Understanding Investment Banking And Its Benefits Finance Essay - Free Essay Example

Sample details Pages: 10 Words: 2951 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? The word investment banking draws idea of investment into our minds or thoughts. Actually that idea is quite closer to the basic interpretations of a layman but in realty word Investment Banking holds quite a lot and it is much bigger than basic ideas. Main core sense of Investment banking is developing and executing decisions on capital markets to build new resources of clients. Don’t waste time! Our writers will create an original "Understanding Investment Banking And Its Benefits Finance Essay" essay for you Create order This prime decision holds property rights, laws, current market place, information etc which stays important to investors. Operation of investment banking solely depends on the reputations and relationships in the financial world; it helps to establish a fluent network and identifying informal contracts. Investment Banking can restructure the capital markets. Returns earned by the firms or clients are mostly results of decisions by Investment bankers and it plays vital role many times. Retail banks are banking institutions which carry transactions directly with consumers, rather than corporations or other banks. Services they can offer includes savings and transactional accounts, mortgages, personal loans, debit cards, credit cards etc. While a commercial bank collects deposits for checking and savings accounts or current accounts from consumers or public and offers them loans and collects interest or pays interests to depositors The investment banks involve helping customers t o raise funds in the capital markets and provide an advice on mergers and acquisitions. This unit also attract more customers by their advertisement pattern. So work forces in these units are frequently extremely stressful and degrading in nature. Investment banking also provides interest to investor clients to a security issuance by subscribing them, be coordinative with bidders, or managing with a merger target. Mainly the investment banking is assistance MA and corporate finance. The division investment banking division (IBD) is generally divided into coverage of industry and product groups. Industry coverage groups points on a specific industry such as drafting to law, industrials, technology, and maintain contacts with corporations among the industry to bring businesses to a bank. A product coverage group diverts interest on financial merchandise, such as MA, leveraged finance, equity, and high-grade debt. Management in investment banking is really a professional management of various securities such as shares, bonds, etc. and other assets to meet special investment goals for the benefit of the investors. Here Investors may include different types of institutions like insurance companies, pension funds, corporation etc. Whereas private investors consist of investment contracts and schemes. The investment management division of an investment bank is generally divided into separate groups which are: Private Wealth Management Private Client Services Asset Management for making a specific market, because clients invest or trade in with financial products according to the goal of making rise in amount of money for each trade. Sales team of investment banks whose job is to call on clients and worthy investors to propose trading ideas and take orders. Sales desks ensure interacting to clients orders to capture trading desks, which can price and execute trades and to form structure of the new products that fit the desired need of client. Researc h division reviews companies and writes reports about their expectations with own ratings on products. Main motive of this division is to guide traders for trading; the sales force motive is to recommend ideas to customers and investment bankers by addressing their clients. Division does not generate any revenue to the bank rather works on attracting customers. Recently existence of the connection between investment banking and exploration has become influenced for segregation of between public and private functions. Strategy division advises are explicitly or implicitly in nature to clients on the strategies that can be adopted in various markets. Strategists of the bank develop new innovative strategies to place companies and industries in a valued structure with full consideration of the macroeconomic market. Strategy division of the bank regulates the way the firm will function in the market, leading the way of direction it would like to take in terms of its proprietorship an d flow positions, making the suggestions for salespersons for interacting with clients, as well as the way of restructuring new products. Above specified Structuring has been more recent design with highly technical and enumerate employees working on creating composite structured products which typically for large border and returns than fundamental cash base. Middle office Major role of middle office is Risk management which involves analyzing the market and risk in providing credit that traders are taking for their routine trades, and assuring limits on the amount of capital involved of the bank to prevent bad trades having a damaging effect. Another key role of Middle Office is to ensure that the economic risks are captured accurately, correctly and executed on time. Recently the risk of errors has become common and known as operational risk and so the assurance of