History And Definition Of Depository Receipts Finance Essay

History And Definition Of Depository Receipts Finance Essay A DR is a type of negotiable (transferable) financial security traded on a local stock exchange but represents a security, usually in the form of equity, issued by a foreign, publicly-listed company. The DR, which is a physical certificate, allows investors to hold shares in equity of other countries. One of the most common types of DRs is the American depository receipt (ADR), which has been offering companies, investors and traders global investment opportunities since the 1920s. Since then, DRs have spread to other parts of the globe in the form of global depository receipts (GDRs). The other most common type of DRs are European DRs and International DRs. ADRs are typically traded on a US national stock exchange, such as the New York Stock Exchange (NYSE) or the American Stock Exchange, while GDRs are commonly listed on European stock exchanges such as the London Stock Exchange. Both ADRs and GDRs are usually denominated in US dollars, but can also be denominated in Euros. History of Depository Reciepts American Depositary Receipts have been introduced to the financial markets as early as April 29, 1927, when the investment bank J. P. Morgan launched the first-ever ADR program for the UKs Selfridges Provincial Stores Limited (now known as Selfridges plc.), a famous British retailer. Its creation was a response to a law passed in Britain, which prohibited British companies from registering shares overseas without a British-based transfer agent, and thus UK shares were not allowed physically to leave the UK.2 The ADR was listed on the New York Curb Exchange (predecessor to the American Stock Exchange.) The regulation of ADR changed its form in 1955, when the U.S. Securities and Exchange Commission (SEC) established the From S-12, necessary to register all depositary receipt programs. The Form S-12 was replaced by Form F-6 later, but the principles remained the same till today. Crucial novelties brought the new regulatory framework introduced by the SEC in 1985, which led to emergence of range of DR instruments, as we know it nowadays. Then the three different ADR programs were created, the Level I, II and III ADRs. This change was one of the impulses for revival of activity on the otherwise stagnant ADR market. In April 1990, a new instrument, referred to as Rule 144A was adopted, which gave rise to private placement depositary receipts, which were available only to qualified institutional buyers (QIBs). This type of DR programs gained its popularity quickly and it is very frequently employed today. The ADRs were originally constructed solely for the needs of American investors, who wanted to invest easily in non-US companies. After they had become popular in the United States, they extended gradually to other parts of the world (in the form of GDR, EDR or IDR). The greatest development of DRs has been recorded since 1989. In December 1990, Citibank introduced the first Global Depositary Receipt. Samsung Corporation, a Korean trading company, wanted to raise equity capital in the United States through a private placement, but also had a strong European investor base that it wanted to include in the offering. The GDRs allowed Samsung to raise capital in the US and Europe through one security issued simultaneously into both markets. In 1993, Swedish LM Ericsson raised capital through a rights offering in which ADDs were offered to both holders of ordinary shares and DR holders. The Ericsson ADDs represented subordinated debentures that are convertible into ordinary shares or DRs. German Daimler Benz AG became the first European Company to establish a Singapore depositary receipts program (SDRs) in May 1994. Types of Depositary Receipts American Depositary Receipts (ADR) Companies have a choice of four types of Depositary Receipt facilities: unsponsored and three levels of sponsored Depositary Receipts. Unsponsored Depositary Receipts are issued by one or more depositaries in response to market demand, but without a formal agreement with the company. Today, unsponsored Depositary Receipts are considered obsolete and, under most circumstances, are no longer established due to lack of control over the facility and its hidden costs. Sponsored Depositary Receipts are issued by one depositary appointed by the company under a Deposit Agreement or service contract. Sponsored Depositary Receipts offer control over the facility, the flexibility to list on a national exchange in the U.S. and the ability to raise capital. Sponsored Level I Depositary Receipts A sponsored Level I Depositary Receipt program is the simplest method for companies to access the U.S. and non-U.S. capital markets. Level I Depositary Receipts are traded in the U.S. over-the-counter (OTC) market and on some exchanges outside the United States. The company does not have to comply with U.S. Generally Accepted Accounting Principles (GAAP) or full Securities and Exchange Commission (SEC) disclosure. Essentially, a Sponsored Level I Depositary Receipt program allows companies to enjoy the benefits of a publicly traded security without changing its current reporting process. The Sponsored Level I Depositary Receipt market is the fastest growing segment of the Depositary Receipt business. Of the more than 1,600 Depositary Receipt programs currently trading, the vast majority of the sponsored programs are Level I facilities. In addition, because of the benefits investors receive by investing in Depositary Receipts, it is not unusual for a company with a Level I program to obtain 5% to 15% of its shareholder base in Depositary Receipt form. Many well-known multinational companies have established such programs including: Roche Holding, ANZ Bank, South African Brewery, Guinness, Cemex, Jardine Matheson Holding, Dresdner Bank, Mannesmann, RWE, CS