Dominozz Pizza Research Paper Essay

Founded: In 1960 by Thomas S. Monaghan in Ypsilanti, Michigan. Ownership: In December 1998, investors, including funds managed by Bain Capital Inc. , a leading private equity investment firm, together with management and others, acquired a 93% stake in the Company, which was formerly owned by founder, Thomas Monaghan and his family. Description: Domino’s Pizza has been dedicated and committed to quality service, product and delivery excellence for more than 40 years, making it the world leader in pizza delivery. Domino’s is the largest privately held restaurant chain, and the eighth largest of all restaurant chains in the world. Products: Domino’s Pizza offers Crunchy Thin Crust, Ultimate Deep Dish and Classic Hand Tossed pizzas with a number of regional toppings. Side items include Domino’s Bread Sticks, Double Cheesy Bread, CinnaStix and Buffalo Wings. Beverages consist of icy cold Coca-Cola products. Stores: Domino’s Pizza operates a network of 6,977 owned and franchised stores in the United States and 64 international markets. Employees: Over 120,000 associates are employed by Domino’s around the globe, 15,000 of those are corporate employees, of which 550 work at the worldwide headquarters in Ann Arbor, Michigan. Each Domino’s store employs 15-30 part-time and full-time individuals Officer’s: David Brandon, chairman and chief executive officer Jim Stansik, special assistant to the CEO Harry Silverman, chief financial officer and executive vice president, finance/administration Tim Monteith, chief information officer Hoyt Jones, executive vice president, flawless execution-franchise stores Patrick Knotts, executive vice president, flawless execution-corporate stores Patrick Doyle, executive vice president, Domino’s Pizza International and acting executive vice president, build the brand Mike Soignet, executive vice president, maintain high standards Tim McIntyre, vice president, corporate communications Elisa D. Garcia C. , executive vice president and general counsel Patti Wilmot, executive vice president, people first. National Charity: In August 1998, Domino’s Pizza began a long-term relationship with Easter Seals, which has become the corporation’s first national charity of choice. Through this alliance, Domino’s is dedicated to helping children and adults with disabilities and their families. Distribution: Through its network of 18 domestic distribution centers, Domino’s Pizza Distribution regularly supplies more than 4,600 pizza stores with more than 150 products, ranging from dough to pizza boxes. The number of products offered by DPD continues to expand. Similarly, the ongoing demand for new technology and basic equipment is provided by DPD’s Equipment & Supply division, which offers items such as make lines, crew uniforms and ovens as well as merchandise support for national promotional programs. Industry: Pizza is a $30 billion per year industry. Approximately 3 billion pizzas are sold in the U. S. annually through 61,269 pizzerias. Each man, woman and child in America eats an average of 46 slices (23 pounds) of pizza a year. Pepperoni is America’s favorite topping (36% of all pizza orders); approximately 251,770,000 pounds are consumed each year. Inovations: Domino’s HeatWave hot bags were introduced in 1998. Each heated hot bag contains a patented heating mechanism warmed via electricity. Once unplugged, this technology keeps the pizza oven-hot during a normal delivery. The outer material of the bag is made with water-repellent nylon rather than the vinyl material previously used. Inside the bag is 3M Thinsulate insulation, which eliminates unwanted moisture, keeping the pizzas both hot and crisp. To allow Domino’s stores to concentrate on making and delivering pizzas, Domino’s developed a central commissary system. This relieves stores from long hours making dough, grating cheese and preparing toppings. Today, Domino’s Pizza Distribution provides high quality dough and ingredients nationwide, keeping the company’s pizza consistently delicious. Other pizza and fast food companies in the U. S have adopted this same system. Fresh and delicious pizza has always been a priority at Domino’s Pizza. Domino’s was the first to use a fiberglass tray for dough, which simplified dough handling and ensured better preservation. Domino’s was the innovator behind the sturdy, corrugated pizza box, which keeps moisture from weakening the box, while preventing cheese from sticking to the top during delivery. A delicious, crisp crust is one of the most important parts of the pizza. In search of the perfect crust, Domino’s developed the pizza screen, a mesh tray that helps cook pizza crust more evenly than a tray made of wood or stainless steel. Today it’s hard to miss pizza delivery cars — thanks to Domino’s Pizza. Domino’s invented the 3-D car-top sign, which is currently used by a variety of industries, including taxis and driving schools Company history. In 1960 Tom Monaghan and brother James purchase â€Å"DomiNick’s,† a pizza store in Ypsilanti, Michigan. Monaghan borrowed $500 to buy the store. Then in 1961 brother James trades his half of the business to Tom for a Volkswagen Beetle. By 1965 Tom Monaghan is sole owner of company, and renames the business â€Å"Domino’s Pizza, Inc. †Next Tom opens the first Domino’s Pizza franchise store opens in Ypsilanti, Michigan in 1967. Then in 1968 the company headquarters and commissary are destroyed by fire, also the first Domino’s store outside of Michigan opens in Burlington, Vermont. Then in 1975 Amstar Corp., maker of Domino Sugar, files a trademark infringement lawsuit against Domino’s Pizza and then in 1978 the 200th Domino’s pizza store opens. Now it is 1980 and a Federal court rules Domino’s Pizza did not infringe on the Domino Sugar trademark and Tom gets to keep his trademark. I n 1983 Domino’s first international store opens in Winnipeg, Canada. The 1,000th Domino’s store opens. By 1984 ground is broken for new headquarters, Domino’s Farms, in Ann Arbor, Michigan. Then in 1985 Domino’s opens a remarkable 954 units, for a total of 2,841, making Domino’s the fastest-growing pizza company in the country. Then Tom decides he needs to try something new so in 1989 he decides to introduce the Pan Pizza, the company’s first new product. Domino’s opens its 5,000th store. In 1990 Domino’s Pizza signs its 1,000th franchise. In 1992 Domino’s rolls out bread sticks, the company’s first national non-pizza menu item. In 1993 the new Crunchy Thin Crust pizza is rolled out nation-wide. The Company discontinues the 30-minute guarantee and re-emphasizes the Total Satisfaction Guarantee: If for any reason you are dissatisfied with your Domino’s Pizza dining experience, we will re-make your pizza or refund your money. In 1994 tom has a big because Buffalo Wings are rolled out in all U. S. stores, the first Domino’s opens in Eastern Europe in Warsaw, Poland and the first agreement to develop Domino’s Pizza in an African country was signed by Specialized Catering Services, Inc. In 1995 Domino’s Pizza International division opens its 1000th store. First store opens on African continent, in Cairo, Egypt. Another big year for the company is 1996 when Domino’s launches its web site on the Internet (www. dominos. com). Domino’s rolls out flavored crusts, for limited time only promotions, nationally for the first time in company history. The company reaches record sales of $2. 8 billion system-wide in 1996. In 1997 Domino’s Pizza opened its 1,500th store outside the United States, opening seven stores in 1 day on 5 continents consecutively. Domino’s Pizza launched a campaign to update the company logo and store interior with brighter colors and a newer look. In 1998 Domino’s launches another industry innovation, Domino’s HeatWave, a hot bag using patented technology that keeps pizza oven-hot to the customer’s door. Domino’s Pizza opens 6000th store in San Francisco, California in April. Domino’s Pizza founder, Tom Monaghan, announces retirement and sells 93% of Company to Bain Capital, Inc. In 1999 David Brandon is named Chairman and Chief Executive Officer of Domino’s Pizza. Domino’s Pizza announces record results for 1999. Worldwide sales exceed $3. 36 billion. Revenues increased 4. 4% over 1998. Now this brings us to the year 2000 where Domino’s Pizza International opens its 2000th store outside the United States. Domino’s Pizza celebrates 40 years of delivering pizza and innovation to homes around the world. During the past four decades, Domino’s has paved the way for businesses involved in food delivery, employing practices that have set the standard in the industry. Domino’s Pizza announces record results for 2000. Worldwide sales exceed $3. 54 billion. Revenues increased 5. 3% over 1999. Mission Statement Since 1960, Domino’s Pizza has been committed to providing our customers with the best-tasting, highest-quality pizza, using only the finest ingredients, and delivering it directly to their door. That is what made us the world leader in pizza delivery. We continue to focus on our Vision: Exceptional People on a mission to be the best pizza delivery company in the world. (Domino’s) Company Mission Good pizza. It’s our mission. And while it may seem like a simple one, the lengths we’ll undertake to fulfill it are anything but. We hand-stretch our crust for maximum flavor. We pioneered the Domino’s HeatWave? bag so our customer’s pizza is always delivered hot. And we use only the freshest, highest quality ingredients. (Domino’s) But at Domino’s, we’re not only dedicated to quality service, product and delivery; we’re dedicated to our staff. Nearly all Domino’s Pizza franchise owners started out as Domino’s store employees. With focused vision, hard work, and at least one year’s service as store manager, you can have the opportunity to make the leap into franchising with one of the most innovative and exciting companies in the fast food industry Founded in 1960, Domino’s makes and delivers nearly 6 million pizzas a week in over 60 countries around the world. Domino’s has more than 6,000 stores (85% of which are owned by franchisees) with 1999 worldwide sales of more than $3. 3 billion. As a franchisee, you’ll have a positive influence on people lives and the community you serve. But owning a Domino’s Pizza store isn’t for everyone. It’s a lot of hard work. It is for the strong, determined individual who understands our mission and knows what it takes to make it come true. (Domino’s) Social Responsibility Domino’s Pizza, founded in 1960, is the recognized world leader in pizza delivery. Domino’s Pizza operates a network of company-owned and franchise-owned stores in the United States and international markets. But Domino’s isn’t just about delivering; it’s also about giving back to the community. Domino’s Pizza believes that an essential component of its corporate responsibility is to provide support to charitable organizations that benefit the communities where our employees and customers work and live. Headquartered in Ann Arbor, Michigan, Domino’s is committed to supporting initiatives and causes in its hometown while also participating in national programs that align with our vision, guiding principles and strategic focus. (Domino’s) In February 2001, Domino’s Pizza announced an exclusive national partnership with the Make-A-Wish Foundation. Domino’s Pizza has made a corporate decision to devote our philanthropic resources exclusively to the Make-A-Wish Foundation. Domino’s has made an ongoing commitment to Make-A-Wish to deliver wishes to children with life threatening illnesses and to assist Make-a-Wish with their benevolent volunteer efforts through heightened awareness and direct contributions. The Make-A-Wish Foundation grants the wishes of children with life-threatening illnesses to enrich the human experience with hope, strength and joy. Make-A-Wish is the largest wish-granting organization in the world, with 81 chapters in the US and 22 international affiliates on five continents. Since its founding in 1980, Make-A-Wish has granted a wish to every qualified child referred more than 83,000 wishes to children around the world. Wishes are granted through private donors and more than 20,000 volunteers worldwide. (Domino’s) In addition to being civic-minded, Domino’s Pizza is also concerned about its team members’ needs. In 1986, Domino’s Pizza Partners Foundation was established to assist employees in time of special need or tragedy as a result of natural disasters, unexpected afflictions, on-the-job accidents, and other emergencies. The Foundation’s primary support comes from voluntary employee payroll deductions, company functions and special events. Since its inception, Domino’s Pizza Partners Foundations has helped thousands of Domino’s Pizza employees and their families with financial, emotional, intermediary and advisory assistance. (Domino’s) Centralization Domino’s Pizza has a highly centralized when it comes to what the franchises will sell and how they will sell it. All the decisions concerning food products and ingredients and what new products will be offered all come from top management and the stores have to follow this structure rigorously. Now on the other hand when it comes to training of the employees things are quite different. At Domino’s Pizza, 85 percent of a non-supervisory employee’s training occurs on the job and is proved by the store manager or franchise owner. Each employee is trained to fill most of the shop’s five jobs, (order taker, pizza maker, oven tender, router and driver), which helps during rush hours when a crewmember does not appear for work. Performance standards are demanding; the order taker must answer the call within three rings and take the order within 45 seconds. The pizza maker must make the pizza and place it in the oven within one minute. The oven tender must take one pizza out while putting another I within 5 seconds and cut and box the pizza by the count of 15. Although the bulk of training is on the job far away from corporate headquarters, Domino’s corporate training staff maintains some control over training by providing a variety of training aids. The staff makes available to shop management 14 videotapes on such tasks as delivery, dough management, image, and pizza making. Each shop also displays corporate-produced training posters with job hints and reminders throughout the work place. Store managers are trained by a six-week course, typically a six-month MIT program that includes coursework in pizza dough management, people management, cost management, and how to conduct on the job training of hourly employees. Manager trainees progress through five levels of training with higher performance requirements and more responsibilities at each level. On the job training is an important part of the training program. Many franchise owned and all company owned stores send management trainees to the regional training center for classes taught by corporate trainers; however management training often is decentralized, with franchise owners conducting the MIT courses themselves. Franchise owners must be certified to conduct the formal courses for their manager trainees. The certification process requires that the owner complete a â€Å"Training Dynamics† course on how to teach manger trainees; observe certified teachers training the MIT series of course; and then co-teach the series with a regional trainer, who must approve the franchisee’s performance. () The quality of training provided by the franchise is enhanced by the owners substantial in store management experience. With all of these different ways of training in the end it is still a decentralized structure. Activities Domino’s pizza is having a little problem with their turnover rate, which is now in the vicinity of 300 t0 400 percent with employee but a lot less managers. Therefore managers do all they can do to keep there young employees happy, one of the reasons the turnover rate is so high is because of the age of the average employee is 18 to 21. The culture that surrounds Domino’s is a young one with open minds for new ideas; it also is one for caring and giving for and to the community. This culture was first started by Tom Monagham in 1960 and is now carried on by CEO David Brandon. Technology has played a major role in Domino’s since the beginning, with help of computers so that your address can be pulled by just the use of a telephone number, the caller id system which is now linked to the computer so address is automatically pulled up when you call in and the heatwave bag which allows the pizza to be hotter when it arrives at your door. All of these things have allowed Dominos to adapt to the times and keep it a strong running company. Also there new ideas on food products and menu items have also allowed them to stay head of the game making them a top competitor in there market. The efficiency with which Dominos run is remarkable in the aspect of time but if you look at there turnover rate it is something that might need some work, however dealing with people of that age group it is hard to get anyone to commit to delivering pizzas for life. In conclusion Dominos is a company that started in 1960 with a single store and went public and now has stores all over the world. This once little pizza shop is now global and has met up to all the challenges that face a company when it’s growing stages. The culture is one that stood the test of time so far and has a great look for the future. With all of this in mind Domino’s Pizza is a company that we will see for along time into the future.

