is recession rate, exchange rate, interest rate and stock price will be compare with the return of each companies return during 5 years. 3.5.4 Time Horizon This study will be use cross-sectional studies to make the research. A study will be done with the monthly data are gathered over five years (5) from year 2005 to 2009, in order to get the result about these studies. 3.6 THEORETICAL FRAMEWORK Research studies indicate that relationship between KLIBOR and Treasury Bills rates and stock performance. Dependent variable: Effect of company Stock Return Independent variables: Recession rate, Exchange rate, Interest rate and Stock Price Movement. Figure 1: Schematic Diagram (Relationship Diagram) Independent Dependent Company Stock return listed in KLCI Stock price movement Interest rate Exchange rate Recession rate According to the schematic diagram above, it can be explaining relationship between stock return with Recession rate, Exchange rate, Interest rate and Stock Price Movement. 3.7 DATA ANALYSIS AND TREATMENT Multiple Linear Regression Model are the statistical tools that been use in this study. This model analysis examine about simultaneous effect between Recession rate, Exchange rate, Interest rate and Stock Price Movement (independent variable) Stock Return (dependent variable) which variable give biggest effect on the dependent variable. Where; Y = Dependent variable which represent Actual Stock Performance = The constant number of equation = Coefficient Beta value = Independent variable which represent Recession rate = Independent variable which represent Exchange rate = Independent variable which represent Interest rate = Error r = (EV – BV) + DIV X 100 BVStock price movement will be measure in Holding Period Return to determine the effect on stock return Where; r = Represent Rate of return EV = Represent Ending Value or end of stock price BV = Represent Beginning Value or beginning of stock price DIV = Represent income or dividend of company 3.8 HYPOTHESIS STATEMENT Some changes will affect the each stock return to the companies. By changing the stock price will affect the return to the companies its self its might be go higher or lower than what it expected will be. To analysis and to test whether this is applicable to the Malaysian Stock Market, the hypothesis has been developing. Hypothesis 1 H0 = Company stock return in industrial product sector outperform than KLCI H1 = Company stock return in industrial product sector underperform than KLCI Hypothesis 2 H0 = Macroeconomic factor does has significant impact in stock return of each company in industrial product sector in KLCI H1 = Macroeconomic factor does not has significant impact in stock return of each industrial product sector in KLCI Hypothesis 3 H0 = Stock price movement does has significant impact in stock return of each industrial product sector in KLCI H1 = Stock price movement does not has significant impact in stock return of each industrial product sector in KLCI SUMMARY This study will be measure according the objective that has been established in earlier chapter. This research can be use to help investors to make the investment decision. Its because this studies focuses on the data from year 2005 until year2009, it will give better overview of each of the properties company in order to take any corrective action in facing the problem and also overcoming the problem in the current situation to make an investment decision. Effect of Macroeconomic on Stock Return Effect of Macroeconomic on Stock Return This research paper is conducted to measure and analyze the effect of macroeconomic on stock return of industrial product sector as compared to performance of Kuala Lumpur Composite Index. Several variables will be used to identify the relationship between the dependant variable which are three pre-specified macroeconomic variables the term structure of recession, interest rate, exchange rate and stock price movement that might give impact to the independent variable which is listed stock of industrial product sectors components in Kuala Lumpur Composite Index. Holding Period Return method will be used to measure the impact dependent variables to independent variable in this research. Secondary data will be used for this research paper, which are about 50 companies in industrial product sectors components that listed in Kuala Lumpur Composite Index; will be acknowledged as the sample for the previous year period from 2005 until 2009 to measure the performance of the sector in economi c condition during the period. It is expected that during the period, the industrial sectors performance that listed in Bursa Malaysia maybe will be affected by the economic condition during the period which will give impact on their stock return. CHAPTER 1 INTRODUCTION 1.0 INTRODUCTION Macroeconomic and stock prices are difficult to predict most of the times. These changes it appears that reflect the shifting demand for that stock or changing facts that it because of expectations of a companys profitability or some of government policy that effect on stock. Therefore, investors speculate how stock are determined most of them will look for to inexpensive share or expensive share with low price earning. Shares in most large established corporations are listed on organized exchanges like the Bursa Malaysia or Shanghai Stock Exchange. Every time a stock is sold, the exchange records the price at which it changes hands. If, a few seconds or minutes later, another trade takes place, the price at which that trade is made becomes the new market price, and so on. Organized exchanges like the Bursa Malaysia will occasionally suspend trading in a stock if the price is excessively volatile and also must legalize trade according their regulation, if there is a severe difference between supply and demand or if they suspect that insiders are intentionally manipulating a stocks price. But in ordinary circumstances, nobody is on purpose to control price. The market price of a stock is basically the price at which a keen buyer and seller agree to trade. Price is volatile when the enormous volumes of stock traders are made awake of professional traders who buy and sell shares each and every one day long. Since these traders do not grab stocks over the long