Monday, November 26, 2007
Why Jerusalem is important to all 3 religions
Sunday, November 18, 2007
Research Paper Topic
Utilitarianism Applied to E-Property
Utilitarianism Applied to E-Property
Utilitarianism is based upon the principle that, when faced with a decision, every human should take the action that will ultimately benefit the most number of people, and cause the greatest happiness. Let us bring this principle into context within the realm of e-property. E-property can be ideas, publications, documents, and many other intangible yet original items. Tonight we will discuss several issues relating the use of utilitarian reasoning in an attempt to determine what is right and what is wrong. With us to reflect upon this touchy issue are San Diego State University Professor Sara Baase; leading contributor of Business Communications Review, Mike Banic; Geek.com reporter Amy Zunk; John Lettice, a technology writer for The Register; Internet relations expert Nick Dyer-Witheford; world renowned utilitarian John Stuart Mill; Chairman and CEO of Microsoft Corporation Bill Gates; author Joseph M. Kizza; and James Riley, a reporter for The Australian. Let us begin the show.
The Ethical Implications of File Sharing
Likely the most controversial topic regarding e-property is the sharing of files over peer to peer networks. Most web users have shared files at some point in their lives and been made happy by it; however, a real ethical dilemma occurs when files containing copyrighted materials are shared. Sara Baase is a university level professor and has created a compilation of social, legal, and ethical issues that concern the field of computers and the Internet.
Baase believes that file sharing is unethical and unprofessional: “Violation of copyrights, patents, trade secrets and the terms of license agreements is prohibited by law in most circumstances. Even when software is not so protected, such violations are contrary to professional behavior. Copies of software should be made only with proper authorization. Unauthorized duplication of materials must not be condoned” (A Gift of Fire, 448). Baase makes file sharing sound very upsetting to many people.
Mike Banic is a leading author for the Business Communications Review, and he asserts that, ethics, morality, and legality aside, “Peer-to-peer (P2P) networking has become one of the dominant forms of electronic communication around the world, and the use of P2P networks shows no signs of slowing down” (Banic, “Resolving The P2P Dilemma”, 63-65). In the same article, he even says that “recent studies show that 60 percent of all Internet traffic is P2P traffic.” Logically, if file sharing was not a beneficial practice, it would not comprise over half of all internet traffic.
Amy R. Zunk, a reporter for Geek.com, on the trial verdict against Morpheus, had this to say: “I do know a lot of people who use LimeWire and other file-sharing applications… They buy a copy of something for themselves and then diseminate [sic] a copy on the Internet as a way to keep information free, to keep vendors costs at bay, and to help out where they can (“Morpheus Found Guilty in File-Sharing Case”). Reaffirmed once again, large numbers of people benefit from file sharing. Zunk even makes it sound ethically right to share files, by saving people money and getting back at producers. Despite Baase’s reflection that file sharing is illegal, and that people are in fact hurt by it, utilitarianism backs up Banic and Zunk’s opinions that file sharing is a worldwide enterprise that benefits untold numbers of people by its happenings. Thus, Banic and Zunk will take this argument. Many more people benefit from file sharing, than are hurt.
The Openness of Windows Source Code
The most valuable item of e-property that Microsoft possesses is the code to its operating systems. Given the code, hackers and antivirus manufacturers alike could do a whole lot more in finding and either dealing with, or taking advantage of, exploits in the code. Operating systems like Linux have always had open sourced code with which developers and software engineers could express their creativity while producing a more functional product. Microsoft, on the other hand, has always kept its source code secret, and many people feel that Microsoft would benefit society better if it were to release its code.
Other posts on Utilitarianism and online activites:
Utilitarianism Applied to E-Property
Utilitarianism Applied to E-Property: Should Spamming be Allowed?
Utilitarianism Applied to E-Property: Introduction
Utilitarianism Applied to E-Property: The Ethical Implications of File Sharing
Utilitarianism Applied to E-Property: The Openness of Windows Source Code
Utilitarianism Applied to E-Property: Reporting Assault and Theft of E-Property in Government Databases
Here with us to discuss the topic is John Lettice, a technology writer for The Register. John offers his viewpoint on the topic: “It'd be nice if escaping source code prompted Microsoft to take a more rational view of the whole issue, stop pretending it's secret and adopted the rival view that openness helps security, but we fear that'll take a few more leaks” (“MS Windows Source Code Escapes Onto Internet”). What John is saying is that society will benefit much more if Windows were to release its source code.
Nick Dyer-Witheford, an expert on Internet relations, provides some complimentary insight on this matter in his essay, “E-Capital and the Many Headed Hyrda”: “The outcome of this interaction between commercialization and free software is, however, uncertain. One obvious prospect is the corruption of the open source movement” (146). What Dyer-Witheford is saying is that if Windows were to open up its code, then so many vulnerabilities to outside forces, including malicious script and virus writers, would emerge. The potential risk to the hundreds of millions of Windows users worldwide is seemingly immeasurable. This would result in the crash and burn of the software, causing much more unhappiness than the emotional gain a few modders and hackers would receive. Hands down, Dyer-Witheford reserves the win in this argument, for the greatest amount of happiness that can be achieved in this situation is through Microsoft maintaining the secrecy of its most valuable piece of e-property.
Should Spamming be Allowed?
Spam can be defined generically as unwanted mail, in this case digitally, that is useless, bothersome, or offensive in some way to the majority of its receivers. It comes in the form of chain letters, monetary summons, and porno adds. Spam, however, may mean something to the person who created it. The first amendment of the Constitution guarantees citizens the right to free speech. Most people don’t want spam, however, which is where this right produces conflict. Essentially, people want to be heard, but do not want to listen to others.
John Stuart Mill is probably the most well known proponent of utilitarianism ever in history. “Who can compute what the world loses in the multitude of promising intellects…who dare not follow out any bold, vigorous, independent train of thought…” (On Liberty and Utilitarianism, 39). What he is saying is that society is at a loss when free speech is restricted. Most people would agree that spam involves “independent train[s] of thought,” however a point is reached where enough is enough. I feel that nobody truly benefits from spam, people only think they benefit from spam sometimes until they realize they are participating in a scam.
Microsoft CEO Bill Gates joins us tonight to lament on his own spam problem: “Spam is worse than irritating. It is a drain on business productivity, an increasingly costly waste of time and resources that clogs corporate networks and distracts worker” (“Why I Hate Spam”). Gates also infers that “spam threatens to undo much of the good that e-mail has achieved.” Clearly, spam is a detriment to those people whose e-mail accounts fall victim to its cumbersome grasp. The number of people, it is safe to say, that benefit from spam is relatively low. Thus, humans should engage in not sending spam e-mail messages, because it benefits society much more when they are not sent, than when they are.
Other posts on Utilitarianism and online activites:
Utilitarianism Applied to E-Property
Utilitarianism Applied to E-Property: Should Spamming be Allowed?
Utilitarianism Applied to E-Property: Introduction
Utilitarianism Applied to E-Property: The Ethical Implications of File Sharing
Utilitarianism Applied to E-Property: The Openness of Windows Source Code
Utilitarianism Applied to E-Property: Reporting Assault and Theft of E-Property in Government Databases
Reporting Assault and Theft of E-Property in Government Databases
Many people believe that all accounts of hacking, and/or theft of e-property, should be reported and stored in a publicly available government database, in an attempt to track malicious activity and ultimately reduce cyber crime. Having property stolen or assaulted only benefits the thief, at least until they are caught. The compliment of this verity, though, is what Joseph M. Kizza, the author of three computing impact books, would like to address.
Kizza: “Many of those who would have liked to report such crimes do not do so because of both economic and a psychological impact such news would have on both the shareholders’ confidence and the overall name of the company. Some companies are reluctant to report any form of computer attacks on their systems in fear that others, including shareholders, will perceive company management as weak with poor security policies” (Computer Network Security and Cyber Ethics, 57). Not only would reporting to a public database show harm that has already been inflicted upon a company, but further harm to that company, as well as the minds of those stakeholders involved, would ensue as a result.