Reign of God Essay

I have read chapter three in Reign of God in its entirety. In chapter 3, it described about God’s character and the basis of God’s kingdom. Everyone knows that the father of Jesus Christ is God. And God has relation to Jesus identifies him as God to us. So if we want to know God, we need to go to Jesus first. To summarize what is the most important statement in the Bible is â€Å" God is love. † Love is the first and the last word in the biblical portrait of God. Some people may think that love is the most difficult things to learn in our entire life. But God had already told us what love is though the bible. Love is the essence of God’s nature. Love is what it means to be God. To the english word â€Å"love† ,it covers an enormous range of meaning. We use love to describe our attitude toward everything from our favourite food, people that important to us and also things that we treasure. Nowadays, we use love and we say it with no any condition. But is there anyone can able to be uncondition to love others? Maybe yes, but I can sure about that, there are only a few amount of human in the world. However, God can. He love the world that he gave his one and only son to us. This is how God showed his love amoung us: He sent his one and only Son into the world that we might live through him. This is love: not that we loved God, but that he oved us and sent his Son as an atoning sacrifice for our sins† (1 John 4:9-10). God’s love is very powerful and tenacious. It is powerful enough to let him forgive our sins. People often wonder how the same being can be at once a compassionate, forgiving parent and a stern judge og evildoers. Since God’s love is unconditional, so he can accept our sins and give a second chance to amend ourselves.

Compare and contrast the political views and public policies of Essay

Compare and contrast the political views and public policies of Alexander Hamilton and Thomas Jefferson - Essay Example By the time certain economic decisions and policies were deliberated upon, taking foreign affairs to account, these revolutionary U.S. leaders further acquired opposing perspectives on addressing how the national debt should be managed. According to Hamilton, national debt ought to be kept permanent for the sake of a healthy economy for the nation and that such debt must be paid off by the government to the party in current possession of the certificate at the time. On the other hand, Jefferson contradicted the permanence to national debt and asserted that it should be the original bearer of the certificate who must get paid off, knowing that this would be advantageous to the common citizens. However, the following enactment approved the proposition made by Hamilton instead and the affluent became even wealthier, having purchased the certificate from their common counterparts.

Software Architectures Essay Example | Topics and Well Written Essays - 1000 words - 1

Software Architectures - Essay Example The main content areas of an information system are data, process, infrastructure and organization. System design involves reviewing each of the content areas in order to solve the client’s problems when it becomes operational. Infrastructure defines the hardware and software components as essential to facilitate performing the activities of the system i.e. data storage and servers. System design involves modification of an organization in order to match the functioning of the system. It includes identifying persons who update, create or delete data. The data in the CDM are converted to data design. The process of system designing involves specifying the detailed system logic. This consists of elements such as the computers for database management systems, servers, telecommunications, and programming languages. Customer’s procedure, standards and policy manuals may bring constraints to the system design.11 The infrastructure design should specify the development environment. Critical issues under infrastructure include the following. †¢Language(s) of the system. This concern specifying what language and design approach will be is used to develop the system. Include versions, i.e. The system is a Client/Server system. The client wants Visual Basic language. The system will be installed in the computer using a run-time version †¢ Host environment. Specify what machines will be used. Include how the machines will fit into the infrastructure, i.e. the system will be installed in the MIS Division, which that are attached to the College of Computer LAN. These machines have a processor, 64MB of RAM and 500MB of disk storage. †¢ Network. For systems operating over a network it is always vital to specify network requirements. The issue is not in changing the network, but the impact of the new system. Large systems require new links and components. The design specifies the client, server, LAN and

An External Cost Is a Produced-to-Producer or Consumer-to-Consumer Cos Assignment - 7

An External Cost Is a Produced-to-Producer or Consumer-to-Consumer Cost - Assignment Example Through profits, businesses have the capacity to reward its employees, who in turn get the ability to cater to their needs. For instance, through online jobs, I find some extra income for my upkeep. The other principle is economic viability. This enables businesses to have the capacity to cater for the needs of individuals in the society in future. For this to occur, businesses need to avoid the depletion of their resources and save for future usage. 5. The life cycle costs allow a business to undertake a lifetime comparison of the available options in making a purchase. This allows the conversion of future costs to their present value to account for inflation, and that has the lowest cost in its lifecycle is the most viable. 6. Effective EPR policies ensure that businesses have a liability of future external costs that for instance, relate to land contamination. Companies will internalize the costs in the form of business decisions that results in the pricing of raw materials commercially. This leads to the reduction of the external costs. 9. Ecological footprint relies on the fact that the earth produces all the renewable resources. It is the reliability of such resources for the production of goods and services, in order to sustain a particular lifestyle. 10. External costs lead to an increase in credit risks that cause a decrease in opportunities due to the limitation of resources such as bank loans. Therefore, businesses have a constraint in competing effectively in the market. 12. Third-party certifiers subject the products of a given company to sustainability tests. They determine the sales of certain products due to strict conditions that only certified products should be available in the market. 13. It is cheaper to purchase products that have negative impacts on the environment, as compared to the products that have a less environmental impact. Businesses do not have a strict obligation to pay the taxes on their operations on a full scale. Therefore, it has been hard to define equity in most businesses and this has led to the maintenance of external costs.

Link between ADHD and Criminal Behavior Research Paper

Link between ADHD and Criminal Behavior - Research Paper Example Many researchers have indicated that there have been continued link between psychiatric disorders and antisocial disorders in children. Since ADHD starts early in children, there is the possibility of this condition extending into adult-hood and breed criminal behavior. Research has also termed this disorder as the developmental forerunner of later disruptive behavior and criminality. In addition, there is a connection between ADHD and conduct or personality disorders. It is evident that ADHD causes this personality and conduct disorders which later leads to criminality. For instance, recent studies performed on prisoners in western nations have indicated that approximately half of the inmates tested positive for the diagnoses of serious antisocial personality disorder or conduct disorder when imprisoned. In addition, enduring evaluation researches have established that attention-deficit/hyperactivity disorder (ADHD) merged with conduct disorder is a forerunner of later criminal beha vior (Mordre et al., 2011). Ghanizadeh et al. (2011) portray three major areas, which describe the clear connection of ADHD with criminal behavior. In the first premise, they claim that ADHD might lead to delinquent activities consequently attracting imprisonment. The second premise entails the relationship between ADHD and conduct disorder. In this regard, they note that there is a strong connection between the high rate of conduct behavior and the prevalence of ADHD. This means that most patients with ADHD show symptoms of conduct disorder, which primarily indicates the onset of criminal behavior. The third premise is that imprisonment and offender behavior may lead to ADHD and conduct disorder.

