document_title: Menstruation

question_text: what is the point of a menstrual cup

question_tokens: what is the point of a menstrual cup

text: Menstruation

text: Onset and frequency

text: The first menstrual period occurs after the onset of pubertal growth, and is called menarche. The average age of menarche is 12 to 15.[1][9] However, it may start as early as eight.[2] The average age of the first period is generally later in the developing world, and earlier in the developed world.[3] The average age of menarche has changed little in the United States since the 1950s.[3]

text: Menstruation is the most visible phase of the menstrual cycle and its beginning is used as the marker between cycles. The first day of menstrual bleeding is the date used for the last menstrual period (LMP). The typical length of time between the first day of one period and the first day of the next is 21 to 45 days in young women, and 21 to 31 days in adults (an average of 28 days).[2][3]

text: Perimenopause is when fertility in a female declines, and menstruation occurs less regularly in the years leading up to the final menstrual period, when a female stops menstruating completely and is no longer fertile. The medical definition of menopause is one year without a period and typically occurs between 45 and 55 in Western countries.[4][10]:p. 381

text: During pregnancy and for some time after childbirth, menstruation does not occur; this state is known as amenorrhoea. If menstruation has not resumed, fertility is low during lactation. The average length of postpartum amenorrhoea is longer when certain breastfeeding practices are followed; this may be done intentionally as birth control.

text: Health effects

text: In most women, various physical changes are brought about by fluctuations in hormone levels during the menstrual cycle. This includes muscle contractions of the uterus (menstrual cramping) that can precede or accompany menstruation. Some may notice water retention, changes in sex drive, fatigue, breast tenderness, or nausea. Breast swelling and discomfort may be caused by water retention during menstruation.[11] Usually, such sensations are mild, and some females notice very few physical changes associated with menstruation. A healthy diet, reduced consumption of salt, caffeine and alcohol, and regular exercise may be effective for women in controlling some symptoms.[12] Severe symptoms that disrupt daily activities and functioning may be diagnosed as premenstrual dysphoric disorder. Symptoms before menstruation are known as premenstrual molimina.

text: Cramps

text: Many women experience painful cramps, also known as dysmenorrhea, during menstruation.[13] Pain results from ischemia and muscle contractions. Spiral arteries in the secretory endometrium constrict, resulting in ischemia to the secretory endometrium. This allows the uterine lining to slough off. The myometrium contracts spasmodically in order to push the menstrual fluid through the cervix and out of the vagina. The contractions are mediated by a release of prostaglandins.

text: Painful menstrual cramps that result from an excess of prostaglandin release are referred to as primary dysmenorrhea. Primary dysmenorrhea usually begins within a year or two of menarche, typically with the onset of ovulatory cycles.[14] Treatments that target the mechanism of pain include non-steroidal anti-inflammatory drugs (NSAIDs) and hormonal contraceptives. NSAIDs inhibit prostaglandin production. With long-term treatment, hormonal birth control reduces the amount of uterine fluid/tissue expelled from the uterus. Thus resulting in shorter, less painful menstruation.[15] These drugs are typically more effective than treatments that do not target the source of the pain (e.g. acetaminophen).[16] Risk factors for primary dysmenorrhea include: early age at menarche, long or heavy menstrual periods, smoking, and a family history of dysmenorrhea.[14] Regular physical activity may limit the severity of uterine cramps.[14]

text: For many women, primary dysmenorrhea gradually subsides in late second generation. Pregnancy has also been demonstrated to lessen the severity of dysmenorrhea, when menstruation resumes. However, dysmenorrhea can continue until menopause. 5–15% of women with dysmenorrhea experience symptoms severe enough to interfere with daily activities.[14]

text: Secondary dysmenorrhea is the diagnosis given when menstruation pain is a secondary cause to another disorder. Conditions causing secondary dysmenorrhea include endometriosis, uterine fibroids, and uterine adenomyosis. Rarely, congenital malformations, intrauterine devices, certain cancers, and pelvic infections cause secondary dysmenorrhea.[14] Symptoms include pain spreading to hips, lower back and thighs, nausea, and frequent diarrhea or constipation.[17] If the pain occurs between menstrual periods, lasts longer than the first few days of the period, or is not adequately relieved by the use of non-steroidal anti-inflammatory drugs (NSAIDs) or hormonal contraceptives, women should be evaluated for secondary causes of dysmenorrhea.[10]:p. 379

text: When severe pelvic pain and bleeding suddenly occur or worsen during a cycle, the woman or girl should be evaluated for ectopic pregnancy and spontaneous abortion. This evaluation begins with a pregnancy test and should be done as soon as unusual pain begins, because ectopic pregnancies can be life‑threatening.[18]

text: In some cases, stronger physical and emotional or psychological sensations may interfere with normal activities, and include menstrual pain (dysmenorrhea), migraine headaches, and depression. Dysmenorrhea, or severe uterine pain, is particularly common for young females (one study found that 67.2% of girls aged 13–19 have it).[19]

text: The medications in the non-steroidal anti-inflammatory drugs (NSAIDs) class are commonly used to relieve menstrual cramps. Some herbs are also claimed to help.[20]

text: Mood and behavior

text: Some women experience emotional disturbances starting one or two weeks before their period, and stopping soon after the period has started.[6] Symptoms may include mental tension, irritability, mood swings, and crying spells. Problems with concentration and memory may occur.[6] There may also be depression or anxiety.[6]

text: This is part of premenstrual syndrome (PMS) and is estimated to occur in 20 to 30% of women. In 3 to 8% it is severe.[5]

text: More severe symptoms of anxiety or depression may be signs of premenstrual dysphoric disorder (PMDD). Rarely, in individuals who are susceptible, menstruation may be a trigger for menstrual psychosis.

text: Extreme psychological stress can also result in periods stopping.[21]

text: Bleeding

text: The average volume of menstrual fluid during a monthly menstrual period is 35 milliliters (2.4 tablespoons of menstrual fluid) with 10–80 milliliters (1–6 tablespoons of menstrual fluid) considered typical. Menstrual fluid is the correct name for the flow, although many people prefer to refer to it as menstrual blood. Menstrual fluid contains some blood, as well as cervical mucus, vaginal secretions, and endometrial tissue. Menstrual fluid is reddish-brown, a slightly darker color than venous blood.[10]:p. 381

text: About half of menstrual fluid is blood. This blood contains sodium, calcium, phosphate, iron, and chloride, the extent of which depends on the woman. As well as blood, the fluid consists of cervical mucus, vaginal secretions, and endometrial tissue. Vaginal fluids in menses mainly contribute water, common electrolytes, organ moieties, and at least 14 proteins, including glycoproteins.[22]

text: Many mature females notice blood clots during menstruation. These appear as clumps of blood that may look like tissue. If there are questions (for example, was there a miscarriage?), examination under a microscope can confirm if it was endometrial tissue or pregnancy tissue (products of conception) that was shed.[23] Sometimes menstrual clots or shed endometrial tissue is incorrectly thought to indicate an early-term miscarriage of an embryo. An enzyme called plasmin – contained in the endometrium – tends to inhibit the blood from clotting.

text: The amount of iron lost in menstrual fluid is relatively small for most women.[24] In one study, premenopausal women who exhibited symptoms of iron deficiency were given endoscopies. 86% of them actually had gastrointestinal disease and were at risk of being misdiagnosed simply because they were menstruating.[25] Heavy menstrual bleeding, occurring monthly, can result in anemia.

text: Menstrual disorders

text: There is a wide spectrum of differences in how women experience menstruation. There are several ways that someone's menstrual cycle can differ from the norm, any of which should be discussed with a doctor to identify the underlying cause:

text:
Symptom
See article

Infrequent periods
Oligomenorrhea

Short or extremely light periods
Hypomenorrhea

Too-frequent periods (defined as more frequently than every 21 days)
Polymenorrhea

Extremely heavy or long periods (one guideline is soaking a sanitary napkin or tampon every hour or so, or menstruating for longer than 7 days)
Hypermenorrhea

Extremely painful periods
Dysmenorrhea

Breakthrough bleeding (also called spotting) between periods; normal in many females
Metrorrhagia