Holding, Shiseido, Nestle, Rolls Royce, and Volkswagen to name a few. In addition, numerous companies such as RTZ, Elf Aquitaine, Glaxo Wellcome, Western Mining, Hanson, Medeva, Bank of Ireland, Astra, Telebrà ¡s and Ashanti Gold Fields Company Ltd. started with a Level I program and have upgraded to a Level II (Lis ting) or Level III (Offering) program. Sponsored Level II And III Depositary Receipts Companies that wish to either list their securities on an exchange in the U.S. or raise capital use sponsored Level II or III Depositary Receipts respectively. These types of Depositary Receipts can also be listed on some exchanges outside the United States. Each level requires different SEC registration and reporting, plus adherence to U.S. GAAP. The companies must also meet the listing requirements of the national exchange (New York Stock Exchange, American Stock Exchange) or NASDAQ, whichever it chooses. Each higher level of Depositary Receipt program generally increases the visibility and attractiveness of the Depositary Receipt. Private Placement (144A) Depositary Receipt In addition to the three levels of sponsored Depositary Receipt programs that trade publicly, a company can also access the U.S. and other markets outside the U.S. through a private placement of sponsored Depositary Receipts. Through the private placement of Depositary Receipts, a company can raise capital by placing Depositary Receipts with large institutional investors in the United States, avoiding SEC registration and to non-U.S. investors in reliance on Regulation S. A Level I program can be established alongside a 144A program. Global Depositary Receipts (GDR) GDRs are securities available in one or more markets outside the companys home country. (ADR is actually a type of GDR issued in the US, but because ADRs were developed much earlier than GDRs, they kept their denotation.) The basic advantage of the GDRs, compared to the ADRs, is that they allow the issuer to raise capital on two or more markets simultaneously, which increases his shareholder base. They gained popularity also due to the flexibility of their structure. GDR represents one or more (or fewer) shares in a company. The shares are held by the custody of the depositary bank in the home country. A GDR investor holds the same rights as the shareholders of ordinary shares, but typically without voting rights. Sometimes voting rights can be the executed by the depositary bank on behalf of the GDR holders. Mechanism DR Trade A Depositary Receipt is a negotiable security which represents the underlying securities (generally equity shares) of a non-U.S. company. Depositary Receipts facilitate U.S. investor purchases of non-U.S. securities and allow non-U.S. companies to have their stock trade in the United States by reducing or eliminating settlement delays, high transaction costs, and other potential inconveniences associated with international securities trading. Depositary Receipts are treated in the same manner as other U.S. securities for clearance, settlement, transfer, and ownership purposes. Depositary Receipts can also represent debt securities or preferred stock. The Depositary Receipt is issued by a U.S. depositary bank, such as The Bank of New York, when the underlying shares are deposited in a local custodian bank, usually by a broker who has purchased the shares in the open market. Once issued, these certificates may be freely traded in the U.S. over-the-counter market or, upon compliance with U.S. SEC regulations, on a national stock exchange. When the Depositary Receipt holder sells, the Depositary Receipt can either be sold to another U.S. investor or it can be canceled and the underlying shares can be sold to a non-U.S. investor. In the latter case, the Depositary Receipt certificate would be surrendered and the shares held with the local custodian bank would be released back into the home market and sold to a broker there. Additionally, the Depositary Receipt holder would be able to request delivery of the actual shares at any time. The Depositary Receipt certificate states the responsibilities of the depositary bank with respect to actions such as payment of dividends, voting at shareholder meetings, and handling of rights offerings. Depositary Receipts (DRs) in American or Global form (ADRs and GDRs, respectively) are used to facilitate cross-border trading and to raise capital in global equity offerings or for mergers and acquisitions to U.S. and non-U.S. investors. Demand For Depositary Receipts The demand by investors for Depositary Receipts has been growing between 30 to 40 percent annually, driven in large part by the increasing desire of retail and institutional investors to diversify their portfolios globally. Many of these investors typically do not, or cannot for various reasons, invest directly outside of the U.S. and, as a result, utilize Depositary Receipts as a means to diversify their portfolios. Many investors who do have the capabilities to invest outside the U.S. may prefer to utilize Depositary Receipts because of the convenience, enhanced liquidity and cost effectiveness Depositary Receipts offer as compared to purchasing and safekeeping ordinary shares in the home country. In many cases, a Depositary Receipt investment can save an investor up to 10-40 basis points annually as compared to all of the costs associated with trading and holding ordinary shares outside the United States. Issuance Depositary Receipts are issued or created when investors decide to invest in a non-U.S. company and contact their brokers to make a purchase. Brokers purchase the underlying ordinary shares and request that the shares be delivered to the depositary banks custodian in that country. The broker who initiated the transaction will convert the U.S. dollars received from the investor into the corresponding foreign currency and pay the local broker for the shares purchased. The