Primary Vs. Secondary Markets Differences University Essay Example

Primary and Secondary Markets

When it comes to financial activities, it is necessary to understand the difference between primary and secondary markets. They are distinct phenomena, and traders, investors, and other stakeholders should know how they vary. Primary and secondary markets are different according to their overall purpose, mechanics, and how they can impact the performance of a company, while the following discussion will highlight these peculiarities in detail.

Since the primary market deals with creating securities, its purpose is to allow investors and traders to buy new stocks of a company. In other words, this market emerges when a firm sells its new bonds and stocks to the public. An initial public offering (IPO) is an example of the primary market, and it can reveal the market’s mechanics. For example, a business can hire an underwriting firm to determine the details of an IPO. When the price of the stock is obtained, it is revealed to investors, and they can directly contact an issuing company to buy its securities.

Also known as the stock market, the secondary market allows investors to trade the accumulated securities among themselves. New York Stock Exchange, Nasdaq, and other exchanges are examples of this market. Its mechanics can differ depending on which category is under consideration. Thus, an auction market implies that investors congregate in a single area, announce stock prices, and make deals on mutually appropriate conditions. Simultaneously, a dealer market exists within an electronic network, where the dealers declare buying or selling prices to other market participants. Competition among the dealers results in the best stock prices for investors.

It is reasonable to add that the activity of the markets can influence the performance of a company. On the one hand, investors’ actions in the primary market facilitate the firm’s capital growth so that the business can raise sufficient funds. On the other hand, the state of affairs in the secondary market can also demonstrate that the company can raise funds by issuing more shares to meet high demand.

Return on Equity and Earnings per Share

Return on equity (ROE) and earnings per share (EPS) are essential metrics that should be used to assess the company’s performance and evaluate its value. The ROE indicates a firm’s “ability to obtain profits through all capabilities and all available sources” (Martina et al., 2019, p. 2). A high ROE demonstrates that a firm keeps increasing its profit generation and efficiently deploys shareholder capital. Since the ROE focuses on returns from the net assets, it is necessary to define and understand this metric to identify whether the firm can generate value. To calculate the ROE, one should divide the firm’s net income by its shareholder equity.

In turn, EPS assesses and represents other financial details of a company. This metric denotes “the level of net profit for each share that the firm is able to achieve when running its operations” (Martina et al., 2019, p. 2). The EPS is essential because it reveals how beneficial a business is because it reflects the profitability of its individual shares, which allows for evaluating the firm’s value. One should subtract the preferred stock from the company’s net income and divide the result by the number of shares outstanding to calculate the EPS.

I have recently calculated the ROE and EPS for Apple as per the 2020 data. Thus, the ROE was 51% because the net income was $33,485 million, while the shareholder equity was $65,339 million. Simultaneously, the EPS was $1.91 because there was no preferred stock in the company, while there were 17,550,281 shares outstanding. The high ROE denoted that the company efficiently utilized its resources and generated value. Simultaneously, the EPS demonstrated that an individual investor earned $1.91 per share, which was a positive indicator.

Reference

Martina, S., Sadalia, I., & Bukit, R. (2019). The effect of quick ratio, debt to equity ratio, earning per share, price to book value and return on equity on stock return with money supply as moderated variables (study of banking companies listed on Indonesia Stock Exchange period 2008-2017). International Journal of Public Budgeting, Accounting and Finance, 2(3), 1-10.

Plato’s “Republic” And Emotional Supervising

Introduction

Privacy of life and emotion, personal freedom are fundamental things for the modern democratic world. However, when describing the ideal political regiments in his Republic, Plato shows a view different from the contemporary interpretation of the free and just democratic republic. The Ancient Greek philosopher argues that, while ensuring people’s happiness should be the state’s foremost task, the methods he proposes to be used seem undemocratic and even totalitarian. In his opinion, a state should be ruled by its best representatives, those who are the closest to the Platonian ideal of a human.

