White Essays - White Fang, Scavengers, Dogs, Klondike Gold Rush

White Fang Two outdoorsmen are out in the wild of the north. They are on a mission to deliver the body and coffin of a famous person. Their dogs disappear as they are entised by a she-wolf and eaten by the rest of the pack. They only have three rounds of ammunition left and Bill, one of the men, uses them to try to save one of their dogs that is being attacked; he misses and is eaten by the pack with the dog. Only Henry and two dogs are left; he makes a fire with leaves and scattered branches, trying to drive away the wolves. They draw in close and he is almost eaten, saved only by a company of men who were traveling nearby. The wolves are in the midst of a starvation. They continue on running and hunting, lead by several wolves alongside the she-wolf, and when they finally find food the pack starts to split up. The she-wolf mates with one of the wolves and has a litter of pups inside an abandoned cave. Only one survives after several more famines and harsh weather, and he grows strong and is a feisty pup. The puppy learns the basics of hunting and survival. They come to an Indian village where the she-wolf's (who is actually half-wolf, half-dog) master is. He catches her again and White Fang, her pup, stays nearby. Soon, she is sold to another Indian, while White Fang stays with Gray Beaver, her master. White fang whines and cries but it does'nt help. The other dogs of the village terrorize White Fang, especially one named Lip-lip, who for now is bigger and stronger. White Fang becomes more and more vicious, more like a wolf than a dog, encouraged by his master who beats him. One day he meets is mother and is turned to a light-hearted pup but, his mother does'nt even notice him. He kills other dogs that used to terroize him. Gray Beaver goes to Fort Yukon to trade and discovers whiskey, which he calls sweet water. White Fang is passed into the hands of Beauty Smith, a monster of a man who got Grey Beaver drunk and tricked him into selling Whit Fang. Beaty Smith put White Fang ino dogfighting and he fights other dogs until he meets his match in a bulldog from the east and is saved only by a man named Scott. Scott tames White Fang and takes him back to California with him. There White Fang learns to love his master and his master's family, who dont take kindly to him at first, and even saves Scott's father in the middle of the night from a convict that escaped from the nearby prison. White Fang has puppies with Collie, one of the master's dogs, and lives a happy life.

The History of Spacesuits

The History of Spacesuits The pressure suit for Project Mercury was designed and first developed during 1959 as a compromise between the requirements for flexibility and adaptability. Learning to live and move within aluminum-coated nylon and rubber garments, pressurized at five pounds per square inch, was like trying to adapt to life within a pneumatic tire. Led by Walter M. Schirra, Jr., the astronauts trained hard to wear the new spacesuits. Ever since 1947, the Air Force and the Navy, by mutual agreement, had specialized in developing partial-pressure and full-pressure flying suits for jet pilots, respectively, but a decade later, neither type was quite satisfactory for the newest definition of extreme altitude protection (space). Such suits required extensive modifications, particularly in their air circulation systems, to meet the needs of the Mercury space pilots. More than 40 experts attended the first spacesuit conference on January 29, 1959. Three primary competitors - the David Clark Company of Worcester, Massachusetts (a prime supplier for Air Force pressure suits), the International Latex Corporation of Dover, Delaware (a bidder on a number of government contracts involving rubberized material), and the B. F. Goodrich Company of Akron, Ohio (suppliers of most of the pressure suits used by the Navy) - competed to provide by the first of June their best spacesuit designs for a series of evaluation tests. Goodrich was finally awarded the prime contract for the Mercury space suit on July 22, 1959. Russell M. Colley, along with Carl F. Effler, D. Ewing, and other Goodrich employees, modified the famous Navy Mark IV pressure suit for NASAs needs in space orbital flight. The design was based on the jet flight suits, with added layers of aluminized Mylar over the neoprene rubber. Pressure suits also were designed individually according to use - some for training, others for evaluation and development. Thirteen operational research suits first were ordered to fit astronauts Schirra and Glenn, their flight surgeon Douglas, the twins Gilbert and Warren J. North, at McDonnell and NASA Headquarters, respectively, and other astronauts and engineers to be specified later. A second order of eight suits represented the final configuration and provided adequate protection for all flight conditions in the Mercury program. The Mercury Project spacesuits were not designed for space walking. Spacewalking suits were first designed for Projects Gemini and Apollo. History of Wardrobes for Space The Mercury spacesuit was a modified version of a U.S. Navy high altitude jet aircraft pressure suit. It consisted of an inner layer of Neoprene-coated nylon fabric and a restraint outer layer of aluminized nylon. Joint mobility at the elbow and knees was provided by simple fabric break lines sewn into the suit; but even with these break lines, it was difficult for a pilot to bend his arms or legs against the force of a pressurized suit. As an elbow or knee joint was bent, the suit joints folded in on themselves reducing suit internal volume and increasing pressure. The Mercury suit was worn soft or unpressurized and served only as a backup for possible spacecraft cabin pressure lossan event that never happened. Limited pressurized mobility would have been a minor inconvenience in the small Mercury spacecraft cabin. Spacesuit designers followed the U.S. Air Force approach toward greater suit mobility when they began to develop the spacesuit for the two-man Gemini spacecraft. Instead of the fabric-type joints used in the Mercury suit, the Gemini spacesuit had a combination of a pressure bladder and a link-net restraint layer that made the whole suit flexible when pressurized. The gas-tight, man-shaped pressure bladder was made of Neoprene-coated nylon and covered by load bearing link-net woven from Dacron and Teflon cords. The net layer, being slightly smaller than the pressure bladder, reduced the stiffness of the suit when pressurized and served as a sort of structural shell, much like a tire contained the pressure load of the inner tube in the era before tubeless tires. Improved arm and shoulder mobility resulted from the multi-layer design of the Gemini suit. Walking on the Moons surface a quarter million miles away from Earth presented a new set of problems to spacesuit designers. Not only did the Moon explorers spacesuits have to offer protection from jagged rocks and the searing heat of the lunar day, but the suits also had to be flexible enough to permit stooping and bending as Apollo crewmen gathered samples from the Moon, set up scientific data stations at each landing site, and used the lunar rover vehicle, an electric-powered dune buggy, for transportation over the surface of the Moon. The additional hazard of micrometeoroids that constantly pelt the lunar surface from deep space was met with an outer protective layer on the Apollo spacesuit. A backpack portable life support system provided oxygen for breathing, suit pressurization, and ventilation for moonwalks lasting up to 7 hours. Apollo spacesuit mobility was improved over earlier suits by use of bellows-like molded rubber joints at the shoulders, elbows, hips and knees. Modifications to the suit waist for Apollo 15 through 1 7 missions added flexibility making it easier for crewmen to sit on the lunar rover vehicle. From the skin out, the Apollo A7LB spacesuit began with an astronaut-worn liquid-cooling garment, similar to a pair of long johns with a network of spaghetti-like tubing sewn onto the fabric. Cool water, circulating through the tubing, transferred metabolic heat from the Moon explorers body to the backpack and thence to space. Next came a comfort and donning improvement layer of lightweight nylon, followed by a gas-tight pressure bladder of Neoprene-coated nylon or bellows-like molded joints components, a nylon restraint layer to prevent the bladder from ballooning, a lightweight thermal super insulation of alternating layers of thin Kapton and glass-fiber cloth, several layers of Mylar and spacer material, and finally, protective outer layers of Teflon-coated glass-fiber Beta cloth. Apollo space helmets were formed from high strength polycarbonate and were attached to the spacesuit by a pressure-sealing neck ring. Unlike Mercury and Gemini helmets, which were closely fitted and moved with the crewmans head, the Apollo helmet was fixed and the head was free to move within. While walking on the Moon, Apollo crewmen wore an outer visor assembly over the polycarbonate helmet to shield against eye damaging ultraviolet radiation, and to maintain head and face thermal comfort. Completing the Moon explorers ensembles were lunar gloves and boots, both designed for the rigors of exploring, and the gloves for adjusting sensitive instruments. The lunar surface gloves consisted of integral structural restraint and pressure bladders, molded from casts of the crewmens hands, and covered by multi-layered super insulation for thermal and abrasion protection. Thumb and fingertips were molded of silicone rubber to permit a degree of sensitivity and feel. Pressure-sealing disconnects, similar to the helmet-to-suit connection, attached the gloves to the spacesuit arms. The lunar boot was actually an overshoe that the Apollo lunar explorer slipped on over the integral pressure boot of the spacesuit. The outer layer of the lunar boot was made from metal-woven fabric, except for the ribbed silicone rubber sole; the tongue area was made from Teflon-coated glass-fiber cloth. The boot inner layers were made from Teflon-coated glass-fiber cloth followed by 25 alternating layers of Kapton film and glass-fiber cloth to form an efficient, lightweight thermal insulation. Nine Skylab crewmen manned the Nations first space station for a total of 171 days during 1973 and 1974. They wore simplified versions of the Apollo spacesuit while doing the historic repair of the Skylab and changing film canisters in the solar observatory cameras. Jammed solar panels and the loss of a micrometeoroid shield during the launch of the Skylab orbital workshop necessitated several space walks for freeing the solar panels and for erecting a substitute shield. The spacesuit changes from Apollo to Skylab included a less expensive to manufacture and lightweight thermal micrometeoroid over garment, elimination of the lunar boots, and a simplified and less expensive extravehicular visor assembly over the helmet. The liquid cooling garment was retained from Apollo, but umbilicals and astronaut life support assembly (ALSA) replaced backpacks for life support during space walks. Apollo-type spacesuits were used again in July 1975 when American astronauts and Soviet cosmonauts rendezvoused and docked in Earth orbit in the joint Apollo-Soyuz Test Project (ASTP) flight. Because no space walks were planned, U.S. crewmen were equipped with modified A7LB intra-vehicular Apollo spacesuits fitted with a simple cover layer replacing the thermal micrometeoroid layer. Information and Photos provided by NASAModified Extracts from This New Ocean: A History of Project MercuryBy Loyd S. Swenson Jr., James M. Grimwood, and Charles C. Alexander

