Relationship Between Trade Volume and Stock Price Variation

Relationship Between Trade Volume and Stock Price Variation Relationship between trading volume  and the stock price  variation in the London Stock Market Chapter 1 Introduction Trading volume is the signal of activity occurring in a stock that is a product of some sort of stimulus. Stock price variations represent changes in stock pricing as a result of the same factor, outside stimulus. With the foregoing being the case, it is apparent that there is a definitive link between these two facets as they represent the activity that is the purpose of listing companies, to let the market determine their value. Nguyen and Daigler (2006) add illumination to the preceding by using a Wall Street adage that states â€Å"it takes volume to make prices move†, and that â€Å"volume is relatively heavy in bull markets and light in bear markets†. Karpoff (1987, pp. 109-126) adds that is a link that exists between trading volume and price change, and that there is a link between trading volume and the fluctuation level of price change. Thus, from the foregoing, trading volume and stock price variations are linked in their activity. Therefore, it is the nature of this linkage that represents the nuance of the question. The question is, what are the dynamics of that relationship and how does it work? Does trading volume move and affect stock price variations, or is it stock price variations that help to impact upon trading volume? How does trading volume increase or decrease and what are the stock price reactions that can be gleaned from these movements as represented by what cause and effect relationships. These contexts will be explored and examined, taking into account the market mechanism in which they occur, the London Stock Exchange, and how such dynamics interact upon each other. The London Stock Exchange was founded on 3 March 1801 and represents one of the world’s largest and most active stock exchanges, and its formation provided a market for securities as well as regulations in the manner in which business in the case of public companies should be conducted through monitoring and adjudication by a committee that was â€Å"†¦ enforced by the threat of expulsion †¦Ã¢â‚¬ . (Michie, 1999, p. 35). Stock markets represent an organized and regulated system where capital allocation occurs through the trading of securities that represent the shares of listed companies (Baumol, 1965, pp. 2-10). Companies that develop new products, build a reputation in consumer or industrial markets, earn dividends and returns, and allocate their resources to build internal value that is translated into stock pricing. The foregoing represents simplistic explanation of a process that in reality is an extremely complex matter. The anticipated and â€Å"†¦ exp ected future dollar benefits to be received by stockholders are dividends†, which represent the means via which returns on stockholder investment are transferred directly back to the shareholders (Bolten, 2000, p. 9). Thus shareholders and potential investors in companies look at a company’s past, present and future projected earnings as a factor in whether to acquire, retain and or hold onto a stock. There are numerous factors at work in the market a company operates in, as represented by competitive positioning, the overall economic situation, demand for products, goods and or services in the industry sector the company operates in, new developments and a host of other variables that can and do affect company performance, earnings and the ability to pay dividends, all of which represent risk. The importance of the preceding is that these risks can either result in positive or negative developments, thus, if a stock is projected to and or is returning dividends lower than when the stock was acquired, its price will reflect this and subsequently be lower, with the opposite also being true (Bolten, 2000, p. 10). However, the preceding alone does not explain and or portray stock pricing on its own as there are other variables that will be discussed and examined in this analysis to draw correlations to the relationship between trading volume and stock price variations. Trading volume represents the number of shares that are traded during a given time period (investorwords.com, 2007) thus the preceding is relatively straightforward and easy to visualise. However, there are other underlying factors that represent deeper and more complex determinants that are part of stock trading volume. The varied facets of stock pricing, reflecting the relative success and or position of the company in terms of is sales, competitive posture, earnings performance, dividends, management, future industry prospects, product innovations, public relations activity along with the correlation of price/earnings ratios and numerable other factors that have a bearing on and in this process (Lo and Wang, 2000, pp. 267-300). The forces inherent in the stock market itself as represented by shorting activity, bid/ask spreads, institutional, professional and individual traders as well as economic forecasts and interest rates all have differing influences and effects within the pre ceding dynamics (Lo and Wang, 2000, pp. 267-300). The foregoing is a summary of the highly complex process of stock price variations that are effected and influenced by the complex variable of factors that interact upon each other. There are a number of theories on trading volume, just as there are for stock price variation. Mingelgrin et al (2001, pp. 877-919) along with Anshuman et al (2001, pp. 3-32) put forth that when stocks are experiencing trading volume that is unusually high, or low, earn either positive, or negative abnormal returns rise or retreat during the next month. This is explained as being a result of what they term as the combined return effect that is due to the increased, or decreased, stock visability after the aforementioned high or low trading volume. In this theory, Mingelgrin et al (2001, pp. 877-919) and Anshuman et al (2001, pp. 3-32) argue that stock visability can affect price as a result of a number of rationales. Mayshar (1983, pp. 114-128) draws the conclusion that when a stock experiences either high volume, the effect suggests either optimisum, in the case of buying activity, or negativeism, in the case of selling, that triggers additional activity based upon the premise of at tracting, in the case of buying, additional investors or added buying by present stock holders causing the demand curve to shift upwards. Such effect can be the result of positive news regarding