The American Dream In Franz Kafkas Metamorphosis

In the story â€Å"Metamorphosis† by Franz Kafka, the main character, Gregor, goes through a major transformation. He worked very hard to try and pay off their families debt and felt a lot of pressure. One day he wakes up as a bug and is alienated by his family. Nowadays society has become accustomed to go to school, get a job, get married and kids. Throughout the story the reader starts to realize more and more how his change symbolizes how modern society is dehumanized by the expectations from the outside world, which is the â€Å"American dream.† Unfortunately, families contribute to the feeling of rejection unintentionally. Gregor’s transformation into a bug symbolizes his human life. Gregor finds himself depressed in his job as a traveler.†¦show more content†¦He now has a different appetite and he realizes it when his sister brings him rotten cheese, vegetables and sauce. â€Å"Quickly one after another, his eyes watering with pleasure, he consume d the cheese, the vegetables and the sauce; the fresh foods, on the other hand, he didnt like at all, and even dragged the things he did want to eat a little way away from them because he couldnt stand the smell.† He no longer craves human food, separating him from his family and humans, causing him to become alienated. He not only goes through a physical change, but his communication skills do as well, like a bug. He believed that what he was saying made sense, â€Å"the words he uttered were no longer understandable, apparently, although they seemed clear enough to him, even clearer than before, perhaps because his ear had grown accustomed to the sound of them.† He is frustrated because he now feels as if he has really lost connection with his family and has no way of communicating with them. Due to these circumstances, the family thinks that the answer to his behavior is, locking him up. They nowShow MoreRelatedAnalysis Of Franz Kafka s Just Like Gregor Samsa 1441 Words   |  6 PagesAnalytical Assessment Essay Just like Gregor Samsa, the protagonist from Metamorphosis, Franz Kafka had an incredibly similar life. Kafka was born on July 3, 1883 in Bohemia, now known as Prague in Czech Republic. He was raised in a middle class Jewish family; however, due to the fact that Jews were seen as an uneducated and inferior race his father taught them (Kafka and his two sisters) German. Just like Mr. Samsa (Gregor’s father), Kafka’s father also owned a business which he wanted Kafka to take over;Read MoreEssay on The Metamorphosis, by Franz Kafka1973 Words   |  8 Pagestrigger depressive symptoms. Franz Kafka’s The Metamorphosis, begins when Gregor has awakened from his disturbed dream as a dung beetle. Gregor, the main character and Kafka himself, experienced insecure behavior, alienation and depression in their relationships. For Gregor, these symptoms had a tremendous effect on his self-concept: it led to a depressive and desolate end. Kafka’s misery in his real life was reflected in the Gregor‘s transformation. The Metamorphosis exposes the outcome of negativeRead MoreThe Metamorphosis By Franz Kafka911 Words   |  4 PagesFranz Kafka’s novella, The Metamorphosis, takes place in the Post-World War I era. In a world dominated by cold machinery and irrational fears, Kafka constructs a criticism of humanity through the transmutation of Gregor from a human to a monstrous vermin. Kafka’s symbolism of Gregor’s bug form primarily serves to indicate how humanity underappreciates themselves and keep value within materialistic ideals. Gregor’s character development from almost drone-like to individualistic ultimately impliesRead MoreA Very Old Man With Enormous Wings By Gabriel Garcia Marquez1827 Words   |  8 PagesPeople do not Accept what they do not Understand. The Metamorphosis by Franz Kafka and A Very Old Man with Enormous Wings by Gabriel Garcia Marquez are both short stories and both stories show us what is magical realism. According to Anne Hegerfeldt, magical realism refers to a mode of writing that may most briefly be characterized as an â€Å"amalgamation of realism and fantasy†. The term in its present sense was first applied to Latin American literature from the 1960s, with Gabriel Garcia MarquezRead MoreEssay Sherman Alexie1140 Words   |  5 Pagesto live. Though he pulled through, doctors predicted he would be severely mentally retarded. Fortunately, they were wrong, but he did suffer through seizures and wet his bed throughout his childhood (What 1). Rather than being called Native American, which he feels is a guilty white liberal term, he prefers to be called Indian. He is a Spokane/Coeur d’Alene Indian, in fact, and grew up on the Spokane Indian Reservation in Wellpinit, Washington. To avoid being picked on by the other reservationRead MoreThe Theory, History, and Development of Magical Realism Essay examples3188 Words   |  13 PagesMagical realism is more a literary mode than a distinguishable genre and it aims to seize the paradox of the union of opposites such as time and timelessness, life and death, dream and reality and the pre-colonial past and the post-industrial present. It is characterized by two conflicting perspectives. While accepting the rational view of reality, it also considers the supernatural as a part of reality. The setting in a magical realist text is a normal world with authentic human characters. It is