shares are delivered to the custodian bank on the same day, the custodian notifies the depositary bank. Upon such notification, Depositary Receipts are issued and delivered to the initiating broker, who then delivers the Depositary Receipts evidencing the shares to the investor. Transfer (Intra-Market Trading) Once Depositary Receipts are issued, they are tradable in the United States and like other U.S. securities, they can be freely sold to other investors. Depositary Receipts may be sold to subsequent U.S. investors by simply transferring them from the existing Depositary Receipt holder (seller) to another Depositary Receipt holder (buyer); this is known as an intra-market transaction. An intra-market transaction is settled in the same manner as any other U.S. security purchase. Accordingly, the most important role of a depositary bank is that of Stock Transfer Agent and Registrar. It is therefore critical that the depositary bank maintain sophisticated stock transfer systems and operating capabilities. What are Indian Depository Receipts (IDRs)? IDRs are transferable securities to be listed on Indian stock exchanges in the form of depository receipts created by a Domestic Depository in India against the underlying equity shares of the issuing company which is incorporated outside India. As per the definition given in the Companies (Issue of Indian Depository Receipts) Rules, 2004, IDR is an instrument in the form of a Depository Receipt created by the Indian depository in India against the underlying equity shares of the issuing company. In an IDR, foreign companies would issue shares, to an Indian Depository (say National Security Depository Limited NSDL), which would in turn issue depository receipts to investors in India. The actual shares underlying the IDRs would be held by an Overseas Custodian, which shall authorise the Indian Depository to issue the IDRs. The IDRs would have following features: Overseas Custodian: Foreign bank having branches in India and requires approval from Finance Ministry for acting as custodian and Indian depository has to be registered with SEBI. Approvals for issue of IDRs : IDR issue will require approval from SEBI and application can be made for this purpose 90 days before the issue opening date. Listing : These IDRs would be listed on stock exchanges in India and would be freely transferable. Eligibility conditions for overseas companies to issue IDRs: Capital: The overseas company intending to issue IDRs should have paid up capital and free reserve of atleast $ 100 million. Sales turnover: It should have an average turnover of $ 500 million during the last three years. Profits/dividend : Such company should also have earned profits in the last 5 years and should have declared dividend of at least 10% each year during this period. Debt equity ratio : The pre-issue debt equity ratio of such company should not be more than 2:1. Extent of issue : The issue during a particular year should not exceed 15% of the paid up capital plus free reserves. Redemption : IDRs would not be redeemable into underlying equity shares before one year from date of issue. Denomination : IDRs would be denominated in Indian rupees, irrespective of the denomination of underlying shares. Benefits : In addition to other avenues, IDR is an additional investment opportunity for Indian investors for overseas investment. Taxation issues for Indian Depository Receipts (IDRs) Standard Chartered Bankss Indian Depository Receipts (IDR) issue may raise concerns relating to tax treatment, the draft red herring prospectus (DRHP) filed by the bank with SEBI said. The UK-based banks draft red herring prospectus was uploaded on the SEBIs website in end-March. The Income Tax Act and other regulations do not specifically refer to the taxation of IDRs. IDRs may therefore be taxed differently from ordinary listed shares issued by other companies in India, the prospectus said. In particular, income by way of capital gains may be subject to a higher rate of tax. The introduction of the Direct Tax Code from the next fiscal may also alter tax treatment of Indian Depository Receipts. The tax treatment in future may also vary depending on the provisions of the proposed Direct Taxes Code which is currently due to take effect from April 1, 2011, and which is only in draft form at this time, Standard Chartered PLC has mentioned among the possible risk factors. Economic development and volatility in the securities markets in other countries may cause the price of the IDRs to decline, the prospectus said. Any fluctuations that occur on the London Stock Exchange or the Hong Kong Stock Exchange that affect the price of the shares may affect the price and trading of the IDRs listed on the stock exchanges. Further, the draft red herring prospectus states to what extent IDRs are legal investments, whether they can be used as collateral for various types of borrowing, and whether there are other restrictions that apply to purchase or pledge of the Indian Depository Receipts. How are IDRs different from GDRs and ADRs? GDRs and ADRs are amongst the most common DRs. When the depository bank creating the depository receipt is in the US, the instruments are known as ADRs. Similarly, other depository receipts, based on the location of the depository bank creating them, have come into existence, such as the GDR, the European Depository Receipts, International Depository Receipts, etc. ADRs are traded on stock exchanges in the US, such as Nasdaq and NYSE, while GDRs are traded on the European exchanges, such as the London Stock Exchange. How will the IDRs be priced, and will cross-border trading be allowed? IDRs will be freely priced. However, in the IDR prospectus, the issue price will have to be justified as is done in the case of domestic equity issues. Each IDR will represent a certain number of shares of the foreign company. The shares will be