Compare the role of voice-over narration in any two (or three) films Essay - 2

Compare the role of voice-over narration in any two (or three) films screened in this course (Dr. Strangelove, A Clockwork Orang - Essay Example One such device is the effective use of the voice-over narrative. This technique has been employed to varying degrees since film gained a foothold as an art form. The classical Hollywood film noir tradition relied significantly on voice-over narrations, as they were particularly popular with the audiences. The voice-over narrations in the classical tradition featured prominently where mysteries of murder were concerned. These voice-overs were also efficient in films that featured significantly high levels of tension. Directors of classical films on women also preferred to use the voice-overs to highlight certain themes that revolved around the element of women. These were classical films whose central characters were women protagonists. Some of the classical films that relied on voice-over narrations sought to bring out the plight of women within the domestic space. Before the voice-over narrative, silent film used similar mechanisms. The director, or a responsible entity, would use words flashed on the screen to allow the audience a brief glimpse into the action from an omniscient perspective. Such a film device is not in any way new or inventive; it is a story-telling technique used by directors to elaborate on a plot, based on the needs of the plot and the messages they wish to convey to the audience. This analysis will track and consider the ways in which directors of three distinct films—Dr. Strangelove (1964), A.I. Artificial Intelligence (2001), and The Big Lebowski (1998)—employ this technique. The analysis will reveal the different nuanced levels of meaning that the individual directors hope to invoke using story-telling techniques, such as the voice-over narrative. Kubrick himself, when discussing how he would cast and direct a satire on the lunacy of the Cold War, noted that it should be presented to the audience in a form of dark humour. In this way, it could more readily convey the levels of truth and the different meanings that are p ortrayed (Bilandzic & Buselle, 2011, p. 30). To accomplish this end, Kubrick employed many techniques that sought to mirror elements of true life that the audience would readily identify with, and appreciate. One of the most powerful mechanisms that he employed, was presenting stories to the viewer in factual way, regardless of how utterly insane they might be in content. Kubrick further sought to provide a type of societal commentary that housed the work in a convenient, yet detached framework. Rather than allowing the individual characters to stand out, ultimately diminishing Kubrick’s message, the director used a central, omniscient or seemingly omniscient, narrator as a better mechanism. Kubrick was able to present serious and gripping subject matter in a satirical way, from a detached standpoint. The effect of the monotone voice-over narration, impressing an influential point of view on the viewer, further compounds the detachment. It was only necessary for the director to add elements of realism into a script already tinged by elements of absurdity, since the satire engaged the viewer with the preposterous nature of the Cold War and the concept of Mutually Assured Destruction (MAD) (Kirshner 2001, p. 40). In this way, the voice-over narration provided the necessary ethos that Kubrick required to accomplish a sense of realism and authority. Iguarta (2009, p. 58) offers a

The Ethical Standards of Nike Essay Example | Topics and Well Written Essays - 3000 words

The Ethical Standards of Nike - Essay Example Nike has changed its course of action in recent years from one of sheer denial and arguments to one of policy and change. The fact that the company responded only to global media pressure and the fact that standards only changed in Indonesia because of workers strikes and consumer pressure leave something to be desired about the ethical standards of Nike. However, it is important to recognize that Nike did change, though the implementation of the 1997 policies, almost ten years later, is not fully in effect. Â  Nike should be held ethically responsible for the working conditions in foreign factories of subcontractors. In a business decision, regardless of the international boundaries, it is important to follow a certain level of ethical standards. While it is impossible to judge if Nike absolutely knew of the sub-standard conditions, it is logical to assume that Nike could not have ignored the possibility, regardless of the information from Mr. Young, who said that the conditions were adequate in the factories. Yet, in countries where minimum age and working condition laws are not contusive to an appropriate and healthy lifestyle, Nike, by simple association, should maintain a level of dignity for their products. However, the legalities of the situation become more intricate for Nike, being an American based business, subcontracts to (mainly) Asian factories.

Why I would be successful on Independent Studies ( Home Studies) Essay

Why I would be successful on Independent Studies ( Home Studies) - Essay Example Independent, or home study, requires a person who is able to rely on self-motivation to complete the process. A lazy or defiant person would have difficulty meeting deadlines and completing assignments from home. Knowing the responsibility placed upon me to do my assignments, to take the initiative and to develop my independence as a learner would all combine to make me highly motivated to prove to myself and others that I can complete all work assignments from home, and outside the more structured and controlled classroom. Organization and punctuality are also important in independent study. My skills at organizing, prioritizing, and meeting deadlines would allow me to be successful with independent work. I am aware of deadlines and dates, and work throughout the process to make sure each step is accomplished before the deadline, breaking a larger project down into smaller, more manageable steps along the way. The chief motivator to do this is a passion I would have for developing my skill set in organizing large amounts of information, assignments, readings, and products into my work day, and completing each step or small goal I would have made for myself relative to each assignment. This skill set is essential for success in independent studies, and I have those skills necessary for success. Lastly, structuring a schedule to best fit my daily routine is essential to success in independent study. Procrastination and avoidance would not be an option, as I would make a schedule that best reflects my ability to complete assignments, and would open up the work day to a greater ability to meet independent study deadlines along with family and personal responsibilities I may have. Sticking to that schedule, and even changing it if I see a conflict would help develop in me a habit of seeing a project through to completion, no matter what it takes. Knowing that independent study requires organization, motivation and dedication, I would be highly motivated