The Moral Foundations Of Private Law - 1086 Words

In The Moral Foundations of Private law, Gordley seeks to find what concepts are necessary to make sense of private law. In doing so, Gordley conveys a strong conviction in explaining these concepts through the teachings and theories of Aristotle, rather than through modern constructions. Although, Gordley argues that our private law is in essences, Aristotelian, is this actually the case and if so, does it have to be? Also, what is lost or gained by not basing our private law on Aristotle’s teachings? To explain private law in an Aristotelian way, one must learn the Aristotelian view of man. For Aristotle, â€Å"human happiness consists in living a distinctively happy life, a life which realizes, so far as possible, one’s potential as a human being. It is a life unlike that of other animals because a human being can act, not only by appetite, but by reason and will.† Man can understand that his actions can add to the individually human life he seeks to liv e. To access these actions that contribute to this life, man must gain a virtue, which the late Scholastics called prudence. Along with prudence it maybe necessary for man to have other virtues as well, because human beings are quite social amongst each other, part of living resorts us in helping others carryout their lives. Man should seek to acquire any item or thing that he may need and help others in doing so also. This leads to the objects of distributive and commutative justice. Distributive justice is toShow MoreRelatedPrivacy Rights : Moral And Legal Foundations1312 Words   |  6 Pagesand/or morals play in shaping privacy rights and/or expectations? It is understood that there are a number of definitions of privacy. Intellectuals have published works with varying content throughout the years. In 1890, Warren and Brandeis’ article gathered that privacy is the â€Å"right to be let alone† (Samuel Warren). Additionally, William Parent suggested that â€Å"privacy is the condition of not having undocumented personal knowledge about one possessed by others† (Moore, Privacy Rights: Moral andRead MorePrivacy Rights : Moral And Legal Foundations1584 Words   |  7 Pagesof not having undocumented personal knowledge about one possessed by others† (Moore, Privacy Rights: Moral and Legal Foundations). On the other hand, Julie Inness illustrated that privacy is â€Å"the state of possessing control over a realm of intimate decisions, which include decisions about intimate access, intimate information and intimate actions† (Moore, Privacy Rights: Moral and Legal Foundations). Although the definition s vary, the observations and publications regarding privacy indicate thatRead MoreShould Laws Protect Individual Liberty or Benefit Civil Society1716 Words   |  7 Pagessimplest manifestation of law so as to create a civil society society where both individual liberty and normative goals are practiced. Should the the aim of law be primarily centered on the protection of individual liberty or, instead, the normative goals geared toward the benefit of of civil society? The laws in any society ought to not be centered on normative goals it ought to conjointly defend individual liberty. The current approach by the legal system seems to be that the law should maintain a commonRead MoreInternational Law And National Law1011 Words   |  5 PagesW101: An Introduction to Law Tutor Marked Assessment TMA01 Question 1 (300) Explain the difference between: a. international law and national law Their principal differences are in their scope and their intended subjects. International law governs the relationships that states have with each other and international institutions, whereas national law applies within a nation. International law gains its force from agreements made between states and customs and practices that have been followed by statesRead MoreJohn Lockes Political Philosophy 752 Words   |  3 Pages John Locke is one of the most influential political philosophers of the modern era. He is a strong-minded empiricist whom expresses radical views about law and order. Locke is a fascinating figure in the history of law and order whose excellence of elucidation and depth of intellectual activity remains extremely influential. His mature political philosophy leant support to the British Whig party and its principles, to the Age of Enlightenment, and to the development of the separation of the StateRead MoreComparison Between Plato And Plato1101 Words   |  5 Pagesspeech of the Laws of Athens by appealing to a social contract that exists between the Laws and the citizens. By living in Athens, one must abide by the Laws of Athens. 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An Analysis of My Fair Lady Free Essays