pull, they are not terribly interested in such long-term considerations as a companys profitability or the value of its assets. Or rather, they are interested in such factors mostly trusty as news that would affect a companys long-term prospects might cause other traders to buy the stock, causing its price to raise. If traders believe that others will buy shares, then he/she will buy as well, hoping to sell when the price rises. If others believe the same thing, then the wave of buying pressure will, in fact, cause the price to rise. This trend will continue forever. When we look back to the famous economist John Maynard Keynes which has revealed the economic principle had compared the stock market to a competition then popular in British tabloids, in which rival had to look at photos and choose the faces that other contestants would choose as the prettiest. Each contestant had to look for photos â€Å"likeliest to catch the imagination of the other competitors, all of whom be looking at the difficulty from the same point of observation. similarly, stock traders try to speculation which stocks other traders will buy. The successful trader is the one who anticipates and outfoxes the market, buying prior to a stocks price rises and selling before it falls. 1.0.1 Screening criteria of KLCI Investor can only invest in stocks through a stock exchange, an organized marketplace where stocks are bought and sold under strict rules, regulations and guidelines. KLCI has over 30 listed companies offering a wide range of investment choices to local and global investors. Companies are either listed on Bursa Malaysia Securities Main Market or ACE Market. The Stock Market was created by companies wishing to raise capital for their business. When someone says they have a listed company they indicate listed on Bursa Malaysia. All companies need cash to take advantage of growth opportunities. Many start-up companies however find themselves short of capital to fund expansion. One way to acquire this cash is to publicly float the company. This involves selling part of the company to private individual and institutional investors who are then able to freely exchange these stocks on an open market Most huge matter regarding to the criterias are, high market capitalization on stock itself, it reflects how much share have been issues and its price per share. Blue chip company is resistance to weak market and it has permanently growth for example nestle it has stable growth in term of profit and cash flow. 1.0.2 History of stock Market The Kuala Lumpur Stock Exchange which was incorporated on December 14, 1976 as a company limited by guarantee took over the operations of KLSEB in the same year. The Kuala Lumpur Stock Exchange Berhad was demutualized pursuant to the Demutualization Act and converted into a public company limited by shares on January 5, 2007. Upon the conversion, the organization vested and transferred the securities exchange business to a new wholly-owned subsidiary, Bursa Securities, and became an exchange holding company and were renamed Bursa Malaysia Berhad on April 14, 2007. On 18 March 2005, Bursa Malaysia made its first appearance on the Main Board of Bursa Malaysia Securities Berhad. On 6 July 2009, the Composite Index has been replaced by FTSE Bursa Malaysia KLCI index which reflect the top 30 companies in the exchange. On 4 August 2009, the exchange has combined the main board and the second board into a single market which is called the Main Market. Mesdaq is also renamed into ACE market which provides lower listing requirements. 1.1 BACKGROUND OF STUDY Every time a share in, say, nestle is traded for example, the new price is used to revalue all outstanding shares-just as the value of your home appreciates when the house down the block sells for more than a similar house sold last week. But the value of your home wouldnt be so high if every house on your block were suddenly put up for sale. Similarly, if all ten billion outstanding shares even a small fraction of them-were put up for sale, they wouldnt fetch anywhere near the current market price. (Pirie and Smith, 2003) have say that relationships between accounting information, book values and share prices have significant implications for share prices in Singapore. Foreign exchange rate and interest rate risks are important financial and economic factors affecting the value of common stocks. Research by (King and Wadhwani, 1990) found that the volatility transfer hypothesis suggests that random shocks can induce higher volatility in financial markets and because of contagion effects which are highest in more volatile markets, investors may look abroad to invest in alternative financial assets. This study was aimed to point out whether the stock price behaviors and macroeconomic variables such as foreign exchange rate and interest rate is reflected in listed company stock return in the KLCI or not. Because one of them is accounting factor and other are economic factor. 1.2 PROBLEM STATEMENT The problem studied in this research is about the movement of the stock market and selected individual stock prices for investors usage. Caution should also be exercised in interpreting their results as the period of study includes the 2008 financial crises. It is possible that the severity of the crisis has influenced the statistical results. These papers empirically compares and see the share price of the companies before, during and after the recession and it covers only two macroeconomic factor that have give some effect to the stock return. During this period we will see the flow of the price movement in the market by using fifthly (50) listed company in property sector. Previous studies on stock market by Deshmukh et al (1983) banks can affect their exposure to interest rate and foreign exchange rate changes when they act as financial intermediaries for their clients. As such, their role as financial intermediaries can affect the sensitivity of investor assets and liabilities to interest rate and foreign exchange rate changes 1.3 RESEARCH QUESTION This research is conducted to inquire: 1.3.1 If there any changes of stock return on listed KLCI industrial company effect of macroeconomic? 1.3.2 If there any changes of stock return on listed KLCI industrial company effect of volatile market share price? 