Absent periods
Amenorrhea

text: There is a movement among gynecologists to discard the terms noted above, which although they are widely used, do not have precise definitions. Many now argue to describe menstruation in simple terminology, including:

text:
Cycle regularity (irregular, regular, or absent)
Frequency of menstruation (frequent, normal, or infrequent)
Duration of menstrual flow (prolonged, normal, or shortened)
Volume of menstrual flow (heavy, normal, or light)[26]

text: Dysfunctional uterine bleeding is a hormonally caused bleeding abnormality. Dysfunctional uterine bleeding typically occurs in premenopausal women who do not ovulate normally (i.e. are anovulatory). All these bleeding abnormalities need medical attention; they may indicate hormone imbalances, uterine fibroids, or other problems. As pregnant women may bleed, a pregnancy test forms part of the evaluation of abnormal bleeding.

text: Women who had undergone female genital mutilation (particularly type III- infibulation) a practice common in parts of Africa, may experience menstrual problems, such as slow and painful menstruation, that is caused by the near-complete sealing off of the vagina.[27]

text: Premature or delayed menarche should be investigated if menarche begins before 9 years, if menarche has not begun by age 15, if there is no breast development by age 13, or if there is no period by 3 years after the onset of breast development.[3]

text: Ovulation suppression

text: Birth control

text: Since the late 1960s, many women have chosen to control the frequency of menstruation with hormonal birth control pills. They are most often combined hormone pills containing estrogen and are taken in 28-day cycles, 21 hormonal pills with either a 7-day break from pills, or 7 placebo pills during which the woman menstruates. Hormonal birth control acts by using low doses of hormones to prevent ovulation, and thus prevent pregnancy in sexually active women. But by using placebo pills for a 7-day span during the month, a regular bleeding period is still experienced.

text: Injections such as depo-provera became available in the 1960s. Progestogen implants such as Norplant in the 1980s and extended cycle combined oral contraceptive pills in the early 2000s.

text: Using synthetic hormones, it is possible for a woman to completely eliminate menstrual periods.[28] When using progestogen implants, menstruation may be reduced to 3 or 4 menstrual periods per year. By taking progestogen-only contraceptive pills (sometimes called the 'mini-pill') continuously without a 7-day span of using placebo pills, menstrual periods do not occur. Some women do this simply for convenience in the short-term,[29] while others prefer to eliminate periods altogether when possible.

text: Some women use hormonal contraception in this way to eliminate their periods for months or years at a time, a practice called menstrual suppression. When the first birth control pill was being developed, the researchers were aware that they could use the contraceptive to space menstrual periods up to 90 days apart, but they settled on a 28-day cycle that would mimic a natural menstrual cycle and produce monthly periods. The intention behind this decision was the hope of the inventor, John Rock, to win approval for his invention from the Roman Catholic Church. That attempt failed, but the 28-day cycle remained the standard when the pill became available to the public.[30] There is debate among medical researchers about the potential long-term impacts of these practices upon female health. Some researchers point to the fact that historically, females have had far fewer menstrual periods throughout their lifetimes, a result of shorter life expectancies, as well as a greater length of time spent pregnant or breast-feeding, which reduced the number of periods experienced by females.[31] These researchers believe that the higher number of menstrual periods by females in modern societies may have a negative impact upon their health. On the other hand, some researchers believe there is a greater potential for negative impacts from exposing females perhaps unnecessarily to regular low doses of synthetic hormones over their reproductive years.[32]

text: Breastfeeding

text: Breastfeeding causes negative feedback to occur on pulse secretion of gonadotropin-releasing hormone (GnRH) and luteinizing hormone (LH). Depending on the strength of the negative feedback, breastfeeding women may experience complete suppression of follicular development, follicular development but no ovulation, or normal menstrual cycles may resume.[33] Suppression of ovulation is more likely when suckling occurs more frequently.[34] The production of prolactin in response to suckling is important to maintaining lactational amenorrhea.[35] On average, women who are fully breastfeeding whose infants suckle frequently experience a return of menstruation at fourteen and a half months postpartum. There is a wide range of response among individual breastfeeding women, however, with some experiencing return of menstruation at two months and others remaining amenorrheic for up to 42 months postpartum.[36]

text: Menstrual management

text: Menstruation is managed by menstruating women to avoid damage to clothing or to accord with norms of public life. Menstrual management practices range from medical suppression of menstruation, through wearing special garments or other items, washing or avoidance of washing, disposal and laundry of stained materials, to separation of menstruators to particular places or activities.

text: Menstrual products (also called "feminine hygiene" products) are made to absorb or catch menstrual blood. A number of different products are available - some are disposable, some are reusable. Where women can afford it, items used to absorb or catch menses are usually commercially manufactured products.

text: Disposable products

text:
Sanitary napkins (also called sanitary towels or pads) – Rectangular pieces of material worn attached to the underwear to absorb menstrual flow, often with an adhesive backing to hold the pad in place. Disposable pads may contain wood pulp or gel products, usually with a plastic lining and bleached.
Tampons – Disposable cylinders of treated rayon/cotton blends or all-cotton fleece, usually bleached, that are inserted into the vagina to absorb menstrual flow.
Disposable menstrual cups made of soft plastic – A firm, flexible cup-shaped device worn inside the vagina to collect menstrual flow.

text: Reusable products

text:
Menstrual cups – A firm, flexible bell-shaped device worn inside the vagina to collect menstrual flow. Menstrual cups are usually made of silicone and can last 5 years or longer.
Reusable cloth pads – Pads that are made of cotton (often organic), terrycloth, or flannel, and may be handsewn (from material or reused old clothes and towels) or storebought.
Padded panties or period-proof underwear – Reusable cloth (usually cotton) underwear with extra absorbent layers sewn in to absorb flow. Some also use patented technology to be leak resistant, such as the brand THINX.
Sea sponges – Natural sponges, worn internally like a tampon to absorb menstrual flow.
Blanket, towel – (also known as a draw sheet) – large reusable piece of cloth, most often used at night, placed between legs to absorb menstrual flow.

text: Non-commercial items

text: In developing countries, many poor women cannot afford commercial feminine hygiene products. Instead, they use materials found in the environment or other improvised materials. Absorption materials that may be used by women who cannot afford anything else include: sand, ash, small hole in earth,[37] cloth, whole leaf, leaf fibre (such as water hyacinth, banana, papyrus, cotton fibre), paper (toilet paper, re-used newspaper, pulped and dried paper),[38] animal pelt e.g. goat skin,[37] double layer of underwear, skirt or sari.[39]

text: Society and culture

text: Traditions and taboos

text: Many religions have menstruation-related traditions.

text: Islam

text: Islam prohibits sexual contact with women during menstruation in the 2nd chapter of the Quran. Women are exempted from Salah (prayer). They are also prohibited from fasting and obligatory fasts of Ramadan are to be performed during other days. During menses pilgrimages are allowed; however, circumambulation of the Kaaba is prohibited and is to be performed during other times.

text: Judaism

text: The laws of Niddah in Judaism may ban certain actions during menstruation (such as sexual intercourse in some movements of Judaism) or rituals performed at the end of each menses (such as the mikvah). Some traditional societies sequester women in residences called "menstrual huts" that are reserved for that exclusive purpose.

text: Hinduism

text: In Hinduism, it is also frowned upon to go to a temple and do pooja (i.e., pray) or do pooja at religious events if one is menstruating. Metaformic Theory, as proposed by cultural theorist Judy Grahn and others, places menstruation as a central organizing idea in the creation of culture[40] and the formation of humans' earliest rituals.