Middle Offices provides measures to cover this risk. When this assurance is not guaranteed in place, market and credit then risk analysis can be undependable and open to deliberate manipulation. Finance areas are mostly creditworthy for an investment banks capital management and risk supervising. By figuring and examining the capital flows for the firm, the Finance division is the primary adviser to senior management on optimum areas such as checking the firms global risk exposure, th e profitability and system of the firm through various businesses. Back office A back office handles operations involving data-checking of trades that have been performed, assuring that they are not bad, and transacting the required transfers of funds. A degree of finance has proved to be vital in understanding the idea of the deals and transactions that happen all over the divisions of the investment bank. Back office is aligned with technology like the information technology department composed of real high quality softwares made by its technology team to provide technical support due to the recent march of electronic trading at trading desk of the bank. Categories of Investment Bank Bulge Bracket Investment Banks: today due to merging different types of banks a group of investment bank is formed known as Bulge Bracket Investment Bank. For example: Merrill Lynch and Morgan Stanley, Lehman Brothers. Major Bracket Firms and Foreign Banks: these are the banks which do not fall within the bulge bracket, so they affiliate with different commercial banks to build an investment bank organization. For example: JP Morgan and CS First Boston Regional Firms and Investment Banking in Commercial Banks: in recent times many regional firms have merged with commercial banks to be an investment bank. This banks do not provide level mobility like bulge bracket banks. For example: Hambrecht Quist, Nations Bank Montgomery Securities, Robertson, Stephens (Bank of America) in San Francisco Boutique Banks: it is a small investment bank that specializes in specific investment banking. These banks target on particular industries or products. For example: Broadview Associat es. Functions of Investment Banking https://kona.kontera.com/javascript/lib/imgs/grey_loader.gif Investment banks have versatile functions to perform. Some of the most important functions of investment banking are as follows: Raising of capitals An investment bank guides a firm for raising funds to achieve desired objectives, such as acquirement of another company, reduce in debt load, expanding existing operations for a particular project financing. Capital is composed of debt, common equity, preferred equity, and securities like convertible debt or debt with warrants. Although people are interested in raising capital to public stock offerings, a great amount of capital is mainly raised through private placements with institutions, differentiated investment funds and private individuals. The structuring on transaction for specific objectives for attractive investors is done by the assistance and work of an investment bank to clients. Assisting on Mergers and Acquisitions (MA) Mergers and Acquisitions is activity including many financial transactions and crucial financial decisions to be executed. Thus, an Investment banks represents a sound financial institution in mergers, acquisitions, and divestitures. Assistance of investment bank is most appropriate in MA between any companies. Investment banks detailed analysis helps in entity bought or sold; with its valuation range and desired structure while performing the acquisition of a particular firm, the sale of any company or its subsidiary, and assistance in identifying, restructuring and executing a merger or joint venture. Trading and sales Investment bank majorly indulges in services are relevant to publicly traded firms, or any firms which plan to go public for near future. Particularity functions include making a market in existing stocks, placing new offerings to clients, and publish its research reports. Investment consultancy Advisory services handled by the investment bank deals with assignments such as strategic planning, valuations of businesses, assisting in financial reframing, and providing a view as to the goodness of a proposed transaction by their consultants. Factors affecting break down of an Investment Bank Corporate Finance The prominent responsibility of a traditional investment bank is to handle corporate finance as it performs two different functions: Mergers and acquisitions advisory and Proprietorship. On the mergers and acquisitions (MA) advisory of corporate finance, their bankers assist in collaborating and structuring a merger between companies. For example, a company wants a firm, and then an investment bank will assist by providing decisions to finalise the purchase price, manner of the deal, and generally accounting an easy transaction. The insuring function with corporate finance takes holding the process of incresing capital for a company. It is a main factor affecting breakdown of bank because mostly capitals are aroused by moving out of stocks or bonding to investors. Sales Sale is another main essence component of any investment bank. Here Salespeople comprise of: The classic retail broker The institutional salesperson The private client service representative. Retail brokers develop relationships with applying investors individually and sell stocks and consult stock advice. Banks salespeople build business relationships with big institutional