listed in the home country. Normally, the DR can be exchanged for the underlying shares held by the custodian and sold in the home country and vice-versa. However, in the case of IDRs, automatic fungibility i.e. the quality of being capable of exchange or interchange is not permitted. What are the benefits of issuing IDRs to companies? Currently, there are over 2,000 Depositary Receipt programs for companies from over 70 countries. The establishment of a Depositary Receipt program offers numerous advantages to non-U.S.companies. The primary reasons to establish a Depositary Receipt program can be divided into two broad considerations: capital and commercial. Advantages Expanded market share through broadened and more diversified investor exposure with potentially greater liquidity. Enhanced visibility and image for the companys products, services and financial instruments in a marketplace outside its home country. Flexible mechanism for raising capital and a vehicle or currency for mergers and acquisitions. Enables employees of U.S. subsidiaries of non-U.S. companies to invest more easily in the parent company. Quotation in U.S. dollars and payment of dividends or interest in U.S. dollars. Diversification without many of the obstacles that mutual funds, pension funds and other institutions may have in purchasing and holding securities outside of their local market. Elimination of global custodian safekeeping charges, potentially saving Depositary Receipt investors up to 10 to 40 basis points annually. Familiar trade, clearance and settlement procedures. Competitive U.S. dollar/foreign exchange rate conversions for dividends and other cash distributions. Ability to acquire the underlying securities directly upon cancellation. Benefit for Investors They allow global investing opportunities without the risk of investing in unfamiliar markets, ensure more information and transparency and improve the breadth and depth of the market. Increasingly, investors aim to diversify their portfolios internationally. However, obstacles such as undependable settlements, costly currency conversions, unreliable custody services, poor information flow, unfamiliar market practices, confusing tax conventions and internal investment policy may discourage institutions and private investors from venturing outside their local market. Why will foreign companies issue IDRs? Any foreign company listed in its home country and satisfying the eligibility criteria can issue IDRs. Typically, companies with signifi-cant business in India, or an India focus, may find the IDR route advantageous. Similarly, the foreign entities of Indian companies may find it easier to raise money through IDRs for their business requirements abroad. Besides IDR there are several other ways to raise money from foreign markets Alternative Available Foreign Currency Convertible Bonds (FCCBs): FCCBs are bonds issued by Indian companies and subscribed to by a non-resident in foreign currency. They carry a fixed interest or coupon rate and are convertible into a certain number of ordinary shares at a preferred price. This equity component in a FCCB is an attractive feature for investors. Till conversion, the company has to pay interest in dollars and if the conversion option in not exercised, the redemption is also made in dollars. These bonds are listed and traded abroad. The interest rate is low  [1]  but the exchange risk is more in FCCBs as interest is payable in foreign currency. Hence, only companies with low debt equity ratios and large forex earnings potential opt for FCCBs. The scheme for issue of FCCBs was notified by the government in 1993 to allow companies easier access to foreign capital markets. Under the scheme, bonds up to $50 million are cleared automatically, those up to $100 million by the RBI and those above that by the finance ministry. The minimum maturity period for FCCBs is five years but there is no restriction on the time period for converting the FCCBs into shares. External Commercial Borrowings (ECBs): Indian corporate are permitted to raise finance through ECBs (or simply foreign loans) within the framework of the policies and procedures prescribed by the Government for financing infrastructure projects. ECBs include commercial bank loans; buyers/suppliers credit; borrowing from foreign collaborators, foreign equity holders; securitized instruments such as Floating Rate Notes (FRNs) and Fixed Rate Bonds (FRBs); credit from official export credit agencies and commercial borrowings from the private sector window of multilateral financial institutions such as the IFC, ADB and so on. While the ECB policy provides flexibility in borrowings consistent with maintenance of prudential limits for total external borrowings, its guiding principles are to keep borrowing maturities long, costs low and encourage infrastructure/core and export sectors financing, which are crucial for overall growth of the economy Since 1993, many of the firms have chosen to use the offshore primary market instead of the domestic primary market for raising resources. The factors that can be attributed to this behaviour are as follows. (i) The time involved in the entire public issue on the offshore primary market is shorter and the issue costs are also low as the book building procedure is adopted. (ii) FIIs prefer Euro issues as they do not have to register with the SEBI nor do they have to pay any capital gains tax on GDRs traded in the foreign exchanges. Moreover, arbitrage opportunities exist as GDRs are priced at a discount compared with their domestic price. (iii) Indian companies can collect a large volume of funds in foreign exchange from international markets than through domestic market. (iv) Projections of the GDP growth are very strong and consistent which have created a strong appetite for Indian paper in the overseas market. (v) An overseas issuance allows the company to get