text: Christianity

text: Although most Christian denominations do not follow any specific or prescribed rites for menstruation, Western civilization, which has been predominantly Christian, has a history of menstrual taboos, with menstruating women having been believed to be dangerous.[41]

text: Secular culture

text: Anthropologists, Lock and Nguyen (2010), have noted that the heavy medicalization of the reproductive life-stages of women in the West, mimic power structures that are deemed, in other cultural practices, to function as a form of "social control".[42] Medicalization of the stages of women's lives, such as birth and menstruation, has enlivened a feminist perspective that investigates the social implications of biomedicine’s practice. "[C]ultural analysis of reproduction…attempts to show how women…exhibit resistance and create dominant alternative meanings about the body and reproduction to those dominant among the medical profession."[42]

text: Other

text: In some parts of South Asia, women are isolated during menstruation. In 2005, in Nepal, the Supreme Court abolished the practice of chhaupadi, keeping women in cow-sheds during menstruation.[43]

text: Sexual activity

text: Sexual intercourse during menstruation does not cause damage in and of itself, but the woman's body is more vulnerable during this time. Vaginal pH is higher and thus less acidic than normal,[44] the cervix is lower in its position, the cervical opening is more dilated, and the uterine endometrial lining is absent, thus allowing organisms direct access to the bloodstream through the numerous blood vessels that nourish the uterus. All these conditions increase the chance of infection during menstruation.[45]

text: Education

text: Menstruation education is frequently taught in combination with sex education in the US, although one study suggests that girls would prefer their mothers to be the primary source of information about menstruation and puberty.[46] A Nigerian study showed the following breakdown in menstruation education: “parents of 56.1%, friends of 53.18%, books of 45.56%, teachers of 44.15%, internet of 45.19%, and health centers of 54.14%” held the most influence in terms of menstruation education.[47] Information about menstruation is often shared among friends and peers, which may promote a more positive outlook on puberty.[48]

text: The quality of menstrual education in a society determines the accuracy of people's understanding of the process.[49] This is in part due to the segregation of male and female peers during educational sessions. Failure to teach an accurate understanding of menstruation to students of all genders has social implications for gendered relationships and the objectification of women’s bodies. Discomfort arises when students do not have access to the same information, reinforcing the belief “that menstruation is gross and should be kept hidden”.[50] Girls are encouraged to conceal the fact that they may be menstruating in order to be considered desirable. Sexual harassment and teasing about menstruation cause girls anxiety as they must struggle to ensure that they give no sign of menstruation.[50]

text: Effective educational programs are essential to providing children and adolescents with clear and accurate information about menstruation. Several education and sexual health experts have studied the key features necessary for such programs. Some experts maintain that schools are an appropriate place for menstrual education to take place because they are an institution that young people attend consistently. Schools are intended to expand students’ knowledge and thus serve as an appropriate site for conveying menstrual education.[51]

text: Other experts argue that programs led by peers or third-party agencies are more effective than those taught in the school classroom. This may be due to the use of small group interactions, the ability of these programs to target specific populations, or the possibility that many teenagers choose to participate voluntarily in these programs, rather than being mandated to attend school programs.[52]

text: Cost

text: The cost of commercial products for menstrual management is considered to be unacceptably high for many women. At least half a million women across the world do not have enough money to adequately afford these products. This can result in missing school or even dropping out.[53]

text: Known as "period poverty" this situation has resulted in efforts to eliminate taxes on these products. A study by the WHO and UNICEF showed that one out of five women in Scotland have been forced to improvise with items including toilet paper and old clothes due to the high cost of commercial products.

text: In July 2017, a pilot program began in Scotland to have free sanitary products available at schools and food banks for women who cannot afford them. Further to this half year pilot program, Scotland's opposition Labour Party intends to introduce a bill to make this permanent. Scotland is the first country to ban period poverty.[54]

text: In 2015 a petition was put forward in England seeking the elimination of the 5% "tampon tax". The government voted in favour but it has yet to be implemented due to Brexit complications. In England, one in ten women between 14 and 21 cannot afford menstrual management products.

text: In the United States, nine states have eliminated the tampon tax, and seven states have introduced legislation. In January 2018, California rejected a proposal to eliminate tampon tax.[55]

text: Evolution

text: All female placental mammals have a uterine lining that builds up when the animal is fertile, but it is dismantled when the animal is infertile. Most female mammals have an estrous cycle, yet only primates (including humans), several species of bats, and elephant shrews have a menstrual cycle.[56] (Killer whales, Orcinus orca, are one of the few species to experience menopause.) Some anthropologists have questioned the energy cost of rebuilding the endometrium every fertility cycle. However, anthropologist Beverly Strassmann has proposed that the energy savings of not having to continuously maintain the uterine lining more than offsets energy cost of having to rebuild the lining in the next fertility cycle, even in species such as humans where much of the lining is lost through bleeding (overt menstruation) rather than reabsorbed (covert menstruation).[57][58]

text: Many have questioned the evolution of overt menstruation in humans and related species, speculating on what advantage there could be to losing blood associated with dismantling the endometrium, rather than absorbing it, as most mammals do. Humans do, in fact, reabsorb about two-thirds of the endometrium each cycle. Strassmann asserts that overt menstruation occurs not because it is beneficial in itself. Rather, the fetal development of these species requires a more developed endometrium, one which is too thick to reabsorb completely. Strassman correlates species that have overt menstruation to those that have a large uterus relative to the adult female body size.[57]

text: Beginning in 1971, some research suggested that menstrual cycles of cohabiting human females became synchronized. A few anthropologists hypothesized that in hunter-gatherer societies, males would go on hunting journeys whilst the females of the tribe were menstruating, speculating that the females would not have been as receptive to sexual relations while menstruating.[59][60] However, there is currently significant dispute as to whether menstrual synchrony exists.[61]


document_title: Bond (finance)

question_text: a bond that the issuer has the right to pay off before its maturity date

root

text: Bond (finance)

text: Etymology[edit]

text: In English, the word "bond" relates to the etymology of "bind". In the sense "instrument binding one to pay a sum to another", use of the word "bond" dates from at least the 1590s.[4]

tag: p

text: Issuance[edit]

text: Bonds are issued by public authorities, credit institutions, companies and supranational institutions in the primary markets. The most common process for issuing bonds is through underwriting. When a bond issue is underwritten, one or more securities firms or banks, forming a syndicate, buy the entire issue of bonds from the issuer and re-sell them to investors. The security firm takes the risk of being unable to sell on the issue to end investors. Primary issuance is arranged by bookrunners who arrange the bond issue, have direct contact with investors and act as advisers to the bond issuer in terms of timing and price of the bond issue. The bookrunner is listed first among all underwriters participating in the issuance in the tombstone ads commonly used to announce bonds to the public. The bookrunners' willingness to underwrite must be discussed prior to any decision on the terms of the bond issue as there may be limited demand for the bonds.

text: In contrast, government bonds are usually issued in an auction. In some cases, both members of the public and banks may bid for bonds. In other cases, only market makers may bid for bonds. The overall rate of return on the bond depends on both the terms of the bond and the price paid.[5] The terms of the bond, such as the coupon, are fixed in advance and the price is determined by the market.

text: In the case of an underwritten bond, the underwriters will charge a fee for underwriting. An alternative process for bond issuance, which is commonly used for smaller issues and avoids this cost, is the private placement bond. Bonds sold directly to buyers may not be tradeable in the bond market.[6]

text: Historically an alternative practice of issuance was for the borrowing government authority to issue bonds over a period of time, usually at a fixed price, with volumes sold on a particular day dependent on market conditions. This was called a tap issue or bond tap.[7]

text: Features[edit]

text: Principal[edit]

text: Nominal, principal, par, or face amount is the amount on which the issuer pays interest, and which, most commonly, has to be repaid at the end of the term. Some structured bonds can have a redemption amount which is different from the face amount and can be linked to performance of particular assets.

text: Maturity[edit]

text: The issuer has to repay the nominal amount on the maturity date. As long as all due payments have been made, the issuer has no further obligations to the bond holders after the maturity date. The length of time until the maturity date is often referred to as the term or tenure or maturity of a bond. The maturity can be any length of time, although debt securities with a term of less than one year are generally designated money market instruments rather than bonds. Most bonds have a term of up to 30 years. Some bonds have been issued with terms of 50 years or more, and historically there have been some issues with no maturity date (irredeemable). In the market for United States Treasury securities, there are three categories of bond maturities:

text:
short term (bills): maturities between one and five years;
medium term (notes): maturities between six and twelve years;
long term (bonds): maturities longer than twelve years.