the company concerning sales, meeting profit and or sales targets, and or estimates, positive economic news, and other variables with the reverse, selling sctivity, is also true. Other theories and approaches to the explanation of trading volume can take the form of investor trading styles, beliefs and or theories. Some, investors, utilize trading styles that are based upon the characteristics of the stock correlated against the company’s size and or momentum at a particular point in time (Admati, and Pfleiderer, 1998, pp. 3-40). There are investors, such as professional traders that utilize technical analysis as well as quantitaive strategies for trading whereby if the conditions fit their parameters they invest in large blocks of stock, thus drawing attention to the stock inviting similar or more analysis and potential buying activity (Barberis and Shleifer, 2003, pp. 161-199). The basic unifying theory behind this type of investor trading style is that they tend to hold and acquire stocks that fit their defined characteristics. Conversely, when a stock selection no longer fits these pre-defined style paramters, they tend to be sold, thus creating an other type of trading volume swing if their share holdings are large enough, through the influencing of other shareholders, many of which utilize computer trading programs that detect and alert them to stock momentum swings (Barberis and Shleifer, 2003, pp. 161-199). Stock trading represents the opportunity for investors to profit on the upward movement of companies when their strategy is based upon price appreciation as opposed to dividend returns (Dow, 1999). Termed income stocks, dividend buying can occur at any time, but tends to happen mostly after an established period of earnings and dividend growth, whereas growth, or price appreciation trading is generally tied to positive company developments, news, acquisitions, new markets, innovation and changing industry conditions (Dow, 1999). Growth or price appreciation investors sell winners and sell losers or tend to hold or utilize what is known as averaging to buy additional stock as a lower price so that when it moves upward they can either retrieve losses or break even (Odean, 1998, pp. 1775 – 1798). The varied motivations, trading strategies, theories, trading styles and additional aspects are factors tied to company performance, news, market fundamentals, market cycles, stock price s, and other variables which shall be further examined in terms of the various components of trading volume and stock price variation. Chapter 2 – Trading Volume The factors influencing and affecting trading volume can range from the effects of institutional investments, professional traders, trading programs, company momentum, earnings growth, new product introductions and similar positive company news and or developments, economic forecasts, interest rates, speculation, price appreciation or growth, income or dividend investing, price earnings ratios and positive company fundamentals. Each of the preceding represents a factor or factors that investors utilizes in making a determination to buy or sell, thus creating trading volume. The first of these, institutional investing, represents one of the most influential forces in stock market trading as delegated portfolio management, as it is termed, represents investments made by pension and mutual funds representing huge sums of financial resources seeking growth, or price appreciation, returns (Naik and Maug, 1996). This group is the most influential of all the preceding categories as a result of their research staffs, analysts, corporate analysis programs, tracking programs and other measures as portfolio managers have access to the most complete cross section of economic, industry, individual company and overall stock market data. As a result of the large sums of money that portfolio managers control, their buying and selling activities are closely watched and observed by their peers, thus representing tremendous sums of money that can move into and out of stocks based upon developments that these individuals believe represent buying opportunities, or conditions earmarking sale (Naik and Maug, 1996). Portfolio managers in the U.S., as a result of their fiduciary responsibilities have a number of constraints governing their investment decisions and choices which represent â€Å"†¦ protective covenants †¦Ã¢â‚¬  put into place to mitigate agency problems concerning the actions of investment firms and their portfolio managers who are acting in the public trust (Almazan et al, 2004, p. 289). The preceding is a product of the pressures of the compensation based earnings incentives that portfolio managers operate under, and the risk taking decisions they are subject to. The incidence of peer watching in this industry is an important facet of their investment making decisions as opposed to the belief that they tend to act on individual information and analysis, which is the case for the brightest and most respected of this group, but by and large portfolio managers tend to be followers (Naik and Maug, 1996). The foregoing provides an explanation as to why there are huge monet ary movements into and out of stocks triggered by investment decisions of a key respected group. U.S. pension fund strategy tends to invest more heavily â€Å"†¦ in lower volatility domestic bonds than their UK counterparts †¦ (which tend to) †¦ have a far larger weighing in higher volatility equities† (Blake et al, 1998). In terms of regulations imposed upon UK portfolio managers represents the less restrictive â€Å"†¦ of externally imposed restrictions †¦ on their investment behavior †¦Ã¢â‚¬  found anywhere in the world (Blake et al, 1998). UK portfolio managers are basically â€Å"†¦ unconstrained by their liabilities †¦Ã¢â‚¬  and â€Å"†¦ trustee sponsors †¦Ã¢â‚¬  basically do not infer with their daily operations and investment choices, which is different from â€Å"†¦ their counterparts in continental Europe and elsewhere †¦Ã¢â‚¬  (Blake et al, 1998). This means that UK portfolio mangers can invest in basically â€Å"†¦ any security in any asset class in any currency †¦ and in any amount †¦Ã¢â‚¬ , however there are trustee resistances to derivatives as well as statutory differences regarding â€Å"†¦ self investment in the sponsoring company† (Blake et al, 1998). The preceding is in sharp contrast to portfolio mana gers in the United States who face substantial regulatory controls and litigation threats â€Å"†¦ over imprudent investment behavior †¦Ã¢â‚¬  (Blake et al, 1998). This relatively open and unconstrained investment