1.3.3 Which investment could offer better stock return to investor if using Holding Period Return? 1.4 RESEARCH OBJECTIVES This research is conducted to determine: 1.4.1 Macroeconomic factor have give impact to the stock return. 1.4.2 Changes of share price have give impact to the stock return. 1.4.3 The investment that could offer better performance using Holding Period Return. 1.5 SIGNIFICANCE OF STUDY This research is an observed study upon the macroeconomic factors and changes of stock price that give impact to the stock return of industrial product listed in KLCI. The study is significance for researcher, government and investors. Researchers can be benefit from this study by the information and acknowledge they from the previous to the current and future trend of movement either macroeconomic factors and changes of stock price that give impact to the stock return. As for the government, they can assist in organizing and stabilizing the economy to make the market will always gain some profit to the investors in attract more investment to come to Malaysia. Investors will gain benefit by knowing the current condition of Malaysia stock market as well as the shares before they can invest their pool of money in Malaysia especially in the industrial company. 1.6 SCOPE OF STUDY Macroeconomic and share price is the environment in which all firms operate. The ability to forecast the macroeconomic and share price can translate into spectacular investment performance. Some of the key economic variables are inflation, interest rate and exchange rate. In economics, a recession is a business cycle contraction, a general slowdown in economic activity over a period of time. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; while bankruptcies and the unemployment rate rise. Recessions are generally believed to be caused by a widespread drop in spending. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation. High interest rates reduce the present value of future cash flow, thereby reducing the attractiveness of investment opportunities. For these reason, real interest rate are the key determinants of business investment expenditures because sensitive to interest rate affect to interest payment. The foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world. Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates. In the foreign exchange market there is little or no inside information. Exchange rate fluctuations are usually caused by actual monetary flows as well as anticipations on global macroeconomic conditions. Significant news is released publicly so, at least in theory, everyone in the world receives the same news at the same time. This study takes place in the subsistence of macroeconomic and changes of stock price in Malaysia as its field is the one to be explored. Moreover 50 listed companies were acknowledged as the sample for the previous five year period. The data of this research will be obtained from DataStream. 1.7 LIMITATION OF STUDY There are several drawbacks in pursuing this research. It includes: 1.7.1 Scope of study The research reference is restricted in the scope of Malaysia due to the field of study. As we know, Malaysia is an emerging country, thus the performance is still not matured compared with the developed countries, like the United States. 1.7.2 Period of the study This study is conducted by using the data from 2005 to 2009. Approximately 50 form 100 companies that listed in Bursa Malaysia, but not all the companies data was provided in that certain period. This constraint is affecting the calculation of portfolio performance. The length of the study also affected this study indirectly. This study used to use five years period of time. The result for five years study would be different if this study managed to use the longer period of time. 1.7.3 Secondary data In this study, we used the secondary data gathered from DataStream, Bursa Malaysia and the other articles references. Some of the data were not up to date to be the good references. For example, when we referred to Bursa Malaysia, some of the data is not currently in use and in DataStream; the problem was some of the data was not available (N/A). It became a limitation to the study because we cannot get the accurate result. 1.8 DEFINITION OF TERMS 1.8.1 KLCI Kuala Lumpur Composite Index or Bursa Malaysia is place where all sector company list their stock to get capital gain from investor that buy their stock. 1.9 SUMMARY There are many reason why this research been conduct but to know the real effect to the stock return many variable been use to meet the objective. For example interest rate, exchange rate, recession and stock price movement is the variables that have effect to the company or investor stock return. CHAPTER 2 LITERATURE REVIEW 2.0 INTRODUCTION Macroeconomics is a branch of economics that deals with the performance, structure, behavior and decision-making of the entire economy, be that a national, regional, or the global economy. Along with microeconomics, macroeconomics is one of the two most general fields in economics. Researcher study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific markets. 2.1 GENERAL LITERATURE REVIEW 2.1.1 MACROECONOMICS The effect of macroeconomic fundamentals on stock market volatility has generated a lot of interest. Research by Liljeblom and Stenius (1997) find that it is argued that if the value of corporate equity on the whole depends on the health of the economy, then uncertainty in macroeconomic conditions would affect volatility in stock returns assuming consistent discount rates. Studies have also shown that stock market volatility is driven by uncertainty in macroeconomic fundamentals Fama (1981, 1990), Fama and French (1989) and Chen et al. (1986). It is argued that there is an inverse relationship between interest rates and stock returns. Thorbecke (1997) and Smal and de Jager (2001) observe that a reduction in interest rates induces an injection of liquidity into the economy. This extra liquidity could be channeled to the stock market, driving up the demand and prices of stocks. Patelis (1997) notes that interest rate changes are helpful in predicting stock market returns over a long