HIS first big number, â€Å"With a Little Bit of Luck† was hilarious, and I think I enjoyed It more than â€Å"Get Me to the Church on Time† even though the latter Is the song you first think of associating with his character. HIS two dustmen friends were perfect as well, the three of them did the funniest little gig and the harmonize they did on the refrain was spot on. Scarcest sounded so exactly like Rexes Harrison it gave me chills. We will write a custom essay sample on An Analysis of My Fair Lady or any similar topic only for you Order Now I have seen the 1964 film version of My Fair Lady eternally hundreds of times, I’m pretty sure I wore out the VS. version that my parents had when I was very young. I can hear Harrison reciting some of the most famous lines in my head. When Scarcest said â€Å"She’s so De-Al-callously low, so HO-rivalry dirty,† the hairs on the back of my neck stood up. The best number that Higgins did was probably â€Å"I’m an Ordinary Man†. The orchestra was fabulous especially In that song. â€Å"Vive Grown Accustomed to Her Face† has to be a close second. Aurora Florence played Elise Doolittle. Just because she wasn’t my favorite character In this particular reduction does not mean she wasn’t wonderful, because she was. She obviously worked very hard on her accents, and really she had the most work in that area to do since she had to learn both a Cockney accent and a proper English one. There was a few times where her Cockney fell flat, however. It seemed like she was concentrating too hard on the most â€Å"important† lines (â€Å"I washed me face an’ ‘ands before I come, I did†, â€Å"C’mon Dover, move hay blooming’ ears†) and I became aware that she was doing an accent, which is exactly what you don’t want to happen, it breaks the magic. That Ewing said, Ms. Florence has a beautiful singing voice and played a very touching and convincing Elise. The costumes were unbelievable. All of Elijah’s costumes were replicas of the costuming done in the film version. Even down to the flower girl outfit and the green skirt and white blouse that she wears In the â€Å"The Rain in Spain† scene. I didn’t really realize It until the scene at the Ascot racetrack when Elise emerges In that white dress with the horizontal black and white ribbon and the enormous feathered hat. I’m pretty sure I squealed. My favorite costume of Elijah’s is of course en gown Tanat seen wears to ten Massey Ball Ana ten costume gleaner 01 disappoint. The Jewels dripping from Elijah’s neck, ears, and wrists (not to mention that gorgeous tiara) seemed even more dazzling in the bright stage lights than they did in the film version. To summarize, this was the best production that Vive seen outside of Chicago or SST. Louis. I would argue that it was done as well or better than most of the productions Vive seen at the Lyceum as well. Big League Productions has its own website, and is touring extensively all over the country. If you get the chance to see this play, Jump on it. How to cite An Analysis of My Fair Lady, Papers

A Basic Analysis Of The Balkan Economy In Relation Essay Example For Students

A Basic Analysis Of The Balkan Economy In Relation Essay To The E 12 Angry Men EssayThere are two opposite theoriesregarding inflation. Monetarism indicates that inflation is due to increasesin the supply of money. The classic example of this relationship is theinflation that followed an inflow of gold and silver into Europe, resultingfrom the Spanish conquest of the Americas. According to monetarists, theonly way to cure inflation is by government action to reduce growth ofthe money supply. At the other end is the cost-pushtheory. Cost-pushers believe that the source of inflation is the rate ofwage increases. They believe that wage increases are independent of alleconomic factors, and generally are determined by workers and trade unions. More specifically, inflation occurs when the wages demanded by trade unionsand workers add up to more than the economy is capable of producing. Cost-pushers advocate limiting the power of trade unions and using income policiesto help fight off inflation. In between the cost-push and monetarismtheory is Keynesianism. Keynesians recognize the importance of both themoney supply and wage rates in determining inflation. They sometimes adviseusing monetary and incomes policies as complimentary measures to reduceinflation, but most often rely on fiscal policy as the cure. Before we can understand the policiessuggested by these different schools of thought, we must look at the historicaldevelopment of our understanding of inflation. For approximately 200 years beforeJohn Maynard Keynes wrote the