The philosophy of nonviolent protest Term Paper

The philosophy of nonviolent protest - Term Paper Example This was substituted with active voices and progressive actions that led to change against injustices. The basis of nonviolent protest came from the philosophies of Henry David Thoreau. This followed with several political and cultural leaders that followed the main philosophies of Thoreau and which focused on creating higher levels of equality and freedom for the cultural and social aspects of society. More importantly, each of these leaders was able to create a voice that was based outside of violence and which instead gained prestige from the use of actions and alternative forces to change the current political environment. The basis of the philosophy of non – violent protest was known to come from Thoreau’s book, Civil Disobedience, which was written in 1848. The main concept that is pointed out in this book is based on the current government and the injustices and lack of freedom that came from policies of the government. Thoreau points out that any violent protests are an arm of the government and represent a sense of injustice that is associated with politics. Thoreau believes that the use of violence and the army is one that creates a lack of integrity from the government. More importantly, Thoreau points out that the army alone is one that eventually leads to the inability for a country to be free or to function through the democratic ideals in which it is founded on. The challenge that Thoreau places is to create a better environment, which is specifically based on adding in integrity and an initiation to end violence through the country. The first ideology that Thoreau gives with the basic concept of the government and using non – violent protest is based on the moral obligations that are in the government. Thoreau believes that the use of violence is one that initiates a lack of integrity and the inability to have responsibility to humans and life. More importantly, the use of violent force doesn’t allow men to act with

Video Business Case Report Study Example | Topics and Well Written Essays - 1500 words

Video Business Report - Case Study Example The company should look at improving the liquidity position. It can be done thorough reducing the operating cost. It can improve the valuation of the company by increasing the revenue of the company. acQuire can improve the profitability by reducing the operating cost and overhead. This will improve the production efficient of the company. It can decrease the debt equity ratio by in increasing the profitability. It will increase the cash position ultimately and lead to increase of liquidity position of the firm. The company can increase the current ratio by reducing the operating cost. It will ensure that the production efficiency of the company improves. This will have a direct impact on the profitability also. The board now wants to develop a sustainable strategy so that it can avid the repeat of the global financial crisis in 2008. For this the company should increase the core equity capital and lower its debt ratio. With more debt ratio the company will be in obligation to pay of f their dues else it can go bankrupt. The company tries to lower its prices of the products and reinvest its profits back to the company instead of giving dividends to the shareholders. It will help the company in maintaining liquidity position so that they don’t have to face cash crunch when credit in the market dries up. Introduction acQuire Technology Solutions is an Australian-based company which develops and delivers Geoscientific Information Management System (GIMS) called â€Å"acQuire†. acQuire Technology solutions is facing many issues in its operation. The profitability of the company is decreasing from fiscal year 2012 to 2013. The forecasted profit of the company is also decreasing. The main reason for decrease in profitability is the increase in operating expenses. Hence the company is not being able to maintain its cost down. The current ratio of the company is increasing which shows that the company’s liquidity position is improving. Share price o f the company has decreased from 2012 to 2013. This is because the net profit of the company is decreasing. The share profit of the company is also decreasing. There has been huge decrease in share profit from $ 792,551 to $ 319769. It is also predicted that the share profit of the company is also decreasing. The liquidity position of the firm is improving while the debt ratio of the company is decreasing. The company is using its cash balance to pay off its current liabilities. Foreign exchange gain of the company for the financial year 2013 was $ 26, 151 as compared to $ 93,960 for the financial year 2012. It indicates sufficient drop in profit for the company. Again it has been projected that the company will not earn any foreign exchange gains or losses. Discussion Decision Criteria acQuire Technologies Solution is facing a number of problem. The share of price of the company is decreasing because of loss of profitability. The current asset ratio of the company is increasing fro m 1.12 to 1.26. The company should look at improving the current ratio. Debt ratio of the company has decreased from 1.74 to 1.09. The ideal value of this debt ratio is 0.5. This shows that the company has high debt ratio. The company should look at decreasing the debt ratio. The profitability position of the company is decreasing. The net profit margin of the company has decreased from 11.3 % in FY 2012 to 4.8% in FY 2103. Again it is estimated that the ratio will further decrease by 2.9% in FY

Life in the Slums Essay Example for Free

Life in the Slums Essay Life In The Slums Plan Intro: Life is tough living in the slums, but Im used to it now so its not as hard as it was when we first moved here. Especially considering we were looking to come to the city for a better lifestyle, and to have a better chance for my parents to get a job, and for my siblings and I to go to school. My name is Anikal and Im 13, I have 3 older brothers, and one younger sister. Para 1: living conditions and hygiene and population density Moved to Mumbai 4 years ago looking for a better life- ended up in slums It is basically a tip where we live Its so crowded- 56% of residences have 3 or more people living in a single room Its so dirty, it smells (although we are used to it now) People evacuating their bowls in the middle of the streets- 5 million residents dont have access to toilets We dont have showers we have to find little pools to clean off in- theyre generally dirty water It is a tough life to get used to- nothing is easy We were playing cricket on a big stretch of concrete and the police came chasing after us- we had to run and weave through the slums Para 2: work and employment opportunities and school and exploitation of children We originally moved to the city for the reasons of work and schooling My siblings and I get to go to school twice a week as thats all we can afford We all have to work to get enough money for our family to eat, and to go to school It can be tough labor a lot of the time for little amounts of money We are working towards starting a business selling stuff- we arent sure what yet There arent many opportunities in the slums for work, so you have to take anything you can get We thought there would be a lot of opportunities in Mumbai There are in the main city, but very few in the slums We have to go around asking everyone if theres anything we can do for them to earn a little bit of money We dont get to keep that money for ourselves, we give it to mum and dad, and they use it for all the things we need Para 3: buildings and structures and infrastructure and police and security There are so many buildings in a small area in our slum Over half the population lives on 12% of the land When you are walking around there is only a small gap for sunlight to get through All the buildings are right together and the roofs hang over the footpath- if you can even call it a foot path There are some buildings that are more than one story, but they arent very safe For some people it doesnt matter how unsafe it is, they just need somewhere to live The security isnt all that great in the slums The police are sort of against us, when ever we go places we arent supposed to theyre straight onto us and will chase us for ages With people in the main city, they will politely tell them off, but us, straight into a full chase. Our house is substandard When it rains torrentially it sometimes leak We have hardly any access to hospitals and medical attention Conclusion: Life in the slums is tough. We moved to the city with the intention of starting fresh, and having more opportunities but we ended up in the slums. Weve been here for four years and its been hard. Im used to it now though. It is very unhygienic and packed. The population density is ridiculous. Its been a hard run in terms of work and school, we only get a small education, and dont have a job, we just have to try help out with same labor work for some money. There are so many buildings in such a small area, and we dont have any security, and the police are just out to catch us doing the wrong thing. Our house is very small and squishy, but its the life Im now used to, whether I like it or not, its how it is. Essay Life is tough living in the slums, but Im used to it now so its not as hard as it was when we first moved here. Especially considering we were looking to come to the city for a better lifestyle, a chance for my parents to get a job, and for my siblings and I to get an education. My name is Anikal, Im 13, I have 3 older brothers, and one younger sister. Im live in the slums of Mumbai. My family and I moved to Mumbai looking for a better lifestyle, but ended up in the slums pretty quickly. It is basically like a tip where we live, its terrible. It is so crowded, people everywhere, and in 56% of the residences there are three or more people living in just one room! It is all so dirty, and smells (although we are used to the smell now). People just go to the toilet in the streets, 5 million people dont have access to toilets, and in Dharavi there is one toilet per 1440 people. We dont have access to showers- not many people do, but we have to use the water we have, or find pools of water we can clean off in. Its a tough life to get used to in the slums, nothing comes easy. We were just playing cricket out the back of the slums on the concrete on someone elses land, but no one was there, we werent affecting anyone, and the police just chased us on motorbikes with sticks and all, and we had to run back into the slums, on the roofs trying to get away. We eventually got away then ran back the other way passed them on the roof, we saw them though the gap in between two houses. We originally moved to the city of Mumbai in search of better work and schooling opportunities. My siblings and I only get to go to school twice a week, and get a small education as thats all we can afford on our very small budget. My whole family has to work as much as we can helping people out, doing laboring work just to get enough money for the things we need. We are working towards trying to start up our own small business, and hopefully then have a steady income that we can live off. There arent many opportunities in the slums of Mumbai, so we have to take any work we can get. There are many opportunities if youre in the main part of Mumbai, but unfortunately were in the slums. My siblings and I dont get any pocket money, any money we go out and earn goes straight to our parents so that they can buy all the things we need, like food. There are so many buildings and other structures in our small area of the slums. It is packed, over half of the population lives on only 12% of the land. When you are walking around through the slums, there is only a small gap for any sunlight to get through between the roofs of buildings, over the footpaths- if you can even call it a footpath. There are some buildings in our slum that are more than one story, they arent very safe though, but for some people, thats their only option. We dont really have any security in our slums, and the police are just out to catch us, whenever we are doing anything wrong, even the smallest thing that would normally just be a warning for others, they chase us all through our slums trying to catch us. Theyre just constantly out to get us. Our house is very substandard, its just like a little hut, with two rooms that were all squished into. When there is torrential rain it can sometimes get in, but its usually pretty good. We have hardly any access to any sort of medical care, and hospitals, so when we get sick or injured, we just have to hope its not too bad and that we can get through and come out better in time. Life in the slums is tough. We moved to the city with the intention of starting fresh, and having more opportunities but we ended up in the slums. Weve been here for four years and its been hard. Im used to it now though. It is very unhygienic and packed. The population density is ridiculous. Its been a hard run in terms of work and school, we only get a small education, and dont have a job, we just have to try help out with same labor work for some money. There are so many buildings in such a small area, and we dont have any security, and the police are just out to catch us doing the wrong thing. Our house is very small and squishy, but its the life Im now used to, whether I like it or not, its how it is. Bibliography: Living conditions in the slums. Sites.google. N.p., n.d. Web. 8 Apr. 2013. . Marotta, Stephen. Slums mumbaiindias jimdo page!. Introduction mumbaiindias jimdo page!. N.p., n.d. Web. 7 Aug. 2013. . Slumdog millionaire. Dir. Danny Boyle. Perf. Jamal Malik. 20th Century Fox Home Entertainment, 2009. DVD. hallam, james. Dharavi Wikipedia, the free encyclopedia. Wikipedia, the free encyclopedia. N.p., n.d. Web. 8 Aug. 2013. .