period. Thus, there is evidence to conclude that interest rate policies should also target stock market price movements. Goodfriend (2003) also notes that, since there is no stable correlation between stock-price returns and short-term interest rates, it would be difficult for interest rates to target stock-price changes appropriately. Bernanke and Kuttner (2003) also note that stock markets do not react much to interest rate changes. Throughout the years, the global economy has been transformed from a simplified financial architecture to a complex intertwined set of financial systems. From the Bretton Woods system to the advent of flexible exchange rate systems in 1973 until the present days, the environment of international markets had experienced substantial changes in the form of excessive variability in exchange rates, greater capital mobility and punctuated by a series of financial crises worldwide in recent years. Meese (1990) who studied the currency fluctuations in the post-Bretton Woods era found that the changes of macroeconomic variables alone could not explain major currencies movements. MacDonald and Taylor (1994) however noticed relationships between macroeconomic variables and exchange rate. A recent study by Rapach and Wohar (2002) meanwhile produced mixed results for the monetary model of exchange rate determination. In December, 2007 economic recession that began in the United States spread much of the industrialized world, and has caused a uncertainty of economic activity. This global recession has been taking place in an economic environment characterized by various imbalances and was sparked by the outbreak of the financial crisis of 2007–2009. However, Mitchell and Netter (1989) argue that the three-day decline preceding the crash was a large enough decline that it became the fundamental news and that shook the market. The theoretical model of Jacklin et al. (1992) (among others) shows how a surprise significant drop in the market could have provided information to the market that would directly lead to a crash. Among all macroeconomic factor stock price movement is also effect by changes in economic environments. CRR (1986) results are tested to see whether the factors priced in the US market are applicable in Turkey stock market, with adding new variable unemployment rate, because we expected a relation with the stock returns. 2.2 THEORETICAL FRAMEWORK Four factors are selected to test the relationships of these factors and stock return. The factors are recession, interest rate, exchange rate and stock price movement. 2.2.1 Recession Recession is one of the macroeconomic factors that effect to the listed company stock return in KLCI. Some of the researcher say that recession have give negative impact to stock return but some researcher found that recession is no relation with stock price. CRR (1986) shown that the tested macroeconomic variables do not affect the share price in the UK stock market. 2.2.2 Exchange Rate. Exchange rate is most been use by investor to do transaction to buy stock in market, because of that exchange rate is consider one of the factors that effect to the stock return. Movements of exchange rate are always a concern for various parties. In international currency markets, exchange rate plays a significant role and the variability of exchange rate, whichever way it sways, tends to give a significant impact on the economy. 2.2.3 Interest Rate. Interest rate also one of the factor that give impact to the stock return because some researcher say that interest rate give negative impact to the stock return. Anthony Kyereboah-Coleman and Kwame F. Agyire-Tettey (2008) mention that there negative real interest rates for extended period. 2.2.4 Stock Price Movement. Stock price move is most related to the stock return because every time changes in stock price effect to the outcome of stock return for investor investment but some of the researcher say that there is no effect on stock return. For example Martinez and Rubio (1989) tested the Spanish market return and they found that there were no significant pricing relationship between stock returns and the macroeconomic variables. 2.3 SUMMARY Literature review is the part where it shows where it show whether the variable will be strongly acceptance or not. From the previous study that has been done it has shown that, most of the variable has its own importance not only in affecting some issue but also in solving it. This literature reviews shows the effect of this study on the stock return as the dependent. It also has many researches done with the difference result. CHAPTER 3 METHODOLOGY AND DATA 3.0 INTRODUCTION This chapter discusses the research methodology used in the study. Methodology is one the important method that had been use to test the hypothesis on this study in order to get the finding at the end of the study. Research design and research methodology is most of the important part for this study since it provide a lot of useful information on how to get the data, how to conduct the survey and provide additional information in order to get better result and finding for this study. This chapter explains how the data for conduct the study is collected and carried out. It also explain on the method that is going to be use to get the finding at the end of the study. It also focus on the data sources, sample involved in the study and the methodology to be use in this study. In this study the variables that had been used was economic recession, exchange rate, interest rate and stock price which collected on the monthly basis for the period of 5 years ended in December 2005 until December 2009. This study consists of 50-industrial product firm and using time series period from 2005 to 2009. Focus for this study was more on the Regression Model analysis to test the finding. Since this study was investigate and identify the relationship between macroeconomic and stock price movement to profitability so using the regression data analysis model had done it for the past 5 years.. There are several key items such as data collection method, sampling frame, sources of data, variables and measurement, research design, theoretical framework, hypothesis statement, data analysis, and treatment which will clarify in detail in this chapter. 