General Overview of Political Control Proposed in Republic

Plato describes his ideal political regiment, which he calls Politeia; the Republic is the approximate translation of this term from Ancient Greek. According to this regiment, ordinary citizens are not allowed to make any political decisions, as they will probably be based on their passions, not reason. Instead, he argues that “one man should practice one thing only, the thing to which his nature was best adapted,” meaning that each citizen should be in their place (Plato, 2022, Part 4). A system of education, proposed by him, includes training of ethical qualities, physical education, and intellectual training; this is in addition to the craft which is the most appropriate for each specific citizen.

To distinguish the best representatives of the state, who should rule it, he introduces four essential virtues, the proficiency in which, in Plato’s opinion, makes one closer to an ideal human. He wrote his “notion is that our State being perfect will contain all the four virtues—wisdom, courage, temperance, justice” (Plato, 2022, Part 3). Ethical training, necessary for all Republic’s citizens, is based on those virtues. It is why the philosopher does not support the participation of ordinary people in political decisions. “The rest of the citizens may be courageous or may be cowardly, but their courage or cowardice will not, as I conceive, have the effect of making the city either the one or the other” (Plato, 2022, Part 4). In that way, only those who resist their passions, have a high courage, and use reason to act justly may be allowed to rule. Such people may defend their rulership by using force when it is justified: for example, when their lives are under threat.

Those best representatives are the first two castes of the Republic’s society: the rulers and soldiers, whose Plato calls guardians. Rulers may be described as philosopher kings: they use reason to rule, and their primary virtues are four described above; justice is the highest of them. Their courage is based on the readiness to serve their population; temperance means the steadiness of passions. In that way, they are active leaders who may influence passions, not being caught by them; this means that they can rule. Guardians are people who are responsible for the education and nurturing of all other classes; in addition, their duty is the maintaining of the order in the Republic. While they are not rulers themselves, they possess some power and influence all decisions taken in the state. All other citizens are not engaged in political choices: instead, they should concentrate on their professional activity and do their work best.

To explain the inequality present in his ideal state, Plato argues that “citizens are brothers, yet God has framed you differently. Some of you have the power of command, and in the composition of these, he has mingled gold, wherefore also they have the greatest honor. Others he has made of silver, to be auxiliaries; others again who are to be husbandmen and craftsmen he has composed of brass and iron; and the species will generally be preserved in the children” (Plato, 2022, Part 3). In that way, people are different from their birth, and the wise ruler of the ideal Republic should manage and educate them according to their talents.

To compare his Republic with unjust states, Plato considers four other regiments as subsequent degradation of his ideal Politeia: timocracy, oligarchy, democracy, and tyranny. He describes timocracy as the regiment where all power is in the hands of “men of honor,” unlike the Republic, which is ruled by philosophers (Plato, 2022, Part 8). Then, Plato describes the psychology of persons associated with those states, starting from timocratic men. The philosopher describes them as soldiers, who are “rough with slaves, unlike the educated man, courteous to freemen, and remarkably obedient to authority; he is a lover of power and a lover of honor” (Plato, 2022, Part 8). In that way, timocracy is similar to the modern military dictatorship.

However, Plato argues that this regiment is the best of the unjust states, as it is based on honor and strong hierarchy. He describes oligarchy as the regiment based on money and democracy as based on the passions of ordinary people who select their rulers as the marionettes of these passions. Oligarchy changes timocracy when rulers start to value money luxury more than honor, and democracy changes oligarchy when the poor rebel against the rich and establish their own government (Plato, 2022). In the end, they all degrade to tyranny when the one who has a strong will to power and sinister mind obtain control over a population by using propaganda and brute force. Tyranny is a state ruled by one person who is deeply dependent on their passions; he enslaves everybody he can and live in constant fear and paranoia. While in Plato’s Politeia, everybody is happy, being in the place that fits them most, everybody is extremely unhappy in a tyrannic state, and the tyrant himself is the unhappiest.

Private Life Supervision

The concept of guardians means people who are well-educated in four essential virtues and, thus, can act in the way that makes the state’s population better. Their actions include the education and training of other people to nurture four essential virtues in them. All pleasures should be controlled, too, by reason and logic; only reasonable ones may be allowed. Plato argues that pleasures and luxury are destructive for spirit in general, but some pleasures should be allowed in small amounts to facilitate the development of a human soul. As the main

In Plato’s opinion, all luxury is excessive; he condemns it and believes its widespread is always a sign of degradation. He describes the luxurious cities as “states at fever-heat” and argues that the appearance of cakes, soft sofas, and other things which are not necessary for life shows that society is unhealthy (Plato, 2022, Part 5). Therefore, an ideal state should be ruled strictly according to the reason; all pleasures, luxuries, and passions are proclaimed unnecessary and possibly harmful and should be eliminated.