investors. Institutional investors are those investors comprising of large groups with good assets. Private Client Service (PCS) representatives exist between retail brokers and institutional salespeople, who manage brokerage and money management services for wealthy individuals. Thus conflicts among sales group or inefficient work or output destroys the operation of the investment bank, hence can create the line of break down to the bank during any time. Trading Traders always remain effective for the investment bank. Traders indulge themselves in the act of buying and disposing of stock, bonds, or other securities like forex, either by dealing an stocktaking of securities for sale or by performing a given trade. Traders deal with transactions of large and small in nature and provide liquidity for the market. This also called as market making. So traders market behaviour is mostly the reason of market movement and their way of operations or trading may be bad for market. Hence can be wildly effective to an investment bank and can lead to break down Research Research analysts of an investment bank observe stocks and bonds and make good word on their analyzing to buy, sell, or hold those securities so poor or bad research can lead to false recommendation. Some research analysts are assigned to work on the fixed income side to cover a particular segment. Irrelevant draw by these analysts may affect other segments creating wholesome decline. Corporate finance bankers are dependable on members of research analysis to lead the industry in which they are working. Honourable researchers can generate significant corporate finance business as well as satisfying trading activity but their bad research can ruin the investment bank. Syndicate The centre of the investment banking is to build a consortium by providing a critical connection between salespeople and corporate finance. Syndicate among themselves fulfil to facilitate the placing of securities as per public offering, a fall out can drag on relation between and among buyers of offerings and the investment banks dealing the process ending in poor administration. In a corporate or governmental liabilities deal processes syndicate determines the allocation of bonds and other procedures. The breakdown of these fundamental areas can have a huge impact on an investment bank. Investors evaluation for Investment Bank Investment banking is actually business providing services to the clients, firms or companies; expecting total service for their desired investment. While this bank deals with large client firms. So they undergo evaluation for selecting bank for proper guidance and service by analyzing criteria like: Services Offered Servicing by the bank should perfect, on time and qualitative to manage the project of the client. For example, majorly projects will include detailed industry idea and financial analysis on particular subjects, preparation of appropriate documentation such as an offering memorandum or presenting to the Board of Directors, developing scope of legality, assistance on various stages, negotiating the terms of the transaction, accounting, and other advisors guiding in all phases of the project for successful completion. Ability to Work Quickly As said time is money, investment banking projects have very specific deadlines so should be ended on time. For example any bidding company is for sales agreement. The investment bank must be unforced and able to put the correct people on the project at correct time and work efficiently to meet critical deadlines. Experience It is highly important to make sure that how experienced is the bank and its senior members will be participating in the project on a daily basis. This is calculated on their past performance depending on handling of all cases of dealing, it may be advisable to work with a bank that have renowned background or successful end of a contract with other bodies in the market or in required industrial segment. The investment bank should have a highly developed network of to the point contacts, such as possible investors or companies that could be approachable for acquisition. Fee Structure Mainly investment bank charges for its services and guidance provided with an initial retainer fee. In time of one-time or monthly, where the majority of the fee depending on successful end of the transaction. It is important to apply a fee demand that lines up the investment banks incentive with your consent. Record of Success Though no respectable investment bank will assure the success, the firm must have a respectable record of closing dealings. Ongoing Support After dealing on a transaction for our company, the investment bank becomes closely with your business. After the end of transaction, a decent investment bank should become a hoped business advisor consultancy that can be called upon with no consent for advice and give support on any ongoing basis. As investment banks are mediators, they are not providers of capital; some executives avoid bank to carry out the transactions in order to avoid the fees. India and Investment Banking Investment banking in India plays very essential role for the fluent flow of market transactions between many investors, companies, firms and the government. As these banks will have heavy role to play even in the future, regardless of the economic conditions of the country. Investment banking banks help their clients to accession of capital through debt, equity and other kinds of investment products. These firms