James Riley, a reporter for The Australian, insists that a cyber-crime tracking database: “Would give authorities the best chance of collecting suitable evidence to present to a court” (http://the-other.wiretapped.net/security/info/papers/law-enforcement/australian-federal-police/afp-1998-mar-report-all-hacks.txt). So it appears that a government database would be useful, for it would help in nabbing the criminals who assault e-property, and many times end up stealing it. The number of stakeholders a company has is usually much larger than the number of employees a company has. So, by not reporting cyber intrusions or the theft of company documents as a result of such intrusions, thousands of people are spared the fear and hassle of evaluating the damage done to their company. This is contrary to the few people who would truly appreciate the value of knowing what has happened. The happiness factor in this argument gives the win to Joseph Kizza, for his take on the topic creates by far the most social utility, for the most people.
It looks as though we are out of time for tonight. It’s clear that utilitarianism yields all kinds of different results, given the context in which it is applied. Many things that might be considered immoral, such as widespread file sharing involving copyrighted materials, are justified with utilitarianism, while things like spam and Windows source code remain taboo and protected. The bottom line is, file sharing makes the majority of people happy, while spam and a crash and burn of Windows, can and would make the majority of people unhappy. The focus of utilitarianism lies on what makes the most people happy, most of the time. Theoretically, all humans should act this way, thereby creating the most social utility, and everyone is supposedly happy. Unfortunately, factors such as the law come in to play, which limits the maximum potential of utilitarianism. Thanks for watching, and have a great night.
Other posts on Utilitarianism and online activites:
Utilitarianism Applied to E-Property
Utilitarianism Applied to E-Property: Should Spamming be Allowed?
Utilitarianism Applied to E-Property: Introduction
Utilitarianism Applied to E-Property: The Ethical Implications of File Sharing
Utilitarianism Applied to E-Property: The Openness of Windows Source Code
Utilitarianism Applied to E-Property: Reporting Assault and Theft of E-Property in Government Databases
Works Cited
Banic, Mike. "Resolving The P2P Dilemma." Business Communications Review Jan 2007: 63-65. ProQuest Computing. ProQuest. American U Lib. 11 Feb 2007
Dyer-Witheford, Nick. "E-Capital and the Many-Headed Hydra." Critical Perspectives on the Internet. Ed. Greg Elmer. Lanham, MD: Rowman & Littlefield Publishers, Inc., 2002.
Gates, Bill. "Why I Hate Spam." Microsoft.com. 23 Jun 2003. Microsoft Corp. 11 Feb 2007
Graham, Gordon. The Internet: A Philosophical Inquiry. New York: Routledge, 1999.
Kizza, Joseph Migga. Computer Network Security and Cyber Ethics. Jefferson, NC: McFarland & Company, Inc., Publishers, 2002.
Lettice, John. "MS Windows Source Code Escapes Onto Internet." The Register 13 Feb 2004. 11 Feb 2007
Mill, John Stuart. On Liberty and Utilitarianism. New York: Bantam Books, 1993.
Riley, James. "Users told: Report all hacks." Wiretapped. 19 Nov 2000. 11 Feb 2007
The Stifling and Growth of Multiculturalism Online
s Capital
o Money is used for everything in technology. Not only must one buy or lease the computer, but also pay for the Internet access.
o Example: A family living in Iceland cannot afford to buy a computer or to pay the monthly ISP fee to maintain Internet connectivity.
s Technology/Infrastructure
o Internet access is required, but on top of that, the place one lives in must have an infrastructure that allows for connectivity.
o Sometimes capital limits the type of computer one can buy, affecting either the newness or abilities of systems obtained.
o Example: A village in India that uses Pentium 1 machines with 28.8 kb/s dial-up modems has one phone line for the entire village, which is periodically disrupted leaving the entire town incommunicable.
s Geographical Location
o Not everywhere has Internet access either because it is too far out of the way, or geography does not allow for a feasible means of connectivity to be implemented
o Example: A Peruvian village high in the Andes cannot afford to, or cannot physically lay cables down to the closest ISP, thus inhibiting connectivity, and satellite Internet is much too expensive and therefore not feasible either.
s Internet’s Current Content or Restrictions
o Some of the Internet’s content, or lack thereof, discourages users from using it.
o Example: If a Chinese user disapproved of the Chinese government’s regulation of US search pages, and decided either not to use the Internet altogether, or to only use certain Chinese sites for his/her blogs.
Growth — “Haves”
s Corporate Financing
o Corporations realize not only the business importance of communicating with clients, but also the revenue-growth implications; all of this inadvertently connects more people from across the globe.
o Many times companies only invest in where they feel they will have the most success, financially, which involves primarily European and other developed countries.
o Example: Companies like Intel have set goals to help connect an additional number of individuals to the Internet, by a certain time. Not only do third-world and other foreign persons get to connect, but Intel faces a much wider market for product distribution in the future.
s Personal Investment
o Individuals are recognizing the importance of being able to connect and communicate with colleagues and friends, and are making investments in Internet services.
o Usually requires a decent base of working capital.
o Example: A Danish family signs up with an ISP, and then the father communicates with business clients in the US, while the mother webcams with family in Finland, while the daughter has a German e-mail pen pal.
In General
s Damaging to:
o Third-world or underdeveloped countries
o Minorities
s Benefits:
o Those with capital
o Every society using it by making their citizens more multicultural and diverse.
The Internet and Investing Ignorance
Today the majority of Americans have access to the Internet. In most cases, the speed of their connection is significantly higher than 56 kbp/s. When this verity is combined with the notion that America was founded on the basis of capitalism, and that money is a vice that the majority of Americans desire more of, it makes sense that securities trading would eventually transition into an online environment. During the last ten years, the digitalization of every aspect of the securities markets has greatly increased the efficiency and speed with which professionals in the business operate. Traditionally, when an investor wanted to place an order for a security[1], he or she would have to contact their registered broker, usually by phone, and place the specific order with that person. The broker would then send the order, either by person or by phone, to the floor of the stock exchange. This could only be done, however, after the broker received his or her, oftentimes several hundred dollar, commission. At the floor of the exchange, a representative would “cry out” the order at the booth where that particular security was being traded, in hope of finding a matching bidder or seller for the same amount of that security. Clearly, such a process contains an excessive number of middlemen, and requires the use of far too many resources, both monetary and physical. Over one hundred years after this process began, however, it ended with the electronification of almost every facet of exchange trading.
The entire process of offer-bid matching is done electronically now. As such, the need for calling a broker to place an order in your name has virtually disappeared. Typically, a full-service broker is one who receives a phone call from a client wishing to place an order for a particular security, and who then passes that order on to the market. An online broker, on the other hand, allows investors to place their orders via a web interface, and those orders get sent directly to the market without an actual person ever seeing them. This is where the controversy which is the topic of this paper, results. The fact that nobody is standing by to monitor what investors do with their money is a problem. Howard Abell, Robert Koppel, and Ken Johnson are all trained professionals that have years of experience with the markets. Together they remark at how “the vast majority of Americans who owned stocks relied on a personal broker for advice, recommendations, and trade executions” (22). What they mean is that brokers were used for much more than placing orders for customers. They served as advisors, who, with a wealth of knowledge would inform clients about what their investment strategies should look like and what actions would help them become the most successful in the markets. With regard to investing through a broker, Charles Carreon, an editor at 401kinvestor.net, articulates “this a good idea for ignorant investors.”