Bmw Films Essay Example for Free

Bmw Films Essay The primary issue faced by Jim McDowell is what to do for his next marketing campaign. He will need to decide what direction BMW will take in order to stay current in the target market and position the brand as the leader in the luxury car industry. A sub issue that Jim is facing is that in order for BMW to stand out compare to the competition, it must be at the forefront of the marketing trend. There is always pressure on innovative marketing campaigns as a bad campaign can lead to severe damage in the company image and reputation. Decision Alternatives. There are a number of alternatives that Jim faces when deciding in what direction to move with the BMW marketing campaign. Develop more short films and build a big series out of it. Develop a full length movie for the theatres Do nothing to the existing campaign and move on to develop a new campaign To continue to use the existing BMW films plus developing a new campaign Creating new films on the heels of the original films plus developing a new campaign Develop a full length movie plus developing a new campaign In order to decide the best alternative it is important to look at some key decision criteria. In this case the important factors would be: delivery time, risk, cost, competitive advantage, ease of implementation. Analysis of Industry In the luxury car segment, BMW and Mercedes have stand strong against the strong competition from Japan like Acura, Lexus, Infiniti. In year 2001, BMW is second best luxury car seller, just behind Lexus amount the other ten major luxury brands. However, BMW only ranked 8th in media expenditures, which again proved the great success on their innovative campaign. In terms of customer loyalty, luxury brand customers do tend to stay among the top brands and are very loyal. There are always customers who switch from BMW to Mercedes or the other way around. Since BMW has the competitive advantage of a younger clientele, it is very important for BMW to create marketing campaign to young adult so they can look forward to own a BMW when they can afford one. Analysis of Company Evaluation of Alternatives Alternative #1, 2, and 3 should only be considered as a short term alternative that can achieve quick beneficial results with no long term prospects because all the alternatives evolve around the same film concept, which eventually will wear out and target audience will not be interested in it anymore. Alternative #4 takes into account with BMW’s long term goal, to be the leader in the industry with innovative campaigns. However, developing a new concept takes time and research before implementation, therefore some immediate alternatives needs to be done before the new campaign kicks in. Alternative #5, 6, or 7 will achieve that goal. Alternative #5 Introduce the BMW films to new markets that may have missed the online films during the campaign period will enable BMW to entice an entirely new segment. By showing the films throughother mediums, BMW will be able to reach a wider audience plus raising the brand awareness. Since this campaign is so successful and unique, BMW can also produce DVD and make itas a collectible item. This alternative is easy to implement, low cost to run, low risk as the campaign is already running with huge success with good reputation. However, other companies may copy the idea and there is a chance that BMW will lose its competitive advantage as the films are getting overly exposed to the original audiences that BMW targeted during the initial campaign period. Therefore, developing another campaign while this is running is necessary in order to achieve BMW’s long term marketing goal. Alternative #6 The other option would be to follow up with another series of films on the heels of the original films. BMW would want to keep the number of films low to try and blend them into the successful original films and not to market them as another series of short films. This alternative will require some time to prepare, and the cost will be much higher in comparison to Alternative #5, which will make it harder as BMW will need more resources in creating a new campaign at the same time. It is easy to implement as all the ground works are in place from the previous films. However, this alternative will have a higher risk than other options due to the high anticipation of BMW to produce high quality films. If any of the film receives negative feedbacks, BMW will risk losing out on the campaign inwhole, plus the reputation of the series. BMW will still keep its competitive advantage with this alternative as they are still the one who leads the marketing trend. Alternative #7 Creating a full length movie can be the next big campaignfor BMW. It is a new approach and will make the brand stand out of all others. The target audience is also much wider in comparison to the initial campaign. It will take a long time to implement, and not as easy as short films because a full length film is more complicated in terms of plot and production. The cost will also go veryhigh that may use up all of BMW’s resources in marketing. It is a two sided sword because if BMW is not placed enough in the film there is no difference in doing product placement in the James Bond movie series; meanwhile if BMW is overly exposed in the film it may create negative feedbacks as it will look like an hour long commercial. The interest level of audience will also be much lower in watching a long commercial than a short film. Decision Criteria Chart Here is the chart for the best 3 alternatives: (X? low score, XXX? high score) Recommendation Based on the analysis above it is evident that the appropriate course of action is to utilize the existing movies in the short term while developing a new full scale marketing plan in the background. By utilizing the existing films BMW will be able to quickly get to market films that they have already completed. They will ride the coat tails of the internet marketing, however by introducing the films to another target markets, BMW will hopefully build on the impact created by the original films. There is relatively low risk to this model because BMW has already invested in the films and by using different mediums to convey their message it is likely that an entirely new market segment will appreciate the films as the original audience did. Although the potential payback may not as great as some off the wall innovative idea, the concept behind releasing the films to a different audience should allow more time and resources to develop another new campaign. If there are enough resources, BMW can also consider creating 1 or 2 more films to avoid losing the competitive advantage toward the target audience.