handle trades in equities and derivatives of Indian market. The major role this type of banks is to help great companies with merger and acquisition deals like TATA, Reliance, and Mahindra. About a couple of years back in global recession of 2008 some investment banks collapsed or were on the edge of closure. This led to many sceptics writing off the revival of these firms. The segment of the Corporate Investment Banking has developed in recent past. This happened by performing Corporate Advisory Services to leading firms in the Indian market. But when it approaches to banks in India, the line that segments investment banks from other banks is rather light and ends to slow development in Investment Banking in India. There could be many reasons but important ones are Investment banking for corporates is still a new field and Every bank no matter of its field wants to provide its customers with the best service. So almost every bank provides its customers corporate finance solutions too. Future of Investment Banking in Indian Markets Economic Slowdown revealed that only the strong can ride on the tough roads and still remain stable. Those sceptical should realize that the market has its own movements by its cycle and downturns. If anyone would have glance at the financial strength of Indian companies, you just cannot ignore them. As these companies have ability to bounce back once again. Moreover, the futurity of Investment banking companies in India seems good developing and could grow even more bigger in future with the march of some greatest MA to Indian companies CONCLUSION To my study so far Investment Banking managing in areas of Public, Private and MNC segments with a good mix in terms of size. Here participation of Investment Banks operating in India should govern its senior management as it provides rich content and valuable insights to great companies and firms. Analysing emerging trends in Banking and Technology should be their prime focus of development. Results of this may create a technological innovation and a key factor in growth and value creation in the banking industry. Banks are deploying technology for implementing differentiated strategy and risk management frameworks. My study on Investment Banking shows the weaving of combination in technology management as per the course: MBA-TECH by MPSTME, NMIMS. However complexity in development of Investment Banking in India would be due to: Consolidation New processing and operating models Convergence of financial products Homogeneous services Repositioning of exchanges Capital intensity Short innovation cycles Globalisation and new players in capital markets Cross-border volume drivers Traditional structures eroding Cross-border investment flows Impact of the Internet and online services Convergence of financial products APPENDIX I

Confessions of a Second-Rate Mind Essay - 1492 Words

Confessions of a Second-Rate Mind Recently, I found myself drawn to Woody Allen’s essay, â€Å"Random Reflections of a Second-Rate Mind.† I liked the title; I can relate to random thoughts, but I hated the idea of relating to Allen himself. I dislike him on a personal level. I have trouble condoning the behavior of a grown man who refuses to ignore his animalistic urges and sleeps with his teenage step-child. But perhaps Allen had some clue as to what he was doing considering that the latest Hollywood tabloid reports that he and his step-daughter/wife have just had a child together, and are doing well. I won’t speculate, but I have put aside my issues with his personal life, and have found common ground. I too, have random thoughts, and†¦show more content†¦As Allen resumed his random thoughts on growing up Jewish in New York, and his struggles in later life dealing with the Israeli-Palestinian conflict, no doubt inspired by his encounter with the Holocaust survivor, I began to recall si milar experiences in my own life. I have a good friend who lived abroad in Scotland last fall. We both have the uncanny knack of meeting someone for the first time and inevitably end up knowing their entire life history within a fifteen-minute conversation. He and I communicated over e-mail, sharing daily stories. One in particular began, â€Å"†¦and over Big Mac’s and fries, the Doctor told me, some random curly-haired kid, his story of the one that got away.† As it turns out, my friend met a retired doctor who had been in the service during World War II, and had been stationed in Scotland. While there, the doctor met â€Å"the one,† a Scottish girl, but never told her how he truly felt. Before he shipped out to return to the US, he debated finding her, and asking her to go with him, but he just couldn’t get up enough nerve. And so there he was, over fifty years later, returning to Scotland to see if he could find her. My friend met this man on the last leg of his trip. He had travel ed all over looking for his lost love, and he was now returning home; He hadn’t found her. He said he knew it was a shot in the dark, but something he just had to do before he died. The doctorShow MoreRelatedTrue Crimes False Confessions1566 Words   |  6 PagesHispanic-American boys were arrested and charged with the crime based solely on the confessions obtained by the police. There was no physical evidence tying any of the boys to the crime. Four of the confessions were videotaped and were later used in court to incriminate the boys. The boys described the crime in gruesome detail and the role that each of them played in the crime. 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The Effects of Incarceration Free Essays