Art is also a subject of strict control in the Platonian Republic, as it has a profound influence on the human soul, which may be destructive. Music, for example, should be used for raising a people’s spirit, and only for that purpose. Plato argues that “If the element of spirit is naturally weak in him the change is speedily accomplished, but if he has a good deal, then the power of music weakening the spirit renders him excitable. On the least provocation, he flames up at once, and is speedily extinguished; instead of having spirit, he grows irritable and passionate and is quite impracticable” (Plato, 2022, Part 3). In addition, he argues that only those poetry should be allowed that glorifies gods and heroes; other poetry, in his opinion, is vain and unnecessary. In that way, all people’s creativity should be controlled by the state in order to make it better.

One of Plato’s crucial ideas about the ideal state is that all people should be educated by state representatives rather than their biological parents. All reproduction in such a state is controlled, and children are raised by guardians in the community (Plato, 2022, Part 5). The regulation of childbirth comes from the necessity of planning by rulers: they decide whether a state needs new people and how many. Along with that, Plato argues that people should not be distinguished by their sexes, only by internal qualities. He says that, for example, “men and women alike possess the qualities which make a guardian; they differ only in their comparative strength or weakness” (Plato, 2022, Part 5). Thus, the state ought to control even the people’s relations, children’s birth and their education.

Discussion: The Platonian Republic and Totalitarian State

One may see many similarities between the Politeia, described by Plato, and a typical totalitarian state, such as the Soviet Union or Nazi Germany. Plato argues that it is the natural order of things, and following such an order is wisdom. A state, in his scheme, is an organism, and each organism should have a head, a body, hands, and legs; it should not have two heads or consist of a head only (Plato, 2022). The head is the source of all reason and right power; the body maintains the organism’s life, the hands create various staff necessary for living, and the legs allow the organism to move.

Still, there are differences between Plato’s ideal Republic and its realization as the totalitarian state. While totalitarian rulers represent themselves as those who care for their citizens, they are closer to tyrants, described in Part 8 of Republic. They are mostly subjected to their passions and will to power, using the image of a lawful leader only to legalize their tyranny and obtain the right to intrude into people’s privacy.

Plato’s arguments in favor of the “totalitarianism” in the Republic are that the ordinary people do not know what is best for them as they are ignorant of essential virtues. Subsequently, in Plato’s opinion, they cannot decide by themselves. They have weak spirits and are victims of their passions, manipulating them like puppets. Their private life, in that way, has little sense as it is full of emotions and desires which are “unholy” and harmful for themselves (Plato, 2022). Based on that, intrusions in citizens’ privacy by those proficient in understanding the human soul, namely, philosopher rulers and guardians, is not violence but a right and holy deed. However, it is still the intrusion into other people’s free will, which is a kind of oppression.

In my opinion, the arguments presented in Republic that support the totalitarian surveillance in the Platonian ideal state are not persuasive. The main reason is that they are based on the weakness of human nature and the presupposition that most people cannot manage themselves. This is wrong, as all people, in fact, have intellect and free will, being able to decide what to do. If one person (a philosopher-king) or a group of people (guardians described in Republic) are supposed to know more about a person than this person themselves, it may lead to violence. This group of people tries to impose their point of view on others, even with the best intentions; it is nothing more than violent suppression of people’s free will.

I have found the argument of comparing a state with a human body invalid in this context: while one may compare a state with an organism, it is certainly not similar to the human body. Even though philosophers actually know more about the human soul than ordinary people, it does not grant them the right to oppress them and break into their private lives. Each person may think and decide independently, and this fact must be considered when reflecting on the best political regiment. Philosopher rulers would harm people by that much more than by leaving them alone with their passions. If they forbid people to create their art freely and think independently, even if their creations and thoughts are “unholy,” they will not be better than any totalitarian tyrant. It would be much better for people’s souls and spirits if they taught people what they know and organized them most efficiently.