exposure to international investors, thereby increasing the visibility of Indian companies in the overseas market. Money Raising Instruments in India Qualified institutions placement (QIP): A designation of a securities issue given by the SEBI that allows an Indian-listed company to raise capital from its domestic markets without the need to submit any pre-issue filings to market regulators, which is lengthy and cumbersome affair. SEBI has issued guidelines for this relatively new Indian financing avenue on May 8, 2006. Prior to the innovation of the qualified institutional placement, there was concern from Indian market regulators and authorities that Indian companies were accessing international funding via issuing securities, such as American depository receipts (ADRs), in outside markets. This was seen as an undesirable export of the domestic equity market, so the QIP guidelines were introduced to encourage Indian companies to raise funds domestically instead of tapping overseas markets. QIP has emerged as a new fund raising investment for listed companies in India. The issue process is not only simple but can be completed speedily. QIP issue can be offered to a wider set of investors including Indian mutual funds, banks, insurance companies and FIIs. A company sells its shares to qualified institutional buyers (QIBs) on a discretionary basis with the two-week average price being the floor. In a QIP, unlike an IPO or PE investment, the window is shorter (four weeks) and money can be raised quickly. This rule came into being after SEBI changed the pricing formulae. Earlier, the pricing was based on the higher of the six-month or two-week average share price This turned out to be a dampener in a volatile market However, merchant bankers gave the feedback that the two-week average price often worked out to be higher than the current market price. As such, many investors were reluctant to take a mark-to-market loss on their books right from the start. Rights issues: In other words, it is the issue of new shares in which existing shareholders are given preemptive rights to subscribe to the new issue on a pro-rata basis. Such an issue is arranged by an investment bank or broker, which usually makes a commitment to take up its own books any rights that are not sold as part of the issue. The right is given in the form of an offer to existing shareholders to subscribe to a proportionate number of fresh, extra shares at a pre-determined price. In India rights market has been a favoured capital mobilizing route for the corporate sector. However, this market has shrunk significantly in India over the years. This is due to an absence of a trading platform for the post issue trading rights. Private placement: The direct sale of securities by a company to some select people or to institutional investors (financial institutions, corporates, banks, and high net worth individuals) is called private placement. In other words, private placement refers to the direct sale of newly issued securities by the issuer to a small number of investors through merchant bankers. Company law defined privately placed issue to be the one seeking subscription from 50 members. No prospectus is issued in private placement. Private placement covers equity shares, preference shares, and debentures  [2]  . It offers access to capital more quickly than the public issue and is quite inexpensive on account of the absence of various issue expenses. In recent years resource mobilization through private placement route has subdued. The reason is stricter regulations introduced by RBI and SEBI starting from early 2000s on private placements. When RBI found that banks and institutions had larger exposure in the private placement market, it has issued guidelines to banks and financial institutions for investment in such cases.  [3]   Comparison ADR/GDR Vs. QIP The First Wave of Indian Fundraising: QIPs Unitech set the QIP ball rolling on what is really the first major wave of Indias recent fund-raising jamboree. Indian companies raised US$24 billion in the April-June quarter of 2009, according to data from Delhi-based research firm Prime Database. Of this, 56% was raised in the last week of June, an indicator of the increasing tempo of action. According to Prime Database chairman Prithvi Haldea QIPs cornered over 96% of the total money mobilized during that quarter. Ten QIPs were issued, totaling US$22.5 billion. The leading issuers included Unitech (US$900 million) Indiabulls Real Estate (US$530 million) HDIL (US$330 million) Sobha Developers (US$100 million) Shree Renuka Sugars (US$100 million) PTC (US$100 million). Hong Kong-based Finance Asia magazine said in its headline that India has gone QIP crazy But as other instruments started gaining favor the QIP wave appeared to be weakening. The QIBs dont see a huge bargain any longer. When companies were relatively desperate for funds, they were offering prices that left a lot on the table for buyers. Unitech is a case in point. The first issue gave returns of 100% plus. A record Rs 34,100 crore were raised by the 51 QIPs made during the year 2009 According to a study by rating agency Crisil, most QIPs in 2009 were actually making losses for investors. The study used the prices on July 10, although the markets have improved since then. Still, says Crisil, as of that date, if you leave out the first Unitech issue, the total return on all QIPs was a negative 12%. As per head of equities at CRISIL We expect raising capital through the QIP route may slow down significantly, He further explains that the significant run up in stock prices before the Union Budget made QIP deals unattractive. The reason being that shrewd investors made their decisions based on company fundamentals and there was no reason to believe that the inherent fundamentals of most companies which queued up for QIPs have changed materially. Not all QIPs