The Effects of Incarceration Dionne Lee Nov. 19, 2012 Social Problems Incarceration can be devastating on everybody’s lives. Not only it affects the person that is actually in jail, but it affects his or her loved ones. We will write a custom essay sample on The Effects of Incarceration or any similar topic only for you Order Now First, it puts a strain on the family finances once a family member is incarcerated. Second, it causes problems in relationships, whether it is girlfriend or wife. Third, it causes emotional strain, especially if he or she has a long time to serve. According to Macionis, the incarceration rate in 2008 for the United States was 762 people for every 100,000 in the population and among all the nations of the world, this country has the highest share of its people in prison. Having a loved one incarcerated can be very strenuous on the family’s finances. Learning from personal experience, it can almost put one in bankruptcy. The cost of phone calls is very expensive. It can almost get up into the hundreds of dollars per month. The person that’s incarcerated never considers the financial stain that it has on the family. The only thing that is considered is being in contact with his or her family, no matter what the cost maybe. The family is also expected to travel great distances in some cases, which can also become a problem. According to Families Left Behind article, the average distance for an incarcerated family member is 100 miles for men and 160 miles for women. With the cost of gas steadily rising, it would be almost impossible to constantly make regular visits. The single parent is also left to pay all the family bills that were once being paid by both parties. Having an incarcerated loved one also causes problems with his or her relationship. Trust issues begin to develop and this puts a strain on both parties involved. If one is married, this could possibly lead to divorce because eventually the stress will be so great that the one involved will no longer want to go through with this particular life and would want to move on without the stress of having an incarcerated partner. Married men in prison reach the national 50% divorce rate much more quickly than do men in the general population. It is difficult to carry out intimate relationships from prison due to limited contact and communication. Lastly, emotions begin to come into play. If the loved one has been incarcerated for a long period of time, the emotional part of their relationship wears down. The â€Å"prison mask† is a common syndrome that develops; the mask is the emotional flatness men take on when they suppress emotions and withdraw from healthy social interactions. To survive in an often brutal environment, prisoners may develop hyper-masculinity, which glorifies force and domination in relations with others. Finally, many prisoners are plagued by feelings of low self-worth and symptoms of posttraumatic stress disorder (Haney, 2001). All of these psychological changes, which may be necessary for survival in the prison environment, can impede intimate relationships. In conclusion, incarceration can be tough on anyone who’s involved. It puts a strain on finances, relationships, and emotions. It’s a very tough road to go through and some make it through it and others don’t. The one who really takes a hard hit from all this are the children that’s involved. They have to learn to deal with the fact that they have a parent that’s incarcerated. The parent that’s left behind has to deal with all of the emotional ups and downs of the children and the financial burdens of the household. He or she has to play both parenting roles, which causes a lot of emotional wear and tear on their psychological being. Therefore, this causes resentment towards the absent parent and once this happens the family that once was, no longer exists. Reference Page Bibliography (n. d. ). The Effects Of Incarceration on Intimate Relationships. Macionis, J. J. (2010). Social Problems. (October 2003). Families Left Behind: The Hidden Coat Of Incarceration and Reentry. ——————————————– [ 1 ]. , the incarceration rate in 2008 for the United States was 762 people for every 100,000 in the population and among all the nations of the world, this country has the highest share of its people in prison [ 2 ]. . Married men in prison reach the national 50% divorce rate much more quickly than do men in the general population. It is difficult to carry out intimate relationships from prison due to limited contact and communication. 3 ]. . The â€Å"prison mask† is a common syndrome that develops; the mask is the emotional flatness men take on when they suppress emotions and withdraw from healthy social interactions. To survive in an often brutal environment, prisoners may develop hyper-masculinity, which glorifies force and domination in relations with others. Finally, many prisoners are plagued by feelings of low self-worth and symptoms of posttraumatic stress disorder (Haney, 2001). All of these psychological changes, which may be necessary for survival in the prison environment, can impede intimate relationships. How to cite The Effects of Incarceration, Essay examples

Sociology Gender Inequality and Gender Stratification