Relationship Between Developed and Emerging Stock Markets

Relationship Between Developed and Emerging Stock Markets Introduction Due to inclination towards liberalization and deregulation in the capital and money markets, global markets have tended to become highly integrated in recent times in case of developed as well as developing countries. There are many reasons as to why the linkages among the different stock markets should be studied some of the reasons are emerging markets have attracted a great number of foreign investors, removal of statutory controls over their capital market and foreign exchange, stock prices interconnection due to the global capital movements, regional policy and the presence of economic ties. Specialists of finance have given substantial attention to the linkages and the relationships between different stock markets, to explore and examine the potential benefits from international portfolio diversification. Most of the studies are done taking into account developing and emerging Asian markets. Interest of foreign investors have resulted in several fund management centres concentrating on Asian developing markets not only for the growth and development but also to diversify their risk. The aim of this paper is to study the relationship of developed and emerging stock markets. Literatures on the different prospects of stock market have been studied. Many researchers have focused on the integration among the stock market. While studying the literatures it has been seen that different areas are being covered and focused which includes dynamic linkages among stock market during pre and post Asian financial crisis and Russian financial crisis, effect of linkages on the portfolio diversification, effects of linkages on the daily stock prices and domination of developed markets over the developing markets. Further, examining of the empirical question in the literature on capital market integration between different economies is done. For the empirical analysis, data of twenty year for everyday closing stock prices of six indices have been taken from 3 January 1989 to 8 June 2009. Six indices are New York Stock Exchange (USA), London Stock Exchange (UK), Tokyo Stock Exchange (Japan), Bombay Stock Exchange (India), The Stock Exchange of Thailand (Thailand), Bursa Malaysia (Malaysia). In the econometrics literature, there exist a number of alternative methods to estimate cointegration. Econometrics techniques which are being used in this study are Augmented Dickey-Fuller test, Johansen’s cointegration test and Error Correction test. E-views software is used for the calculating the results. Empirical results obtained from the three test, it was found that time series are non stationary and null hypothesis is not rejected which suggest that they are highly cointegrated and to test whether any variations in one stock exchange can lead to fluctuations in other stock indices. Johansen cointegration test is conduct ed which shows that there is no evidence of cointegration between Indian stock index and other stock indices. Further, Error Correction test is conducted which shows that there is poor cointegration between Indian stock exchange index with other stock indices. Indian stock market appear to be least integrated with Malaysia, where as Malaysia stock market is integrated with all the other stock markets. Thailand stock market is seems to be more dependent on Japanese and Indian stock market than other stock markets. Little integration is seen between Japanese stock exchange and USA stock exchange. It is found that UK and USA are highly integrated. To conclude, stock exchanges of the developed economies are better cointegrated as compared to those of developing economies. Background What is stock market? In simple words stock refers to a supply. But in financial market terms, stock refers to the money which a company has raised. And the supply of the money comes from the people who invest in the company in hope that the company will make their money grow. Stocks exist because it enables the company to â€Å"sell† pieces of the business called as stocks (equity securities) in need of long term financing. When stocks are issued by corporations are owned by the public at large which includes both private investors and institution are said to be publicly held. A public place where things are bought and sold is called as Market. And the term stock market refers to a business where stock is bought and sold. Stock market can be splitted into two main sectors; the primary market and the secondary market. The primary market is the one where new issues are offered for the first time and primary market is the one where subsequent trading goes on. There are basically two types of stock namely common stock and preferred stock. A security which represents ownership in a corporation is known as common stock. Holder of the common stock has the power to vote and elect board members. If the company goes bankrupt, the common stockholder will not be paid until unless creditors, bondholders and preferred stockholders are paid their share of the leftover assets of the company. Where as, preferred stock is a stock which is issued when all the common stock has been issued. Preferred stock olders are given dividends. They have a preference that is why they are paid dividend before any dividends are paid to common stock holders. The stock market is not a specific place but still some people use the term â€Å"Wall Street† which is the main street in New York City’s financial district and it is referred to the US stock market. Why companies issue stock market and why people buy it? As every company wants to grow, so some owners build more factories and some develop new product which needs money. A company can actually get loan from the financial institution like banks but companies without going into debt by taking loans issues stock which raise money for the growth of a company. Only Business Corporation can issue the stock which has special legal rights and responsibility. A proprietorship or ownership cannot issue stock. A shareholder invests in a hope that company will grow and so will their money grow because if a company earns money, the shareholders will share the profits. There are different types of gains from the stock such as dividends, capital gains, short selling, risk and rewards for investing. Over the long term bases, investments in stocks have proven to be an excellent way to more than keep pace with erosive effects of inflation. Stock Exchange Stock market is an organised market for trading of stocks and bonds. These markets were originally open to all but now a days only members of the association can buy and sell directly and these members or stock broker can buy and sell for themselves or others by charging the commission for their provided service. A stock can only be bought and sold if it is listed on an exchange. There are stock exchange in all the financial centres of the world. Some of them are stated below; the New York stock exchange since 1792 which had the largest trading in the world of $7.3 trillion in 1998, Tokyo stock exchange, London stock exchange, Bombay stock exchange and NASDAQ. NASDAQ was the first exchange which recognised the role of electronics in stock market. History of the Stock Exchanges Japan In the decade of 1870s, introduction of a securities system initiated the public bond negotiation in Japan which resulted in the need of a public institution for trading and hence in May 1878, the â€Å"Stock Exchange Ordinance† was in enacted followed by establishment of Tokyo Stock Exchange Co. Ltd. On May 15, 1879 and trading began on June 1st. On June 30, 1943, establishment of a quasi-public corporation named the â€Å"Japan Securities Exchange† took place by uniting all 11 stock exchanges throughout Japan. During the Second World War, the trading sessions were suspended on August 10, 1945 but the trading restarted under the management of unofficial group transactions in December 1945. Japan Securities Exchange was dissolved on April 16, 1947. Three stock exchanges in Tokyo, Osaka and Nagoya were founded on April 1, 1949 and trading began on May 16 followed by formation of five additional stock exchanges in July in Kobe (dissolved, October 1967), Hiroshima, Kyoto (merged into Tokyo Stock Exchange, March 2001), Fukuoka and Niigata. In the beginning of the next decade of 1950s, margin transactions were introduced and bond trading started on April 2, 1956. October 1, 1966 observed the first listings of government bonds after the Second World War and in the following year, a new process of auction was put into action and â€Å"Baikai† trades (off-exchange trades) were eliminated. In April 1968, registration system was replaced by licensing system for securities companies and on July 1, 1969, Tokyo Stock Price Index (TOPIX) was launched. Joining the International Federation of Stock Exchanges (FIBV) along with starting of convertible bonds trading and Book Entry Clearing system were the major developments by TSE before listing of Yen-based foreign bonds and opening of Foreign Stock Section in 1973. The next 10 years observed major developments in technical fields such as introduction of Market Information System (MIS) and Computer-assisted Order Routing and Execution System (CORES). From February 1, 1986 to May 23, 1988, a total of 32 securities companies joined the TSE membership out of which 22 were foreign companies. Trading in TOPIX futures, TOPIX options, U.S. T-Bond futures and Japanese government bond futures began by May 1990. Other 10 securities companies including 3 foreign ones joined the TSE membership followed by introduction of Floor Order Routing and Execution System (FORES) by the end of that year. Major happenings in the next decade were: Starting of Central Depository and Clearing System on Oct 9, 1991; Listing of Nikkei 300 Stock Index Listed Fund on May 29, 1995; Initiation of 5-year Japanese government bond futures trading on Feb 16, 1996; Trading in equity options on July 18, 1997; Calculation of new stock price index series on Apr 2, 1998; introduction of ToSTNet and TDnet (Timely Disclosure Network) in 1998; restriction on off-exchange trading for listed securities abolished on Dec 1, 1998; 50th Anniversary celebrations on Apr 2, 1999; introduction of Target (TSE wide area network) on June 1; brokerage commission liberalized in October; establishment of MOTHERS market for emerging companies and growth on Nov 11, 1999; and merging of Hiroshima and Niigata stock exchanges into TSE along with introduction of TSE ARROWS in 2000. Demutualization of TSE resulted in the formation of Tokyo Stock Exchange Inc. in 2001 and later on August 1, 2007, Tokyo Stock Exchange Group, Inc. was established. Tokyo Stock Exchange Regulation was established on October 17th with its commencement on November 1, 2007. Thailand The present Thai market’s origin starts from the early years of 1960s when a private group established a stock exchange in July 1962 as a limited partnership which later turned into a limited company under the name of Bangkok Stock Exchange Co. Ltd. (BSE) in 1963. But BSE was relatively inactive irrespective of its good foundation as its annual turnover values reduced from being 160 million baht in 1968 to an all time low of 26 million baht in 1972, even when turnover in debentures were 87 million baht. So finally, BSE stopped operating in early 1970s and the major reasons behind its failure were limited understanding of equity market among the investors and no government support officially. But, BSE’s concept was able to attract enough attention to form an organized securities market with official support. Hence, a plan to establish a market having apt facilities and regulations for securities trading was proposed by the Second National Economic and Social Development Plan (1967-1971). On recommendation of the World Bank in 1969, the government gained the works of Professor Sidney M. Robbins from Columbia University who studied different methods for the development of Thai capital market. And in the same year, the Bank of Thailand also created a working group for the development of capital market which was given the job of establishing the stock market. After a year of intensive study, Professor Robbins generated an all-inclusive report named â€Å"A Capital Market in Thailand† and this report turned out to be the master plan required for the Thai capital market development in future. In 1972, the government brought some changes to the â€Å"Announcement of the Executive Council No. 58 on the Control of Commercial Undertakings Affecting Public Safety and Welfare† according to which the government now controlled and regulated the operations related to finance and securities companies. â€Å"The Securities Exchange of Thailand† also known as SET was passed in May 1974 after the amendments were made followed by the amending of the Revenue Code by the year-end. By 1975, the legislative framework was put into action and official trading at SET started on April 30, 1975. January 1, 1991 saw the changing of name from â€Å"The Securities Exchange of Thailand† to â€Å"The Stock Exchange of Thailand†. Malaysia In 1930, Singapore Stockbrokers Association was Malaysia’s first formal securities business organisation establishment and in 1937 was re-registered by the name of Malayan Stockbrokers Association. The public shares trading began after the establishment of The Malayan Stock Exchange in 1960 and the board system was having its trading rooms in Kuala Lumpur as well as Singapore, connected by usage of direct telephone line. The year 1964 saw the foundation of the Stock Exchange of Malaysia but in 1965, the withdrawal of Singapore from Malaysia forced the Stock Exchange of Malaysia to become the Stock Exchange of Malaysia and Singapore. In 1973, the Stock Exchange of Malaysia and Singapore was divided into two separate markets namely the Kuala Lumpur Stock Exchange Berhad and the Stock Exchange of Singapore due to ceasing of interchangeability of currency between Malaysia and Singapore. The Kuala Lumpur Stock Exchange integrated on December 14, 1976 as a company limited by guarantee took over the operations and management of the Kuala Lumpur Stock Exchange Berhad. On April 14, 2004, the demutualization exercise made the name to be changed to Bursa Malaysia Berhad. The main aim of this exercise was to boost competitive position and to act in response to trends in the exchange sector globally by becoming more market-oriented and customer-driven. The listing of Bursa Malaysia on the Main Board of Bursa Malaysia Securities Berhad took place on 18 March 2005. The certifications for conformance to the ISO 9001:2000 Quality Management System and ISO 14001:2004 Environmental Management System standards were received by the exchange on 5 October 2007. Faster processing and execution of orders and providing wider trading functions and features were done by introduction of Bursa Trade Securities as a new trading platform in Dec 2008. United States The New York stock exchange trace back to 172, when twenty four New York City stock brokers and merchants signed the Buttonwood Agreement. At that time five securities were traded in New York City out of which three were government bonds and two were bank stocks. It was agreed that securities will be traded on commission basis on signing the Buttonwood agreement by the brokers. After the war in 1815 securities market in New York began to grow. The New York stock and exchange board was formed on March 8, 1817. The name was shortened The New York Stock Exchange (NYSE) in 1863. More than 2800 companies are listed in NYSE which are having value exceeding $15 trillion. During the period 1824 to 1830 annual trading reached a peak of 380,000 shares. Average volume reached to 8500 shares which show that it increased a 50-fold in seven years. During 1836-1853 NYSEB prohibited