Trading on the stock market is a task that requires much skill and very little luck. Some people relate the act of investing to that of gambling. Brendon Seeto, in his book The Psychology of Online Trading, supports this notion by saying, “as consumers are given the opportunity to trade online, the difference between casinos and online trading companies has decreased” (43). For most newbie and inexperienced investors, investing practically is gambling. Most new investors haven’t the faintest idea as to what they are doing when they begin trading. Traditionally, this is where having a personal broker helped guide these individuals toward making smart investment choices. With the advent of electronic trading facilities, however, this added layer of investor security has disappeared almost entirely. There is much greater availability, as a result, for first-time investors to try their hands at the market, an activity that required too much time and money before online brokers made trading as cheap as $5 a trade. For about ten to twenty times that much, it is possible to have a trained professional review your portfolio, yet most people are not willing to pay a fee that is mammoth in comparison to the cost of making a trade. True, it is much cheaper to invest online without going through a certified professional, but the problem here is simply that- there is no professional guiding you through the experience. Dr. Victoria Collins, a Certified Financial Planner (CFP), relates newbie investors’ experiences in other facets of life to their enthusiasm to invest: “The idea of consulting a full-service broker or other professional for investment advice seems strange to them…because they’re used to being independent in other areas of their life” (InvestBeyond.com 11). These first-timers do not believe in asking for help—after all, they are grown-ups. Being an adult, however, does not mean that one is automatically bestowed with the wisdom to act in a capacity similar to that of, say a CFP. Such a title requires years of training, certifications, and licensures in order for a person to be deemed truly knowledgeable of what they are doing in the expansive world of money markets.
The fact that so many new investors lose vast sums of money through market exploitation via the Internet points to “the need for the establishment of investment analysis as a profession with its own academic standards,” as John Goodchild and Clive Callow, experienced investment strategists, put it (Double Takes 76). There needs to be a set level of expertise in investment know-how, by which investors can call themselves “informed.” Assuming that such a standard is set, that knowing all about security types and investment strategies designates you as educated in the field, the level of application of such a standard becomes an even greater topic for debate. As it stands now, in order for a person to sell securities to individual investors, and to manage money for them, they must have passed two examinations called the Series 7 and the Series 63. In order to pass these exams and obtain state licensure, individuals must be well educated in almost every facet of investing and money market activities. These individuals, as a result, manage money for others once they have ascertained a sufficient knowledge base. New investors, under current statute, are not required to know anything about investing whatsoever in order for them to be allowed to invest, online or elsewhere, unsupervised. Clearly, a discrepancy is present in the arena of money management. As Abell, Koppel, and Johnson insist, “the emergence of the self-directed electronic trader brings with it an overwhelming need for training” (xiii). It is agreed upon by many that the need for training in the field of online investment is greater than ever. The way traders think has completely changed, as the psychology behind market behavior has changed with the utilization of the Internet for almost all trading activity today.
There is no doubt that the implementation of the Internet’s vast resources has helped thousands of investors in ways unimaginable. On the contrary, the Internet has proved to be quite a detriment to many new and experienced investors alike. With the spread of the Internet as a tool for learning about investment opportunities, an expert analyst like Brendon Seeto has seen many investors act on false or speculative information, noting that “information from electronic trading systems…distract[s] market participants from their basic investment principles” (ix). Because these investors get distracted, they end up “not taking the time to properly evaluate any [security] before buying,” says Dr. Victoria Collins. Here she is outlining what she believes is one of the greatest downfalls of Internet trading: lighting fast trade execution times (25). The Internet has reduced the average trade execution time to only 2 seconds for most securities, and as a result, traditional principles that once guided rational investing behavior have gone out the window. Instead, hype and euphoria have begun to surround the environment of online trading that give the impression that instant, unlimited profits are only a few mouse clicks away. As a result, new investors get an entirely incorrect perception of what the market is and how it works.
The way individuals think when they invest has changed with the simplification of the investing process. This shift has occurred almost exclusively through the exclusion of full-service brokers from today’s transactions. It is far easier now to access the market and be fooled by its pretty charts and seemingly endless potential for profit. Brendon Seeto, on get-rich-quick schemes, reminds us that “one of the major advantages of electronic trading is that it allows…access [to] the market in seconds” (6). As it stands, this is an amazing feat. However, because it only takes seconds to trade, it takes just as little time to lose an equally amazing amount of money. Still yet, people cherish the ability to do what they wish with their own money, when they want to do it. As Collins tells us about the freedom of individual choice that people have enjoyed all their life, “after buying cars, houses, and insurance this way, they’re now moving into investing” (11). As convenient as Americans enjoy their lifestyles, those who begin investing on their own generally don’t do the research to substantiate their trading strategies. Abell, Koppel, and Johnson inform us that “from 1992 through 1998, it has been estimated that eight out of every ten people who tried “day trading” lost money-sometimes big money” (35). The phrase “day trade” implies the quick buying and selling of securities that wouldn’t be possible without the use of the Internet. What these grotesque numbers are saying, therefore, is that newbie traders need more preparation before they attempt to “day trade,” or trade at all for that matter, using the advanced resources the Internet has to offer.
The US government owes it to its citizens to protect them from unwarranted risks, in this case with regard to the financial sector and regulating the online trading of securities. Having established that most newbie investors perform incredibly poorly in the market, and that the risks of trading have multiplied exponentially with the advent of lightning fast Internet capabilities, the US government should implement a system whereby all investors wishing to invest online in monetary instruments and financial securities are required to pass a comprehensive examination covering material related to the field, before they are allowed to do so. Collins points out that “some of these new electronic do-it-yourself investors really do know what they’re doing, often as a result of having moved through the ranks from full-service broker to discount broker to today’s online discount broker” (11). This is definitely true in the case of some traders, however the overwhelming majority of new online investors have no idea where to begin in the trading arena. Collins goes on to admit that “at the other end of the experience spectrum lie the new investors who only recently acquired enough assets to invest in stocks or mutual funds” (11). For this reason, these new investors are only just beginning to invest, and have no experience in trading with or without a full-service broker, or someone to look over their shoulder. Rarely is there a new investor that understands “the analysis of economic data, statistical forecasting, stock market psychology, investor requirements and portfolio selection,” as Goodchild and Callow point out require an adequate understanding by any person wishing to be even remotely successful in the market (76).
An adequate understanding of myriad concepts would be imperative in order to obtain a modest level of skill and understanding of the workings of financial markets. Some people are better at investing than others, however no one is born with the innate ability to pick stocks or manage money. Investing requires learnable skills. Abell, Koppel, and Johnson agree that the three criteria for success in the markets is learning “where to trade, how to trade, and what to trade” (37). Essentially, an examination geared toward preparing individuals to trade securities online without the supervision of a broker, would cover these three, broad, facets. To take a closer, in depth look at the kind of education that would be required to pass an exam like this, it is important to understand the three types of market analysis: fundamental, technical, and sentimental. Dr. Melvin Pasternak, the editor of www.streetauthority.com, explains that fundamental indicators have to do primarily with “a company's sales and earnings outlook.” This is almost the exact opposite of the technical analysis, which is the evaluation of price fluctuations in securities’ values determined by studying charts. In an entirely separate category is sentimental analysis, which involves understanding the psychology of market participants. Clearly, market analysis is a complex and diverse arena that, without training, would never make sense to a beginning trader. To further complicate the process of understanding what information matters and what doesn’t in the financial marketplace, the Internet has introduced an entirely new means of disseminating data, “characterized by a series of tempting distractions,” professional analyst Michael C. Thomsett puts it (Mastering Online Investing 1). Anyone with an Internet connection can publish information concerning any subject, and in most cases, this information is unverifiable.