Questions: 1. What is a social role? Give an example of s social role. What is role confusion and give an example? What is role conflict and give an example? How does the social role you play in your work life versus your social life differ in how you behave and talk to those in the work world versus with your friends and family?2.What is social stratification? What is economic stratification and economic inequality and what is the proof that it exists in the United States? What is racial stratification in America and what impact does it have on racial minorities? What role does racial segregation in housing exacerbate racial prejudices and racist behavior and attitudes give specific examples.3.What is gender stratification and how does it impact the status of women in the United States and the world? How is gender a learned behavior and how to boys and girls learn how to act male and female? What does it mean to be transgendered and why is it so controversial? Answers: 1. A social role is being defined as a set of interlinked behaviors, rights, duties, beliefs, and standards as theorized by individuals in a public situation. A social role can be considered as an anticipated or free or incessantly varying behavior and might have a particular discrete social status or a position in society. It is integral to not only the functionalist but also the interactionist considerations pertaining to society. One example of a social role could be the role of an adult. An adult must stay away from irresponsible and wild behavior and must instead exhibit traits such as accountability and responsibility. It is also expected of an adult that he/she settles down, gets a job, has a good and responsible image in society, has children, and brings them up to be responsible citizens, and so on. The role of an adult can thus be considered to be very different from that of a child. It is interesting to note that a single individual may play multiple social roles throughou t his life, such as the role of a son, brother or a student. Thus, the social roles are the different roles that an individual plays being a part of a larger social group (Eagly, 2013). Role confusion can be defined as a situation in which a person has difficulty in comprehending which role should be or is expected to be assumed by him/her. It is in such cases, that a state of confusion is experienced. An example of this could be when a graduate student had to be a guest at a department get-together at a professor's residence. In such a case the student might experience difficulty in determining whether he/she needs to act like a student while interacting with the professor, displaying reverence and veneration, or should he behave in an informal, friendly manner, demonstrating collegiality and acquaintance. Social roles are determined by the situation and the setting that the individual is in. There are circumstances where the set types of behavior that define roles might give rise to intellectual disagreement in people. Role conflict can thus be considered as a distinct kind of social conflict which occurs when a person is compelled to assume two distinct and unrelated roles simultaneously. In the case of social settings , an individual might encounter clash between her responsibilities as a mother and her responsibilities and tasks as a staff member of an organization. Role conflict, in this case, may occur if her infants requirements for time and devotion divert her from the obligation of being a manager of the company she is working for. Similarly, another example of role conflict is a situation where a person has difficulty deciding upon which of the two roles he/she needs to carry out, even though the roles are not essentially contrary. A very common example of role conflict can b e an employer, who has to terminate the service of an employee who also happens to be his friend. (Openstax, 2015). The person will undergo role conflict, as being a friend he should save his friends job, while thinking of his business progress, he should fire him (ONeill, 2013). As an employee working at office, my social role is of a man who has duties and obligations towards the welfare of the organization. Thus, I assume the social role of a strictly disciplined man. On the other hand, while being with my friends and family, I perform the social role of a friendly and congenial individual. 2. Social stratification can be defined as society's classification of individuals into socioeconomic divisions, on the basis of their occupation and earnings, money and public status, or obtained power (societal and governmental). In this respect, stratification can be described as the relative societal status of individuals within a specific social unit, group, geographic area, or communal division. In contemporary Western civilizations, social stratification characteristically is categorized as three distinct classes, the first being the upper class, the second being the middle class, and the third is the lower class. Apart from these divisions, every class is then subcategorized into strata, which is the upper, middle, and lower stratum of society. Additionally, a social stratum is also likely to be forged that is centered on the ideas of kinship or class, or both of these. Economic stratification refers to the process of categorizing and distinguishing people on the basis of their economic status instead of their caste, class, or gender. Economic stratification is closely linked with global stratification and global inequality as it affects the quality of life of people all over the world. Economic inequality primarily means the concentration of economic resources in just a few parts of the world, while the other parts are neglected, thus resulting