How Does The Carbon Cycle Work Environmental Sciences Essay

How Does The Carbon Cycle Work Environmental Sciences Essay The carbon cycle can be defined as the continuous biological process through which the carbon is exchanged between the environment and the organisms. It also refers to the thermonuclear reactions which are brought about by nucleus of a carbon -12 atom when it absorbs protons. The sporadic climate changes being experienced in the world today are attributable to the disruption of carbon cycle in one way or the other. Top of the possible causes of this disruption are human activities. Nations are reluctant to accept their share of blame on the whole issue leading to a blame game. Unless the world unites against this common cause, the worst is expected to come. This paper covers the carbon cycle, how it works and how its changing in response to human activities. Carbon is found in the atmosphere in form of the carbon dioxide gas. Other atmosphere gases which contain carbon dioxide include chlorofluorocarbons and methane. The lack or the improper functioning of this cycle can be very dreadful since plants and animals entirely depend on this cycle during their major biological processes. The work of the carbon cycle can be evaluated or assessed in accordance to the different processes that change or move carbon from one form to another. These processes are namely decomposition, photosynthesis, natural weathering of rocks, respiration and the ignition of fossil fuels. During the process of photosynthesis carbon which remains in the atmosphere as the carbon dioxide gas enters into the network of consumers and producers or what is referred to as the ecological food web. After its entry the photosynthetic organisms (algae, plants) absorb the carbon dioxide through the tiny pores found in their leaves. Via photosynthesis the plants can now use the absorbed carbon dioxide and convert it into simple sugars which are essential in the plants growth and reproduction. Plants also pass carbon to the animals especially when the animals feed o the plants since they do not have the ability to make their own food (Ryn and Cowan 87). Respiration process is also found in the carbon cycle but it is unlike photosynthesis because it occurs in the decomposers, plants and animals. The respiration process also produces carbon because the component of oxygen is used in breaking down organic compounds into the carbon dioxide gas and water. Through this process of respiration carbon atoms which start out as the compounds of carbon dioxide are absorbed through the body of human organism and then passed to the atmosphere ready for another recycling. Decomposition happens to be the major process through which carbon is passed to the atmosphere in form of carbon dioxide. This is achieved through the use of decomposers (micro-organisms) which are mainly found in soil and water. These decomposers usually take in dead and waste products which are mainly found in form of rotting remains of animals and plants. At the same time they release carbon dioxide through the process of respiration. As earlier stated, weathering of rocks is the other process through which carbon atoms are released. For example the lime rock (an ocean floor stone formed by marine plankton shells) traps many carbon atoms. These carbon atoms are released sometimes after a million years when the ocean waters recede and the lime rock becomes exposed. Scientifically, its noted that when a lime rock is set out to the natural process of weathering it releases the already trapped atoms becomes a very active part of the carbon cycle once. Human activities/processes also increase the carbon dioxide in the atmosphere. One of these activities is the combustion of the fossils fuels. Due to the rapid expansion of industrial revolution many people have been burning the fuels which contain oil and coal to power their engines. The constant production of these fuels has resulted into huge amounts of carbon dioxide in the atmosphere. Most of the carbon dioxide produced by the combustion of these fuels is however absorbed by plants, oceans and soils thus reducing the increasing effects of global warming (Scienceclarified.com 1). The human activities that influence the carbon cycle Human activities have greatly interfered with the processes involved in the carbon cycle. An example of these human activities is deforestation. Deforestation is the removal of natural occurring forests through cutting and burning of trees in any forested area. People cut trees to use them as fuel, to use the land for pasture, farming and to build settlements. Active deforestation means that there will be no trees which emit oxygen while consuming carbon components (carbon dioxide). This leads to increased carbon dioxide than its consumed thus destroying the carbon cycle. The increase in carbon components in the air results into global warming (excessive heating o the earths and oceans surface). This excessive heating results into dried rivers or decreased volumes of water in the earths surface because the hydrological cycle will be affected by higher rates of precipitation (Miller 217). According to White (1203), the ecologies have greatly been changed by overgrazing, terracing, irrigation and the cutting of trees. For example he says that the Romans used to cut trees to build ships which were used to fight Carthaginians. He also states that the banks on the lower parts of the river Nile are now a human artifact instead of the African jungle which nature could have created instead of man. He also talks of historic ecological change which has been caused by the agricultural invention. Farming prompts deforestation because there must be cutting down of trees to create more space for farming. This ecological change will be contributed by the increase of carbon components in the air since the forest cover is not available. The green house kind of farming is one of the major agricultural contributors to the disruption of the carbon cycle. This is because the green houses emit gases which are not utilized thus bringing about global warming. Some of the gases emitted inclu de the form of carbon referred to as chlorofluorocarbons. It therefore transpires that the amount of the carbon produced is higher than the amounts consumed. Another human activity which has contributed immensely to the disruption of the carbon cycle is the combustion of fuels. This is because of the increased burning of fuels emits huge amounts of carbon components. This will lead to greater volumes of carbon dioxide in the air which will not be consumed thus making the carbon cycle in effective. White (1204) states that by 1925, London had experienced a smog problem which was caused by the continuous burning of soft coal. He also suggests that the current combustion of fossil fuels is high up to the point of threatening to change the worlds atmosphere as a whole. White also suggests that war was another human activity which resulted in to ecological changes including the disruption of the carbon cycle. He asserts that the first cannon were fired in the early 14th century and this affected the ecology because workers were forced to the forests and mountains to scramble for more, sulfur, potash, iron ore and charcoal where by some resulte d into erosion and deforestation. He also warns that a war fought with hydrogen bombs can alter the genetics of life. For example it will affect the processes of the carbon cycle between human beings and plants. According to Mackenzie (1), fishing and whaling activities will affect the global carbon cycle. This is because the continuous removal of the marine biota has resulted into increased atmospheric carbon dioxide. She also suggests that the rise of carbon dioxide or carbon has been caused by progressive fishing which has caused biomass depletion of the worlds ocean. Nowadays, the marine productivity is now relatively lower than it used to be when there was a maintained carbon balance in the ocean-atmosphere. Another form of human activities which have influenced the flow of the carbon cycle is air conditioning and refrigeration. This is because they utilize the carbon available in the air which is in form of chlorofluorocarbon thus inhibiting the continuity of carbon cycle between plants and animals. These human activities are however very important in the world because they reduce the effects of global warming by absorbing the extra carbon available in the air. Another human activity t hat has influenced the carbon cycle is the conversion of wild lands and agricultural lands into settlements. These human settlements are the major contributors to the increased emissions of the global carbon dioxide. They affect the carbon cycle through the direct emissions of the carbon dioxide resulting from combustion of fuels, the alterations of the plant and carbon cycles during the conversion of wild lands to urban and residential land cover and the indirect effects of urban and residential land cover on energy use ecosystem carbon cycling. In human settlements the soil carbon is lost through the soil disturbances caused by the conversion from natural to urban or sub-urban land cover type. The conversion of well settled and managed land cover into human settlements results into higher rates of carbon sequestration and storage due to large inputs of fertilizer, water and organic matter (Pataki et al 1). Works cited Carbon cycle Science clarified. Retrieved on 27th January 2010 from http://www.scienceclarified.com/Ca-Ch/Carbon-Cycle.html Mackenzie, Debbie. THE EFFECTS OF FISHING AND WHALING ACTIVITIES ON THE GLOBAL CARBON CYCLE, 2001. Retrieved on 27th January 2010 from http://www.fisherycrisis.com/strangelove.html Miller Tyler. Living in the Environment: Principles, Connection. Stamford: Cengage Learning, 2008 Pataki, Diane. Human settlements and the North American carbon cycle, 2006. Retrieved on 27th January 2010 from http://www.climate.noaa.gov/ccsp/22_SOCCR_Chapter14.pdf Ryn, Sim, and Cowan, Stuart. Ecological design. Washington: Island press, 1996 White, Lynn. The Historical Roots of Our Ecological Crisis, Vol 155 (number 3767), march 10 1967, pp 1203-1207. Cycle Human Settlements and the North