Useless information and general ignorance are not the only prevalent risks to new investors, however. Mistakes and vulnerabilities, big and small, appear all the time when computers enter the picture. For example, a keying error caused either by mistyping or by dropping something could execute a trade accidentally, leading to undesired consequences. True these flaws are characteristic of all people human, but untrained investors are exposed to a different kind of risk far greater than what any accident might cause. The risks associated with security surrounding online banking accounts are various and many. Simply using a public terminal to check a portfolio’s status can be the downfall of a new investor. The government’s safety guide to online practices, found on OnGuardOnline, will tell you that experienced patrons of the online trading phenomenon know better than to access their accounts through public terminals, log-on without adequate virus protection, make their passwords too simplistic, or use public hot-spots to check their finances (OnGuardOnline). This is a lot to worry about, and it merely adds to the stress that traders experience already. The newest traders, who have yet to learn how best to manage the stresses of trading, are especially prone to forgetting these essential security measures. The most paranoid can even get a security token that attaches to their car-keychain and that generates “a one-time pass-code that typically changes every 30 or 60 seconds,” and is required to access an account. Not every vulnerability that the Internet yields, however, can be safeguarded against. Given the numerous complexities already surrounding the act of online trading, security is just one more measure that newbie investors have to worry about, and should be required to learn about.
By being required to pass a test that certifies competency in a diverse range of investing principles, new and old traders alike will be much better prepared for business in the financial marketplace. Just because an investor has passed the certification examination, however, does not guarantee that they will find ultimate success. Several skills in particular develop only with time and experience with trading. Most importantly is a cold, rational view of the market. When investors become caught up in the emotions of a large loss or gain, they many times act in irrational ways and ultimately make the situation worse for themselves. For example, imagine that a first time investor spends his entire life savings buying stock in Pfizer, a major US drug company. He wakes up the following morning to find that Pfizer has announced the failure of its highly anticipated heart drug, and suddenly this new investor is out 13% of his investment. Generally, a person in this situation will lose some of their sanity, and feel that they have to make up for their loss somehow as they begin buying random, highly volatile stocks left and right, all because the speed of the Internet allows them to. In the end, this investor is out of 20% of his investment, significantly worse than before. It is imperative that an investor be able to keep his sanity, no matter what situation he may find himself in. Developing a cold view of the market is essential to overall success and rational decision making. Essentially, some investors are simply not suited to online investing, and should leave the management of their money to someone else.
The freedom that the Internet has created for individuals to make their own, unsupervised investment decisions has made it more risky and difficult than ever for inexperienced traders to earn consistent, positive returns on their capital. Abell, Koppel, and Johnson point out that, “despite their enthusiasm, most people entering the markets today simply do not have the skills and experience to trade effectively” (xiii). The resources that the Internet has made available to investors have proved both helpful and detrimental. Useless and incorrect investment data has flooded the information superhighway, and the speed at which investment transactions now take place lets investors act in mere seconds. Likewise, the simplification of the investment process with the Internet, through the exclusion of full-service brokers, has made it even easier for new investors to mismanage their own money. The Internet has become a marvelous tool for investing, but as expert investor Leslie N. Masonson says, “for today’s neophyte day trader the odds of success are slim to none” (Day Trading on the Edge 14). As a result, a strong need for training in the discipline of online investing is apparent. Additionally, new investors simply do not understand the skills, risks, and discipline associated with online investing, and, as a result, are too ignorant to sufficiently manage their own investments.
Works Cited
Abell, Howard, Robert Koppel, and Ken Johnson. The Sixth Market. Chicago: Dearborn Trade, 2000.
Carreon, Charles. "Mutual Funds." 401KInvestor.Net: Charles Carreon's Simple Guide To Investing. 9 Apr 2007
Collins, Victoria. InvestBeyond.com. Chicago: Dearborn, 2000.
Goodchild, John, and Clive Callow. Double Takes. Chichester, England: John Wiley and Sons Ltd, 2000.
"Investing Wisely Online." OnGuardOnline: Your Safety Net. Sep 2006. 26 Apr 2007
Masonson, Leslie N. Day Trading on the Edge. New York: Amacom, 2001.
Pasternak, Melvin. "Technicals versus Fundamentals." Street Authority. 18 Apr 2007
Seeto, Brandon C W. The Psychology of Electronic Trading. Singapore: John Wiley and Sons (Asia) Pte Ltd, 2004.
Thomsett, Michael C. Mastering Online Investing. Chicago: Financial Publishing, Inc., 2000.
[1] For the purpose of clarity, an order can be to buy or sell a security. The “market” simply refers to the place where securities are exchanged. Likewise, securities that can be exchanged include stocks, bonds, mutual funds, and a small slew of other, more complex investments that generally just combine one or more of the above.
Research Paper Topic Prosposal: Cyber Philosophy and Ethics
Annotated Bibliography
Part of anthology edited by Langford, Duncan.
Graham, Gordon. The Internet: A Philosophical Inquiry. New York: Routledge, 1999.
The chapter of this book that will be especially helpful is that which is subtitled, “Assessing the value of technology” (39). In it, Graham explores the concept from a more philosophical approach, pointing out that the value of technology cannot truly be assessed because we will never know for sure in what direction it is headed. He does mention, however, that technology “is truly valuable if it raises the prospect of a better world,” which will aid in my argument for file sharing technologies in the capacity of expanding knowledge (61).
AU Library Homepage > ALADIN catalog > “Internet”
Kizza, Joseph Migga. Computer Network Security and Cyber Ethics. Jefferson, NC: McFarland & Company, Inc., Publishers, 2002.
The author attempts to analyze the effects of online attacks in terms of monetary and social implications. He makes specific notes on federally reported statistics about internet attacks that will make a great opposition to my view point of federal regulation of the net.
AU Library Homepage > ALADIN Catalog > “Cyberethics”
Langford, Duncan, ed. Internet Ethics. New York: St. Martin's Press, 2000.
The authors included in this book have written several brief synopses of how computer relations were managed back when they were not as big of issues as they are today. The authors touch upon topics like copyright law, anonymity, and the free sharing of software. This broad coverage will be essential to my arguments examining the implications of having open source code for the Windows operating systems, and the regulation of internet theft involving intellectual property and individual documents.
AU Library Homepage > ALADIN catalog > “Internet”
Mawhood, John and Daniel Tysver. “Law and the Internet.” Langford 96.
Part of anthology edited by Langford, Duncan.
Weckert, John. “What is New or Unique about Internet Activities?” Langford 54.
Part of anthology edited by Langford, Duncan.
Willard, Nancy E. The Cyberethics Reader. New York: The McGraw-Hill Companies, Inc., 1997.
The author’s compilation of moral judgments in this book are quite strong in advocating a specific way of conducting oneself in the online world. Her opinions on not stealing copyrighted materials is an excellent confliction with my pro-file sharing stance. Additionally, she covers the topic of distributing massive spam e-mails and their negative moral implications. This is another great point of view that conflicts with what my paper will be advocating. AU Library Homepage > ALADIN Catalog > “Cyberethics”
Annotated Bibliography: Stock Market Investing Restrictions Paper
Carreon, Charles. "Mutual Funds." 401KInvestor.Net: Charles Carreon's Simple Guide To Investing. 9 Apr 2007
Goodchild, John, and Clive Callow. Double Takes. Chichester, England: John Wiley and Sons Ltd, 2000. These two authors examine in great detail the many broad categories of knowledge that is crucial to learn in becoming successful in the market. These authors agree with my assessment that a regulatory body with established academic guidelines is a must in today’s world of rampant online investing. I will use their detailed explanations of financial subtopics to supplement what The Sixth Market, above, has even more broadly defined.
Seeto, Brandon C W. The Psychology of Electronic Trading. Singapore: John Wiley and Sons (Asia) Pte Ltd, 2004. The author talks about the most common mistakes that newbie traders make. He analyzes the false expectations they have, in addition to a brief discussion on what any investor should know before trading online. His analysis of common trading errors will add greatly to my overall argument that newbie investing is much too dangerous, and should not be allowed. I plan to cite his statistics regarding the shockingly high number of people that lose money when they first begin investing; this, of course, is assuming they have no knowledge or experience about the money markets.