3.1 DATA COLLECTION The price indices at monthly frequency are collected for sectors in Bursa Malaysia: industrial product sector. All the closing prices of these sector indices sourced from the secondary data from Thomson Financial DataStream over five-year period from year 2005 to year 2009 (5 years). Meanwhile, for the independent variables of recession rate, exchange rate, interest rate and stock price will be extracted from Thomson Financial DataStream and Bank Negara Malaysia official release. 3.2 SAMPLING FRAME To secure an acceptable result, this study decided to use 50 samples out of all companies that went public and were listed on the second board within year 2005 to 2009. The decision to use this sample was due to the inability to collect more data due to the time constrain during research. Furthermore, this study wants to see the stock return for investor in industrial product sector. And at the same time, it also wants to observe the relationship between recession rate, exchange rate, interest rate and stock price. 3.3 SOURCES OF DATA The selected 50 stock sample being chose from the main board of BM KLCI .The data are collected on monthly actual stock price was collected from the Thomson Financial DataStream, which is provided the information about the companies financial situations over years. Each stock is already being issued from the companies issued until today. These samples were represented by 50 companies from the industrial product sector. 3.4 VARIABLES AND MEASUREMENT There are two types variables has been used in this study there are; the dependent and the independent variables. 3.4.1 Dependent Variables The dependent variable for this study is stock return of each company industrial product sector. 3.4.2 Independent Variables The independent variables will be measured by recession rate, exchange rate, interest rate and stock price. 3.5 RESEARCH DESIGN This research is designed to see the relationship between dependent variable with independent variables. In this study, it analysis in hypotheses testing that will explain the certain significant correlations between KLIBOR and Treasury Bills rates and the stock performance 3.5.1 Purpose of the Study The purpose of this study is to determine the relationship between all the dependent and independent variable. By using descriptive study can know relationship between both of variable. Descriptive study will be able to describe the characteristics of the variable of the situation. By using data from DataStream would be able to compare monthly return for each of the companies. Besides that, this study also can help investor to make decision making and offer the idea for future problem and research. 3.5.2 Types of Investigation The study involved the correlation study types of investigation. The study involves determining the important variable associated with the situation. The important variable is between the recession rate, exchange rate, interest rate and stock price. Correlation studies done in the study are called field studies. This studies will conducted to establish cause and effect to the stock return using the same measurement in the market are called field experiments. The experiment done to establish the cause and affect of the studies so that can make corrective action to make any decision in the investment. 3.5.3 Unit of Analysis In this study, the unit of analysis is group of company and also industry. The group of company that involve fifthly (50) of the properties companies that has been selected in the main board of BM KLCI. The companies selected depend on the year of the companies is establish. The industry that has been selected is recession rate, exchange rate, interest rate and stock price will be compare with the return of each companies return during 5 years. 3.5.4 Time Horizon This study will be use cross-sectional studies to make the research. A study will be done with the monthly data are gathered over five years (5) from year 2005 to 2009, in order to get the result about these studies. 3.6 THEORETICAL FRAMEWORK Research studies indicate that relationship between KLIBOR and Treasury Bills rates and stock performance. Dependent variable: Effect of company Stock Return Independent variables: Recession rate, Exchange rate, Interest rate and Stock Price Movement. Figure 1: Schematic Diagram (Relationship Diagram) Independent Dependent Company Stock return listed in KLCI Stock price movement Interest rate Exchange rate Recession rate According to the schematic diagram above, it can be explaining relationship between stock return with Recession rate, Exchange rate, Interest rate and Stock Price Movement. 3.7 DATA ANALYSIS AND TREATMENT Multiple Linear Regression Model are the statistical tools that been use in this study. This model analysis examine about simultaneous effect between Recession rate, Exchange rate, Interest rate and Stock Price Movement (independent variable) Stock Return (dependent variable) which variable give biggest effect on the dependent variable. Where; Y = Dependent variable which represent Actual Stock Performance = The constant number of equation = Coefficient Beta value = Independent variable which represent Recession rate = Independent variable which represent Exchange rate = Independent variable which represent Interest rate = Error r = (EV – BV) + DIV X 100 BVStock price movement will be measure in Holding Period Return to determine the effect on stock return Where; r = Represent Rate of return EV = Represent Ending Value or end of stock price BV = Represent Beginning Value or beginning of stock price DIV = Represent income or dividend of company 3.8 HYPOTHESIS STATEMENT Some changes will affect the each stock return to the companies. By changing the stock price will affect the return to the companies its self its might be go higher or lower than what it expected will be. To analysis and to test whether this is applicable to the Malaysian Stock Market, the hypothesis has been developing. Hypothesis 1 H0 = Company stock return in industrial product sector outperform than KLCI H1 = Company stock return in industrial product sector underperform than KLCI Hypothesis 2 H0 = Macroeconomic factor does has significant impact in stock return of each company in industrial product sector in KLCI H1 = Macroeconomic factor does not has significant impact in stock return of each industrial product sector in KLCI Hypothesis 3 H0 = Stock price movement does has significant impact in stock return of each industrial product sector in KLCI H1 = Stock price movement does not has significant impact in stock return of each industrial product sector in KLCI SUMMARY This study will be measure according the objective that has been established in earlier chapter. This research can be use to help investors to make the investment decision. Its because this studies focuses on the data from year 2005 until year2009, it will give better overview of each of the properties company in order to take any corrective action in facing the problem and also overcoming the problem in the current situation to make an investment decision.