Along with that, Republic introduces several very fruitful ideas useful for the modern political leader. Those are his four political virtues: courage, wisdom, temperance, and justice. Wisdom means the ability to think and reflect: formulate ideas, build connections between various ideas, and understand them from different sides (Plato, 2022). Courage is the ability to manage one’s fears and act in all conditions, independently and freely. Temperance is important as if one is not susceptible to passions and can manage them, one may rule them and, thus, their actions will be more effective than those which are unconscious. According to Plato, justice is the highest value is described as grounded on other three qualities: one acts justly if acting with courage, wisdom, and temperance (Plato, 2022). In that way, while Plato’s scheme of an ideal state is close to totalitarian, his ideas regarding political virtues are worth learning and understanding, as they contribute to more effective and ethical people management.

Conclusion

Plato’s Republic describes a society ruled by a pure reason, rejecting the emotions, art, passions, and pleasures that do not serve this reason. While excessive luxury may actually be the sign of degradation, when ruling elites are wasting their resources, not all luxury is dangerous, as it is a natural desire to buy high-quality goods. Emotions are the subject of people’s private life, and the intrusion in them, even with intentions to make people better, is the violence of privacy. Art is a natural way to express themselves and create various pieces, from music to painting; limiting their creativeness is ineffective and violent. Children are people too, and should not be educated and managed forcefully; the decision to have children is their parents’ business, and intrusion into it is also violence. While political virtues described in Republic are indeed helpful for modern political leaders, the scheme of Republic, described by Plato, is certainly not the best state for living.

Reference

Plato. (2022). The republic (M. B. A. Jowett, Trans.). Book Inc.

Background And Details Of The Site

The website is a property of the Community Resource Center (CRC) located in Colorado. It aims to provide opportunities, develop tools and strategies to strengthen the non-profit and community organizations of the state. CRC was initially founded in 1981 to assist non-profits who promoted changes in Denver and its communities (CRC, n. d.). CRC continued to focus on innovation and community change throughout the 1980s (CRC, n. d.). In 1986, the Community Shares of Colorado was founded to challenge United Way’s monopoly on providing jobs and economic opportunities for the non-commercial sector (CRC, n. d.). The organization has received many significant rewards for displaying the necessity of ethical values in its public work.

Throughout the years of its work, CRC organized numerous events and programs to find funding sources to sustain the operational flow of non-profit companies. Steve Graham was the executive director of CRC; however, he passed away in 2006 (CRC, n. d.). Since then, the administration created a fund in his honor. It also started NPower Colorado as a technology resource center for non-profit organizations. At that time, it was one of the twelve branches of the national movement whose goal was to transfer technological know-how into the hands of non-profit organizations.

2017 was a significant year for CRC since it launched its first long-term strategic plan, which drew the attention of staff, volunteers, and other stakeholders to develop its mission, vision, core values, and strategies. As a result of collaborative work, CRC has come up with four priorities in regard to the plan. Now, CRC encourages a diverse network of leaders in the non-profit sector to influence social changes and strengthens the capacity of organizations to advance and fulfill their tasks. Moreover, it gathers various stakeholders across the non-profit ecosystem to enhance the sector’s impact and invests in their own structures to ensure the sustainability of their practices.

What is more, the website has inclusivity statements that promote equity and diversity within the community since it is a common ethical standard. CRC tries to expand recourses for the rural community, stimulate leadership capacity within the non-profit organizations of Colorado, and provide opportunities for marginalized groups. In addition, these days, it attempts to contain the spread of coronavirus by enrolling into the COVID Containment Response Corps (CCRC) initiative (CRC, n. d.). CRC sends volunteers to outreach the exposed groups and educates them on the importance of vaccinating. In general, CRC serves the community and supports thriving non-profit organizations because they significantly impact modern society.

The usefulness of the Site

The website offers the Colorado Grants Guide system that enables one to find the most suitable grants for the applicant. There is also a demo version of this guide which allows one to learn more about optimizing the searches and maximizing profits. It also suggests various subscription types that are convenient for users with different budgets. As the website states, “the searchable database allows grant seekers to research funders and provides critical information like giving interests, application criteria, guidelines, deadlines, and past grantee information” (CRC, n. d., para. 3). Additionally, the guide includes up to 650 funding organizations that are ready to support local non-profit businesses (CRC, n. d.). Therefore, this online platform can be called helpful in terms of providing information regarding grant obtaining.