Thomsett, Michael C. Mastering Online Investing. Chicago: Financial Publishing, Inc., 2000. Thomsett examines the psychological aspects of online investing. He speaks from a standpoint of rationality in saying that calmness and coldness with regard to the market are key ingredients to making any investor successful. The author also makes several revelations about opportunity and risk being ultimately joined together in any decision a person makes, and how that theory is only magnified by the phenomenon of online investing. I will include Thomsett’s connections in my analysis of how, with the advent of online trading, the risks of investing have been shifted from the broker side of the trade directly to the independent investor side. I. Don’t let them invest online without being a professional (Insert Thesis Here)
A. Introduction
1. Historical background relating to trading
2. Remark on technological change making e-trading possible
3. Insert modified thesis
B. Required Information
1. Cover terms reader might not know: Series 7, 63, market, etc
2. Mention securities my argument will include (all types)
3. Note conventional wisdom on stock market
4. Discuss traditional, paper-trading, market psychology
C. Structure of Functioning
1. Historical information concerning traditional market structure
i. Open-cries on the exchange floor
ii. Broker assistance required for almost everything
2. Talk about how this has changed with the creation of the internet
3. Reflect how market psychology has changed over the past few decades with the advent of e-trading, transfer of liability from broker to individual
D. Justifications for Examinations
1. Reasons/statistics that support the implementation of a testing procedure and regulating body, either publicly or privately operated
2. Concessions surrounding proposed method
E. Examination Explanation, in Detail
1. Series 7, Series 63 style, but not as extensive as CFA
i. Accounting, business finance, and analysis of economic data will help with fundamental analysis approach
ii. Statistical Forecasting, most common technical indicators
iii. Analysis Strategy, applied trading method
iv. Understanding and control of self, rationality
v. Sentimental analysis training- understanding the psychology of market participants
2. Three criteria for success: where, how, what to trade
i. Passing exam will mean you’re much more prepared
ii. Knowing the above areas will give you preparation
F. Considerations
1. Distractions, keyboard accidents, gut feelings, cockiness, and cold, rational view of the market
2. Excuses for not learning to trade
3. Some people can’t handle the pressure, should consider seeking professional help with investment objectives
G. Conclusion: It’s Too Dangerous
1. Obviously, the risks are infinite and many
2. It’s too easy to make a mistake, people shouldn’t be trusted
3. Passing exam doesn’t exempt you from making mistakes, just makes you less ignorant and less likely to make a mistake
Introduction:
“It has been estimated that almost 95 percent of today’s online traders do not really know how to trade” (Abell, Koppel, and Johnson, The Sixth Market, 30). With the digitalization of almost every aspect of money markets today, first time and ignorant investors have an unlimited ability to drain their savings accounts in mere seconds. Because investors no longer have to place stock market orders through licensed brokers, they themselves now wield the power and ability to manage every facet of their assets. With added control, however, comes greatly increased risk as well. Since online investors are not constantly monitored and regulated to a great extent, it is very easy for them to invest, and many times lose, vast amounts of money. This happens predominantly to those investors who do not have any training in, experience with, or knowledge of, monetary instruments used in the online money markets of today. Thus, in order to combat senseless and ignorant online trading, investors wishing to manage their own assets in online trading environments should be required to pass an examination that certifies they possess a reasonable amount of knowledge in the field.
Over the Rainbow
Arlen was originally born as Hyman Arluck in Buffalo, New York. He changed his name to Harold Arlen when he performed, which he did with moderate success in his hometown. However, it’s believed that he was drawn to the metropolis of New York in the mid 1920s. The city became a playground for creativity for Arlen, which helped stimulate and develop his natural talents in voice and composition. He ultimately ended up writing jazz and blues pieces for Broadway shows, as well as tunes for Hollywood, which is how his “Over the Rainbow” eventually became so famous with the hit movie The Wizard of Oz.[1]
I had truly mixed emotions when I listened to this piece for the first time, which was on the night of the concert. The best word I can think of to describe this rendition of a classic song is “excited,” for the piece has different highs and lows that speak to each other and that illustrate intricacy, and hence, true mastery of music. The piece started out calm and soothing, as if something I would expect to hear on a warm, spring afternoon. However, not more than 15 seconds into the piece, a single trumpeter smoothly comes in to outline what became the harmonic base for the entire song. When he began to play, the piece seemed to instantly transform the mood of the audience into one of sweet emotion. This happens to tie in directly with the major theme of the piece: the “youthful aspiration for an ideal world of love and joy.”[2] This theme, I believe, was introduced fully about a minute into the piece when the melody switched from being played by a trumpet to being played by a trombone. The cellos and other low-sounding horns changed simultaneously with the trombone from a more somber feel to a happier one, characterized by the change from minor to major notes. This caused the expression on my face to change from tense to more relaxed. Finally, it seemed as though an early placed bridge broke things down and then brought them back up one instrument at a time, all the while creating a seemingly never ending crescendo.
It felt like the epiphany of the piece when a trumpet began screaming the highest note of the melody, marking the final run through of it. It made me stomp my feet with excitement, as a huge smile came over my face. As I was listening to these incredible musicians I felt overcome with just an immense appreciation for the music. This arrangement had turned an old song into something new and exciting, with accents here and there, and symbols splashing all over the place. Following this, what seemed like a spiced up 2-4 back beat on the drum set slowed down the tempo of the orchestra a bit, and some kicking drum fills on the high and mid toms made a nice finale. With the final screech of the trumpets standing in the back row of this ensemble, I was able to mentally recapitulate the magnificent musicianship that had just taken place.
What made this piece so exciting to hear was the fact that a classic Hollywood tune had been completely revamped, and the sound quality at which I was hearing it was far better than any VHS Wizard of Oz tape could have made it sound. There is nothing quite like a live performance. The song was spiced up with various elements of music, including rhythm. This came in the form of accents, which were numerous and varied throughout the piece. High points of excitement in the rhythm would be emphasized with a loud blast from the trumpets or trombones, and it was always a joy to hear these instruments resound. Another element of music, harmony, was also especially prevalent. The bass cello seemed to always be playing a relatively low, splashy melody, while the lead duo of trumpeters, in a concerto grosso style, would play the higher notes in contrast. In this way, it was much easier to hear the brass instruments which were playing the real melody of the song, and the simultaneous pitches created a very fancy, yet flowing harmony that was relaxing to take in. During the very soft sections of the piece, the drummer would play small, unpitched rolls on the snare drum, which seemed to really emphasize the overall feeling of sincerity that the instrumentalists were putting into the playing of Arlen’s piece. Because of the consistent stopping and playing of the trumpeters and the drummer, the piece had a very sectional form. Likewise, the piece seemed to take to the form AABA, where A was the very common melody that most people think of when they hear “Over the Rainbow.” Arlen’s hit song “Get Happy” first made him famous, and it was then that he became widely recognized as a very talented composer. It is for this reason that he was summoned by Hollywood to write theatrical music. Arlen teamed together with Yip Harburg, a lyricist, to create his oscar-winning piece “Over the Rainbow” for the film The Wizard of Oz, which was “edited out of the film three times before finally being included in the final print.” [3] Strangely enough, Arlen is recognized as one of the 20th century’s greatest Hollywood music composers, and his piece has become one of the most recognized tunes of all time.
[1] "Harold Arlen." Jewish Buffalo on the Web. Available from http://jbuff.com/harl.htm. Internet; accessed 1 May 2007.
[2] "Over the Rainbow." Answers.com. Available from http://www.answers.com/topic/over-the-rainbow-1. Internet; accessed 1 May 2007.
[3] "Jazz Programming: Monthly Feature February 2005." Chicago Public Radio. Available from http://www.chicagopublicradio.org/programs/jazz/jz_feb05.asp. Internet; accessed 2 May 2007.
Do Animals Make Music?