in poverty. This is evident in the case of India where people who are afflicted with extreme poverty are unemployed and live in slums. As far as the United States is concerned, economic forces, like those of outsourcing as well as automation, are dividing the labor force, with a majority of the job prospects being either the ones that are low-level, low-wage, manual tasks or higher-level, well-paying jobs that are founded on abstract abilities. The role of women in the staff has been on the rise, however, it is evident that women have not been able to achieved total economic equality. (Openstax, 2015) Racial stratification is done on the basis of a persons race, which in these current terms, refers more to physical characteristics that can be seen than to culture and ancestry. Racial groups are generally categorized by regions as well, along with distinctions on the basis of skin color. Racial minorities are groups that are segregated on the grounds of them being different on certain grounds pertaining to race. The Scapegoat Theory indicates that the dominant group will eventually shift its unfocused antagonism onto a lower group. In the case of America, the minority groups are often at the receiving end of antagonism from the dominant groups in various parts of the nation (Massey, 2016). As far as housing facilities for minorities are concerned, a primary concern has been redlining. Redlining is essentially the practice of refuting mortgages for residences and businesses that are situated in mostly minority groups, whereas sedimentation pertaining to racial inequality defines the intergenerational effect of not only practical but also legalized racism which restricts the capacities of black citizens to amass wealth. This aggravates the issue of racial segregation even more by increasing tension between both the majority and the minority. Apart from this, another instance was the de facto separation that was done in Fergusons schools, a race-grounded wealth divides, city sprawl, as well as a black unemployment rate that was three times as much as that of the white unemployment rate. This is what worsens the current racial tensions in Ferguson. It also indicates countrywide racial inequalities. (Openstax, 2015) 3. Gender stratification implies stratification on the basis of a persons gender, with women being the minority, who are often victims of segregation. The issue of gender stratification is particularly evident within the financial sector. Even though they make up almost half (which is 49.8 percent) of the total payroll employment, it is the men who significantly outnumber women when it comes to authoritative, strong, and, thus, high-earning careers. In cases where a females employment position is the same as that of a males, the woman will mostly make just 77 cents for each of the dollarsearned by her male counterpart. Women who are a part of the paid labor force are also the ones, who do a huge amount of the work that is done at home, which is not paid for. Usually, it has been observed that 84 percent of females (as contrasted with 67 percent of males) spend their time carrying out domestic chores (Bills, 2016). A double duty such as this ensures that working women occupy a secondary position in the family structure. Such a situation can be seen not only in the United States but also in other parts of the world, where women are not only paid less and given less importance, but even if they are allocated the same job as a man, it is the mans role that is looked upon as being more important. Gender can be considered as a learned behavior as individuals learn to behave according to their gender by observing the behavior of those around them who belong to the same gender. Gender roles are thus first learnt through play wherein boys play with active toys that promote dominance and superiority while girls are given dolls and items that seek to imbibe a sense of nurturing in them. (Openstax, 2015). The word transgendered basically means that an individual finds himself identifying with a sexual role that is the opposite of that which he was born with. The word transgender has been likened to a disorder in the past, which has contributed to a great deal of antagonism and bias against such individuals. It is for such a reason that it became vital for there to be a revision of the definition of such a situation. Research revealed that individuals who are transgendered are twice more likely to suffer an assault as others, which is why their safety was a concern. The public must thus be educated about gender identity so as to avert the occurrence of such instances of violence. Since gender role is a matter if important concern in todays world, people are usually expected to behave in a way that corresponds to the nature of their birth sex. Since conformity is an important aspect of a society, any instance of non-conformity to gender ole is considered to be undesirable and hence it g ives rise to controversies. Reference List: Bills, D. B. (2016). Gender Inequality and Gender Stratification.The Wiley Blackwell Encyclopedia of Gender and Sexuality Studies. Eagly, A. H. (2013).Sex differences in social behavior: A social-role interpretation. Psychology Press. Massey, D. S. (2016). Residential segregation is the linchpin of racial stratification.City Community,15(1), 4-7. O'NEIL, J. M. (2013). Gender-Role Conflict and Strain in.Men in transition: Theory and therapy, 5. OpenStax, Sociology 2e. OpenStax. 24 April 2015. https://cnx.org/content/col11762/latest/