trading in the street and in 1837 average daily volume fell down from 7393 in January to 1534 by June. Due to invention of telegraph, brokers and investors broaden the market participation outside New York City. It was a panic period during 1857 when Ohio Life Insurance Trust company collapsed, prices dropped eight to ten percent in the single trading session and there was 45% decline in market value in the beginning of the year. During 1860s first stock ticker came into existence, membership in NYSE became a â€Å"property right†, prohibition of issue of shares in secret known as watering stock and at the end on 24th September 1869, gold speculation resulted in â€Å"Black Friday†. In 1890s NYSE established clearing house, it also recommended that all listed companies will send their shareholder the annual report and in 1896. The Dow Jones Industrial Average was published by the Wall Street journal for the first time, with an initial value of 40.74. During that period DJIA topped 100 for the first time. Federal Reserve System Wall Street became world financial leader. Centralized stock clearing system was established and fraud bureau was established during the period. In the mid of 1929 Black Thursday came when market crashed on volume of over 16 million shares which was the beginning of the Great depression and the Dow finally reached bottom in July 1932. During 1960-1979, International Federation of stock Exchange and daily volume on the NYSE exceeded 4 million shares nearly triple the level immediately following the war. On February 03, 1977 foreign broker were permitted membership on the floor. The Inter market Trading system (ITS) was inaugurated. Taking about 20th century, first Global index was launched in 2000, DJIA experienced its largest one day point gain and new trading room at 30 Broad street was opened. In 2001, NYSE volume topped 2 billion shares. The NYSE is now a for-profit business. It is formed out of the merger of the NYSE and Archipelago Holding, Inc. And the merger is the largest ever among securities up to this time. United Kingdom The London Stock Exchange is one of the world’s oldest stock exchanges and traces its history back more than 300 years. It started in the 17th century in London coffee houses. Exchange grew quickly and became the city’s most important financial institution. John casting began in back 1698 to organise the market in Jonathan’s coffee house through a simple list of stock and commodity prices. The wave of speculative fever known as the south sea bubble burst in 1720. In 1761 a group of stock broker form a club at Jonathan’s to buy and sell shares and then in 1773 they put up their own building in Sweeting’s Alley with dealing room and members named it â€Å"The Stock Exchange†. On 3 March 1801, first regulated exchange comes into existence in London and the business reopens under a formal membership basis and the modern stock exchange was born. First codified rule book was created in 1812 and first regional exchange were opened in Manchester and Liverpool in 1836 and it was rebuilt in 1854. A new deed settlement came to existence in 1876. In 1914 after Great War, the exchange market was closed from the end of July till the New Year. During 1986, there was deregulation of market which is known as ‘Big Bang’. Ownership of member firms by an outside corporation was allowed. Brokers were able to operate in a dual capacity and minimum scales of commission were abolished. Trading was moved to computers and telephones from separate dealing rooms. The exchange became private limited company under the Companies Act 1985. The trading name became â€Å"The London Stock Exchange† in 1991. In 1997, SETS (Stock exchange Electronic Trading System) was launched. In 2003, EDX London was created, a new international equity in partnership with OM Group and later in 2004, LSE moved to new headquarters Paternoster Square. Latest in 2007, LSE merged with Borsa Italiana, creating London Stock Exchange Group. India The Bombay Stock Exchange (BSE) is located in Dalal Street, Mumbai. It was established in 1875 and is one of the oldest stock exchanges in Asia. Around 3600 companies in the country are listed on this stock exchange and have a substantial trading volume. The market capitalization of the BSE is about Rs.20 trillion (US$ 466 billion). The ‘Sensex’ is commonly used market index for the BSE and it is among the five big exchanges in the world in terms of number of transactions. Its history traces back to the time in mid 1850s, when an informal group of 22 shareholders used to trade under banyan tree in the Town Hall of Bombay. The association the native sharebrokers was formally organized as The Bombay Stock Exchange in 1875. The BSE is the oldest stock exchange in Asia and Premchand Roychand used to be the leading sharebroker in that time. He was the one who assisted in setting out procedures and conventions for the trading of stock at BSE. James M. Maclean inaugurated the Brokers Hall in 1899. in 1928, it was shifted to an old building in Town Hall, Bombay and later on the building was constructed on Dalal Street in 1930 where the BSE building now stands. The BSE follows the system of eTrading, which came into use in 1995. In 2000, BSE Sensex was used to open its derivatives market for trading Sensex future contracts, followed by development of equity derivatives in 2001 and 2002 which expanded its trading platform. Stock exchanges by providing a centralized and ready market, facilitates the business for financing through flotation of bonds and stocks. Sometimes speculation in stock can put stress on the instability of an economy. The reality of the Great depression was emphasised by the stock market crash in 1929. Financial Crisis Stock market crash of 1929 After the First World War, there was a growth in industrialisation and new technologies. During 1920s was the time of peace and prosperity because the economy was benefited greatly from the new life changing technologies. Many investors quickly purchased the shares on seeing Dow Jones industrial average surged. Due to the powerful economic boom the stocks were seen very safe to most of the economists. Stocks were purchased by the investors on margin. From 1921 to 1929, the Dow Jones rocketed from 60 to 400 and for every dollar invested; a margin user would borrow 9 dollars worth of stock. But on Thursday October 24, 1929 the Dow Jones Industrial Average fell 38 points to 260, which was a drop of 12.8 percent and across the two days its average fell 23 percent and finally at the end of the period on November 11, there was a cumulative drop of 40 percent. Overvalued stocks, low margin requirements, interest rate hikes and poor banking structure were the few causes of the crash. In total, 14 billion dollars of wealth were lost during this market crash. Stock market crash of 1987 Dow hit a record 2722.44 points on 25 August, 1987 but then the Dow started to head down. And valuation in the United States dropped around 36 percent from the days between October 14 to October 19, 1987. On black Monday October 19, 1987 the Dow Jones Industrial Average plummeted 508 points losing approx 22.6 percent of its total value and SP 500 dropped to 20.4 percent. Reasons for the crash were no liquidity, overvalued stock, program trading and the use of derivative securities software. During the crash half trillion dollars wealth were lost. Stock market crash of 2008 The failures of financial organizations in the USA due to exposure of credit default swaps and subprime loans resulted in a global crisis as banks all over the world failed and the values of shares and commodities fell drastically. The Indonesian Stock Market stopped operating on seeing a 10% drop in a day on October 8. Comparisons were made of this crisis with the one in 1987 but that lasted for just one day whereas the present one lingered on for the whole week. Dow Jones saw its worst ever decline of 18% during the week commenced on October 6. The failure of banks in Iceland devalued the Icelandic Krona and forced the country to the verge of bankruptcy which was saved by an emergency loan from International Monetary Fund (IMF). The main index of Iceland had a 77% decrement. October 24 saw the worst downfalls for many countries whereas Dow Jones industrial average was somewhat better at 3.6%. The value of United States Dollar and Japanese Yen increased whereas that of British Pound and Canadian Dollar was among the major losers. Literature review 1.1 Introduction The competition among different industrial countries markets was witnessed by their respective national stock exchange markets during the late 1980s and the economists observed that linkage or interrelation between the global markets existed. Due to the less restrictive climate towards capital movements, economists actually started thinking that the major financial markets of the world are systematically interrelated. Growth can be seen in reaction towards external developments in macro-economic policies and the world financial environment due to this interrelation. Technological developments in communications, trading system and the innovations of financial products have created global international investment opportunities. Linkages among stock market have important implication and significance for security pricing, trading strategies, hedging and financial market regulations. And also the presence of short term and long term relationship may be used to attain financial gains from international portfolio diversification and to also reduce systematic risk. International Market linkages have been widely investigated. Several studies have been conducted explaining the empirical and theoretical issues on linkages amongst stock market and mainly focused on the co-movement between developed and emerging markets. There is a wealth of literature on stock market interdependence and integration. However, depending on the data, methodology, and theoretical models used there is no clear resolution of the issue yet. Some previous work has have found that international stock markets are integrated and some found that stock markets are not interlinked. Most of the studies on stock market interdependence in emerging markets have been done on geographical groups of markets, such as markets in Central and Eastern Europe  and America  and in Asian countries. Further, I summarize some of the most recent findings. 1.2 Interdependence of Stock Markets A number of studies have examined stock market linkages among emerging stock market and the developed stock markets like Arshanapalli, Doukas and Lang 1995 and Chen, Firth and Rui, 2002. Arshanapalli, Doukas  and Lang (1995) report that after the 1987 crash international market linkages have strengthened in terms of increased number of co-integrating vectors in the post crash period. They investigated in their paper that presence of a common random variable trend between the US and Asian stock market movements during the post October 1987 period. They showed that the cointergating structure which actually ties the stock market together has significantly increased since October 1987. US stock market influence on the other markets was considerably found greater in the post crisis period. Their results indicate that the Asian equity market is more integrated with US equity market than Japan equity market. Where as, Masih and Masih (1997) and Masih and Masih (1999) found cointegration relationship among the equity markets of Malaysia, Thailand, US, UK, Japan, Singapore and Hong-Kong during pre-financial crises period 1987. Number of papers investigates the short term and long term linkages among Central and Eastern Europe (CEE) stock exchanges. Talking about long term relationship, Gilmore and McManus (2002) and Gilmore and McManus (2003) analysed that no long term relationship can be established among the CEE stock markets with the US and Germany stock markets, where as Voronkova (2004) shows the existence of long term linkages among the Central European markets and CEE. Hamao and Masulis (1990), King and Wadhwani (1990), Kasa (1992) and Arshanapalli and Doukas (1993) have found that the equity markets of developed markets are integrated and US equity market leads the other developed market like Japanese equity market, UK equity market and few other European equity markets. Yang, Hsiao, Li and Wang (2005) also examined the long run price relationship and the dynamic price transmission among USA, Germany and four Eastern European emerging stock markets. They paid particular attention to Russian crisis in their study. VAR analysis was conducted. It was concluded that both long run relationship and the dynamic transmission were strengthen among these markets after the crisis and Germany became dominant and noticeable only after the Russian crisis amongst all the Eastern European markets. Syllignakis and Kouretas also examined the short and long term relationship between ten central Eastern European stock markets and two developed stock market i.e US and Germany, they used Gowzalo and Granger method and indicated weak partial integration among these markets. They also indicated that the four big stock exchange market like Republic, Hungary, Poland and Slovenia together with Germany and the US stock market have substantial permanent factor which drives the system of stock market exchange in the long run. Egert and Kocenda (2006) analyse the co-movement and interdependence among three stock markets in Western, Central and Eastern Europe and found no robust cointegration relationship for any of the stock index pairs. Data from 2003 to 2005 for stock indices have been taken and applied wide range of econometric techniques like unit root and stationary tests, cointergration tests, Granger causality test, VAR estimation have been used. Results show that there are signs of short term spillover effects both in terms of stock price and stock return volatility. Granger causality test show the existence of bidirectional causality for both returns and volatility series and limited number of short term relationships using VAR framework. Limited interaction has been found among the market in case of Poland and Hungary by Li and Majerowska (2007) and also showed that emerging markets are weekly linked to the developed markets by using GARCH approach .In this paper linkages between the emerging markets of Warsaw and Budapest with the established market in Frankfurt and US were studied by using four-variable asymmetric GARCH-BEKK model. At the end it was implied that by adding the stock in the emerging markets to their investment portfolio they may benefit from reducing the risk. Further, looking at some more European counties Lucey andVoronkova (2008) examined relationship Russia and other equity markets over the period of 1995-2004 by using number of co-integration approach like Gregory-Hansen test, a stochastic cointegration framework, the non-parametric test for unit root and cointegration and found Russian market does not show strong evidence of increased long run convergence either with regional or developed markets, so therefore correlation is low. They also stated that Russian equity market in the long run was isolated from the influence of international markets and structural break in August 1998 did not alter the long term relationship nature. Ozdemir, Olgun and Saracoglu (2008) examined dynamic linkages between the equity market of US representing the center and emerging market using the Granger causality test as a result showed significant causal relation to all emerging markets and conclude that there is no evidence in the literature suggesting an effect of an emerging stock exchange market to that of large markets like US, Japan and UK. Where as Chinzara, examined to what extent South Africa equity market is integrated into world equity market using cointegration, VECM and VAR model and taking data for period 1995-2007. He fi