Concert Recapitulation
Barber is originally from Pennsylvania, and was born into a well-to-do family. For this reason, his parents were able to afford to send him to the Curtis Institute of Music in Philadelphia, which helped stimulate and develop his natural talents in voice and composition. In shaping Barber’s musicological ideals, three main influences of the time had a clear impact on his music. These were “the character of his formal education, his intellectual development of travels to Europe, and the personal guidance he received from his uncle, composer Sidney Homer.”[1]
I had truly mixed emotions when I listened to this piece for the first time, which was on the night of the concert. The best word I can think of to describe this movement is “mysterious,” for the mood of the piece jumps around between highs and lows that illustrate intricacy, and hence, true mastery of music. The piece started out calm and soothing, as if something I would expect to hear on a warm, spring afternoon. However, not more than 45 seconds into the piece, a few minor chords and scales were played by the lead violinist, that seemed to instantly transform the piece into a chase of emotions spiraling up and down around a central theme. This theme, I believe, was an underlying joy of some kind, which was revealed about 2 and a half minutes into the piece, for the first time. An intricate scale was played by the lead violinist, which completely flattered me. It felt like the epiphany of the piece, and it made me want jump in the air, with the biggest smile on my face. I definitely felt my muscles tense up as the scale climbed higher and higher, and I was just instantly overcome with a great sense of appreciation for everything that is music. I felt in that moment that I had just witnessed everything that the Katzen Arts Center truly stands for. Following this, a complicated arrangement of notes, which seemed like a massive confusion of thundering noise, succeeded the epiphany I describe above. During this time, I was able to relax and collect myself, as I tried to recapitulate the events that had just taken place.
I could not help but feel as though I was hearing a story being told through the notes the entire time this juxtaposition was ringing through my ears. Somehow, I related it to the process of two people getting married. At first, it seems as though everything is great; joy is abound as plans are made. But before long, as ‘the date’ comes nearer, hesitation arises, and fear of commitment ensues. Panic and alarm present themselves, however ultimately the two stick it through, and they are wed. My previous description of the piece falls in line with this assessment, in that first there was happiness, then fear for a little while, and notes (emotions) began to spiral up and down. In the end though, what resulted is the epiphany that I felt, denoted by an exciting crescendo, which translated into the wedding. Lastly, a soothing, quiet melody came in to end the piece.
What made this piece so exciting to hear were the various melodies that were played, and the constantly changing tempo. Elements of rhythm, such as accents, were played variously throughout the piece. When the piece felt sad, the rhythm was slow, and many minor and major notes were played. Yet, when the cheerful spring time feeling emerged, the tempo was slightly faster, and even yet, when the epiphany resulted, the lead violinist seemed to push the tempo of the entire orchestra even faster.
Yet another element of music, harmony, was also especially prevalent. The cellos and other string instruments seemed to always be playing relatively low melodies, while the lead violinist would play the higher notes in contrast. In this way, it was much easier to hear the violinist, and the simultaneous pitches created a very fancy, yet flowing harmony that was relaxing to take in. During the especially loud sections of the piece, the timpani would play thundering stretches of unpitched sound that really added something to the overall feeling of excitement that I absorbed during the playing of Barber’s piece. When Barber was composing this piece, “he received some criticism from his intended soloist, Iso Briselli, that the piece was too simple. Barber finished the piece, and then Briselli complained that it was too difficult to play! Barber became famous the year before with his Adagio for Strings (1936),”[2] so I don’t believe he was trying to prove anything with this new movement, but I do think he tried to flaunt his talent with this piece. Regardless of Barber’s intentions, this piece is both sophisticated and simple, and carries a simple message that truly resounded through the Abramson Family Recital Hall. I responded to it physically and emotionally, and later cognitively as I tried to make sense of the point that Barber was trying to convey when he wrote this piece almost 70 years ago. It incorporates many of the most crucial elements of music, making this piece a noteworthy example of what a great composition is, as it integrates the most essential principles and ideals that we have learned in Understanding Music.
[1] Barbara B. Heyman, Samuel Barber: The Composer and His Music (New York: Oxford University Press, 1992), 4-5.
[2] London Shostakovich Orchestra, “Concert at St. Cyprian’s Church, Glentworth Street, London NW1”; available from http://www.shostakovich.com/may2001.html; Internet; accessed 8 March 2007.
[1] Barbara B. Heyman, Samuel Barber: The Composer and His Music (New York: Oxford University Press, 1992), 4-5.
[2] London Shostakovich Orchestra, “Concert at St. Cyprian’s Church, Glentworth Street, London NW1”; available from http://www.shostakovich.com/may2001.html; Internet; accessed 8 March 2007.
Taxes and Subsidies: Their Effect on the Supply and Demand Curves
Case 1: A $1.00 tax is levied on each gallon of gas consumed
In this case, a tax is being levied on the gas that consumers purchase at their local gas station. The type of tax being levied in this situation is known as an excise tax, because it is being applied to only one good and not all goods in the market. The demand curve for a good automatically shifts downward by the amount of the tax levied. This is why the demand curve in graph no. 1 shifts downward by exactly $1.00, and the price of gasoline goes from P0 to P1. Over time, consumption reduces by the amount of the tax levied. Because of the tax on gasoline, however, demand for this product also falls. In this case, price shifts along the demand curve from Q0 up to Q2. The fact that less is demanded will also reduce the price, though, because suppliers will be producing the same amount and will need to sell the same amount. The best way to sell the same amount of a less demanded product is to reduce the price of it. This can be seen as a shift along the supply curve from E0 to E2 occurs.
In order to determine where exactly this new equilibrium is, we must see where the supply curve intersects with the new demand curve. As it appears, the new quantity of gasoline that will be demanded is about 5,000 units, and the new price for the gasoline demanded will be about $2.50. At P0 there is excess supply, but at P1, there is excess demand. The tax to consumers discourages consumption of gasoline, and as a result, gasoline becomes cheaper. Since the price falls by $0.50, then the price of gasoline to consumers when a $1.00 tax is levied on each gallon of gas consumed is not actually inflated by a full dollar, but by only fifty cents. Therefore, the new equilibrium price does not reflect the entire cost of the tax, because the curve shifts makes up for half of it.
Case 2: A $2.00 tax is levied on each gallon of gas produced
This case involves a tax on each gallon of gas produced instead of consumed. When this is the case, the supply, and not the demand, curve shifts. This is the same excise tax as before, and as a result, the supply curve shifts upward by exactly the amount of the tax, $2.00, from P0 to P1. Since gasoline has now become $5.00 a gallon, demand for it is going to reduce significantly. This will cause a shift in price along the demand curve from Q0 up to Q2, at about 4,000 units. Less people will be demanding gasoline because the price is higher, but because the tax levied is on gasoline produced, suppliers will also produce less of it to begin with. Suppliers realize, though, that in order to avoid ending up in the realm of excess supply, they will have to reduce prices, which is why the price shifts down along the supply curve from $5.00 to $4.00. Areas of excess supply occur anywhere gasoline has a price of more than $4.00. Similarly, areas of excess demand occur anywhere the price of gasoline is below $4.00.
The new point of market equilibrium, therefore, is found at a price of $4.00, with 4,000 units being demanded. Notice that the price only increased by one dollar, though, instead of the amount of the tax, which was two dollars. Because the new point of market equilibrium, E2, is only one dollar higher than before, E0, it does not reflect the entire cost of the tax. The one dollar change is less than the cost of the tax.
Case 3: A $2.00 per gallon subsidy is levied on the production of alternate fuels
In this case, the application being made is that of a subsidy, instead of a tax. Subsidies act like the opposite of a tax, in that they decrease the cost of goods to consumers and in effect increase the demand for those goods. Being examined here is a $2.00 subsidy on each gallon of alternative fuels produced. Because subsidies act in a manner opposite of an excise tax, the supply curve will shift from P0 down precisely $2.00 to P1, or, the amount of the subsidy. This creates supply curve S1, seen in graph no. 3. Because the new fuel is cheaper to produce, suppliers are able to produce more of it given the same inputs as before. This explains the shift along the supply curve from 6,000 units at Q0 to 8,000 units at Q2. With additional supplies, however, comes a dip in price, which explains the shift down along the demand curve from $3.00 to $2.00. This creates a new point of market equilibrium at E2.