Chapter 17 The Four Champions

Harry sat there, aware that every head in the Great Hall had turned to look at him. He was stunned. He felt numb. He was surely dreaming. He had not heard correctly. There was no applause. A buzzing, as though of angry bees, was starting to fill the Hall; some students were standing up to get a better look at Harry as he sat, frozen, in his seat. Up at the top table, Professor McGonagall had got to her feet and swept past Ludo Bagman and Professor Karkaroff to whisper urgently to Professor Dumbledore, who bent his ear toward her, frowning slightly. Harry turned to Ron and Hermione; beyond them, he saw the long Gryffindor table all watching him, openmouthed. â€Å"I didn't put my name in,† Harry said blankly. â€Å"You know I didn't.† Both of them stared just as blankly back. At the top table, Professor Dumbledore had straightened up, nodding to Professor McGonagall. â€Å"Harry Potter!† he called again. â€Å"Harry! Up here, if you please!† â€Å"Go on,† Hermione whispered, giving Harry a slight push. Harry got to his feet, trod on the hem of his robes, and stumbled slightly. He set off up the gap between the Gryffindor and Hufflepuff tables. It felt like an immensely long walk; the top table didn't seem to be getting any nearer at all, and he could feel hundreds and hundreds of eyes upon him, as though each were a searchlight. The buzzing grew louder and louder. After what seemed like an hour, he was right in front of Dumbledore, feeling the stares of all the teachers upon him. â€Å"Well†¦through the door, Harry,† said Dumbledore. He wasn't smiling. Harry moved off along the teachers' table. Hagrid was seated right at the end. He did not wink at Harry, or wave, or give any of his usual signs of greeting. He looked completely astonished and stared at Harry as he passed like everyone else. Harry went through the door out of the Great Hall and found himself in a smaller room, lined with paintings of witches and wizards. A handsome fire was roaring in the fireplace opposite him. The faces in the portraits turned to look at him as he entered. He saw a wizened witch flit out of the frame of her picture and into the one next to it, which contained a wizard with a walrus mustache. The wizened witch started whispering in his ear. Viktor Krum, Cedric Diggory, and Fleur Delacour were grouped around the fire. They looked strangely impressive, silhouetted against the flames. Krum, hunched-up and brooding, was leaning against the mantelpiece, slightly apart from the other two. Cedric was standing with his hands behind his back, staring into the fire. Fleur Delacour looked around when Harry walked in and threw back her sheet of long, silvery hair. â€Å"What is it?† she said. â€Å"Do zey want us back in ze Hall?† She thought he had come to deliver a message. Harry didn't know how to explain what had just happened. He just stood there, looking at the three champions. It struck him how very tall all of them were. There was a sound of scurrying feet behind him, and Ludo Bagman entered the room. He took Harry by the arm and led him forward. â€Å"Extraordinary!† he muttered, squeezing Harry's arm. â€Å"Absolutely extraordinary! Gentlemen†¦lady,† he added, approaching the fireside and addressing the other three. â€Å"May I introduce – incredible though it may seem – the fourth Triwizard champion?† Viktor Krum straightened up. His surly face darkened as he surveyed Harry. Cedric looked nonplussed. He looked from Bagman to Harry and back again as though sure he must have misheard what Bagman had said. Fleur Delacour, however, tossed her hair, smiling, and said, â€Å"Oh, vairy funny joke, Meester Bagman.† â€Å"Joke?† Bagman repeated, bewildered. â€Å"No, no, not at all! Harry's name just came out of the Goblet of Fire!† Krum's thick eyebrows contracted slightly. Cedric was still looking politely bewildered. Fleur frowned. â€Å"But evidently zair ‘as been a mistake,† she said contemptuously to Bagman. â€Å"‘E cannot compete. ‘E is too young.† â€Å"Well†¦it is amazing,† said Bagman, rubbing his smooth chin and smiling down at Harry. â€Å"But, as you know, the age restriction was only imposed this year as an extra safety measure. And as his name's come out of the goblet†¦I mean, I don't think there can be any ducking out at this stage†¦.It's down in the rules, you're obliged†¦Harry will just have to do the best he -â€Å" The door behind them opened again, and a large group of people came in: Professor Dumbledore, followed closely by Mr. Crouch, Professor Karkaroff, Madame Maxime, Professor McGonagall, and Professor Snape. Harry heard the buzzing of the hundreds of students on the other side of the wall, before Professor McGonagall closed the door. â€Å"Madame Maxime!† said Fleur at once, striding over to her headmistress. â€Å"Zey are saying zat zis little boy is to compete also!† Somewhere under Harry's numb disbelief he felt a ripple of anger. Little boy? Madame Maxime had drawn herself up to her full, and considerable, height. The top of her handsome head brushed the candle-filled chandelier, and her gigantic black-satin bosom swelled. â€Å"What is ze meaning of zis, Dumbly-dorr?† she said imperiously. â€Å"I'd rather like to know that myself, Dumbledore,† said Professor Karkaroff. He was wearing a steely smile, and his blue eyes were like chips of ice. â€Å"Two Hogwarts champions? I don't remember anyone telling me the host school is allowed two champions – or have I not read the rules carefully enough?† He gave a short and nasty laugh. â€Å"C'est impossible,† said Madame Maxime, whose enormous hand with its many superb opals was resting upon Fleur's shoulder. â€Å"‘Ogwarts cannot ‘ave two champions. It is most injust.† â€Å"We were under the impression that your Age Line would keep out younger contestants, Dumbledore,† said Karkaroff, his steely smile still in place, though his eyes were colder than ever. â€Å"Otherwise, we would, of course, have brought along a wider selection of candidates from our own schools.† â€Å"It's no one's fault but Potter's, Karkaroff,† said Snape softly. His black eyes were alight with malice. â€Å"Don't go blaming Dumbledore for Potter's determination to break rules. He has been crossing lines ever since he arrived here -â€Å" â€Å"Thank you, Severus,† said Dumbledore firmly, and Snape went quiet, though his eyes still glinted malevolently through his curtain of greasy black hair. Professor Dumbledore was now looking down at Harry, who looked right back at him, trying to discern the expression of the eyes behind the half-moon spectacles. â€Å"Did you put your name into the Goblet of Fire, Harry?† he asked calmly. â€Å"No,† said Harry. He was very aware of everybody watching him closely. Snape made a soft noise of impatient disbelief in the shadows. â€Å"Did you ask an older student to put it into the Goblet of Fire for you?† said Professor Dumbledore, ignoring Snape. â€Å"No,† said Harry vehemently. â€Å"Ah, but of course ‘e is lying!† cried Madame Maxime. Snape was now shaking his head, his lip curling. â€Å"He could not have crossed the Age Line,† said Professor McGonagall sharply. â€Å"I am sure we are all agreed on that -â€Å" â€Å"Dumbly-dorr must ‘ave made a mistake wiz ze line,† said Madame Maxime, shrugging. â€Å"It is possible, of course,† said Dumbledore politely. â€Å"Dumbledore, you know perfectly well you did not make a mistake!† said Professor McGonagall angrily. â€Å"Really, what nonsense! Harry could not have crossed the line himself, and as Professor Dumbledore believes that he did not persuade an older student to do it for him, I'm sure that should be good enough for everybody else!† She shot a very angry look at Professor Snape. â€Å"Mr. Crouch†¦Mr. Bagman,† said Karkaroff, his voice unctuous once more, â€Å"you are our – er – objective judges. Surely you will agree that this is most irregular?† Bagman wiped his round, boyish face with his handkerchief and looked at Mr. Crouch, who was standing outside the circle of the firelight, his face half hidden in shadow. He looked slightly eerie, the half darkness making him look much older, giving him an almost skull-like appearance. When he spoke, however, it was in his usual curt voice. â€Å"We must follow the rules, and the rules state clearly that those people whose names come out of the Goblet of Fire are bound to compete in the tournament.† â€Å"Well, Barty knows the rule book back to front,† said Bagman, beaming and turning back to Karkaroff and Madame Maxime, as though the matter was now closed. â€Å"I insist upon resubmitting the names of the rest of my students,† said Karkaroff. He had dropped his unctuous tone and his smile now. His face wore a very ugly look indeed. â€Å"You will set up the Goblet of Fire once more, and we will continue adding names until each school has two champions. It's only fair, Dumbledore.† â€Å"But Karkaroff, it doesn't work like that,† said Bagman. â€Å"The Goblet of Fire's just gone out – it won't reignite until the start of the next tournament -â€Å" â€Å"- in which Durmstrang will most certainly not be competing!† exploded Karkaroff. â€Å"After all our meetings and negotiations and compromises, I little expected something of this nature to occur! I have half a mind to leave now!† â€Å"Empty threat, Karkaroff,† growled a voice from near the door. â€Å"You can't leave your champion now. He's got to compete. They've all got to compete. Binding magical contract, like Dumbledore said. Convenient, eh?† Moody had just entered the room. He limped toward the fire, and with every right step he took, there was a loud clunk. â€Å"Convenient?† said Karkaroff. â€Å"I'm afraid I don't understand you, Moody.† Harry could tell he was trying to sound disdainful, as though what Moody was saying was barely worth his notice, but his hands gave him away; they had balled themselves into fists. â€Å"Don't you?† said Moody quietly. â€Å"It's very simple, Karkaroff. Someone put Potter's name in that goblet knowing he'd have to compete if it came out.† â€Å"Evidently, someone ‘oo wished to give ‘Ogwarts two bites at ze apple!† said Madame Maxime. â€Å"I quite agree, Madame Maxime,† said Karkaroff, bowing to her. â€Å"I shall be lodging complaints with the Ministry of Magic and the International Confederation of Wizards -â€Å" â€Å"If anyone's got reason to complain, it's Potter,† growled Moody, â€Å"but†¦funny thing†¦I don't hear him saying a word†¦Ã¢â‚¬  â€Å"Why should ‘e complain?† burst out Fleur Delacour, stamping her foot. â€Å"‘E ‘as ze chance to compete, ‘asn't ‘e? We ‘ave all been ‘oping to be chosen for weeks and weeks! Ze honor for our schools! A thousand Galleons in prize money – zis is a chance many would die for!† â€Å"Maybe someone's hoping Potter is going to die for it,† said Moody, with the merest trace of a growl. An extremely tense silence followed these words. Ludo Bagman, who was looking very anxious indeed, bounced nervously up and down on his feet and said, â€Å"Moody, old man†¦what a thing to say!† â€Å"We all know Professor Moody considers the morning wasted if he hasn't discovered six plots to murder him before lunchtime,† said Karkaroff loudly. â€Å"Apparently he is now teaching his students to fear assassination too. An odd quality in a Defense Against the Dark Arts teacher, Dumbledore, but no doubt you had your reasons. â€Å"Imagining things, am I?† growled Moody. â€Å"Seeing things, eh? It was a skilled witch or wizard who put the boy's name in that goblet†¦Ã¢â‚¬  â€Å"Ah, what evidence is zere of zat?† said Madame Maxime, throwing up her huge hands. â€Å"Because they hoodwinked a very powerful magical object!† said Moody. â€Å"It would have needed an exceptionally strong Confundus Charm to bamboozle that goblet into forgetting that only three schools compete in the tournament†¦.I'm guessing they submitted Potter's name under a fourth school, to make sure he was the only one in his category†¦.† â€Å"You seem to have given this a great deal of thought, Moody,† said Karkaroff coldly, â€Å"and a very ingenious theory it is – though of course, I heard you recently got it into your head that one of your birthday presents contained a cunningly disguised basilisk egg, and smashed it to pieces before realizing it was a carriage clock. So you'll understand if we don't take you entirely seriously†¦.