tag: ul

text: Coupon[edit]

text: The coupon is the interest rate that the issuer pays to the holder. Usually this rate is fixed throughout the life of the bond. It can also vary with a money market index, such as LIBOR, or it can be even more exotic. The name "coupon" arose because in the past, paper bond certificates were issued which had coupons attached to them, one for each interest payment. On the due dates the bondholder would hand in the coupon to a bank in exchange for the interest payment. Interest can be paid at different frequencies: generally semi-annual, i.e. every 6 months, or annual.

text: Yield[edit]

text: The yield is the rate of return received from investing in the bond. It usually refers either to

text:
The current yield, or running yield, which is simply the annual interest payment divided by the current market price of the bond (often the clean price).
The yield to maturity, or redemption yield, which is a more useful measure of the return of the bond. This takes into account the current market price, and the amount and timing of all remaining coupon payments and of the repayment due on maturity. It is equivalent to the internal rate of return of a bond.

text: Credit quality[edit]

text: The quality of the issue refers to the probability that the bondholders will receive the amounts promised at the due dates. This will depend on a wide range of factors. High-yield bonds are bonds that are rated below investment grade by the credit rating agencies. As these bonds are riskier than investment grade bonds, investors expect to earn a higher yield. These bonds are also called junk bonds.

text: Market price[edit]

text: The market price of a tradable bond will be influenced, amongst other factors, by the amounts, currency and timing of the interest payments and capital repayment due, the quality of the bond, and the available redemption yield of other comparable bonds which can be traded in the markets.

text: The price can be quoted as clean or dirty. "Dirty" includes the present value of all future cash flows, including accrued interest, and is most often used in Europe. "Clean" does not include accrued interest, and is most often used in the U.S.[8]

text: The issue price at which investors buy the bonds when they are first issued will typically be approximately equal to the nominal amount. The net proceeds that the issuer receives are thus the issue price, less issuance fees. The market price of the bond will vary over its life: it may trade at a premium (above par, usually because market interest rates have fallen since issue), or at a discount (price below par, if market rates have risen or there is a high probability of default on the bond).

text: Others[edit]

text:
Indentures and Covenants — An indenture is a formal debt agreement that establishes the terms of a bond issue, while covenants are the clauses of such an agreement. Covenants specify the rights of bondholders and the duties of issuers, such as actions that the issuer is obligated to perform or is prohibited from performing. In the U.S., federal and state securities and commercial laws apply to the enforcement of these agreements, which are construed by courts as contracts between issuers and bondholders. The terms may be changed only with great difficulty while the bonds are outstanding, with amendments to the governing document generally requiring approval by a majority (or super-majority) vote of the bondholders.
Optionality: Occasionally a bond may contain an embedded option; that is, it grants option-like features to the holder or the issuer:

Callability — Some bonds give the issuer the right to repay the bond before the maturity date on the call dates; see call option. These bonds are referred to as callable bonds. Most callable bonds allow the issuer to repay the bond at par. With some bonds, the issuer has to pay a premium, the so-called call premium. This is mainly the case for high-yield bonds. These have very strict covenants, restricting the issuer in its operations. To be free from these covenants, the issuer can repay the bonds early, but only at a high cost.
Putability — Some bonds give the holder the right to force the issuer to repay the bond before the maturity date on the put dates; see put option. These are referred to as retractable or putable bonds.
Call dates and put dates—the dates on which callable and putable bonds can be redeemed early. There are four main categories:

A Bermudan callable has several call dates, usually coinciding with coupon dates.
A European callable has only one call date. This is a special case of a Bermudan callable.
An American callable can be called at any time until the maturity date.
A death put is an optional redemption feature on a debt instrument allowing the beneficiary of the estate of a deceased bondholder to put (sell) the bond back to the issuer at face value in the event of the bondholder's death or legal incapacitation. This is also known as a "survivor's option".

Sinking fund provision of the corporate bond indenture requires a certain portion of the issue to be retired periodically. The entire bond issue can be liquidated by the maturity date; if not, the remainder is called balloon maturity. Issuers may either pay to trustees, which in turn call randomly selected bonds in the issue, or, alternatively, purchase bonds in open market, then return them to trustees.

Bonds are often identified by its international securities identification number, or ISIN, which is a 12 digit alphanumeric code that uniquely identifies debt securities.

A smart bond is an automated programmable bond contract that uses the capabilities of a blockchain database to operate as a cryptographically-secure yet open and transparent general bond ledger.[9] It is one of a class of financial instruments known as a smart contract, "a computerized transaction protocol that executes the terms of a contract."[10] Smart bond technology may lower transaction costs by the elimination of the "middle or back office", as well as the bond registry, substantially reducing the cost of bond servicing. Another potential benefit is the potential for instantaneous settlement, rather than the days, as well as lower operational risk.[9] In 2015, UBS was experimenting with smart bonds that use the bitcoin blockchain.[11][12]

text: Types[edit]

text: The following descriptions are not mutually exclusive, and more than one of them may apply to a particular bond:

text:
Fixed rate bonds have a coupon that remains constant throughout the life of the bond. A variation are stepped-coupon bonds, whose coupon increases during the life of the bond.
Floating rate notes (FRNs, floaters) have a variable coupon that is linked to a reference rate of interest, such as Libor or Euribor. For example, the coupon may be defined as three-month USD LIBOR + 0.20%. The coupon rate is recalculated periodically, typically every one or three months.
Zero-coupon bonds (zeros) pay no regular interest. They are issued at a substantial discount to par value, so that the interest is effectively rolled up to maturity (and usually taxed as such). The bondholder receives the full principal amount on the redemption date. An example of zero coupon bonds is Series E savings bonds issued by the U.S. government. Zero-coupon bonds may be created from fixed rate bonds by a financial institution separating ("stripping off") the coupons from the principal. In other words, the separated coupons and the final principal payment of the bond may be traded separately. See IO (Interest Only) and PO (Principal Only).
High-yield bonds (junk bonds) are bonds that are rated below investment grade by the credit rating agencies. As these bonds are riskier than investment grade bonds, investors expect to earn a higher yield.
Convertible bonds let a bondholder exchange a bond to a number of shares of the issuer's common stock. These are known as hybrid securities, because they combine equity and debt features.
Exchangeable bonds allows for exchange to shares of a corporation other than the issuer.
Inflation-indexed bonds (linkers) (US) or Index-linked bond (UK), in which the principal amount and the interest payments are indexed to inflation. The interest rate is normally lower than for fixed rate bonds with a comparable maturity (this position briefly reversed itself for short-term UK bonds in December 2008). However, as the principal amount grows, the payments increase with inflation. The United Kingdom was the first sovereign issuer to issue inflation linked gilts in the 1980s. Treasury Inflation-Protected Securities (TIPS) and I-bonds are examples of inflation linked bonds issued by the U.S. government.

text:
Other indexed bonds, for example equity-linked notes and bonds indexed on a business indicator (income, added value) or on a country's GDP.
Asset-backed securities are bonds whose interest and principal payments are backed by underlying cash flows from other assets. Examples of asset-backed securities are mortgage-backed securities (MBSs), collateralized mortgage obligations (CMOs) and collateralized debt obligations (CDOs).
Subordinated bonds are those that have a lower priority than other bonds of the issuer in case of liquidation. In case of bankruptcy, there is a hierarchy of creditors. First the liquidator is paid, then government taxes, etc. The first bond holders in line to be paid are those holding what is called senior bonds. After they have been paid, the subordinated bond holders are paid. As a result, the risk is higher. Therefore, subordinated bonds usually have a lower credit rating than senior bonds. The main examples of subordinated bonds can be found in bonds issued by banks, and asset-backed securities. The latter are often issued in tranches. The senior tranches get paid back first, the subordinated tranches later.
Covered bonds are backed by cash flows from mortgages or public sector assets. Contrary to asset-backed securities the assets for such bonds remain on the issuers balance sheet.
Perpetual bonds are also often called perpetuities or 'Perps'. They have no maturity date. The most famous of these are the UK Consols, which are also known as Treasury Annuities or Undated Treasuries. Some of these were issued back in 1888 and still trade today, although the amounts are now insignificant. Some ultra-long-term bonds (sometimes a bond can last centuries: West Shore Railroad issued a bond which matures in 2361 (i.e. 24th century) are virtually perpetuities from a financial point of view, with the current value of principal near zero.
Bearer bond is an official certificate issued without a named holder. In other words, the person who has the paper certificate can claim the value of the bond. Often they are registered by a number to prevent counterfeiting, but may be traded like cash. Bearer bonds are very risky because they can be lost or stolen. Especially after federal income tax began in the United States, bearer bonds were seen as an opportunity to conceal income or assets.[13] U.S. corporations stopped issuing bearer bonds in the 1960s, the U.S. Treasury stopped in 1982, and state and local tax-exempt bearer bonds were prohibited in 1983.[14]
Registered bond is a bond whose ownership (and any subsequent purchaser) is recorded by the issuer, or by a transfer agent. It is the alternative to a Bearer bond. Interest payments, and the principal upon maturity are sent to the registered owner.
A government bond, also called Treasury bond, is issued by a national government and is not exposed to default risk. It is characterized as the safest bond, with the lowest interest rate. A treasury bond is backed by the “full faith and credit” of the relevant government. For that reason, for the major OECD countries this type of bond is often referred to as risk-free.