Areas of excess demand are those where the price of these alternative fuels is less than $2.00, and areas of excess supply are found where the price of the same good is anything above $3.00. The idea of this subsidy was to lower the price of manufacturing alternative fuels by $2.00 per gallon, however consumers felt much less—only half—of this subsidy, only benefiting by a price drop of $1.00.
Creating a sensible energy policy The results of these taxes and subsidies lead to several obvious conclusions. In order for the US to develop a more sensible energy policy, all three of these policies need to be adopted. If they are, then scenario 1 would reduce demand for gasoline because consumers would want less of a higher priced good, scenario 2 would further reduce demand because the price of gasoline would climb even further as suppliers manufacture less, and scenario 3 would promote the production and consumption of fuels other than gasoline. Each of these effects would serve to decrease US dependence on foreign oil, and increase the country’s consumption of eco-friendly fuels.
The Battle for Market Share: HD-DVD vs. Blu-ray
The fierce competition between rival high-definition DVD formats HD-DVD and Blu-ray is just beginning to take its toll on American households. This impact is occurring in many ways, most notably in the wallets of consumers, and the inconvenience they are beginning to face which accompanies a market of two rival products. This modern day, more high-tech, competition of multimedia formats is déjà vu for many technology fans familiar with the VHS-Betamax rivalry. With the present day DVD formatting war, however, comes many associated oligopolistic network effects. The largest categories of these effects include the “tipping effect,” critical mass, and negative implications. The three sections that these issues will be outlined in are as follows: network effects, associated risks, and Sony’s strategy.
Network Effects
The current HD-DVD vs. Blu-ray battle falls at a very critical and strategic point on the “tipping effects” graph, which is attached as Graph 1. Theoretically, the company whose product gains the most market share in the long-run is supposed to prevail. I see the HD-DVD standard prevailing in the future for several reasons. Firstly, the availability of HD-DVDs and the players on which to view these discs are much more widely available and inexpensive than Blu-ray technologies and movie selection. Secondly, the delay in releasing the Blu-ray platform has stifled its growth, and the added cost of affording a Blu-ray player does not help to promote the standard in a market where demand for high-definition digital video products is mostly elastic. Mainstream America cannot afford the luxury-good aspect of Blu-ray, and is forced therefore to go with a cheaper alternative, namely HD-DVD.
Sony’s big plan is to produce and ship millions of PS3 units, filling households across the country. At a price of $500-$600, not many people can afford them. However, Sony itself cannot afford to reduce the price of its new platform any further because it is already incurring a $240 loss on each unit sold. Between this high cost, and the delay in releasing the PS3, a critical mass of users has not been reached by the Blu-ray standard, nor will it come for at least another year and a half. HD-DVD on the other hand is much closer to a critical mass of users because it is, relatively speaking, a much more affordable good, and the selection of movies available in the HD-DVD format is approximately 50% greater than Blu-ray’s. Despite it being close to a critical mass, HD-DVD has yet to reach such a point yet because a lack of production volume and interior design improvements make it too expensive to produce, and therefore too expensive for average, mainstream consumers to start buying yet. See the attached Graphs 2 and 3.
Associated Risks
When there are two competing standards, consumers run the risk of picking the wrong one. Eventually the “tipping effect” will occur, and those users who picked the wrong standard will be out of luck and out the money they spent on a now obsolete technology. Producers, on the other hand, face a much larger risk. Our article taken from The Economist remarks how Sony’s Playstation 2 was initially criticized for being too high-tech and pricy, and told it would never make it in the global marketplace. The same article goes on to tell the tale of Sony’s complete bowl over the competition in its sale of over 100 million units in just over half a decade, capturing 70% of the market share. Investing guru Michael C. Thomsett explains the situation in which large companies are placed when forced to compete in high risk industries: “It is a fact of life and of the market that opportunity and risk are joined at the hip” (Mastering Online Investing, 7). Keeping such implications in mind, the reason companies take such huge risks in pushing a technology such as Blu-ray is because of its potential to lead to enormous profits in the future and, therefore, the ultimate success of the product and the company. What producers risk is losing vast sums of money investing in a technology which may ultimately fail. On top of that, such a failure can cause the company to go out of business. In the gaming industry the stakes are high, but companies like Nintendo and Sony have the assets and reputation to handle that kind of risk, because they know that the ultimate payout could be far greater than anyone had ever imagined.
Sony’s Strategy
Sony, in a “Trojan horse” style approach, as The Economist puts it, has attempted to mass market its Blu-ray technology by bundling it with its latest and greatest gaming system, the PS3. Sony plans to saturate the market with its Blu-ray players, installed in all of these PS3 gaming consoles, in hopes that individual users will decide to choose the only compatible standard, Blu-ray’s, discs and products in the future. The only problem with such a strategy is that the odds of selling another 100 million units are slim to none given the high manufacturing costs associated with producing the PS3. This brings to light the implications of network effects that Sony’s strategy is confirming. Because Sony is selling each PS3 right now at a $240 (almost a 50% loss on the cheaper model) loss, it is accepting a short run loss on its product in order to increase the quantity it sells. Ideally this would give Sony the critical mass of users it is looking for to use its Blu-ray standard, however unfortunately for Sony, not many people are buying its PS3. With this in mind, Sony will have a difficult time spreading the Blu-ray standard. Blu-ray discs can only be played on Blu-ray players, and those cost around $750 as standalone devices, or about $500 when coupled with the PS3 console. In this way, the Blu-ray format is incredibly inclusive. Essentially, Blu-ray is a standard that is not functional with any other standard, and ultimately it is this fact that will lead to the Blu-ray’s downfall.
Works Cited
Thomsett, Michael C. Mastering Online Investing. Chicago: Dearborn Financial Publishing, Inc., 2000.
Proliferation of Nuclear Weapons
What it Means to be a Leader
The act of being a leader implies that one person is leading one or more other people in some task. The concept behind being a leader is that the leader provides guidance to the group, and helps them to stay organized and on task so that whatever the undertaking may be, the group will be successful in reaching their goal. Great leaders are often recognized when the group they have led accomplishes something great and noteworthy. On the other hand, many great leaders are never recognized for their talent merely because their group is rarely ever in the spotlight.
How can one gain the trust of his or her constituents if he or she is not honest? No price can be placed on honesty, for it is the basis of all leadership qualities. Being honest does not just include honesty to one’s peers, but to one’s self as well. It is hard to go about one’s life living a lie, yet it can still be done. Some people feel remorse inside when they do just this- others feel nothing. Many times if a person feels bad about something dishonest they do, they attempt to make it right. But this does not mean that one should only correct a personal issue if they feel bad about it. Even those people who do not feel anything inside when they lie to others, or cheat their way through various obstacles of their life, need to correct the wrong they have caused. Leadership always finds its base in honesty. Honesty to oneself is also an important concept that deserves recognition when leadership is being analyzed. Being a leader means getting the job done, however, telling oneself that a task can be accomplished when in fact it cannot, is outright erroneous. A prolix venture up Mount Everest cannot be accomplished with two cans of Vienna sausages and a loaf of bread. A good leader is able to recognize when being honest with oneself is the only reality of a situation. A good leader does not give up in the face of hardship or adversity, but knows his or her limits when it comes to taking unnecessary risks.