† â€Å"There are those who'll turn innocent occasions to their advantage,† Moody retorted in a menacing voice. â€Å"It's my job to think the way Dark wizards do, Karkaroff – as you ought to remember†¦ â€Å"Alastor!† said Dumbledore warningly. Harry wondered for a moment whom he was speaking to, but then realized â€Å"Mad-Eye† could hardly be Moody's real first name. Moody fell silent, though still surveying Karkaroff with satisfaction – Karkaroff's face was burning. â€Å"How this situation arose, we do not know,† said Dumbledore, speaking to everyone gathered in the room. â€Å"It seems to me, however, that we have no choice but to accept it. Both Cedric and Harry have been chosen to compete in the Tournament. This, therefore, they will do†¦.† â€Å"Ah, but Dumbly-dorr -â€Å" â€Å"My dear Madame Maxime, if you have an alternative, I would be delighted to hear it.† Dumbledore waited, but Madame Maxime did not speak, she merely glared. She wasn't the only one either. Snape looked furious; Karkaroff livid; Bagman, however, looked rather excited. â€Å"Well, shall we crack on, then?† he said, rubbing his hands together and smiling around the room. â€Å"Got to give our champions their instructions, haven't we? Barty, want to do the honors?† Mr. Crouch seemed to come out of a deep reverie. â€Å"Yes,† he said, â€Å"instructions. Yes†¦the first task†¦Ã¢â‚¬  He moved forward into the firelight. Close up, Harry thought he looked ill. There were dark shadows beneath his eyes and a thin, papery look about his wrinkled skin that had not been there at the Quidditch World Cup. â€Å"The first task is designed to test your daring,† he told Harry, Cedric, Fleur, and Viktor, â€Å"so we are not going to be telling you what it is. Courage in the face of the unknown is an important quality in a wizard†¦very important†¦. â€Å"The first task will take place on November the twenty-fourth, in front of the other students and the panel of judges. â€Å"The champions are not permitted to ask for or accept help of any kind from their teachers to complete the tasks in the tournament. The champions will face the first challenge armed only with their wands. They will receive information about the second task when the first is over. Owing to the demanding and time-consuming nature of the tournament, the champions are exempted from end-of-year tests.† Mr. Crouch turned to look at Dumbledore. â€Å"I think that's all, is it, Albus?† â€Å"I think so,† said Dumbledore, who was looking at Mr. Crouch with mild concern. â€Å"Are you sure you wouldn't like to stay at Hogwarts tonight, Barty?† â€Å"No, Dumbledore, I must get back to the Ministry,† said Mr. Crouch. â€Å"It is a very busy, very difficult time at the moment†¦.I've left young Weatherby in charge†¦.Very enthusiastic†¦a little overenthusiastic, if truth be told†¦Ã¢â‚¬  â€Å"You'll come and have a drink before you go, at least?† said Dumbledore. â€Å"Come on, Barry, I'm staying!† said Bagman brightly. â€Å"It's all happening at Hogwarts now, you know, much more exciting here than at the office!† â€Å"I think not, Ludo,† said Crouch with a touch of his old impatience. â€Å"Professor Karkaroff – Madame Maxime – a nightcap?† said Dumbledore. But Madame Maxime had already put her arm around Fleur's shoulders and was leading her swiftly out of the room. Harry could hear them both talking very fast in French as they went off into the Great Hall. Karkaroff beckoned to Krum, and they, too, exited, though in silence. â€Å"Harry, Cedric, I suggest you go up to bed,† said Dumbledore, smiling at both of them. â€Å"I am sure Gryffindor and Hufflepuff are waiting to celebrate with you, and it would be a shame to deprive them of this excellent excuse to make a great deal of mess and noise.† Harry glanced at Cedric, who nodded, and they left together. The Great Hall was deserted now; the candles had burned low, giving the jagged smiles of the pumpkins an eerie, flickering quality. â€Å"So,† said Cedric, with a slight smile. â€Å"We're playing against each other again!† â€Å"I s'pose,† said Harry. He really couldn't think of anything to say. The inside of his head seemed to be in complete disarray, as though his brain had been ransacked. â€Å"So†¦tell me†¦Ã¢â‚¬  said Cedric as they reached the entrance hall, which was now lit only by torches in the absence of the Goblet of Fire. â€Å"How did you get your name in?† â€Å"I didn't,† said Harry, staring up at him. â€Å"I didn't put it in. I was telling the truth.† â€Å"Ah†¦okay,† said Cedric. Harry could tell Cedric didn't believe him. â€Å"Well†¦see you, then.† Instead of going up the marble staircase, Cedric headed for a door to its right. Harry stood listening to him going down the stone steps beyond it, then, slowly, he started to climb the marble ones. Was anyone except Ron and Hermione going to believe him, or would they all think he'd put himself in for the tournament? Yet how could anyone think that, when he was facing competitors who'd had three years' more magical education than he had – when he was now facing tasks that not only sounded very dangerous, but which were to be performed in front of hundreds of people? Yes, he'd thought about it†¦he'd fantasized about it†¦but it had been a joke, really, an idle sort of dream†¦he'd never really, seriously considered entering†¦. But someone else had considered it†¦someone else had wanted him in the tournament, and had made sure he was entered. Why? To give him a treat? He didn't think so, somehow†¦ To see him make a fool of himself? Well, they were likely to get their wish†¦. But to get him killed? Was Moody just being his usual paranoid self? Couldn't someone have put Harry's name in the goblet as a trick, a practical joke? Did anyone really want him dead? Harry was able to answer that at once. Yes, someone wanted him dead, someone had wanted him dead ever since he had been a year old†¦Lord Voldemort. But how could Voldemort have ensured that Harry's name got into the Goblet of Fire? Voldemort was supposed to be far away, in some distant country, in hiding, alone†¦feeble and powerless†¦. Yet in that dream he had had, just before he had awoken with his scar hurting, Voldemort had not been alone†¦he had been talking to Wormtail†¦plotting Harry's murder†¦. Harry got a shock to find himself facing the Fat Lady already. He had barely noticed where his feet were carrying him. It was also a surprise to see that she was not alone in her frame. The wizened witch who had flitted into her neighbor's painting when he had joined the champions downstairs was now sitting smugly beside the Fat Lady. She must have dashed through every picture lining seven staircases to reach here before him. Both she and the Fat Lady were looking down at him with the keenest interest. â€Å"Well, well, well,† said the Fat Lady, â€Å"Violet's just told me everything. Who's just been chosen as school champion, then?† â€Å"Balderdash,† said Harry dully. â€Å"It most certainly isn't!† said the pale witch indignantly. â€Å"No, no, Vi, it's the password,† said the Fat Lady soothingly, and she swung forward on her hinges to let Harry into the common room. The blast of noise that met Harry's ears when the portrait opened almost knocked him backward. Next thing he knew, he was being wrenched inside the common room by about a dozen pairs of hands, and was facing the whole of Gryffindor House, all of whom were screaming, applauding, and whistling. â€Å"You should've told us you'd entered!† bellowed Fred; he looked half annoyed, half deeply impressed. â€Å"How did you do it without getting a beard? Brilliant!† roared George. â€Å"I didn't,† Harry said. â€Å"I don't know how -â€Å" But Angelina had now swooped down upon him; â€Å"Oh if it couldn't be me, at least it's a Gryffindor -â€Å" â€Å"You'll be able to pay back Diggory for that last Quidditch match, Harry!† shrieked Katie Bell, another of the Gryffindor Chasers. â€Å"We've got food, Harry, come and have some -â€Å" â€Å"I'm not hungry, I had enough at the feast -â€Å" But nobody wanted to hear that he wasn't hungry; nobody wanted to hear that he hadn't put his name in the goblet; not one single person seemed to have noticed that he wasn't at all in the mood to celebrate†¦.Lee Jordan had unearthed a Gryffindor banner from somewhere, and he insisted on draping it around Harry like a cloak. Harry couldn't get away; whenever he tried to sidle over to the staircase up to the dormitories, the crowd around him closed ranks, forcing another butterbeer on him, stuffing crisps and peanuts into his hands†¦.Everyone wanted to know how he had done it, how he had tricked Dumbledore's Age Line and managed to get his name into the goblet†¦. â€Å"I didn't,† he said, over and over again, â€Å"I don't know how it happened.† But for all the notice anyone took, he might just as well not have answered at all. â€Å"I'm tired!† he bellowed finally, after nearly half an hour. â€Å"No, seriously, George – I'm going to bed -â€Å" He wanted more than anything to find Ron and Hermione, to find a bit of sanity, but neither of them seemed to be in the common room. Insisting that he needed to sleep, and almost flattening the little Creevey brothers as they attempted to waylay him at the foot of the stairs, Harry managed to shake everyone off and climb up to the dormitory as fast as he could. To his great relief, he found Ron was lying on his bed in the otherwise empty dormitory, still fully dressed. He looked up when Harry slammed the door behind him. â€Å"Where've you been?† Harry said. â€Å"Oh hello,† said Ron. He was grinning, but it was a very odd, strained sort of grin. Harry suddenly became aware that he was still wearing the scarlet Gryffindor banner that Lee had tied around him. He hastened to take it off, but it was knotted very tightly. Ron lay on the bed without moving, watching Harry struggle to remove it. â€Å"So,† he said, when Harry had finally removed the banner and thrown it into a corner. â€Å"Congratulations.† â€Å"What d'you mean, congratulations?† said Harry, staring at Ron. There was definitely something wrong with the way Ron was smiling: It was more like a grimace. â€Å"Well†¦no one else got across the Age Line,† said Ron. â€Å"Not even Fred and George. What did you use – the Invisibility Cloak?† â€Å"The Invisibility Cloak wouldn't have got me over that line,† said Harry slowly. â€Å"Oh right,† said Ron. â€Å"I thought you might've told me if it was the cloak†¦because it would've covered both of us, wouldn't it? But you found another way, did you?† â€Å"Listen,† said Harry, â€Å"I didn't put my name in that goblet. Someone else must've done it.† Ron raised his eyebrows. â€Å"What would they do that for?† â€Å"I dunno,† said Harry. He felt it would sound very melodramatic to say, â€Å"To kill me.† Ron's eyebrows rose so high that they were in danger of disappearing into his hair. â€Å"It's okay, you know, you can tell me the truth,† he said. â€Å"If you don't want everyone else to know, fine, but I don't know why you're bothering to lie, you didn't get into trouble for it, did you? That friend of the Fat Lady's, that Violet, she's already told us all Dumbledore's letting you enter. A thousand Galleons prize money, eh? And you don't have to do end-of-year tests either†¦.† â€Å"I didn't put my name in that goblet!† said Harry, starting to feel angry. â€Å"Yeah, okay,† said Ron, in exactly the same sceptical tone as Cedric. â€Å"Only you said this morning you'd have done it last night, and no one would've seen you†¦.I'm not stupid, you know.† â€Å"You're doing a really good impression of it,† Harry snapped. â€Å"Yeah?† said Ron, and there was no trace of a grin, forced or otherwise, on his face now. â€Å"You want to get to bed, Harry. I expect you'll need to be up early tomorrow for a photo-call or something.† He wrenched the hangings shut around his four-poster, leaving Harry standing there by the door, staring at the dark red velvet curtains, now hiding one of the few people he had been sure would believe him.