Pacific Railroad Bond issued by City and County of San Francisco, CA. May 1, 1865

Municipal bond is a bond issued by a state, U.S. Territory, city, local government, or their agencies. Interest income received by holders of municipal bonds is often exempt from the federal income tax and from the income tax of the state in which they are issued, although municipal bonds issued for certain purposes may not be tax exempt.
Build America Bonds (BABs) are a form of municipal bond authorized by the American Recovery and Reinvestment Act of 2009. Unlike traditional US municipal bonds, which are usually tax exempt, interest received on BABs is subject to federal taxation. However, as with municipal bonds, the bond is tax-exempt within the US state where it is issued. Generally, BABs offer significantly higher yields (over 7 percent) than standard municipal bonds.[15]
Book-entry bond is a bond that does not have a paper certificate. As physically processing paper bonds and interest coupons became more expensive, issuers (and banks that used to collect coupon interest for depositors) have tried to discourage their use. Some book-entry bond issues do not offer the option of a paper certificate, even to investors who prefer them.[16]
Lottery bonds are issued by European and other states. Interest is paid as on a traditional fixed rate bond, but the issuer will redeem randomly selected individual bonds within the issue according to a schedule. Some of these redemptions will be for a higher value than the face value of the bond.
War bond is a bond issued by a government to fund military operations during wartime. This type of bond has low return rate.
Serial bond is a bond that matures in installments over a period of time. In effect, a $100,000, 5-year serial bond would mature in a $20,000 annuity over a 5-year interval.
Revenue bond is a special type of municipal bond distinguished by its guarantee of repayment solely from revenues generated by a specified revenue-generating entity associated with the purpose of the bonds. Revenue bonds are typically "non-recourse", meaning that in the event of default, the bond holder has no recourse to other governmental assets or revenues.
Climate bond is a bond issued by a government or corporate entity in order to raise finance for climate change mitigation- or adaptation-related projects or programmes.
Dual currency bonds [17]
Retail bonds are a type of corporate bond mostly designed for ordinary investors.[18] They have become particularly attractive since the London Stock Exchange (LSE) launched an order book for retail bonds.[19]
Social impact bonds are an agreement for public sector entities to pay back private investors after meeting verified improved social outcome goals that result in public sector savings from innovative social program pilot projects.

text: Foreign currencies[edit]

text: Some companies, banks, governments, and other sovereign entities may decide to issue bonds in foreign currencies as it may appear to be more stable and predictable than their domestic currency. Issuing bonds denominated in foreign currencies also gives issuers the ability to access investment capital available in foreign markets. The proceeds from the issuance of these bonds can be used by companies to break into foreign markets, or can be converted into the issuing company's local currency to be used on existing operations through the use of foreign exchange swap hedges. Foreign issuer bonds can also be used to hedge foreign exchange rate risk. Some foreign issuer bonds are called by their nicknames, such as the "samurai bond". These can be issued by foreign issuers looking to diversify their investor base away from domestic markets. These bond issues are generally governed by the law of the market of issuance, e.g., a samurai bond, issued by an investor based in Europe, will be governed by Japanese law. Not all of the following bonds are restricted for purchase by investors in the market of issuance.

text:
Eurodollar bond, a U.S. dollar-denominated bond issued by a non-U.S. entity outside the U.S[20]
Baklava bond, a bond denominated in Turkish Lira and issued by a domestic or foreign entity in the Turkish market[21]
Yankee bond, a US dollar-denominated bond issued by a non-US entity in the US market
Kangaroo bond, an Australian dollar-denominated bond issued by a non-Australian entity in the Australian market
Maple bond, a Canadian dollar-denominated bond issued by a non-Canadian entity in the Canadian market
Masala bonds an Indian rupee denominated bond issued outside India.
Samurai bond, a Japanese yen-denominated bond issued by a non-Japanese entity in the Japanese market
Uridashi bond, a non-yen-denominated bond sold to Japanese retail investors.
Shibosai Bond, a private placement bond in the Japanese market with distribution limited to institutions and banks.
Shogun bond, a non-yen-denominated bond issued in Japan by a non-Japanese institution or government[22]
Bulldog bond, a pound sterling-denominated bond issued in London by a foreign institution or government.[23]
Matryoshka bond, a Russian rouble-denominated bond issued in the Russian Federation by non-Russian entities. The name derives from the famous Russian wooden dolls, Matrioshka, popular among foreign visitors to Russia
Arirang bond, a Korean won-denominated bond issued by a non-Korean entity in the Korean market[24]
Kimchi bond, a non-Korean won-denominated bond issued by a non-Korean entity in the Korean market[25]
Formosa bond, a non-New Taiwan Dollar-denominated bond issued by a non-Taiwan entity in the Taiwan market[26]
Panda bond, a Chinese renminbi-denominated bond issued by a non-China entity in the People's Republic of China market[27]
Dim sum bond, a Chinese renminbi-denominated bond issued by a Chinese entity in Hong Kong. Enables foreign investors forbidden from investing in Chinese corporate debt in mainland China to invest in and be exposed to Chinese currency in Hong Kong.[28]
Huaso bond, a Chilean peso-denominated bond issued by a non-Chilean entity in the Chilean market.[29]
Lion City bond foreign currency denominated bond issued by foreign company in Singapore
Komodo bonds, rupiah-denominated global bonds issued in Indonesia, "The Komodo dragon is a very large species of lizards found in eastern Indonesia."

text: Bond valuation[edit]

text: At the time of issue of the bond, the interest rate and other conditions of the bond will have been influenced by a variety of factors, such as current market interest rates, the length of the term and the creditworthiness of the issuer.

text: These factors are likely to change over time, so the market price of a bond will vary after it is issued. The market price is expressed as a percentage of nominal value. Bonds are not necessarily issued at par (100% of face value, corresponding to a price of 100), but bond prices will move towards par as they approach maturity (if the market expects the maturity payment to be made in full and on time) as this is the price the issuer will pay to redeem the bond. This is referred to as "Pull to Par". At other times, prices can be above par (bond is priced at greater than 100), which is called trading at a premium, or below par (bond is priced at less than 100), which is called trading at a discount. Most government bonds are denominated in units of $1000 in the United States, or in units of £100 in the United Kingdom. Hence, a deep discount US bond, selling at a price of 75.26, indicates a selling price of $752.60 per bond sold. (Often, in the US, bond prices are quoted in points and thirty-seconds of a point, rather than in decimal form.) Some short-term bonds, such as the U.S. Treasury bill, are always issued at a discount, and pay par amount at maturity rather than paying coupons. This is called a discount bond.

text: The market price of a bond is the present value of all expected future interest and principal payments of the bond discounted at the bond's yield to maturity, or rate of return. That relationship is the definition of the redemption yield on the bond, which is likely to be close to the current market interest rate for other bonds with similar characteristics. (Otherwise there would be arbitrage opportunities.) The yield and price of a bond are inversely related so that when market interest rates rise, bond prices fall and vice versa.