Furthermore, the CRC website has special application forms for different grans. Moreover, it suggests a list of frequently asked questions that alleviates navigation for people who want to apply for the first time. It seems like a great option to offer the guidelines since some users need help filling out the forms. The text samples suggested by the website are helpful to rely on when applying for any grant. In general, the CRC site alleviates user experience and has astonishing variants for non-profit organizations since its searching databases save time and other resources.

What is more, the website provides the contact information of the people working for the CRC, which allows one to ensure that the organization is genuine. Alongside the contacts, the online platform uploads its annual reports every year to demonstrate its productivity. The annual reprint lists the impact and reaches in Colorado. The user can view the archives of the e-mailing list, which is sent monthly to subscribers and includes upcoming professional development opportunities, grant deadlines, and requests for proposals, as well as updated information on sector-wide news. The archives from 2014 to 2017 are accessible to any user so they can trace the center’s activity and decide if they want to resort to this company’s service (CRC, n. d.). The authors also post materials from conferences to verify the job done. In general, a user may observe the most up-to-date programs and initiatives that CRC suggests propped by the multiple evidence, including numbers, reports, and other relevant information.

Resources

The website offers a wide range of funding sources for non-commercial businesses. It suggests different application forms and writing tips. In addition, it gives advice on how to apply, which grant to choose, how to control and track one’s application status, and other similar activities. CRC website provides insights on numerous frequently asked questions in order to simplify the procedure. It offers sample profiles and a video on how to use their grants guide, which is helpful for a non-advent (CRC, n. d.). Moreover, the online source is advantageous because it has step-by-step instructions for an exempt tax process for non-profit businesses and suggests additional resources where users can obtain more information on the subject matter.

Missing Material

The website is filled with all the necessary information regarding its theme – grants and funding. Expanding the number of application forms is advisable since some funding organizations have different standards. Additionally, adding core values and highlighting them in a separate paragraph on the Mission&History tab is indispensable. It is vital to add them so that web users can see how they align with the mission. What is more, the website owners should add the missing archives starting from 2017 up to this day. Their lack does not let a user trace CRC’s activity for the past years.

Relevance of Information

The information on the CRC website is current and verifiable, relying on several aspects. Primarily, CRC deals with the most up-to-date issues, such as the pandemic, and has a close connection with the COVID Containment Response Corps (CCRC) and AmeriCorps. The site posts funding updates and suggests joining their team to fight against the infection. It also provides statistics regarding the number of members who served the community’s needs during the pandemic and constantly updates this data. The fact that CRC serves the community during such troublesome times proves its mission and aligns with its strategic plan.

As far as it concerns the validity of the data presented, it can be mentioned that reputable authors publish the information. The owner of the website had credentials at the bottom of the paper. Furthermore, the site and its contents utterly refer to the subject matter – grants for non-profit organizations. Notably, it updates the tabs quite often to ensure numerical, statistical, and factual data relevance.

The website is increasingly easy to navigate because the tabs are adequately structured. Each tab is organized according to the relevance of the topic and suggests the key ideas of the section under discussion. What is more, it provides links to external recourses where needed, which gives extra credibility to the information used. The frequently asked questions are suggested in parts where they are necessary. It is the best option to improve user experience and boost the website’s efficacy. Noteworthy, the interface is simple in use because one can easily switch from tab to tab without any difficulty. The website even provides a calendar of their own events, which is helpful for the parties interested in their participation.

Conclusion

In summation, it can be stated that the CRC’s website is a decent and reliable platform for grant applications for non-profit organizations. It provides trustworthy services of finding funding sources across Colorado. Additionally, the website is secure in navigating, and a person can easily find valuable tips for writing an application. It is also beneficial because it allows one to choose a subscription option aligning with one’s budget. Finally, CRC provides relevant and valid information on the matter and keeps the users updated by specifying and posting new numbers, statistics, and factual data.

Reference

CRC. (n. d.).