have been successful. GMR Infrastructure received its shareholders permission to raise up to US$1 billion through this route. According to merchant bankers, it came to the market with an offering of US$500 million, then reduced both the size of the offering and the price in the face of a tepid response, and finally withdrew altogether. However, according to Haldea, several more QIPs including Hindalco, Cairn Energy, GVK Power, HDFC, JSW Steel, Essar Oil, Parsvanath and Omaxe are waiting in the wings, looking to raise more than US$12 billion. QIPs could become attractive again if the market falls or if companies start offering large discounts, investment experts say. Increased Activity for ADR/GDR The slowdown in the QIP wave does not mean that foreign investors who, as in the Unitech issue, were the principal buyers have lost interest in India. In fact, the reverse could be true. Indian fundraising has now embarked on its second wave through American Depository Receipts (ADRs) and Global Depository Receipts (GDRs). (ADRs are foreign stock stand-ins traded in U.S. exchanges but not counted as foreign stock holdings. A U.S. bank buys the shares on a foreign market and trades a claim on those shares. Many U.S. investors are attracted to ADRs because these securities may meet accounting and reporting standards that are more stringent than

Football player Essay

The amount of extra oxygen required by muscle tissue during recovery from vigorous exercise. The extra oxygen gets rid of the lactic acid in your muscles after exercise. Difference between Aerobic and Anaerobic Training The main difference between aerobic and anaerobic training is that one uses oxygen whilst the other uses lactic acid. Aerobic training uses the oxygen in your muscles to produce the energy. To improve the amount of time which you are able to train at aerobic level you can do aerobic exercises, these are normally done at a moderate pace which your body can cope with. On the other hand anaerobic training is when the oxygen in your muscles run out so you rely on lactic acid to give you energy. The energy released does not last for long however is very powerful. The lactic acid causes your muscles to start aching though and can result in vomiting. Anaerobic respiration occurs when you work your body flat out and use all the energy available. Effect of Lactic Acid on the muscles Lactic acid is a waste product that is produced by your muscles when exercising. When the body has no oxygen left in the muscles it has to revert to anaerobic respiration which uses lactic acid to form energy. The lactic acid though makes your muscles ache and tire so is not very efficient. Difference in composition between inhaled and exhaled air The air that we breathe in and the air which we breathe out, have different compositions. The main difference is that in exhaled air there is more carbon dioxide compared with inhaled air where there is more oxygen. However in both types nitrogen is the highest percentage. Here are the components of inhaled air, 79% nitrogen, 21% oxygen, a little water vapour,0. 04% carbon dioxide whereas exhaled air contains79% nitrogen17% oxygen3% carbon dioxide, a little water vapour. As you can see from the two lists they are basically the same however there is more carbon dioxide and less oxygen in exhaled air. Effects of exercise on breathing and heart rate A lot of exercise can also affect your respiratory and circulatory system, because your heart gets bigger due to aerobic training, it is now a better pump so more blood can be circulated around your body per beat than before. This also means that your resting heart rate decreases. A sign of good health is whether you have a low heart rate. The average is 70BPM (beats per minute), if you are unhealthy then your heart will have to work harder to pump blood all around your body which makes heart attacks more likely. Effects of Training In this section I will explain the effects on the body that I will expect to see when my Personal Exercise Plan has been completed over the 6 weeks. After completing my PEP my muscles should change in size and strength due to the exercises I have chosen. The muscles should grow larger with the exercise because the muscle fibres in the muscle will get fatter. Muscles are built from fibres which are either fast twitch or slow twitch. The strength of the muscle should also improve with exercise, by doing exercises with heavy weights and few reps the muscle strength will be increased. If I changed the exercise to many reps with a light weight then my muscles will gain more endurance. But as I am a goalkeeper then I will not concentrate as much on the endurance training. Changes to Vital Capacity and Tidal Volume in the lungs From completing my 6 week training routine I should be able to see changes in my Vital Capacity and Tidal Volume. VC= Your Vital Capacity is the maximum amount of air that can be forcibly exhaled from your lungs. TV= Your Tidal Volume is all the air inhaled and exhaled in a minute. With training the respiratory system I will expect to see an increase in both of these factors. These increases are down to the lungs as training on my respiratory system will make them bigger so I will be able to inhale and exhale more air per breath. SV = Stroke Volume is the volume of blood pumped out of the heart during one contraction. Due to exercise this should increase as your heart will be stronger, therefore it will be able to pump a larger volume of blood around the body. CO = Cardiac Output is the amount of blood which is pumped from your heart each minute. This can be worked out by multiplying your stroke volume with your heart rate. This should also increase with exercise, by the same reasons as your stroke volume increases, as your heart is stronger. Recovery rate = Your recovery rate is the amount of time it takes you to fully recover after exercise. The fitter