text: The market price of a bond may be quoted including the accrued interest since the last coupon date. (Some bond markets include accrued interest in the trading price and others add it on separately when settlement is made.) The price including accrued interest is known as the "full" or "dirty price". (See also Accrual bond.) The price excluding accrued interest is known as the "flat" or "clean price".

text: The interest payment ("coupon payment") divided by the current price of the bond is called the current yield (this is the nominal yield multiplied by the par value and divided by the price). There are other yield measures that exist such as the yield to first call, yield to worst, yield to first par call, yield to put, cash flow yield and yield to maturity.

text: The relationship between yield and term to maturity (or alternatively between yield and the weighted mean term allowing for both interest and capital repayment) for otherwise identical bonds is called a yield curve. The yield curve is a graph plotting this relationship.

text: Bond markets, unlike stock or share markets, sometimes do not have a centralized exchange or trading system. Rather, in most developed bond markets such as the U.S., Japan and western Europe, bonds trade in decentralized, dealer-based over-the-counter markets. In such a market, market liquidity is provided by dealers and other market participants committing risk capital to trading activity. In the bond market, when an investor buys or sells a bond, the counterparty to the trade is almost always a bank or securities firm acting as a dealer. In some cases, when a dealer buys a bond from an investor, the dealer carries the bond "in inventory", i.e. holds it for their own account. The dealer is then subject to risks of price fluctuation. In other cases, the dealer immediately resells the bond to another investor.

text: Bond markets can also differ from stock markets in that, in some markets, investors sometimes do not pay brokerage commissions to dealers with whom they buy or sell bonds. Rather, the dealers earn revenue by means of the spread, or difference, between the price at which the dealer buys a bond from one investor—the "bid" price—and the price at which he or she sells the same bond to another investor—the "ask" or "offer" price. The bid/offer spread represents the total transaction cost associated with transferring a bond from one investor to another.

text: Investing in bonds[edit]

text: Bonds are bought and traded mostly by institutions like central banks, sovereign wealth funds, pension funds, insurance companies, hedge funds, and banks. Insurance companies and pension funds have liabilities which essentially include fixed amounts payable on predetermined dates. They buy the bonds to match their liabilities, and may be compelled by law to do this. Most individuals who want to own bonds do so through bond funds. Still, in the U.S., nearly 10% of all bonds outstanding are held directly by households.

text: The volatility of bonds (especially short and medium dated bonds) is lower than that of equities (stocks). Thus, bonds are generally viewed as safer investments than stocks, but this perception is only partially correct. Bonds do suffer from less day-to-day volatility than stocks, and bonds' interest payments are sometimes higher than the general level of dividend payments. Bonds are often liquid – it is often fairly easy for an institution to sell a large quantity of bonds without affecting the price much, which may be more difficult for equities – and the comparative certainty of a fixed interest payment twice a year and a fixed lump sum at maturity is attractive. Bondholders also enjoy a measure of legal protection: under the law of most countries, if a company goes bankrupt, its bondholders will often receive some money back (the recovery amount), whereas the company's equity stock often ends up valueless. However, bonds can also be risky but less risky than stocks:

text: Fixed rate bonds are subject to interest rate risk, meaning that their market prices will decrease in value when the generally prevailing interest rates rise. Since the payments are fixed, a decrease in the market price of the bond means an increase in its yield. When the market interest rate rises, the market price of bonds will fall, reflecting investors' ability to get a higher interest rate on their money elsewhere — perhaps by purchasing a newly issued bond that already features the newly higher interest rate. This does not affect the interest payments to the bondholder, so long-term investors who want a specific amount at the maturity date do not need to worry about price swings in their bonds and do not suffer from interest rate risk.

text: Bonds are also subject to various other risks such as call and prepayment risk, credit risk, reinvestment risk, liquidity risk, event risk, exchange rate risk, volatility risk, inflation risk, sovereign risk and yield curve risk. Again, some of these will only affect certain classes of investors.

text: Price changes in a bond will immediately affect mutual funds that hold these bonds. If the value of the bonds in their trading portfolio falls, the value of the portfolio also falls. This can be damaging for professional investors such as banks, insurance companies, pension funds and asset managers (irrespective of whether the value is immediately "marked to market" or not). If there is any chance a holder of individual bonds may need to sell their bonds and "cash out", interest rate risk could become a real problem (conversely, bonds' market prices would increase if the prevailing interest rate were to drop, as it did from 2001 through 2003. One way to quantify the interest rate risk on a bond is in terms of its duration. Efforts to control this risk are called immunization or hedging.

text:
Bond prices can become volatile depending on the credit rating of the issuer – for instance if the credit rating agencies like Standard & Poor's and Moody's upgrade or downgrade the credit rating of the issuer. An unanticipated downgrade will cause the market price of the bond to fall. As with interest rate risk, this risk does not affect the bond's interest payments (provided the issuer does not actually default), but puts at risk the market price, which affects mutual funds holding these bonds, and holders of individual bonds who may have to sell them.
A company's bondholders may lose much or all their money if the company goes bankrupt. Under the laws of many countries (including the United States and Canada), bondholders are in line to receive the proceeds of the sale of the assets of a liquidated company ahead of some other creditors. Bank lenders, deposit holders (in the case of a deposit taking institution such as a bank) and trade creditors may take precedence.

text: There is no guarantee of how much money will remain to repay bondholders. As an example, after an accounting scandal and a Chapter 11 bankruptcy at the giant telecommunications company Worldcom, in 2004 its bondholders ended up being paid 35.7 cents on the dollar[30]. In a bankruptcy involving reorganization or recapitalization, as opposed to liquidation, bondholders may end up having the value of their bonds reduced, often through an exchange for a smaller number of newly issued bonds.

text: Some bonds are callable, meaning that even though the company has agreed to make payments plus interest towards the debt for a certain period of time, the company can choose to pay off the bond early. This creates reinvestment risk, meaning the investor is forced to find a new place for their money, and the investor might not be able to find as good a deal, especially because this usually happens when interest rates are falling.

text: Bond indices[edit]

text: A number of bond indices exist for the purposes of managing portfolios and measuring performance, similar to the S&P 500 or Russell Indexes for stocks. The most common American benchmarks are the Barclays Capital Aggregate (ex Lehman Aggregate), Citigroup BIG and Merrill Lynch Domestic Master. Most indices are parts of families of broader indices that can be used to measure global bond portfolios, or may be further subdivided by maturity or sector for managing specialized portfolios.


document_title: Strategy of unbalanced growth

question_text: who has given the theory of unbalanced economic growth

text: Strategy of unbalanced growth

text: Introduction[edit]

text: The theory is generally associated with Hirschman. He presented a complete theoretical formulation of the strategy. Underdeveloped countries display common characteristics: low levels of GNI per capita and slow GNI per capita growth, large income inequalities and widespread poverty, low levels of productivity, great dependence on agriculture, a backward industrial structure, a high proportion of consumption and low savings, high rates of population growth and dependency burdens, high unemployment and underemployment, technological backwardness and dualism{existence of both traditional and modern sectors}. In a less-developed country, these characteristics lead to scarce resources or inadequate infrastructure to exploit these resources. With a lack of investors and entrepreneurs, cash flows cannot be directed into various sectors that influence balanced economic growth.

text: Hirschman contends that deliberate unbalancing of the economy according to the strategy is the best method of development and if the economy is to be kept moving ahead, the task of development policy is to maintain tension, disproportions and disequilibrium. Balanced growth should not be the goal but rather the maintenance of existing imbalances, which can be seen from profit and losses. Therefore, the sequence that leads away from equilibrium is precisely an ideal pattern for development. Unequal development of various sectors often generates conditions for rapid development. More-developed industries provide undeveloped industries an incentive to grow. Hence, development of underdeveloped countries should be based on this strategy.

text: The path of unbalanced growth is described by three phases:

text:
Complementary
Induced investment
External economies

tag: ol

text: Singer believed that desirable investment programs always exist within a country that represent unbalanced investment to complement the existing imbalance. These investments create a new imbalance, requiring another balancing investment. One sector will always grow faster than another, so the need for unbalanced growth will continue as investments must complement existing imbalance. Hirschman states “If the economy is to be kept moving ahead, the task of development policy is to maintain tensions, disproportions and disequilibrium”.[citation needed] This situation exists for all societies, developed or underdeveloped.