General Theory of Employment, Interest ,and Money, there was a broad agreement among economists as to the sourcesof inflationary pressure, known as the quantity theory of money2. The Quantitytheory of money is easily understood through fishers equation MV=PY (money supply times velocity of circulation of money equals price timesreal income)Quantity theorists believe thatover an extended period of time the size of M, the money supply, cannotaffect the overall economic output, Y. They also assume that for all practicalpurposes V was constant because short term variations in the circulationsof money are short lived, and long term changes in the velocity ofcirculation are so small as to be inconsequential . Lastly, this theoryrests on the belief that the supply of money is in no way determined bythe economic output or the demand for money itself. The central prediction that cannow be made is that changes in the money supply will lead to equiproportionatechanges in prices. If the money supply goes up then individuals initiallyfind themselves with more money. Normally individuals will tend to spendmost of their excess money. The attempt of people to buy more than theynormally do must result in the bidding up of prices because of the competitivenature of the market, inflation. Also essential to the quantity theoryis the belief that in a competitive market, where wages and prices arefree to fluctuate, there would be an automatic tendency for the marketto correct itself and full employment to be established. In figure 1, w stands for the realwage rate (the amount of goods and services that an individuals money incomecan buy), L d for the demand for labor and L s for the supply for labor. Suppose now that the economic system inherited a real wage rate w 1, Thesupply of labor is L s1 while the demand for labor is only L d1. At thispoint there is substantial unemployment because labor is costly for employersto buy. According to Classicalists, The existence of an excess supply oflabor will lead to a competitive struggle between the unemployed and employedfor the available jobs. This struggle will lead to a reduction of realwages, thus employers will begin hiring more workers. Eventually competitionwill drive down wages to an equilibrium called labor- arket clearance,where the demand and supply for labor is equal; this is We Le. Classicalistsdefine Labor market clearance as the point of full employment. Thus, persistentunemployment can only be explained by a mechanism which interferes witha competitive market. They specifically blame monopolistic trade unionsfor preventing the wage rate from falling to We. Unions may use manythreatening tactics to fight wage cuts. Those m ost effective mentionedin the textbooks are collective bargaining and strikes. The Great depression, as experiencedby the US and the countries of western Europe, cast a shadow over the Classicalapproach to economics3. The self-righting properties of classical economicswere clearly not working when wages and unemployment failed to decrease. Blaming trade unions for these massive increases in unemployment seemedfar fetched. John Maynard Keynes was the firstwriter to produce a non-classical, coherent, and convincing explanationof the inter-war depression. He traced the sources of unemployment to adeficiency of effective demand. Put simply, unemployment occurred whentotal spending on output was not enough to fully employ the available workforce. Effective demand, called expenditures, was split into two groups by Keynes,consumption and investment. Consumption, the purchase of goods and services,far outweighed investment as the major component of effective demand. At the theories core lay Keynesbelief that an economies total production, Y, will eventually adapt itselfto changes expenditures. Moreover Keynes argued that the equilibrium ofwages exist when the output of producers is equal to the amount that consumersand investors are willing to spend on their output. Consider figure 2 Total expenditure,that is the sum of consumption and investment , is measured on the verticaland real income on the horizontal. For practical purposes investment willremain a constant in the graph and be represented by line I. If we addthe consumption function and the investment line, we get the the sum totalexpenditures, line E (E = C+I). For any given amount of expenditures,Y can be located anywhere for a short time. If Y is above E, then producersare simply accumulating unsold stocks of goods. Eventually they will beforced to cut back on production until they can sell their existing stocks,earning capital enough capital to restart production. Conversely, If Yis below E, producers will be selling out of goods. Normally they willincrease production as soon as possible to catch up to the demand and makethe most profit. This is where, the 45 line comes into use. Y, accordingto Keynes, will shift to the point where E intersects the 45 line. When