you are the shorter your recovery rate is. As I am a goalkeeper I will not be concentrating on this too much as it is not that important, although for an outfield player it is very important. SPORT Principles of training The main principles of training are shown in the acronym SPORT, by using these in my PEP I should end up with a successful training programme. The different sections are: S= Specificity Specificity means that I will train specific muscles used in my sport. This could include exercises and drills that relate to moves and skills I need in football as a goalkeeper. I will specify flexibility and muscular strength as these are the two components most vital for my sport. P= Progression Progression is when you gradually increase the amount or intensity of your exercise. This will improve your muscles as you are increasing the amount of work they do. An example of progression is starting week 1 with a 2 mile run once a week then progressing to a 3 mile run in week 2. O= Overload Fitness can only be improved by doing more than you usually do. This is called overloading. You must be careful though as if you do too much training you will end up injuring yourself. An example is doubling the distance of your runs or doubling the weight of your weights. R= Reversibility Reversibility occurs when you do not train . As your muscles are not being worked they will begin to weaken. All the improvements you have made from training will be reversed. For example if a sportsman becomes injured and is unable to train they will lose their work. So that reversibility does not affect me I will have 3 training sessions per week. T= Tedium Tedium is when you become bored with your training, this is because your training plan does not have much variety and you end up doing the same exercises. To avoid tedium I will include a variety of exercises so my PEP is not boring. FITT Principles When using overload I can use the FITT principles of training which are: F= Frequency Frequency is to do with how often I should train. I will include 3 training sessions a week in my personal exercise plan; this is a sufficient amount as I am not a professional sportsman who will probably train around 5 times a week. By doing 3 sessions a week I will also minimise the chance of reversibility as I will not have a large gap of time when I am not exercising. To make sure that my PEP is well set out I will not have to exercise in 2 consecutive days, for example I will train on Monday, Wednesday and Friday. I= Intensity Intensity is based on how hard you push yourself whilst doing your training. It is measured by MHR (Maximum Heart Rate) for example a 3 mile run at 70% MHR. As I progress through the training programme the intensity of my exercises will increase. For the first week I may start working at 65% MHR which is not too hard however by the 6th week I will be working at 80% MHR which will be working my body very hard. T= Time Time is the length I will train for during each session of my PEP. It can vary from sprinting for 10 seconds to jogging for an hour. Time will be used in my exercise plan as I will increase the length of time spent on each exercise as I progress through the 6 weeks to show progression. T= Type There are different types of training, continuous training, fartlek training, circuit training, aerobic training and interval training, I will mainly use circuit, interval and aerobic training as these will be of most help to me. Fartlek and continuous training both contain a lot of running, which will not be useful to me as I play in goal. However I will use aerobic training as it will help me with my flexibility and agility, whilst interval and circuit training can use many exercises which I can choose myself. This will also lessen the chance of tedium occurring.

The Dinosaurs and Prehistoric Animals of Idaho

William Golding s Lord Of The Flies - 1819 Words

Most of the time, the smallest detail yields the biggest impact. In William Golding’s Lord of the Flies, Golding’s inclusion of minute details helps to strongly communicate his theme of man’s innate darkness. On the other hand, Peter Brook’s film, Lord of the Flies, lacks some of the details required to convey Golding’s message properly. Because the novel includes the necessary details to convey the idea of mankind’s inner darkness and violence, the novel conveys Golding’s theme more effectively than Peter Brook’s film. The details that help support Golding’s theme in the novel include vivid imagery and setting, an appropriate characterization of Simon, and detailed symbols. First, the film’s setting fails to create a strong feeling of†¦show more content†¦In Brook’s film, the boys merely reference the heat on the island and remove some of their clothing. Simply stating the heat’s presence a nd how the boys remove their clothes hardly creates a hot, suffocating feeling. Without the physical, overpowering feeling of heat, there is hardly a feeling of tension between the boys. Therefore, the sole reference to the presence of heat deemphasizes the idea that man is a violent race. Therefore, the novel conveys Golding’s message more effectively because it exposes the tension and violence among the boys. Throughout literature, setting plays a vital role in creating tone by providing the reader or the viewer some perspective with essential information about the overall location and tone of the piece. In other words, setting is as important to a story as eyes are to humans. Eyes help humans determine location and help them navigate terrain. In terms of the story, Golding’s novel describes the island from the terrain and wildlife, to the physical feeling of the scalding sun and the warm ocean. Meanwhile, Brook’s film merely shows that the boys are stranded o n an uninhabited island. Brook neglects to focus on the importance of the island terrain. Thus, the film’s setting resembles eyes