Possessing an honest character ties in perfectly with the notion of trustworthiness. The group one leads must be able to trust its leader, meaning therefore that one must be honest with them. If a leader cannot be honest with his or her followers, then the group will never succeed. Success is based on a strong bond that must be present in a group that intends to succeed. Unconditional trust is a concept that many people find difficulty in accepting, however it is a necessary characteristic of any group that wishes to succeed. It is the leader’s job to build up and instill this level of trust between the members of the group. The leader must also trust that his followers will carry their own weight in the workings of the group. A leader cannot afford to be skeptical of his followers in a time of duress. John slips on some ice and slides 150 feet down the side of a snow-covered mountain. He finds himself holding onto a ledge of ice as his body dangles 1500 feet over a patch of jagged rocks below. John must trust that his team member’s arm reached out in front of him will not let him go. He must trust that the person whose hand is out is in fact strong enough to pull him to safety, and has a sure grip that will not let him fall. If the leader has done his job, then there is no question in John’s mind. However, if the leader has failed to designate the strongest member of the team to be the rescuing party in an accident, and Sue tries to reach her arm out, everything could result in total disaster. As can be seen that it is imperative that a leader can be trusted to provide for the safety and subsequent success of his or her team. Success in this realm results in loyalty. When one hears the word ‘mutiny,’ one generally conjures up images of pirate ships and the ‘good guy’ walking the plank. The same mentality can easily be applied to real life leaders. If a leader is honest and trustworthy, then he or she can expect loyalty from his or her followers. A mutiny on a pirate ship occurs due to a lack of loyalty of the crew to its captain. Although an actual mutiny is not that prevalent a risk in today’s day and age, the team invariably suffers from dissenting members. They do not work as hard, try their best, or give it their all when they really need to. A good leader has loyal followers, but just as trustworthiness, loyalty too is a two-way system. A leader is expected to be loyal to those he or she leads. Who would want to be led by someone who will ultimately leave the group in the dark by claiming all the fame to something the group as a whole has accomplished? A leader who does not possess loyalty is not honest, and his or her word is thereby questioned. Thus the knot is tied between honesty, trustworthiness, and loyalty. A triangle is formed that, when broken, destroys the basis of leadership. Every good leader possesses these three underlying characteristics, and although no one is perfect, he or she makes every attempt to preserve this triangle. A leader gains his followers’ trust by being honest with them, and thereby earning their loyalty. Simultaneously, by being loyal and trustworthy, a leader gains his followers’ honesty. It is this solid triangle on which great leaders expand upon and grow into the remarkable human beings they ultimately emerge as.
Making a Comeback
Having just successfully completed a season of Outdoor Track, not being able to walk without crutches for six weeks was absolutely devastating. The inactivity, so suddenly thrust upon my lifestyle, soon began to have its effects, including muscle atrophy and disrupted sleep patterns as a result of being so uncomfortable. The most prevalent, however, became apparent as soon as I was able to walk once again. My left leg was noticeably smaller than my right, and I could hardly support myself for an entire day. The impact this injury had on my life was enormous, but I was able to look at others around me and see how they found success in similar situations.
My own running Coach knew exactly how to handle a situation like mine. Early into my recovery, he gave me a sheet of paper that he instructed me to hang on the wall of my room. It read: "Pain is temporary; glory is forever." Possibly the most inspirational phrase I'd ever heard, I immediately took it to heart. Those six words became the driving force behind the push for my recovery. He too had previously suffered devastating leg injuries, but was still able to push himself to become a successful competitor for the Wake Forest University Cross Country Team. The wisdom and guidance he bestowed upon me proved invaluable. I was very fortunate in this respect; to have such a great mentor become such a prevalent force in my life was an absolute privilege. I cherished my time working with him, but ultimately it was my unforgiving drive and dedication to my recovery that made me successful. I caught a glimpse of that quote on my wall every day as I endured swelling, throbbing pain, or some other physical ailment. I could never allow the thought of giving up to enter my mind. I was able to fully recover by mid-way through the Indoor Track season that winter, and I ran the 3000 meter in eleven minutes. I qualified for Class C competition, and I had truly beaten the odds. What I had accomplished and continued to excel in highlighted what had been hanging on my wall for the four months previous: Pain is temporary; glory is forever. The pain began to subside, and glory to make its place known. For my hard work and dedication to the sport, I was presented with the Coach's Award by the Rhode Island Boys Cross Country Coaches Association.
This experience taught me that I can accomplish anything if I put my mind and my heart into it. My Coach had given it his all when misfortune took hold of his life, and ultimately triumphed over his obstacles. The inspiration I found in the effort exerted by this man led me in making a most remarkable recovery from an injury that most people struggle with for years. Life is a force to be reckoned with, always interjecting inconveniences when we least expect or are least prepared for them. Regardless, I've always given it my best under any circumstances. I like to approach all challenges in life with a can-do attitude, and every situation with an optimistic outlook. Breaking my leg proved to be merely a setback in my life. The inspiration that fueled my motives made clear the feasibility of a successful comeback. I was shown that the physical possibilities existed, and with the words of wisdom bestowed upon me, I was provided with the mental resources to push myself through to the end. With one of the single most inspirational people I have ever known, guiding me in person and in spirit, I triumphed over my hindrance and learned one of the most valuable lessons of my entire life.
Technology's Growing Effects
The main focus in technology is its efficiency and ability to perform a wide range of tasks. In the next half century, technology will have advanced to a point where the manufacturing costs of items as simple as water filters will be pennies to the dollar of what they cost today. Mechanical simplicity and efficiency, achieved through research and development, will make these simple technologies affordable to the less fortunate peoples of the world. Something Americans or Europeans find to be elementary in sanitary upkeep will end up saving hundreds of thousands of lives in China’s countryside or the heart of India’s cities, because it effectively prevents the outbreak of a highly communicable disease. True, there will always be more developed nations in the world than others, but with the aid of the more developed, the less fortunate will see improvements in their way of life that are infinitely times the number ever previously imagined.
Advances in technology have always solved problems, but in turn have always created new ones.
Technological advancement over the next 50 years will prove to be no different, however the number of problems solved will benefit countless more people than the number of new problems will harm. I say this because, as can be seen with water purification tablets in Ethiopia, the number of lives saved is far greater than the number of people whose wallets have been hurt. There is a pattern here that has become more and more evident with the passage of time, most notably in recent years. This cycle, however, will undoubtedly continue on into the next 50 years of technology’s development, and these developments are what will make the lives of millions of people much more bearable. Money will forever be invested in society’s technological banks, and because the possibilities are limitless, the lives of people all around the world will continue to see unforeseen improvements, beginning with the next 50 years.
What it Means to be an American
Some cultures do not emphasize or even recognize the natural rights of human beings. Just because someone is born into a fascist or communist government does not mean that they want to be there. Some cultures view freedom and equality as hindrances to the advancement of society. They simultaneously believe sexism, racism, and a variety of forms of segregation, to be the solution to ensuring stability and a prosperous society. Americans, on the other hand, see eliminating these inhumane acts as the only means by which significant progress in all fields can be made. As can be seen in America, some of the greatest advancements—social, political, and scientific—have occurred in the last thirty years, the time during which sexism, racism, and segregation have all lost, almost entirely, their foothold in our society. Prosperity is found in the preservation of freedom. Americans have held, from the very birth of this great nation, that equality is the only means by which a successful and stable society can be effectively built. Persecution is what drove the founding of this country, and the emphasis on equity is what eventually led to its success.
Being American means standing up for what you believe in, and not backing down in the face of hardship or adversity. Americans do this every day, as can be seen in the wars against terrorism, drugs, and domestic violence. All Americans have the opportunity to speak their minds and give their input on any matter. Because our government is a democracy, Americans are afforded the opportunity to vote, lobby, and demonstrate their freedom of speech. What is a little bureaucratic red tape in the face of freedom? It is absolutely nothing, as compared to an AK-47 or cruel and unusual punishment, a reality which millions of people live with worldwide. Americans not only utilize their natural rights as human beings, but also make use of the rights afforded to them by their government. So many people in the world are not allowed to express their ideologies or opinions on matters that directly affect them. The freedoms of speech, religion, and press are all rights that Americans are constitutionally guaranteed, and that so many other people only dream of having. Being an American means using these rights to defend freedom, and freedom is the basis of American society- a base which has held strong for over 200 years.