Impact of Stock Split on Stock Return

Proceedings of ASBBS Volume 16 Number 1 THE IMPACT OF STOCK SPLIT ANNOUNCEMENTS ON STOCK PRICE: A TEST OF MARKET EFFICIENCY Garcia de Andoain, Carlos Longwood University carlos. [email  protected] longwood. edu Bacon, Frank W. Longwood University 2O1 High Street Farmville, VA 23909 [email  protected] edu Phone: 434-395-2131 Fax: 434-395-2203 ABSTRACT The purpose of this study is to test whether the investor can make an above normal return by relying on public information impounded in a stock split announcement. Using risk adjusted event study methodology, this study tests â€Å"how† and â€Å"when† public announcements of forward and reverse stock splits affect stock price. Stock split announcement samples include 38 two for one, 39 three for two, and 10 reverse splits. A total of 36,714 observations for the announcement samples and the corresponding S&P 500 stock index were analyzed using standard risk adjusted event study methodology. Results suggest that the firms’ public stock split announcements did not affect stock price on the announcement day. Rather, for the two for one and three for two forward split samples, stock price exhibited a significant positive reaction up to 27 days prior to the announcement. For the reverse split sample, stock price exhibited a significant negative reaction up to 30 days prior to the announcement. Results support the semi- strong form efficient market hypothesis since stock prices adjust so fast to public information that no investor can earn an above normal return by trading on the announcement day. Investors greet forward stock split announcement with a positive sign, whereas they view reverse splits as bad news. Management may be using stock splits to adjust stock price to a more marketable range, downward with forward and upward for reverse splits. Evidence here suggests signs of insider trading activity up to twenty-seven days prior to the announcement of the stock split. INTRODUCTION Stock split announcements have always been very common phenomena among firms and continue to be one of the least understood topics in finance. A stock split announcement increases the number of shares of a company while decreasing the price per share. The two for one split is most common, for example a company with 500 shares at $10 per share will issue 500 additional shares bringing the total to 1000 shares theoretically dropping the stock price to $5 per share. A stock split usually takes place after an increase in the price of the stock, and it carries a positive stock price reaction. (Asquith) This phenomenon has not yet been fully understood, regardless the numerous studies in the field. ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 BACKGROUND Barker (1956) presented one of the most popular theories to explain stock split behavior. Barker findings failed to consider the split action itself. Barker’s study concluded that price changes occurred because of the increase in cash dividends and not from the split action. (Johnson). According to the â€Å"signaling hypothesis†, managers use stock split announcements to convey positive information about the firm (Ikenberry, Rankine, Strice). Investors see a stock split announcement as a positive thing, whereas a reverse split does not convey favorable information. Fama (1969) suggests that the stock market is â€Å"efficient†, meaning that stock prices adjust very fast to new information. The theory of market efficiency is concerned with whether prices reflect all the public available information or not (Fama 1970). Efficiency implies that it is impossible for the investor to earn an above normal return from public information. PURPOSE The purpose of this event study is to test market efficiency theory by analyzing the impact of three samples of stock split announcements on the firm’s stock price. Stock split announcement samples include 38 two for one, 39 three for two, and 10 reverse splits. Specifically, how fast does the market price of the firms’ stock react to the samples of regular and reverse stock split announcements examined? The study tests whether the investor can make an above normal return by relying on public information imbedded in a stock split announcement, as well as if stock price is affected by a stock split announcement. This study investigates if acting on public information is enough to have an unusual return, or if there must be an illegal action such as inside trading to be able to â€Å"outperform† the stock market. Which form efficiency is the market? Research shows that the market is semi-strong form efficient. An above normal return can only be gained from inside information, and not when acting in public information. LITERATURE REVIEW Fama defined market efficiency in terms of how quick the stock market reacts to the information and suggested three kinds of market efficiency: Weak form, semi-strong and strong form efficiency. If market is weak for efficient, then stock price reacts so fast to all past information that no investor can earn an above normal return (higher than the market or the return on the S&P 500 index). This study shows how investors will not earn a high return from acting on public information (stock split announcement), while investors having access to inside information will make an abnormal return. A second kind of market efficiency is semi-strong. It states that stock price reacts so fast to all public information that no investor can earn an above normal return (higher than the market or the return on the S&P 500 index) by acting on this type of information. (Fama 1970). Splits usually result in high market valuations, but study done by Fama (1970), Dodd, Patell and Wolfson, found that there is no evidence of abnormal return after the release of public information. They concluded that the market assimilates and takes into consideration public information very fast, within 5 to 15 minutes after the disclosure (Malkiel). This supports the idea that an investor acting on public information will not earn an above normal return. When this happens the market is said to be semi-strong form efficient. If the market is strong form efficient, then stock price reacts so fast to all information (both public and private), that no investor can earn an above normal return (higher than the market or the return on the S&P 500 index) by acting on this kind of information. Studies made by Friend, Brown concluded that profit can only be gained by having access to private or inside information, which is illegal. Fama ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 presents evidence supporting that efficiency is not met in the strong form and that the semi-strong form is more accurate. This study agrees that stock split announcement are affected in a company stock price according to the semi strong form efficiency which states that stock prices reacts so fast to all public information that no investor can earn an above normal return after the announcement is made. An example would be information concerning a merger. If an investor would buy shares on the announcement day of the merger, the semi strong market efficiency believes that the investor would never be able to earn an above normal return, because adjustments had already been done in the stock price. The market has already been adjusted, so therefore the only way to outperform the market in this case would be by using inside information. METHODOLOGY: This study includes samples of companies that announced a two for one, three for two or reverse stock split announcement. These companies trade their stock in either the NYSE or NASDAQ. The Data for this study was collected from http://finance. yahoo. com/. The announcement date (Day 0) is the day that the stock splits are announced. Every stock return from the companies and from the S&P 500 index was also collected. The Event Study proceeds as following: 1. Historical prices for both the firms and the S&P 500 were collected from day -180 to day +30, being the event period -30 to +30 and Day 0 the announcement day. 2. Holding Period Return was calculated for all the companies as well as for the S&P 500 on the event period days (-180 to +30). HPR was obtained from the following formula: Current Daily Return = (current day close price – previous day close price) / prev. Day close price 3. A regression analysis was performed, being the current firm return the dependent variable and the S&P return the independent variable. The data that was used was the one belonging to the pre-event period (from day -181 to -30). The alpha and the beta were obtained from the regressions. 4. The expected return for each firm as well as for the S&P 500 was calculated: Expected Return = (Alpha + Beta) x S&P actual return 5. Excess Return was obtained from the difference between Actual and Expected Return. Excess Return = Actual Return – Expected Return 6. Average Excess Return (for the Event period) was calculated as: Average Excess Return (AER) = Total Excess Return / n (number of firms in the sample) 7. Cumulative Average Excess Return for the event period (Day -30 to Day +30) was calculated by adding the AER for each day in the event period. 8. A correlation test was done with AER and CAER. The graphs represent AER and CAER plotted against Time. ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 Table 1 describes 38 companies that split their stock on a two for one basis between December 1, 2006 and May 14, 2007, along with their respective alphas and betas. TABLE 1: TICKER AFAM ACLI COMPANY NAME Almost Family Inc. American Commercial Lines Inc Selective Insurance Group Inc. ZOLL Medical Corp Trimble Navigation Ltd. Albemarle Corp Guess? Inc. Cooper Industries Ltd Jacobs Engineering Group, Inc GameStop Corp Sealed Air Corp. Carlisle Companies Inc CarMax Inc. Harsco Corp. Amphenol Corp Cabot Oil & Gas Corp Nike Inc Cummins Inc Greif Inc DATE ANNOUNCED Dec 11 Feb 06 TRADED INDEX NASDAQ NASDAQ ALPHA 0. 01665915 -0. 000394377 BETA 0. 08530878 2. 602491516 SIGI ZOLL TRMB ALB GES CBE JEC GME SEE CSL KMX HSC APH COG NKE CMI GEF Jan 30 Jan 25 Jan 25 Feb 07 Feb 14 Feb 14 Jan 26 Feb 12 Feb 16 Feb 08 Feb 22 Jan 23 Jan 17 Feb 26 Feb 15 Mar 08 Feb 26 NASDAQ NASDAQ NASDAQ NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE NYSE -0. 000319706 0. 004077614 -0. 000187534 0. 0022 37728 0. 001589658 0. 000761731 0. 001074342 0. 000477979 0. 00085897 -0. 001167829 0. 003087277 -0. 001056001 0. 000467862 0. 000826123 0. 001079523 -0. 000720045 0. 02203648 1. 38328513 1. 207411999 1. 321541131 1. 327988752 2. 246784079 1. 308635864 1. 946533548 1. 721660362 1. 172042857 1. 346601558 1. 240366727 1. 658082593 1. 86971211 1. 568927816 0. 553921446 1. 980439113 1. 880200397 ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS VLGEA AZZ ATR TSO GEO TSBK VSEC MRO GIL NRG CROX AGN PMFG MIDD SJR PVA GILD PBR STR Village Super Market Inc AZZ incorporated AptarGroup Inc Tesoro Corporation Geo Group Inc Timberland Bancorp Inc. VSE Corp Marathon Oil Corp. Gildan Activewear NRG Energy Inc. Crocs, Inc Allergan Inc PMFG Inc Middleby Corp Shaw Comm CL Penn Virginia CP Gilead Sciences Petroleo Brasileiro Questar CP Mar 21 Apr 09 Apr 18 May 01 May 01 Apr 25 May 01 Apr 25 May 03 May 02 May 03 May 02 May 04 May 04 May 10 May 08 May 08 May 11 May 14 NASDAQ NYSE NYSE NYSE NYSE NASDAQ NASDAQ NYSE NYSE NYSE NASDAQ NYSE NASDAQ NASDAQ NYSE NYSE NASDAQ NYSE NYSE Volume 16 Number 1 0. 00054113 0. 002118906 0. 00174286 0. 00160687 0. 002825174 0. 000615586 0. 001278324 0. 000144992 0. 003089016 0. 00241574 0. 00282982 -0. 000453038 0. 002024817 0. 02028334 0. 001186211 -0. 00050926 . 000009116 -0. 00064373 -. 000142796 1. 351096108 0. 681656728 0. 033542167 0. 973844695 1. 578867077 0. 107464578 2. 457597999 0. 986395517 0. 000111517 0. 316285515 1. 783171812 0. 952984111 0. 039990601 1. 964415725 0. 938731083 1. 1695925 1. 517629839 1. 817825121 . 706466451 Table 2 describes 39 companies that split their stock on a three for two bases between August 23, 2006 and May 15, 2007, along w ith their respective alphas and betas. TABLE 2: ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS TICKER NGA EPIQ BAM WMS VIVO IEX ATLS VSEA BWS WCN RSG JCTCF MDCI PFBC CMCSA SWS BKE VOL SSI FMD CRVL GBCI AFG SPAR COMPANY NAME North AM Gav Epiq Systems Inc Brookfield Asset MGT V M S Industries Inc Meridian Bioscience IDEX Cop Atlas America Inc Varian Semicond Brown shoe corp Waste connections Republic SVCS Jewett Cameron Inc Medical Action IND Preferred Bank LA Comcast Cp A SWS Group Inc Buckle Inc Volt Info Science Inc Stage Stores Inc First Marblehead Corp Corvel CP Glacier Bancorp American Financial Group Spartan Motors Inc DATE ANNOUNCED May 15 May 10 May 02 May 07 April 19 April 04 April 27 April 24 March 08 Feb 12 Feb 01 March 13 Jan 09 Jan 25 Feb 01 Nov 30 Dec 12 Dec 20 Jan 09 Nov 10 Nov 13 Nov 29 Nov 15 Nov 02 TRADED INDEX NASDAQ NASDAQ NYSE NYSE NASDAQ NYSE NASDAQ NASDAQ NYSE NYSE NYSE NASDAQ NASDAQ NASDAQ NASDAQ NYSE NYSE NYSE NYSE NYSE NASDAQ NASDAQ NYSE NASDAQ Volume 16 Number 1 ALPHA -0. 