Case Study Crossing The Chasm Marketing Essay

Case Study Crossing The Chasm Marketing Essay Crossing the Chasm by Geoffrey A. Moore is one of the most authoritative books on high-tech marketing, and best-selling book of the influential business publishing houses Business Week. It is dedicated to marketing and sales of high-tech products for the mass market and related issues. In particular, the author argues that early and major high-tech product markets are divided by a gap or chasm, and all the forces of high-tech enterprises should be directed on overcoming it. The existence of the chasm is determined by the significant differences between the participants in early market (technology enthusiasts and visionaries) and the participants of the mass market (pragmatists). Tips for overcoming these differences, correct positioning and the correct choice of market segments all these can be found in Geoffrey Moores Crossing the Chasm (1991). Generally, if one has read Geoffrey A. Moores book, one has probably learned the main lesson: shifting from one segment of product life cycle to another, the company risks falling into a deadly trap. Crossing the Chasm is actually talking about changing the type of market (from One-For-All to All-For-One), in which companies are functioning. Such changes happen all the time, and the task of a good manager is to know about them and manage them. At first, when the software or complex computer products are at the stage of development and first tests, and are claimed only by fans or advanced industrial customers, we have the All-For-One market. In this market, the seller must do everything possible to meet the demands of individual customers. For the cycle of complex products creation, this first stage is factually the time for finding the few who will see something valuable for oneself or ones business in the new product. They will be ready to suffer disadvantages of the product as long as the seller (the creator) is surrounding them by additional services (like delivering defective parts, creating missing programs, etc.). It is clear that in this cycle stage, the seller cannot satisfy thousands or millions of users (Moore, 1991). As soon as the goods are ready to meet the mass market, the situation changes. Now, it is necessary to respond to any reaction of the first buyer, and make millions of people who know nothing about the product invest into the packaged solution. One should understand that its impossible to sell the products unless they meet customers needs. But having created such, there is no other way, but to make customers buy these goods through advertising pressure, promotions in stores and so on. Finally, we get the One-For-All market. As rightly written by J. Moore (1991), this market uses completely different laws from the All-For-One market. Buyers do not want the anticipatory care, but guarantees that it works for others. They are not interested in adjustment of the product on demand, but a stable operation or a non-stop service center. They do not want to boast that they bought something no one has, but be sure that they will not be fired because of that purchase. In general, the One-For-All market is a mass market with all the consequences connected with it. Moores main merit for the developers of all new products is the formulation of the phenomenon of the chasm that lies between the different psychological types of consumers, the product meets moving along the life cycle curve. Through the images of innovators, followers and conservatives, who face the goods in turn, Moore (1991) showed why the success of the product within one audience means nothing to another one, and therefore, why a successful product actively spinning up can suddenly stop in its development, or even disappear from the sight. In addition to the revolutionary idea of the abyss, Moore (1991) has formulated a lot of other ideas deserving individual pedestal. Its in his work that we can find one of the first references to such a phenomenon as the ecosystem of the product; the reasoned conviction to why the main reference for decision making should be based on informed intuition, rather than quantitative research; and niche strategies of market penetration. Moore (1991) predicts that in future, the markets skeptics and conservatives (and not innovators, as it has been commonly believed until now) should become a major battleground for technology companies, and also suggests what should be the main weapon of this struggle for the audience. However, far not every change creates a chasm. For example, the juice from PepsiCo for teenagers is a new idea, but it does not require a new type of refrigerator or new glasses. The criterion for classification of the product to a model of the chasm is the effect of interruptions caused by its appearance on the market. If a new product makes people refuse their habits and change their behavior model, then it surely faces a chasm in the market, because despite all the advantages, its adoption requires sacrifice. Here the gap occurs: some enthusiastically adopt the technology, and others equally strongly reject it. The chasm appears in any community, which, having faced discontinuous innovation, breaks up into groups of early adopters, pragmatists, late followers and skeptics. Thus, when a company buys a new technology, therell definitely be a chasm, first of all, among companys staff: some are