Y intersects E at the 45 line, there is an equilibrium between expendituresand total output, and wages are stable. In order to illustrate how Keynesprinciple of effective demand accounts for unemployment, let us assumethat the economy starts off at full employment where Ld (demand for labor)equals Ls (supply). The label of the output necessary to sustain full employmentis Yf, f denoting full employment. If expenditures were smaller than Yf,than Yf would adjust itself to the left on the graph to accommodate forthis. Because the level of total output has shrunk, the demand for laboralso has, and unemployment has risen correspondingly. If one accepts the Keynesian model,there are generally two things that can be done to raise the level of aggregatedemand to a point where Y adjusts to full employment. Raising governmentexpenditures, G, stimulating private investment, or lowering taxes, raisingconsumption because people will have more money to spend, will both raisethe level of aggregate demand. Both these policies come under the headingof fiscal policy, which is deliberate manipulation of the government budgetdeficit in order to achieve an economic objective. During the great depression, manypeople rejected Keynes ideas on unemployment because they were scaredto be different. The contemporary orthodox view was that cuts in the moneywages would automatically be accompanied by cuts in the real wages, thusraising employment. Classicalists prescribed the government a remedy forunemployment based on implementing money wage reductions. Keynes rejectedthis idea on both theoretical and empirical grounds. After the first World War, collectivebargaining rendered the downward flexibility of wages highly improbable. Any attempts at cutting money wages would be fiercelyresisted, as seen as the 1926 GeneralStrike in Britain painfully demonstrated. Keynes regarded the trade unionsresistance to wage cuts as a product of the rigid structure of wage differentials. This is actually just the relative position of the wages of a particulartype of labor to all others, F.E. mechanics get paid 1$,Electriciansget 2$, plumbers get 3$. If any one group received generally higher wages,other groups would surely demand higher wages to preserve the structure. On the other hand, if a single group wantonly decided to accept a wagecut, other groups would likely not follow. Therefore labor groups vehementlyresisted wage cuts. Theoretically, Keynes believed thatdrops in the money wages would eventually be accompanied by a drops inprices. This balanced deflation would bring real wages, the amount of goodsthat could be bought, to their original amount. Employers would not takeon more workers because their real revenue, amount of goods they sell,would remain unchanged. In order to fully consider this statement,we must first look at the terms used and consider their definitions withrespect to the larger content of the question. We will first consider Positive Economics. A positive economic statement is one which relies on real data, given truestatistics and related directly to a true situation. Following this, wecan say that a normative economic statement is one which is not purelyobjective although it is related to a positive economic situation. Whatthe normantive statement does is to follow on with an opinion which issubjective, biased and based purely on the personal feelings of the speaker. Positive economics is about whatis; normative economics is about what should be.Economics, John B. Taylor, HoughtonMifflin Company, 1995, p.25Now we must consider the definition ofFair. Fair: satisfactory,just, unbiased, according to the rules.The Concise Oxford Dictionary, FifthEdition, Edited by H. W. Fowler and F. G. Fowler, Oxford University Press,1964I propose to return to this deffinitionhaving discussed the first part of the question. When we are dealing with positive economics,we are strictly involved with a clinical procedure of thought and analysiswhere the thought pattern lacks the usual influence of personal bias andemotional charge. Positive economics relate explicitly to the existingsituation based on true data and real facts. It can be expressed as a birdseye view of a real given situation. Since logic is the dominant factorin this thought/perception process, it is natural for positive economicsto be described as what is, because very seldom does a situation occurwhere what is achieves the goal of what should be. The normative side of economics,unlike the birds eye view of positive economics, is a viewpoint from withina given situation. This of course directly involves the personal bias,the subjective opinion ralated to real or given data. Only when perceivinga situation from within, from a specific internal standpoint can you expressthe what should be. The positive unbiased process of factual datalacks the reality of the emotionally charged normative thought processwhere comparisons and conclusions