text: Complementarity[edit]

text: Complementarity is a situation where increased production of one good or service builds up demand for the second good or service. When the second product is privately produced, this demand will lead to imports or higher domestic production of the second product, as it will be in the interests of the producers to do so. Otherwise, the increased demand takes the form of political pressure. This is the case for such public services such as law and order, education, water and electricity that cannot reasonably be imported.

text: Induced investment[edit]

text: Complementarity allows investment in one industry or sector to encourage investment in others. This concept of induced investment is like a multiplier, because each investment triggers a series of subsequent events. Convergence occurs as the output of external economies diminishes at each step. Growth sequences tend to move towards convergence or divergence and the policy is usually concerned with preventing rapid convergence and promoting the possibility of divergence.[clarification needed]

text: External economies[edit]

text: New projects often appropriate external economies[clarification needed] created by preceding ventures and create external economies that may be utilized by subsequent ones. Sometimes the project undertaken creates external economies, causing private profit to fall short of what is socially desirable. The reverse is also possible. Some ventures have a larger input of external economies than the output. Therefore, Hirschman says, "the projects that fall into this category must be net beneficiaries of external economies".[citation needed]

text: Social Overhead Capital[edit]

text: Social Overhead Capital (SOC) is defined as basic services without which primary, secondary and tertiary productive activities cannot function. In a narrow sense, Social Overhead Capital is defined to include transportation and electricity, while in a wider sense, it includes all public services, including law and order and education. Criteria for classifying an asset as Social Overhead Capital include:

text:
The services provided by the activity should facilitate a great variety of economic activities.
The services provided should be subject to public control.
The services cannot be imported.
The investment needed to provide services should be characterized by some unevenness as well as by high capital output ratio.

text: Development via capital imbalances[edit]

text: The strategy of unbalanced growth has been discussed within the frameworks of development through shortage of SOC and development through excess of SOC.

text: In the first case, the country invests in direct productive activities (DPA). Direct productive activity increases demand for SOC, inducing investment. In the second case, SOC expands, which reduces the cost of services, inducing investment in DPA.[clarification needed]

text: The cost of producing any unit of output of DPA is inversely proportional to SOC.[clarification needed] The economy's major objective is to attain increasing output of DPA.

text: One of the paradoxes of development is that poor countries cannot afford to be economical.[clarification needed] According to Hirschman, resources are not scarce per se, but the ability to employ those resources may be lacking. To explain unbalanced growth, Hirschman assumes that the country invests in either DPA or SOC. Both paths set up incentives and an evaluation of their respective efficiency depends on the strengths of entrepreneurial motivations and the response to public pressure of the authorities responsible for SOC.

text: The major characteristic of the two paths of development is that they yield excess dividends. SOC built ahead of demand creates this demand by making a country more attractive to DPA investors. DPA that outpaces SOC development, creates demand to expand SOC. Balanced growth of DPA and SOC is not achievable in underdeveloped countries, nor it is not a desirable policy, as it does not set up the incentives and the pressure that make for this dividend of induced investment decisions.[clarification needed]

text: Backward and forward linkages[edit]

text: Hirschman introduces the concept of backward and forward linkages. A forward linkage is created when investment in a particular project encourages investment in subsequent stages of production. A backward linkage is created when a project encourages investment in facilities that enable the project to succeed. Normally, projects create both forward and backward linkages. Investment should be made in those projects that have the greatest total number of linkages. Projects with many linkages will vary from country to country; knowledge about project linkages can be obtained through input and output studies.

text: Most underdeveloped economies are primarily agrarian. Agriculture is typically at a primitive stage and hence possesses few linkages, as most output goes for consumption or exports. Therefore, it is said[who?] that underdeveloped countries are lacking in interdependence and linkages.

text: An example of an industry that has excellent forward and backward linkages is the steel industry. Backward linkages include coal and iron ore mining. Forward linkages include items such as canned goods. While this industry has strong linkages, it is not a good leading sector. Any industry that has a high capital/output ratio and causes significant costs to other businesses has the potential to hurt the developing economy more than it helps it. A better leading sector would be the beer industry.[citation needed]

text: Linkages and last industries[edit]

text: The development of an economy using the unbalanced method depends on the linkages between sectors. Hirschman suggests that the best strategy is induced industrialization. This type of development will create more backward and forward linkages and should be the first step taken.

text: Industries that transform semi-manufactured goods into goods needed by final demand are called "last industries" or "enclave import industries".

text: In underdeveloped countries, industrialization takes place through such industries, through plants that add final touches to unfinished imported products. Examples are metal fabricating industries, pharmaceutical laboratories and assembly and mixing plants. Such industries have many advantages, as they often require the smaller amounts of capital available in such economies and without having to rely on unreliable domestic producers. Therefore, underdeveloped countries set up such "last industries" first. These industries create long chains of backward linkages. Colombia, Brazil and Mexico are examples of countries that followed this path.

text: Protection and subsidy of import-replacing industries should come, but at a later stage. The Last Industry Strategy has disadvantages. It can slow the creation of domestic production. Industrialists who have begun working with imports may not accept domestic alternative products that reduce demand for their output. Creating last industries first can create loyalty toward foreign products and distrust of domestic products and their quality. Banks may get used to extending credit for shorter, smaller capital requirements.

text: Disadvantages[edit]

text: Disadvantages of the last industry strategy include inhibition of domestic production as domestic demand grows. This is because industrialists who work with imported material will often be hostile to the establishment of domestic industries, because domestic goods are of lower quality, the number of domestic suppliers is small, downstream competition may intensify once inputs are available domestically and competitors may be able to locate closer to the upstream suppliers.

text: Last/first may accustom domestic consumers to imported goods, making it harder for local producers to find customers. Further, financing may be easier for import-based business.

text: Further reading[edit]

text:
Hirschman, Albert O. (1958). The Strategy of Economic Development. New Haven, Conn.: Yale University Press. ISBN 0-300-00559-8
Streeten, Paul (1959) Unbalanced Growth, Oxford Economic Papers New Series, Vol. 11, No. 2 (Jun., 1959), pp. 167–190

text: Notes[edit]


document_title: Distilled beverage

question_text: where did the term spirits for alcohol come from

text: Distilled beverage

text: Nomenclature[edit]

text: The term spirit refers to a distilled beverage that contains no added sugar and has at least 20% alcohol by volume (ABV).[citation needed]

text: Distilled beverages bottled with added sugar and added flavorings, such as Grand Marnier, Frangelico, and American schnapps, are known instead as liqueurs.

text: Distilled beverages generally have an alcohol concentration higher than 30%. Beer and wine, which are not distilled beverages, are limited to a maximum alcohol content of about 20% ABV, as most yeasts cannot reproduce when the concentration of alcohol is above this level; as a consequence, fermentation ceases at that point.

text: Etymology[edit]

text: The origin of "liquor" and its close relative "liquid" was the Latin verb liquere, meaning "to be fluid". According to the Oxford English Dictionary, an early use of the word in the English language, meaning simply "a liquid", can be dated to 1225. The first use the OED mentions of its meaning "a liquid for drinking" occurred in the 14th century. Its use as a term for "an intoxicating alcoholic drink" appeared in the 16th century.

text: The term "spirit" in reference to alcohol stems from Middle Eastern alchemy. These alchemists were more concerned with medical elixirs than with transmuting lead into gold. The vapor given off and collected during an alchemical process (as with distillation of alcohol) was called a spirit of the original material.[citation needed]

text: History of distillation[edit]

text: Precursors[edit]

text: Distillation was known in the ancient Indian subcontinent, evident from baked clay retorts and receivers found at Taxila and Charsadda in modern Pakistan, dating back to the early centuries of the Christian era. These "Gandhara stills" were only capable of producing very weak liquor, as there was no efficient means of collecting the vapors at low heat.[5]

text: The Chinese may have independently developed the process in the early centuries after Christ, during the Eastern Han dynasty.[6] Distilled water was described in the 2nd century AD by Alexander of Aphrodisias.[7] Alchemists in Roman Egypt were using a distillation alembic or still device in the 3rd century.