willing to accept it, others do not. What should be done in such a situation? Moore (1991) argues that skeptics should simply be told that this technology can solve the problem they cannot solve in any other way. But if it is quite easy to overcome the gap within the company, the chasm in the market carries much higher risks. The chasm also occurs when new resources appear. The reason for the chasm in the computer market was that the chips became faster and more powerful; it allowed creating products that previously could not have been even imagined. Todays interest in alternative energy reminds the computer industry 30-40 years ago. The interruption effect is explicit here. For example, a very traditional sector, the automotive industry, for a long time was very conservative. However, in the 1990s it began progressing. An attempt to bring to market electric car was unsuccessful. But hybrid cars that use both gasoline and electric motor seem to have managed to overcome the chasm. According to Moore, the best indicator of the industry moving over the chasm is a community of venture capital (Moore, 1991). In general, in the IT field the support for new products have become the so-called visionaries. Occupying high positions in their companies, they are interested in competitive advantages of the new technologies. This category of customers helps young companies to cope with the chasm. But in the FMCG-market there are no such characters. So, what should the small companies do with innovative ideas for consumer markets? According to Moore, the chasm models can be applied to consumer markets only with serious reservations. These are very conservative markets, here the gap between the wealthy few visionaries and the rest of the audience is almost insurmountable. There is a notion of enough, the main barrier to interrupting innovations in consumer market. It strives to ensure that innovations are not interrupting; it makes them less daring trying to simplify them. Business will overcome the chasm, if it gives the opportunity to solve problems. But there is no competition between the custom ers in the store, you cannot help the customer to solve a problem with your change. The only way to success in consumer market is not to create gaps (Mohr, 2000). However, what to rely on, starting the process of overcoming the chasm? Moore writes that the quantitative analysis cannot help, because it requires facts, and facts appear when something happens. Therefore, the results of quantitative market research are completely useless for predicting of how the product will overcome the chasm. Businessman needs a model for the future. He should be able to rise above the business process and detect the sample. None of the life situations may be exactly taken for the sample. To determine whether this model is sufficient for the situation, can it be put as basis for future actions, or it is the wrong model and it should be eliminated, one should have informed intuition. None of the cases of quantitative analysis changes the model, but it is needed, because the world is constantly changing. High-tech companies, which have to overcome the chasm, in fact, create it themselves. On the one hand, it would be advantageous to choose the expectant tactics and to watch other fall into the chasm, but on the other hand, attitude to chasm depends on the size of the company. If it is small, it tends to pass the chasm as soon as possible not to let big companies to grab them while they are fixed on the other side. For big companies, on the contrary, it is advantageous to use the expectant strategy. Large companies are not inclined to engage in interrupting innovation within themselves. But they can buy companies that overcame the chasm, and raise them to a new level (Mohr, 2000). A good example: Apple invented graphical computer, and Microsoft waited a bit and captured the market. However, Moore (1991) believes that the rule running that in order to succeed in the technology market, one must first capture a niche, is not absolute. The opposite situation is often observed: the winner in the mass market is not the winner of a niche. Niche market surely does not always lead to the capture of the major one, but at least allows entering it. Typically, a young company dealing with technologies initially has few buyers who cannot provide it with a steady income. But until the company has a loyal group of buyers, it shouldnt even try to enter the prime market. The company finds itself in the conditions of fighting for each sale, but when a niche market is captured, the company can be considered successful. The purchase of a new product ceases to cause a surprise among major players. Thus, a niche market is the gateway to the core market; and if the company wins there, a number of new niches are formed around it and finally, the company will be with higher probability successful in them. At the same time, Moore (1991) says that the chasm is difficult to predict. Most often, companies find it only when they stand over it. So, what decisions should be made in this case? According to G. Moore (1991), if a company has found itself hanging over the abyss, the best solution is to retreat. When the product is too immature and cannot bridge the gap, it is necessary to postpone the work on it until better times; otherwise it will drag the whole company into this chasm. The company can also try to become a consultant or service company. After all, it still has ideas beside the product. Instead of selling a product, the company can personalize the technology for the solution of each specific task, and thus selling not products, but projects. However, in this case, all the people who cannot be engaged in consulting services (administrative and technical staff, product sales managers, marketers) are to be downsized. Attempts to cross the chasm actually create chasms within the organization itself, presented by the conflict between start-up generation and generation of mature business. Often, companies have to sacrifice the creators of the technology for the sake of survival. This may seem unfair, and when the market is at an early stage of development, the leader really must be a fan of the technology, attracting a certain type of customers (fans). But