001032797 0. 001183339 0. 000859066 0. 002219704 0. 0011736 22 0. 000243421 0. 000488161 0. 001788461 0. 000592124 -0. 000187979 -0. 000441765 0. 000124622 0. 001559912 0. 000301413 0. 001381697 0. 000530857 -. 000641295 0. 001338437 0. 000540995 0. 004563185 0. 003763906 0. 000329484 0. 000736169 0. 003450361 BETA 1. 997738247 1. 038735222 1. 251257403 1. 094503791 1. 550013068 1. 509306631 0. 38871871 2. 207840195 2. 599167684 0. 92152423 0. 761431985 -0. 512126102 1. 004029551 0. 867741293 0. 927831638 2. 477624454 1. 602298009 2. 358292804 1. 756904894 0. 830932855 2. 113368174 1. 743070573 0. 936337426 0. 519840545 ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS SBIB AEO CTBK IRM PERY EAT AME WGNB ACAP UBSH EML MCBI CASS CCFH Sterlin Bancshares American Eagle Outfitters Inc Trico Bankshares Iron Mountain Inc Perry Ellis International Brinker International Inc Ametek Inc WGNB Corp American Physicians Cap Union Bankshares Corp Eastern Co Metrocorp Bancshares Cass Information Systems CCF Holding Co Oct 31 Nov 14 Nov 08 Dec 07 Nov 21 Nov 02 Oct 25 Sep 18 Sep 26 Sep 07 Sep 28 Aug 04 Jul 24 Aug 23 NASDAQ NYSE NASDAQ NYSE NASDAQ NYSE NYSE NASDAQ NASDAQ NASDAQ AMEX NASDAQ NASDAQ NASDAQ Volume 16 Number 1 0. 001127642 0. 003616084 0. 001058586 -0. 0000284 0. 002794647 -0. 000020642 0. 00005895 0. 00024115 0. 000317657 -0. 00058103 0. 000419721 0. 000941528 0. 003356848 0. 002118726 1. 165421403 1. 593723526 1. 432917191 0. 627633001 0. 919648907 0. 886164833 1. 31003146 -0. 00226624 0. 066171033 1. 663620313 0. 22686963 0. 121493122 0. 113211419 -0. 08732041 Table 3 describes 10 samples of companies that split their stock on a reverse basis between August 27, 2003 and September 15, 2008, along with their respective alphas and betas. TABLE 3: TICKER OPWV ERIC IWOV SIG COMPANY NAME Openwage Systems LM Ericcson Telephone Co Interwoven Inc Signet Jewelers LTD DATE ANNOUNCED Oct 09 Oct 18 Aug 27 Sept 11 TRADED INDEX NASDAQ NASDAQ NASDAQ NYSE ALPHA 0. 00680888 -0. 006696905 0. 001398048 -0. 000938713 BETA 2. 51286756 1. 949328188 1. 469236928 0. 891488791 ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS BFLY REV CNXT IACI TMTA ERIC Bluefly Inc Revlon Inc Conexant Systems Inc. IAC/ InterActiveCorp Transmeta Corporation LM Ericcson Telephone Co April 3 Sep 15 June 2 June 09 Aug 15 April 09 NASDAQ NYSE NASDAQ NASDAQ NASDAQ NASDAQ Volume 16 Number 1 -0. 00449535 0. 000925943 -0. 004900502 -0. 001442165 -0. 002052045 -0. 004006643 0. 070525685 0. 902722337 1. 73193906 0. 982384488 1. 265168622 -0. 16807384 To test for semi-strong market efficiency the following null and alternative hypotheses are used for the three stock split samples: H10: The risk adjusted return of the stock price of the sample of firms announcing stock splits is not significantly affected by this type of information on the announcement date. H11: The risk adjusted return of the stock price of the sample of firms announcing stock splits is significantly positively affected by this type of information on the announcement date. H20: The risk adjusted return of the stock price of the sample of firms announcing stock splits is not significantly affected by this type of information around the announcement date as defined by the event period. H21: The risk adjusted return of the stock price of the sample of firms announcing stock splits is significantly positively or negatively affected around the announcement date as defined by the event period. QUANTITATIVETESTS AND RESULTS: Did the market react to the announcements of regular two for one, the regular three for two, and the reverse stock splits? Was the information surrounding the event significant? A’priori, one would expect there to be a significant difference in the Actual Average Daily Returns (Day -30 to Day +30) and the Expected Average Daily Returns (Day -30 to Day +30) if the information surrounding the event impounds new, significant information on the market price of the firms' stock. If a significant risk adjusted difference is observed, then we support our hypothesis that this type of information did in fact significantly either increase or decrease stock price. To statistically test for a difference in the Actual Daily Average Returns and the Expected Daily Average Returns over the event period day -30 to day +30, we conducted a paired sample t-test for the three samples and found a significant difference at the 5% level between actual average daily returns and the risk adjusted expected average daily returns. Average Excess Return (AER) graphs are shown below. Results here support the alternate hypothesis H21: The risk adjusted return of the stock price of the sample of firms announcing stock splits is significantly affected around the announcement date as defined by the event period. This finding supports the significance of the information around the event since the market’s reaction was observed. ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 Is it possible to isolate and observe the samples’ daily response to the announcement from day -30 to day +30? If so, at what level of efficiency did the market respond to the information and what are the implications for market efficiency? Another purpose of this analysis was to test the efficiency of the market in reacting to the three samples of stock split announcements. Specifically, do we observe weak, semi-strong, or strong form market efficiency as defined by Fama, 1970, in the efficient market hypothesis? The key in the analysis is to determine if the AER and CAER are significantly different from zero or that there is a visible graphical or statistical relationship between time and either AER or CAER. T-tests of AER and CAER both tested different from zero at the 5% level of significance. Likewise, observation of the following CAER Charts (graphs of CAER from day –30 to day +30 for each sample) confirm the significant positive reaction of the risk adjusted returns for the two forward split samples up to 27 pre-announcement and a significant negative reaction for the reverse split sample up to 30 days prior to the stock split announcement. Two for one stock split announcements: ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 Three for two split announcement: ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 Reverse split announcement: ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 There are three forms of market efficiency as defined by Fama, which are strong, semi-strong and weak form efficiency. Observation of the CAER graphs against time for two for one and three for two stock split announcements shows a positive reaction twenty seven days prior to the announcement date. Reverse splits are normally done in order make the stock more appealing for investors with an unusual low market price. (Lawson) Also, reverse splits might be used in order to reduce the number of shareholders of the company. As an example if a 1-10 reverse stock split is made effective, the investor will have ten times less shares than before, but at ten times the price. In the reverse split case, the CAER graph suggests that return falls from day -30 until day -15, while then increasing until day 10. After day 10 the stock starts to level off. CAER graphs for two for one and three for two stock splits show how excess return rises up to 27 days prior to the announcement day. From Day 0 until Day 30 stock returns start to level off. This evidence supports Hypothesis H10, which states that stock price is not affected by this type of information on the announcement date. The stock return has already been adjusted before the stock split announcement is made. The investor cannot outperform the market by using public information. The price has already been affected by the announcement of two for one and three for two stock split announcement. After the announcement day, from days 6 to 16 the return goes up, which is caused by investors that react favorably to the announcement by buying more shares. After this small increase, stock price decreases and levels off. The CAER graphs support the idea that the market is semi- strong form efficient. For the samples analyzed, public information does not affect stock price on the announcement day. Reaction is observed up to 27 days prior to the announcement date which suggests that to be able to â€Å"outperform† the market you must be aware of inside information. CONCLUSION: The purpose of this study was to test whether the investor can make an above normal return by relying on public information impounded in a stock split announcement. Using risk adjusted event study methodology, this study tests â€Å"how† and â€Å"when† public announcements of forward and reverse stock splits affect stock price. Stock split announcement samples include 38 two for one, 39 three for two, and ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS Volume 16 Number 1 10 reverse splits. A total of 36,714 observations for the announcement samples and the corresponding S 500 stock index were analyzed using standard risk adjusted event study methodology. Results suggest that the firms’ public stock split announcements did not affect stock price on the announcement day. Rather, for the two for one and three for two forward split samples, stock price exhibited a significant positive reaction up to 27 days prior to the announcement. For the reverse split sample, stock price exhibited a significant negative reaction up to 30 days prior to the announcement. Results support the semi- strong form efficient market hypothesis since stock prices adjust so fast to public information that no investor can earn an above normal return by trading on the announcement day. Investors greet forward stock split announcement with a positive sign, whereas they view reverse splits as bad news. Management may be using stock splits to adjust stock price to a more marketable range, downward with forward and upward for reverse splits. Evidence here suggests signs of insider trading activity up to twenty-seven days prior to the announcement of the stock split. ASBBS Annual Conference: Las Vegas February 2009 Proceedings of ASBBS REFERENCES: Volume 16 Number 1 Asquith, Paul, Paul Healy, and Krishna Palepu. â€Å"Earnings and Stock Splits. † The Accounting Review 64 (1989): 387-403. Barker, C. A. , â€Å"Effective Stock Splits,† Havard Business Review, XXXIV (January-February, 1956), pp. 101-106 Easely, David, Maureen O'hara, and Gideon Saar. â€Å"How Stock Splits Affect Trading: a Microstructure Approach. † The Journal of Financial and Quantitative Analysis 36 (2001): 25-51. Fama, Eugene F. Efficient Capital Markets: a Review of Theory and Empirical Work. † The Journal of Finance, 25 (1970): 383-417. 9 Dec. 2007 . Fama, Eugene F. , Lawrence Fisher, Michael C. Jensen, and Richard Roll. â€Å"The Adjustment of Stock Prices to New Information. † International Economic Review 10 (1969) : 1-21. 9 Dec. 2007 . Ikenberry, David L. , Graeme Rankine, and Earl K. Stice. â€Å"What do stock splits really signal?. † Journal of Financial and Quantitative Analysis 31. n3 (Sept 1996): 357(19). General OneFile. Gale. Longwood University. 9 Dec. 2007 . Johnson, Keith B. â€Å"Stock Splits and Price Change. † The Journal of Finance 21 (1966): 675-686. 9 Dec. 2007 . Lakonishok, Josef, and Baruch Lev. â€Å"Stock Splits and Stock Dividends: Why, Who, and When. † The Journal of Finance 42 (1987): 913-932. Lamoureux, Christopher G. , and Percy Poon. â€Å"The market reaction to stock splits. † Journal of Finance 42. n5 (Dec 1987): 1347(24). General OneFile. Gale. Longwood University. 9 Dec. 2007 . Lawson, Michael J. â€Å"Reverse Stock splits: The Fiduciary's obligations under State LAw. † California Law Review 63 (1975): 1226-249. Malkiel, Burton G. â€Å"Is the stock market efficient?. † Science 243. n4896 (March 10, 1989): 1313(6). General OneFile. Gale. Longwood University. 9 Dec. 2007 . ASBBS Annual Conference: Las Vegas February 2009