Relationship Between Developed and Emerging Stock Markets Relationship Between Developed and Emerging Stock Markets Introduction Due to inclination towards liberalization and deregulation in the capital and money markets, global markets have tended to become highly integrated in recent times in case of developed as well as developing countries. There are many reasons as to why the linkages among the different stock markets should be studied some of the reasons are emerging markets have attracted a great number of foreign investors, removal of statutory controls over their capital market and foreign exchange, stock prices interconnection due to the global capital movements, regional policy and the presence of economic ties. Specialists of finance have given substantial attention to the linkages and the relationships between different stock markets, to explore and examine the potential benefits from international portfolio diversification. Most of the studies are done taking into account developing and emerging Asian markets. Interest of foreign investors have resulted in several fund management centres concentrating on Asian developing markets not only for the growth and development but also to diversify their risk. The aim of this paper is to study the relationship of developed and emerging stock markets. Literatures on the different prospects of stock market have been studied. Many researchers have focused on the integration among the stock market. While studying the literatures it has been seen that different areas are being covered and focused which includes dynamic linkages among stock market during pre and post Asian financial crisis and Russian financial crisis, effect of linkages on the portfolio diversification, effects of linkages on the daily stock prices and domination of developed markets over the developing markets. Further, examining of the empirical question in the literature on capital market integration between different economies is done. For the empirical analysis, data of twenty year for everyday closing stock prices of six indices have been taken from 3 January 1989 to 8 June 2009. Six indices are New York Stock Exchange (USA), London Stock Exchange (UK), Tokyo Stock Exchange (Japan), Bombay Stock Exchange (India), The Stock Exchange of Thailand (Thailand), Bursa Malaysia (Malaysia). In the econometrics literature, there exist a number of alternative methods to estimate cointegration. Econometrics techniques which are being used in this study are Augmented Dickey-Fuller test, Johansen’s cointegration test and Error Correction test. E-views software is used for the calculating the results. Empirical results obtained from the three test, it was found that time series are non stationary and null hypothesis is not rejected which suggest that they are highly cointegrated and to test whether any variations in one stock exchange can lead to fluctuations in other stock indices. Johansen cointegration test is conduct ed which shows that there is no evidence of cointegration between Indian stock index and other stock indices. Further, Error Correction test is conducted which shows that there is poor cointegration between Indian stock exchange index with other stock indices. Indian stock market appear to be least integrated with Malaysia, where as Malaysia stock market is integrated with all the other stock markets. Thailand stock market is seems to be more dependent on Japanese and Indian stock market than other stock markets. Little integration is seen between Japanese stock exchange and USA stock exchange. It is found that UK and USA are highly integrated. To conclude, stock exchanges of the developed economies are better cointegrated as compared to those of developing economies. Background What is stock market? In simple words stock refers to a supply. But in financial market terms, stock refers to the money which a company has raised. And the supply of the money comes from the people who invest in the company in hope that the company will make their money grow. Stocks exist because it enables the company to â€Å"sell† pieces of the business called as stocks (equity securities) in need of long term financing. When stocks are issued by corporations are owned by the public at large which includes both private investors and institution are said to be publicly held. A public place where things are bought and sold is called as Market. And the term stock market refers to a business where stock is bought and sold. Stock market can be splitted into two main sectors; the primary market and the secondary market. The primary market is the one where new issues are offered for the first time and primary market is the one where subsequent trading goes on. There are basically two types of stock namely common stock and preferred stock. A security which represents ownership in a corporation is known as common stock. Holder of the common stock has the power to vote and elect board members. If the company goes bankrupt, the common stockholder will not be paid until unless creditors, bondholders and preferred stockholders are paid their share of the leftover assets of the company. Where as, preferred stock is a stock which is issued when all the common stock has been issued. Preferred stock olders are given dividends. They have a preference that is why they are paid dividend before any dividends are paid to common stock holders. The stock market is not a specific place but still some people use the term â€Å"Wall Street† which is the main street in New York City’s financial district and it is referred to the US stock market. Why companies issue stock market and why people buy it? As every company wants to grow, so some owners build more factories and some develop new product which needs money. A company can actually get loan from the financial institution like banks but companies without going into debt by taking loans issues stock which raise money for the growth of a company. Only Business Corporation can issue the stock which has special legal rights and responsibility. A proprietorship or ownership cannot issue stock. A shareholder invests in a hope that company will grow and so will their money grow because if a company earns money, the shareholders will share the profits. There are different types of gains from the stock such as dividends, capital gains, short selling, risk and rewards for investing. Over the long term bases, investments in stocks have proven to be an excellent way to more than keep pace with erosive effects of inflation. Stock Exchange Stock market is an organised market for trading of stocks and bonds. These markets were originally open to all but now a days only members of the association can buy and sell directly and these members or stock broker can buy and sell for themselves or others by charging the commission for their provided service. A stock can only be bought and sold if it is listed on an exchange. There are stock exchange in all the financial centres of the world. Some of them are stated below; the New York stock exchange since 1792 which had the largest trading in the world of $7.3 trillion in 1998, Tokyo stock exchange, London stock exchange, Bombay stock exchange and NASDAQ. NASDAQ was the first exchange which recognised the role of electronics in stock market. History of the Stock Exchanges Japan In the decade of 1870s, introduction of a securities system initiated the public bond negotiation in Japan which resulted in the need of a public institution for trading and hence in May 1878, the â€Å"Stock Exchange Ordinance† was in enacted followed by establishment of Tokyo Stock Exchange Co. Ltd. On May 15, 1879 and trading began on June 1st. On June 30, 1943, establishment of a quasi-public corporation named the â€Å"Japan Securities Exchange† took place by uniting all 11 stock exchanges throughout Japan. During the Second World War, the trading sessions were suspended on August 10, 1945 but the trading restarted under the management of unofficial group transactions in December 1945. Japan Securities Exchange was dissolved on April 16, 1947. Three stock exchanges in Tokyo, Osaka and Nagoya were founded on April 1, 1949 and trading began on May 16 followed by formation of five additional stock exchanges in July in Kobe (dissolved, October 1967), Hiroshima, Kyoto (merged into Tokyo Stock Exchange, March 2001), Fukuoka and Niigata. In the beginning of the next decade of 1950s, margin transactions were introduced and bond trading started on April 2, 1956. October 1, 1966 observed the first listings of government bonds after the Second World War and in the following year, a new process of auction was put into action and â€Å"Baikai† trades (off-exchange trades) were eliminated. In April 1968, registration system was replaced by licensing system for securities companies and on July 1, 1969, Tokyo Stock Price Index (TOPIX) was launched. Joining the International Federation of Stock Exchanges (FIBV) along with starting of convertible bonds trading and Book Entry Clearing system were the major developments by TSE before listing of Yen-based foreign bonds and opening of Foreign Stock Section in 1973. The next 10 years observed major developments in technical fields such as introduction of Market Information System (MIS) and Computer-assisted Order Routing and Execution System (CORES). From February 1, 1986 to May 23, 1988, a total of 32 securities companies joined the TSE membership out of which 22 were foreign companies. Trading in TOPIX futures, TOPIX options, U.S. T-Bond futures and Japanese government bond futures began by May 1990. Other 10 securities companies including 3 foreign ones joined the TSE membership followed by introduction of Floor Order Routing and Execution System (FORES) by the end of that year. Major happenings in the next decade were: Starting of Central Depository and Clearing System on Oct 9, 1991; Listing of Nikkei 300 Stock Index Listed Fund on May 29, 1995; Initiation of 5-year Japanese government bond futures trading on Feb 16, 1996; Trading in equity options on July 18, 1997; Calculation of new stock price index series on Apr 2, 1998; introduction of ToSTNet and TDnet (Timely Disclosure Network) in 1998; restriction on off-exchange trading for listed securities abolished on Dec 1, 1998; 50th Anniversary celebrations on Apr 2, 1999; introduction of Target (TSE wide area network) on June 1; brokerage commission liberalized in October; establishment of MOTHERS market for emerging companies and growth on Nov 11, 1999; and merging of Hiroshima and Niigata stock exchanges into TSE along with introduction of TSE ARROWS in 2000. Demutualization of TSE resulted in the formation of Tokyo Stock Exchange Inc. in 2001 and later on August 1, 2007, Tokyo Stock Exchange Group, Inc. was established. Tokyo Stock Exchange Regulation was established on October 17th with its commencement on November 1, 2007. Thailand The present Thai market’s origin starts from the early years of 1960s when a private group established a stock exchange in July 1962 as a limited partnership which later turned into a limited company under the name of Bangkok Stock Exchange Co. Ltd. (BSE) in 1963. But BSE was relatively inactive irrespective of its good foundation as its annual turnover values reduced from being 160 million baht in 1968 to an all time low of 26 million baht in 1972, even when turnover in debentures were 87 million baht. So finally, BSE stopped operating in early 1970s and the major reasons behind its failure were limited understanding of equity market among the investors and no government support officially. But, BSE’s concept was able to attract enough attention to form an organized securities market with official support. Hence, a plan to establish a market having apt facilities and regulations for securities trading was proposed by the Second National Economic and Social Development Plan (1967-1971). On recommendation of the World Bank in 1969, the government gained the works of Professor Sidney M. Robbins from Columbia University who studied different methods for the development of Thai capital market. And in the same year, the Bank of Thailand also created a working group for the development of capital market which was given the job of establishing the stock market. After a year of intensive study, Professor Robbins generated an all-inclusive report named â€Å"A Capital Market in Thailand† and this report turned out to be the master plan required for the Thai capital market development in future. In 1972, the government brought some changes to the â€Å"Announcement of the Executive Council No. 58 on the Control of Commercial Undertakings Affecting Public Safety and Welfare† according to which the government now controlled and regulated the operations related to finance and securities companies. â€Å"The Securities Exchange of Thailand† also known as SET was passed in May 1974 after the amendments were made followed by the amending of the Revenue Code by the year-end. By 1975, the legislative framework was put into action and official trading at SET started on April 30, 1975. January 1, 1991 saw the changing of name from â€Å"The Securities Exchange of Thailand† to â€Å"The Stock Exchange of Thailand†. Malaysia In 1930, Singapore Stockbrokers Association was Malaysia’s first formal securities business organisation establishment and in 1937 was re-registered by the name of Malayan Stockbrokers Association. The public shares trading began after the establishment of The Malayan Stock Exchange in 1960 and the board system was having its trading rooms in Kuala Lumpur as well as Singapore, connected by usage of direct telephone line. The year 1964 saw the foundation of the Stock Exchange of Malaysia but in 1965, the withdrawal of Singapore from Malaysia forced the Stock Exchange of Malaysia to become the Stock Exchange of Malaysia and Singapore. In 1973, the Stock Exchange of Malaysia and Singapore was divided into two separate markets namely the Kuala Lumpur Stock Exchange Berhad and the Stock Exchange of Singapore due to ceasing of interchangeability of currency between Malaysia and Singapore. The Kuala Lumpur Stock Exchange integrated on December 14, 1976 as a company limited by guarantee took over the operations and management of the Kuala Lumpur Stock Exchange Berhad. On April 14, 2004, the demutualization exercise made the name to be changed to Bursa Malaysia Berhad. The main aim of this exercise was to boost competitive position and to act in response to trends in the exchange sector globally by becoming more market-oriented and customer-driven. The listing of Bursa Malaysia on the Main Board of Bursa Malaysia Securities Berhad took place on 18 March 2005. The certifications for conformance to the ISO 9001:2000 Quality Management System and ISO 14001:2004 Environmental Management System standards were received by the exchange on 5 October 2007. Faster processing and execution of orders and providing wider trading functions and features were done by introduction of Bursa Trade Securities as a new trading platform in Dec 2008. United States The New York stock exchange trace back to 172, when twenty four New York City stock brokers and merchants signed the Buttonwood Agreement. At that time five securities were traded in New York City out of which three were government bonds and two were bank stocks. It was agreed that securities will be traded on commission basis on signing the Buttonwood agreement by the brokers. After the war in 1815 securities market in New York began to grow. The New York stock and exchange board was formed on March 8, 1817. The name was shortened The New York Stock Exchange (NYSE) in 1863. More than 2800 companies are listed in NYSE which are having value exceeding $15 trillion. During the period 1824 to 1830 annual trading reached a peak of 380,000 shares. Average volume reached to 8500 shares which show that it increased a 50-fold in seven years. During 1836-1853 NYSEB prohibited