when the chasm is overcome, the company needs other customers pragmatists. And here it becomes clear that visionaries cannot find common language with them and begin to push the company back into the abyss. At this stage, the company has to change its leaders: most often, they become technical directors, as technological vision is required even in the mature market. Thus, though the main objects of desire of IT companies have always been buyers-innovators, already in the early 1990s Moore claimed that that the conservatives are the future of the IT market. Today we see how the compass of many technology companies turns in their direction. The whole point is that the conservatives are afraid of the responsibility for the new technology. They are happy to use it when it runs by itself. Therefore, in the mature market conservatives are the most fertile audience, they are very loyal to products they purchase. Most buyers of FMCG-market are very conservative in giving preference to one and the same brands (Mohr, 2000). For example, today most buyers choose cell phones by their color and shape, rather than because of technical characteristics, although until recently these people did not believe in the usefulness of the phone and basically did not buy it. Selling products to conservatives, companies face the fact that at this stage all the technologies are similar and competitive differences are minimal. Companies still have to be creative in design, small modifications, and service development. This seems to be a paradox: conservatives need to sell creatively. On the other hand, according to Moore (1991), the fact is that the process of innovation does not end after overcoming the chasm, but simply its essence is changing. At the early stages, it was connected with the essence of technology, and later with the appearance of the product. Conservatives do not need new technology, they need superficially attractive technology; they welcome only two changes in the product: when it gets cheaper and when it becomes seemingly more attractive. Therefore, a more advanced manufacturing technology is needed to make it cheaper, and the efforts of marketers to make it more vivid. On the whole, the more mature the market becomes, the less the essence of technology changes. Here automobile can be a good example. The majority of innovations are connected with style, interior and decoration of the car, aimed at making it more beautiful and comfortable, at reducing its size and price (Mohr, 2000). For example, the Chinese offered Chery, which will cost about $ 10Â  000 in the USA, while Mercedes and BMW are focused on comfort: climate control, leather seats, automatic doors and stuff. But all this does not deal with technologies; it is rather a supporting innovation. Such innovations make the existing products better, but do not create new technologies and do not change anything in their essence. As a result, the product becomes more convenient to consume. During most of the products life cycle the innovations are supportive, while disruptive innovations are much less common. Surely, in the world of high-tech, they should occur permanently, but now the technology as such becomes more mature and the intensity of intervenient innovations declines. Moore also says that the model of disruptive technologies in high-tech should also be interesting for other industries. The logical question is if principle of turning market will work for those who do not work in IT, where the author drew inspiration for his book. No less logical question is whether once turned over the market can make a turn again. The answer to both questions is yes. First, IT market is just one of many markets in the world, and it would be strange to consider it an exception to the rules. Digital technologies have transferred significant gaps to the entertainment industry. When Sony created the videotape recorder, people became accustomed to viewing home videos. In finance and airline industry, the effect of interruption can be seen today in the decentralization process and the change of aviation model. Thus, traditional carriers adhere to the nodal model, with several towns through which they conduct their main operations. The nodal model is good for long hauls, but for short distances is much more convenient to fly from point to point. Young companies like Southwest Airlines have adopted cost-effective aircrafts, which are easy to fly at medium distances. As a result, their clients were able to fly without transfers. Big companies have not noticed this niche and now its captured by small entrepreneurial companies, which is a real breakthrough. The second question is much more interesting, because a developing company will at all times meet on its way markets in both states. Moreover, it is constantly working in a situation where both types of market are taking place in one and the same market. For example, any seller of any goods in retail outlets is simultaneously working with both types of market. For those networks that are important in terms of sales and product image (class A network) the seller selects a special team, which is occupied by only the satisfaction of the vagaries of purchasers of such networks (All-For-One market). For all other networks that do not bring considerable profit, the seller holds a general division (One-For-All market). Thus, drawing out practical advice from Moore, in order to obtain maximum profit from both types of markets, a company has to divide its sales into two parts in compliance with the type of market. These departments should also be divided geographically, then the sales are to grow significantly in at least 3 months. However, the markets should be divided accurately, as the incorrect operation cannot contribute to the development of sales. If it turns out that one of the markets is just a tiny fraction of companys turnover, it should be eliminated in order to concentrate on the remaining market and increase it at times. Nowadays, it rarely happens when a bestseller contains practical, applicable to life lessons. Geoffrey A. Moores Crossing the Chasm is surely one of such rare works; it teaches both IT-companies and non-high-tech sector to separate markets and manage the gap when shifting between their types.