are drawn from a basis of personal criteria. The normative statement need not necessarily be what should be,it can just as easily relate to what should not be, either positive ornegative but it will always be based on a subjective opinion brought aboutby a personal attitude to a positive economic situation. We can therefore look at the givenstatement and immediately see that, although there is undoubtably a distributionof wealth in the United Kingdom, and this is indisputably a positive economicstatement, the hypothesis that it is not fair is purely based on suppositionof the speaker and therefore a normative statement. Dealing with the word fair ingeneral provocates an emotional connotation. There is a direct link ofmeaning with equilibrium, but equilibrium can vary depending on whatangle fair is expressed from. Fair can vary greatly in accordance withits definition. If we consider the distribution of wealth in the UnitedKingdom according to the rules we must ask whose rules. If they are therules of the political party in power, then the distribution is fair. If they are the rules of a Marxist minority party, then the distributionis not fair. In both cases fair is unsed non-normatively. The opinion of the unemployed or the lowersocial orders does not count in this case, as there are no recognised rulesfor these groups of people. Any opinion offerred from them regarding fairis automatically normative. The same will apply if taking into accountthe other officially accepted definitions of the meaning of fair. Therecan be ambivalence about the objective or subjective interpretation ofthe word satisfactory. The word just can also be interpretedboth objectively in a legal connotation and subjectively in a personalconnotation. In a specific case though, for example,The distribution of income in the United Kingdom is not fair., when examinedfrom a positive point of view through the accepted definitions , one canarrive at a conclusion which may very well be Yes, the distribution isfair., but this conclusion can opnly have been derived from an omniperceptive and non-biased angle, if the word fair has been given a formallyaccepted definition. It must also relate in the particular circumstanceto the real statistical data taken into consideration, regarding the realdistribution of wealth in the United Kingdom. If this distribution of income were tobe looked at from a normative angle, there would of course not have beena conclusion such as the one above, the reason being that normative thoughtis personalized thought, and in the real world, which is what normativeeconomics deals with, ones view dramatically differs from anothers, therefore,a statement such as The distribution of income in the United Kingdom isnot fair. would sound more like an opinion rather than a scientific conclusionand would belong to the definitioin Biased and satisfactory. In conclusion to the essay questionregarding fair being used non-normatively, my view is that it is possible. Personal view or preference does not prevent one from appreciating a situationas a whole if looked at from a temporarily neutral and dispassionatestandpoint. For example, one may not particularly like the work of a certainacclaimed writer, but one can appreciate his/her works worth and qualityas an axample of literary expressionism. The given statement for the essayis undoubtably normative. It could, however, have been been madepositive, as could any other statement containing the word fair by definingthe concept of fairness within the terms relating to the reality. Financing a small firm can be achievedin three ways. The most preferable but at the same time the least likelyis self financing from retained earnings, otherwise, the firm will haveto resort to either one of the two following financial markets. Debt capitaland equity capital ( which strictly speaking is the same as retained earnings,both having their advantages and disadvantages. Only after 1979 did clearing banks startmaking loans with a maturity term in excess of ten years. Inthe case of a loan to smaller companies, the fixed interest rates are usuallyset at a premium over base rate ( 3% 6%). Larger companies who have agood credit rating will probably be offerred the premium on the inter-bankrate which is lower than the base rate. Loans are usually securedon the personal guarantee of the Directors or the owner of small companiesand in the case of larger ones, a charge is made against the assets ofthe company. If the charges are fixed, that means that they arelinked with a specific asset of the company. Floating charges aremade on the general assets. All bank loans are based on three elementswhich the company has to be able to satisfy. The interest rate demandedby the bank, the security demanded by the bank and the terms of repaymentwhich are open to individual arrangements between bank and borrower althoughthey usually consist of systematic amortization payments