trading in the street and in 1837 average daily volume fell down from 7393 in January to 1534 by June. Due to invention of telegraph, brokers and investors broaden the market participation outside New York City. It was a panic period during 1857 when Ohio Life Insurance Trust company collapsed, prices dropped eight to ten percent in the single trading session and there was 45% decline in market value in the beginning of the year. During 1860s first stock ticker came into existence, membership in NYSE became a â€Å"property right†, prohibition of issue of shares in secret known as watering stock and at the end on 24th September 1869, gold speculation resulted in â€Å"Black Friday†. In 1890s NYSE established clearing house, it also recommended that all listed companies will send their shareholder the annual report and in 1896. The Dow Jones Industrial Average was published by the Wall Street journal for the first time, with an initial value of 40.74. During that period DJIA topped 100 for the first time. Federal Reserve System Wall Street became world financial leader. Centralized stock clearing system was established and fraud bureau was established during the period. In the mid of 1929 Black Thursday came when market crashed on volume of over 16 million shares which was the beginning of the Great depression and the Dow finally reached bottom in July 1932. During 1960-1979, International Federation of stock Exchange and daily volume on the NYSE exceeded 4 million shares nearly triple the level immediately following the war. On February 03, 1977 foreign broker were permitted membership on the floor. The Inter market Trading system (ITS) was inaugurated. Taking about 20th century, first Global index was launched in 2000, DJIA experienced its largest one day point gain and new trading room at 30 Broad street was opened. In 2001, NYSE volume topped 2 billion shares. The NYSE is now a for-profit business. It is formed out of the merger of the NYSE and Archipelago Holding, Inc. And the merger is the largest ever among securities up to this time. United Kingdom The London Stock Exchange is one of the world’s oldest stock exchanges and traces its history back more than 300 years. It started in the 17th century in London coffee houses. Exchange grew quickly and became the city’s most important financial institution. John casting began in back 1698 to organise the market in Jonathan’s coffee house through a simple list of stock and commodity prices. The wave of speculative fever known as the south sea bubble burst in 1720. In 1761 a group of stock broker form a club at Jonathan’s to buy and sell shares and then in 1773 they put up their own building in Sweeting’s Alley with dealing room and members named it â€Å"The Stock Exchange†. On 3 March 1801, first regulated exchange comes into existence in London and the business reopens under a formal membership basis and the modern stock exchange was born. First codified rule book was created in 1812 and first regional exchange were opened in Manchester and Liverpool in 1836 and it was rebuilt in 1854. A new deed settlement came to existence in 1876. In 1914 after Great War, the exchange market was closed from the end of July till the New Year. During 1986, there was deregulation of market which is known as ‘Big Bang’. Ownership of member firms by an outside corporation was allowed. Brokers were able to operate in a dual capacity and minimum scales of commission were abolished. Trading was moved to computers and telephones from separate dealing rooms. The exchange became private limited company under the Companies Act 1985. The trading name became â€Å"The London Stock Exchange† in 1991. In 1997, SETS (Stock exchange Electronic Trading System) was launched. In 2003, EDX London was created, a new international equity in partnership with OM Group and later in 2004, LSE moved to new headquarters Paternoster Square. Latest in 2007, LSE merged with Borsa Italiana, creating London Stock Exchange Group. India The Bombay Stock Exchange (BSE) is located in Dalal Street, Mumbai. It was established in 1875 and is one of the oldest stock exchanges in Asia. Around 3600 companies in the country are listed on this stock exchange and have a substantial trading volume. The market capitalization of the BSE is about Rs.20 trillion (US$ 466 billion). The ‘Sensex’ is commonly used market index for the BSE and it is among the five big exchanges in the world in terms of number of transactions. Its history traces back to the time in mid 1850s, when an informal group of 22 shareholders used to trade under banyan tree in the Town Hall of Bombay. The association the native sharebrokers was formally organized as The Bombay Stock Exchange in 1875. The BSE is the oldest stock exchange in Asia and Premchand Roychand used to be the leading sharebroker in that time. He was the one who assisted in setting out procedures and conventions for the trading of stock at BSE. James M. Maclean inaugurated the Brokers Hall in 1899. in 1928, it was shifted to an old building in Town Hall, Bombay and later on the building was constructed on Dalal Street in 1930 where the BSE building now stands. The BSE follows the system of eTrading, which came into use in 1995. In 2000, BSE Sensex was used to open its derivatives market for trading Sensex future contracts, followed by development of equity derivatives in 2001 and 2002 which expanded its trading platform. Stock exchanges by providing a centralized and ready market, facilitates the business for financing through flotation of bonds and stocks. Sometimes speculation in stock can put stress on the instability of an economy. The reality of the Great depression was emphasised by the stock market crash in 1929. Financial Crisis Stock market crash of 1929 After the First World War, there was a growth in industrialisation and new technologies. During 1920s was the time of peace and prosperity because the economy was benefited greatly from the new life changing technologies. Many investors quickly purchased the shares on seeing Dow Jones industrial average surged. Due to the powerful economic boom the stocks were seen very safe to most of the economists. Stocks were purchased by the investors on margin. From 1921 to 1929, the Dow Jones rocketed from 60 to 400 and for every dollar invested; a margin user would borrow 9 dollars worth of stock. But on Thursday October 24, 1929 the Dow Jones Industrial Average fell 38 points to 260, which was a drop of 12.8 percent and across the two days its average fell 23 percent and finally at the end of the period on November 11, there was a cumulative drop of 40 percent. Overvalued stocks, low margin requirements, interest rate hikes and poor banking structure were the few causes of the crash. In total, 14 billion dollars of wealth were lost during this market crash. Stock market crash of 1987 Dow hit a record 2722.44 points on 25 August, 1987 but then the Dow started to head down. And valuation in the United States dropped around 36 percent from the days between October 14 to October 19, 1987. On black Monday October 19, 1987 the Dow Jones Industrial Average plummeted 508 points losing approx 22.6 percent of its total value and SP 500 dropped to 20.4 percent. Reasons for the crash were no liquidity, overvalued stock, program trading and the use of derivative securities software. During the crash half trillion dollars wealth were lost. Stock market crash of 2008 The failures of financial organizations in the USA due to exposure of credit default swaps and subprime loans resulted in a global crisis as banks all over the world failed and the values of shares and commodities fell drastically. The Indonesian Stock Market stopped operating on seeing a 10% drop in a day on October 8. Comparisons were made of this crisis with the one in 1987 but that lasted for just one day whereas the present one lingered on for the whole week. Dow Jones saw its worst ever decline of 18% during the week commenced on October 6. The failure of banks in Iceland devalued the Icelandic Krona and forced the country to the verge of bankruptcy which was saved by an emergency loan from International Monetary Fund (IMF). The main index of Iceland had a 77% decrement. October 24 saw the worst downfalls for many countries whereas Dow Jones industrial average was somewhat better at 3.6%. The value of United States Dollar and Japanese Yen increased whereas that of British Pound and Canadian Dollar was among the major losers. Literature review 1.1 Introduction The competition among different industrial countries markets was witnessed by their respective national stock exchange markets during the late 1980s and the economists observed that linkage or interrelation between the global markets existed. Due to the less restrictive climate towards capital movements, economists actually started thinking that the major financial markets of the world are systematically interrelated. Growth can be seen in reaction towards external developments in macro-economic policies and the world financial environment due to this interrelation. Technological developments in communications, trading system and the innovations of financial products have created global international investment opportunities. Linkages among stock market have important implication and significance for security pricing, trading strategies, hedging and financial market regulations. And also the presence of short term and long term relationship may be used to attain financial gains from international portfolio diversification and to also reduce systematic risk. International Market linkages have been widely investigated. Several studies have been conducted explaining the empirical and theoretical issues on linkages amongst stock market and mainly focused on the co-movement between developed and emerging markets. There is a wealth of literature on stock market interdependence and integration. However, depending on the data, methodology, and theoretical models used there is no clear resolution of the issue yet. Some previous work has have found that international stock markets are integrated and some found that stock markets are not interlinked. Most of the studies on stock market interdependence in emerging markets have been done on geographical groups of markets, such as markets in Central and Eastern Europe  and America  and in Asian countries. Further, I summarize some of the most recent findings. 1.2 Interdependence of Stock Markets A number of studies have examined stock market linkages among emerging stock market and the developed stock markets like Arshanapalli, Doukas and Lang 1995 and Chen, Firth and Rui, 2002. Arshanapalli, Doukas  and Lang (1995) report that after the 1987 crash international market linkages have strengthened in terms of increased number of co-integrating vectors in the post crash period. They investigated in their paper that presence of a common random variable trend between the US and Asian stock market movements during the post October 1987 period. They showed that the cointergating structure which actually ties the stock market together has significantly increased since October 1987. US stock market influence on the other markets was considerably found greater in the post crisis period. Their results indicate that the Asian equity market is more integrated with US equity market than Japan equity market. Where as, Masih and Masih (1997) and Masih and Masih (1999) found cointegration relationship among the equity markets of Malaysia, Thailand, US, UK, Japan, Singapore and Hong-Kong during pre-financial crises period 1987. Number of papers investigates the short term and long term linkages among Central and Eastern Europe (CEE) stock exchanges. Talking about long term relationship, Gilmore and McManus (2002) and Gilmore and McManus (2003) analysed that no long term relationship can be established among the CEE stock markets with the US and Germany stock markets, where as Voronkova (2004) shows the existence of long term linkages among the Central European markets and CEE. Hamao and Masulis (1990), King and Wadhwani (1990), Kasa (1992) and Arshanapalli and Doukas (1993) have found that the equity markets of developed markets are integrated and US equity market leads the other developed market like Japanese equity market, UK equity market and few other European equity markets. Yang, Hsiao, Li and Wang (2005) also examined the long run price relationship and the dynamic price transmission among USA, Germany and four Eastern European emerging stock markets. They paid particular attention to Russian crisis in their study. VAR analysis was conducted. It was concluded that both long run relationship and the dynamic transmission were strengthen among these markets after the crisis and Germany became dominant and noticeable only after the Russian crisis amongst all the Eastern European markets. Syllignakis and Kouretas also examined the short and long term relationship between ten central Eastern European stock markets and two developed stock market i.e US and Germany, they used Gowzalo and Granger method and indicated weak partial integration among these markets. They also indicated that the four big stock exchange market like Republic, Hungary, Poland and Slovenia together with Germany and the US stock market have substantial permanent factor which drives the system of stock market exchange in the long run. Egert and Kocenda (2006) analyse the co-movement and interdependence among three stock markets in Western, Central and Eastern Europe and found no robust cointegration relationship for any of the stock index pairs. Data from 2003 to 2005 for stock indices have been taken and applied wide range of econometric techniques like unit root and stationary tests, cointergration tests, Granger causality test, VAR estimation have been used. Results show that there are signs of short term spillover effects both in terms of stock price and stock return volatility. Granger causality test show the existence of bidirectional causality for both returns and volatility series and limited number of short term relationships using VAR framework. Limited interaction has been found among the market in case of Poland and Hungary by Li and Majerowska (2007) and also showed that emerging markets are weekly linked to the developed markets by using GARCH approach .In this paper linkages between the emerging markets of Warsaw and Budapest with the established market in Frankfurt and US were studied by using four-variable asymmetric GARCH-BEKK model. At the end it was implied that by adding the stock in the emerging markets to their investment portfolio they may benefit from reducing the risk. Further, looking at some more European counties Lucey andVoronkova (2008) examined relationship Russia and other equity markets over the period of 1995-2004 by using number of co-integration approach like Gregory-Hansen test, a stochastic cointegration framework, the non-parametric test for unit root and cointegration and found Russian market does not show strong evidence of increased long run convergence either with regional or developed markets, so therefore correlation is low. They also stated that Russian equity market in the long run was isolated from the influence of international markets and structural break in August 1998 did not alter the long term relationship nature. Ozdemir, Olgun and Saracoglu (2008) examined dynamic linkages between the equity market of US representing the center and emerging market using the Granger causality test as a result showed significant causal relation to all emerging markets and conclude that there is no evidence in the literature suggesting an effect of an emerging stock exchange market to that of large markets like US, Japan and UK. Where as Chinzara, examined to what extent South Africa equity market is integrated into world equity market using cointegration, VECM and VAR model and taking data for period 1995-2007. He fi