text: Freeze distillation involves freezing the alcoholic beverage and then removing the ice. The freezing technique had limitations in geography and implementation limiting how widely this method was put to use.

text: True distillation[edit]

text: The medieval Arabs used the distillation process extensively, and there is evidence that they distilled alcohol. Al-Kindi unambiguously described the distillation of wine in the 9th century.[8][9][10] The process later spread to Italy,[8][5] where later evidence of the distillation of alcohol comes from the School of Salerno in southern Italy during the 12th century.[11][12]

text: In China, archaeological evidence indicates that the true distillation of alcohol began during the 12th century Jin or Southern Song dynasties.[6] A still has been found at an archaeological site in Qinglong, Hebei, dating to the 12th century.[6] In India, the true distillation of alcohol was introduced from the Middle East, and was in wide use in the Delhi Sultanate by the 14th century.[5]

text: Fractional distillation was developed by Taddeo Alderotti in the 13th century.[13] The production method was written in code, suggesting that it was being kept secret.

text: In 1437, "burned water" (brandy) was mentioned in the records of the County of Katzenelnbogen in Germany.[14] It was served in a tall, narrow glass called a Goderulffe.

text: Claims upon the origin of specific beverages are controversial, often invoking national pride, but they are plausible after the 12th century AD, when Irish whiskey and German brandy became available. These spirits would have had a much lower alcohol content (about 40% ABV) than the alchemists' pure distillations, and they were likely first thought of as medicinal elixirs. Consumption of distilled beverages rose dramatically in Europe in and after the mid-14th century, when distilled liquors were commonly used as remedies for the Black Death. Around 1400, methods to distill spirits from wheat, barley, and rye beers, a cheaper option than grapes, were discovered. Thus began the "national" drinks of Europe: jenever (Belgium and the Netherlands), gin (England), Schnaps (Germany), grappa (Italy), borovička (Slovakia), horilka (Ukraine), akvavit/snaps (Scandinavia), vodka (Poland and Russia), ouzo (Greece), rakia (the Balkans), and poitín (Ireland). The actual names emerged only in the 16th century, but the drinks were well known prior to then.

text: Government regulation[edit]

text: It is legal to distill beverage alcohol as a hobby for personal use in some countries, including New Zealand and the Netherlands.[citation needed]

text: In the United States, it is illegal to distill beverage alcohol without a license. In some parts of the U.S., it is also illegal to sell a still without a license. However, all states allow unlicensed individuals to make their own beer, and some also allow unlicensed individuals to make their own wine (although making beer and wine is also prohibited in some local jurisdictions).

text: Microdistilling[edit]

text: Microdistilling (also known as craft distilling) began to re-emerge as a trend in the United States following the microbrewing and craft beer movement in the last decades of the 20th century. In contrast, large-scale distillation facilities were never as dominant in Scotland, so the tradition of small-scale distillation was never really lost in the Scotch whisky market.

text: Flammability[edit]

text: Liquor that contains 40% ABV (80 US proof) will catch fire if heated to about 26 °C (79 °F) and if an ignition source is applied to it. This temperature is called its flash point.[15] The flash point of pure alcohol is 16.6 °C (61.9 °F), less than average room temperature.[16]

text: The flammability of distilled beverages is applied in the cooking technique Flambé.

text: The flash points of alcohol concentrations from 10% ABV to 96% ABV are:[17]

text:
10% – 49 °C (120 °F) – ethanol-based water solution
12.5% – about 52 °C (126 °F) – wine[18]
20% – 36 °C (97 °F) – fortified wine
30% – 29 °C (84 °F)
40% – 26 °C (79 °F) – typical vodka, whisky or brandy
50% – 24 °C (75 °F) – strong whisky, bottled in bond whisky
60% – 22 °C (72 °F) – normal tsikoudia (called mesoraki or middle raki), barrel proof whisky
70% – 21 °C (70 °F) – some absinthe, slivovitz
80% – 20 °C (68 °F)
90% or more – 17 °C (63 °F) – neutral grain spirit

text: Serving[edit]

text: Distilled beverages can be served:

text:
Neat — at room temperature without any additional ingredient(s)[19]
Up — shaken or stirred with ice, strained, and served in a stemmed glass.
Down — shaken or stirred with ice, strained, and served in a rocks glass.
On the rocks — over ice cubes
Blended or frozen — blended with ice
With a simple mixer, such as club soda, tonic water, juice, or cola
As an ingredient of a cocktail
As an ingredient of a shooter
With water
With water poured over sugar (as with absinthe)

text: Alcohol consumption by country[edit]

text: The World Health Organization measures and publishes alcohol consumption patterns in different countries. The WHO measures alcohol consumed by persons 15 years of age or older and reports it on the basis of liters of pure alcohol consumed per capita in a given year in a country.[20]

text: Health effects[edit]

text: Short-term effects[edit]

text: This section does not cite any sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. (January 2016) (Learn how and when to remove this template message)

tag: table

text: Distilled spirits contain ethyl alcohol, the same chemical that is present in beer and wine and as such, spirit consumption has short-term psychological and physiological effects on the user. Different concentrations of alcohol in the human body have different effects on a person. The effects of alcohol depend on the amount an individual has drunk, the percentage of alcohol in the spirits and the timespan that the consumption took place, the amount of food eaten and whether an individual has taken other prescription, over-the-counter or street drugs, among other factors. Drinking enough to cause a blood alcohol concentration (BAC) of 0.03%-0.12% typically causes an overall improvement in mood and possible euphoria, increased self-confidence, and sociability, decreased anxiety, a flushed, red appearance in the face and impaired judgment and fine muscle coordination. A BAC of 0.09% to 0.25% causes lethargy, sedation, balance problems and blurred vision. A BAC from 0.18% to 0.30% causes profound confusion, impaired speech (e.g., slurred speech), staggering, dizziness and vomiting. A BAC from 0.25% to 0.40% causes stupor, unconsciousness, anterograde amnesia, vomiting, and respiratory depression (potentially life-threatening). Death may occur due to inhalation of vomit (pulmonary aspiration) while unconscious. A BAC from 0.35% to 0.80% causes a coma (unconsciousness), life-threatening respiratory depression and possibly fatal alcohol poisoning. As with all alcoholic beverages, driving under the influence, operating an aircraft or heavy machinery increases the risk of an accident; as such many countries have penalties for drunk driving.

text: Long-term effects[edit]

text: The main active ingredient of distilled spirits is alcohol, and therefore, the health effects of alcohol apply to spirits. Drinking small quantities of alcohol (less than one drink per day for women and 2 drinks per day for men) is associated with a decreased risk of heart disease, stroke, diabetes mellitus, and early death.[21] Drinking more than this amount; however, increases the risk of heart disease, high blood pressure, atrial fibrillation, and stroke.[21] The risk is greater in younger people due to binge drinking which may result in violence or accidents.[21] About 3.3 million deaths (5.9% of all deaths) are believed to be due to alcohol each year.[22]

text: Alcoholism, also known as "alcohol use disorder", is a broad term for any drinking of alcohol that results in problems.[23] It was previously divided into two types: alcohol abuse and alcohol dependence.[24][25] In a medical[clarification needed] context, alcoholism is said to exist when two or more of the following conditions is present: a person drinks large amounts over a long time period, has difficulty cutting down, acquiring and drinking alcohol takes up a great deal of time, alcohol is strongly desired, usage results in not fulfilling responsibilities, usage results in social problems, usage results in health problems, usage results in risky situations, withdrawal occurs when stopping, and alcohol tolerance has occurred with use.[25] Alcoholism reduces a person's life expectancy by around ten years[26] and alcohol use is the third-leading cause of early death in the United States.[21] No professional medical association recommends that people who are nondrinkers should start drinking wine.[21][27]

text: While lower quality evidence suggests a cardioprotective effect, no controlled studies have been completed on the effect of alcohol on the risk of developing heart disease or stroke. Excessive consumption of alcohol can cause liver cirrhosis and alcoholism.[28] The American Heart Association "cautions people NOT to start drinking ... if they do not already drink alcohol. Consult your doctor on the benefits and risks of consuming alcohol in moderation."[29]