that require glasses. The terrain of Brook’s island is unclear. In addition to providing perspective, setting helps construct the tone of the story. Continuing the metaphor, eyes can aid with navigation, but eyes alone cannot help an individualShow MoreRelatedWilliam Golding s Lord Of The Flies1263 Words   |  6 PagesResearch Paper: Lord of the Flies William Golding, the author of Lord of The Flies, included adults for only a brief time throughout the novel, playing only a minor role at the end. The absence of adults exemplifies how children require the structure and guidance that only parents can provide, symbolically, how nations newly freed from the British Empire’s control would be better off under English colonial power to survive and maintain order before deteriorating into anarchy. The adults of theRead MoreWilliam Golding s Lord Of The Flies752 Words   |  4 Pagespossible, so a five year old who teases others to Adolf Hitler would be classified as perpetrators of evil. Lord of the Flies is a fictional story about a group of British boys who get stranded on island. The author of the novel Lord of the Flies, William Golding, showcases Zimbardo’s ideas in his story. Zimbardo did not form his theory Through the character development of Jack and Roger, Golding illustrates the intensity of evil when one is impacted by situational forces. Before Ralph and Piggy unifiesRead MoreWilliam Golding s Lord Of The Flies1869 Words   |  8 PagesEssay Outline – Unit 11 Introductory paragraph: Topic Sentence (includes the book title and author) The novel Lord of the flies by William Golding is a type of literature that revolves around an anti-war theme. Main Points that will be discussed in the essay presented in order of weakest to strongest: 1. Lord of the flies was written during WWII and one of the manifestations is the dead man in the parachute presumably a victim of a bombed plane. 2. Faction among the group which is similar toRead MoreWilliam Golding s Lord Of The Flies1282 Words   |  6 PagesWilliam Golding, the author of Lord of The Flies, included adults for only a brief time throughout the novel, playing only a minor role at the end. The absence of adults exemplifies how children require the structure and guidance that only parents can provide, this can be seen how nations newly freed from the British Empire’s control would be better off under English colonial power to survive and maintain order before deteriorating into anarchy. The adults of the novel can be seen as the motherRead MoreWilliam Golding s Lord Of The Flies1389 Words   |  6 PagesA response to Lord Of The Flies Imagine an airplane crash. The heat of flames scorch passengers’ backs in addition to the wind burning their faces. Lucky, this crash was over water and near an island so most passengers survive, with an exception of the airplane staff and the pilot. Even though alive, many are in fits of fear and panic, and others are in shock. After hurried deliberation, a lone member of the group is elected leader in hopes that they will calm the panic, and make the hard, but necessaryRead MoreWilliam Golding s Lord Of The Flies1315 Words   |  6 PagesWilliam Golding’s novel Lord of the Flies was set somewhere on the timeline of World War Two, a war between the Axis and the Allies lasting from 1939 until 1945. Although WWII was fought between many countries in the Pacific and Europe, the main contender was Germany, led by Adolf Hitler. Hitler and his followers, the Nazis, changed the lives of everyone when they attempted to strengthen Germany and brought out all the evil and ugli ness in the world. After WWII, nothing would be able to change theRead MoreWilliam Golding s Lord Of The Flies886 Words   |  4 Pageshow to live their lives not knowing what s right or wrong. Everyone has a different opinion towards different things. Some say gun laws should be banned while some say they want a gun in their house. In Lord of the Flies by William Golding there are clear aspects of leadership shown within the characterization between Jack and Ralph. I m chief, said Ralph, because you chose me. And we were going to keep the fire going. Now you run after food- (Golding 150). There is evident conflict between theRead MoreWilliam Golding s Lord Of The Flies1672 Words   |  7 Pages The Different Social Cognition of the Similar Stories — Synthesis essay of Lord of the Flies Final Project With the development of British culture, the format of Desert Island Literature has an inevitable connection with the geographical and culture heritage of the development of British history. Generally speaking, the setting of such literature is basically around an isolated island which is far from human society. The characters usually follow a primary lifestyle so that illustrate the courageRead MoreWilliam Golding s Lord Of The Flies1745 Words   |  7 Pages1954 novel, Lord of the Flies by Nobel Prize-winner William Golding is a dystopian allegory indicative of vast aspects of the human condition. Set in the midst of a nuclear war, the text details a group of marooned British school boys as they regress to a primitive state. Free from the rules and structures of civilisation and society, the boys split into factions - some attempting to maintain order and achieve common goals; others seeking anarchy and violence. The novel is based on Golding’s experienceRead MoreWilliam Golding s Lord Of The Flies1776 Words   |  8 PagesMaybe the beast is us (Golding 85), in the novel, Lord of the Flies, by author William Golding, Golding uses the entire book as social commentary. The social aspect he focuses on is man’s ability to be evil and destructive. William Golding uses three specific literary devices to convey this idea; characterization, diction and symbolism. Lord of the Flies explains man s capacity for evil which is revealed in his inherent human nature, which he cannot control or ignore. The hidden evil within