made over thefull time of the loan. A small company will have to ensureits capability of all three in spite of the fact that in comparisonto a larger company, it will be paying a higher interest rate, will berisking security based on the owners personal assets rather than companyassets and repayment terms will probably be more rigid rather thanflexible as banks rightly see the small company borrower as a higher risk. (This is explained later on when discussing the problems faced by the smallcompany in raising finance.)There are sources of loans other thanfrom banks. Companies usually resort to these financial institutionsas a last resort because their interest payments are fixed and if inflationfalls, this will make the borrowing very expensive. These financial sourcescan include pension funds, insurance companies, merchant banks, the EuropeanInvestment Bank and the ICFC. (Investment and Commercial Finance Corporation)There is also the medium term note openas an alternative which is a promisory note issued by the company promisingto pay a specified amount on a specified date. The procedure is forthe company to write the note and then to sell it in the market place. The interest rate can be fixed or may fluctuate and the maturity date ofthe note can be anything from under one year to as long as fifteen years. The small company may issue a debenture,which is a document issued in return for money lent. There are varioustypes of debentures but they all have some features in common. They areusually in the form of a bond, undertaking the repayment of a loan on aspecified date and with regular stated payments of interest between thedate of issue and the date of maturity. These dividends have priorityto be paid before any other dividend is paid to any other class of shareholder. The Companies Acts define the word debenture as including debenture stockand bonds. Often the terms debenture and bond or loan stock are interchangeablealthough I shall mention Bond and Loan Stock a little later on. There are a number of reasons why an investorwould chose debentures in preference to other forms of company financing. The major factor has to do with risk. Debt financing usually hasa fixed maturity. The investor enjoys priority both in interest andin the possibility of the company going into liquidation. In addition,debentureholders receive a fixed return on the investment and if the company doesnot make large profits, will continue to receive the fixed interest ratewhile the ordinary shareholders may have to wait the Boards decision onwhat and how much to pay out. Now we must look at why a company wouldissue debentures. The primary advantage is that the cost of the debtis known and is limited. If the company makes greater profits, theseare not shared out with the debenture holders. The cost of the debtis also limited because the risk of the debenture holders is lower thanthat of the shareholder. Also, and importantly, the interest paymentthat is made to the debenture holder is deductable against tax. Debenture issues are not an unqualifiedbenefit for the company. There are some disadvantages in that assumptionsthat were made ten years ago about the future trading position of the companymight prove to be wrong and the decision for long term debt unwise. Thecompany still has to repay the debt on the date of maturity. A warrant, is in principle, a call optionissued by the company on its own stock.The warrant holder is able to buya specified number of shares at a specified price on a specified date. Problems that face the young company will be discussed later but for acompany without a proven track record, raising finance can be difficult. The warrant can be used as an enticer. Debenture holders have nooption to benefit from the company which performs well but companies cantempt investors to their debenture stock by issuing convertibles or warrentsin return for lower interest rates in the immediate term. (a convertibleis a bond which can be converted to ordinary shares) The most common issuersof warrants and convertibles are risky companies, young companies and thosewhose risk profile is difficult to estimate. In other words, thosewho may not fare so well in the credibility stakes at the bank. The company can issue preference sharesand holders are part owners of the company, but preference shares are closerto loan capital than to ordinary shares.In the heirarchy they come higherthan ordinary shares and lower than debentures. The clear company advantageis that preference shares are a source of long term , though not permanent,finance and that the dividend does not have to be paid if company profitsdo not justify it. Preference shares are not really popular with companiesor investors. In 1993 they were only 7.7% of the total. There are a number of characteristicsshared by small companies which make it difficult for them to obtain funds. Their shorter trading records means that less is kno