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On Finance Articles - Essay Example To fulfil Doha's mission to alleviate global poverty, the developed world must at the minimum, be prepared to waive tariffs and quotas on exports from countries officially declared least developed. However, they are loath to do so due to domestic compulsions. Studies carried out by the World bank show that if tariffs and quotas were to be totally done away with, it could "boost income in developing countries by $86 bn and pull an extra 30 million people out of poverty". However, the models used by the World bank do not factor in all possible variables and hence the figures are debatable, some other models for example predict a reduction in poverty by 2% for every 1% increase in income, but with globally variable distribution patterns. The Doha talks also suffer from a misplaced sense of priorities. In concentrating only on slashing tariffs in the agriculture sector, it is focussing its efforts on the one area where it is least likely to have any positive impact on the economies' of the least developed countries. It is felt that if subsidies are removed, world food prices will rise, hurting the consumers, the majority of whom are in the least developed countries. ... This is a major achievement in itself. For a change, the developing and least developed countries have a forum in which to voice their legitimated grievances. Partnerships between countries such as between China - Brazil - India have also highlighted the growing clout of these emerging economies and their willingness to stand up to the developed world to counter what they perceive as 'economic imperialism'. References The Economist, December 10th 2005, pp 75-76. ARTICLE 2 - NEW FRIENDSHIPS AND PETROPUZZLES China's unquestionable thirst for oil in the world market is well known, as it seeks to sustain a booming economy, with China's oil demand shooting up by 15% in 2005. A major share of China's oil supplies come from Saudi Arabia and the interdependence between China and Saudi Arabia is evident from the fact that King Abdullah's first official trip outside the Middle East was not to the United Sates but to China. A growing economy should have resulted in a corresponding growing demand for oil. However, China once again confounded al experts by disclosing that its oil demand fell by 0.2% in 2005. Other experts, however, scoff at these figures and maintain that demand actually rose by between 6.4% and 8% in line with economic trends. If China's figures were to be believed, then the OPEC might have to consider cutting production in order to maintain oil prices, even though parallel events in Nigeria and Iran fuelled speculations about a possible rise in oil prices. In Nigeria, attacks by militants resulted in a decrease in production by about 200,000 barrels per day (bpd). Iran's nuclear ambitions and threats to cut production in the face of