climate gives UK portfolio managers a large degree of latitude, thus the effects of their investment decisions, monetary movements and reactions of peers and laggards, meaning those who tend to follow the buying and selling behaviours of the more astute managers, has a more profound effect on trading on the London Stock Exchange than in the United States and many other markets. The effect of the follow the leader approach, as put forth by Naik and Maug (1996), does have its supporting points. Fund managers are usually benchmarked against the performance of other fund managers, thus their having usual downward deviations as compared with the industry as a whole can have consequences in terms of their careers and or rankings, whereas standard returns represent the expected performance of the industry and thus investors in the fund are not negatively impacted (Naik and Maug, 1996). The preceding is referred to as a â€Å"†¦ relative performance evaluation element †¦Ã¢â‚¬  and this represents important factors that thus influence the decisions of the portfolio manager’s on how he allocations assets (Naik and Maug, 1996). The importance of the examination of the operational facets that portfolio managers operate under is important in the discussion of the relationship between trading volume and stock price variations in the London Stock Exchan ge as a result of the huge sums of money that portfolio managers control and how such impacts upon the decisions of other investor areas, professional traders, trading programs, style investors, and private investors as a result of their clout. The impact of the preceding is found in the highly concentrated nature of the fund management industry in the United Kingdom whereby a poor fund performance stands out more than in the United States, thus they stand the risk of losing substantial market share as a result of poor performance (Blake et al, 1998). Thus, while UK portfolio managers have less outside regulatory constraints, the market dynamics with regard to the reduced number of funds thus makes them more risk averse, thereby the decisions they make are viewed as being sound by their peers and the general public (AON, 2005). In equating the relative influence that UK portfolio managers have in the market is reflected by the fact that â€Å"†¦ fund assets for UK companies are around 27% (2004) of the market capitalization† of a company, as opposed to approximately 16% in the United States (AON, 2005). The preceding means, according to an analysis conducted by AON, that the theoretical â€Å"†¦ impact on the share price of UK companies †¦ (by funds is) †¦ 7% †¦Ã¢â‚¬  as compared to the impact of funds on share price in the United States that is estimated at 4%. To gain a perspective on the foregoing, one needs to have a broad picture of the ratio of pension funds in relationship to the Gross Domestic Product (GDP) for Organization for Economic Co-operation and Development (OECD) countries, which stood at an estimated 43% in 2004 (Roldos, 2004). The preceding represents significant influence that funds hold over the market and thus the share prices of companies by their investment decisions. Pension funds and other institutional investors have and do play an important part in the â€Å"†¦ substantial growth and structural changes in capital markets †¦Ã¢â‚¬  as a result of their providing a means for smaller investors to pool their risks thereby providing them with increased diversification as well as reduced risk and enhanced return (Roldos, 2004). The impact and influence of UK pension funds represent ownership of 16% of listed UK companies, or  £230 billion (FairPensions, 2007). The growth in the power of pension funds and other institutional funds is and has replaced savings in banks as the means for individuals to build retirement income thus representing the growth in the importance, impact and power of funds in the stock and other asset investment markets (Roldos, 2004). The preceding is a significant in that funds will continue to experience their growth patterns thus increasing their impact in investment vehicles and the corresponding influence over pricing and valuations. The importance, impact and influence of institutional funds, which in this context shall refer to pension as well as other fund types, which are at the core of the important relationship between economic development and finance which entails an understanding of the theories, rules, institutions and systems that interact with and impact financial markets and thus stock performance. One theory, ‘efficient market hypothesis’, is defined by Fama (1970, pp. 383-417) is one whereby security prices always reflect the available information regarding the fiscal standing of a listed company. Fama (1970, pp. 383-417) indicates that there are three types of ‘efficient market hypotheses’; the weak, strong and semi-strong forms. The ‘weak form’ suggests that past returns and or prices are a reflection of future returns and or prices, and this form has seemingly held true as a result of the inconsistencies in the performance of technical analysts (Fama, 1970, pp. 383-417). Fama (1970, pp. 383-417) expanded upon the ‘weak form’ concept, including the predicting of future returns utilizing macroeconomic variables and or accounting tools, with the factor of predictability representing the case for arguments against this form. The ‘strong form’ suggests the prices of securities are a reflection of all available data, even that which resides in the private sector, which is open to question in that the well known insiders trading profits are not immediately or readily incorporated into trading prices as put forth by Seyhun (1986, pp. 1337-1345). The ‘semi-strong’ form puts forth that the prices of securities is a reflection of all public information that is available, thereby indicating that securities are not over or under valued, which means that trading is not capable of generating superior returns (Fama, 1970, pp. 383-417). Pinkerton et al (1996, pp. 247-266) tested this hypothesis through intraday tests concerning the release of public information that provided evidence that such developments impacted the price of stocks within minutes, thereby validating this hypothesis in most instances. However, those changes were a result of selected availability to the information by traders and institutional investors whose buying or selling of stock represented the fuel for corrections, thus not proving the theory to hold true as to public information availability adjustments. This was proven via studies conducted concerning announcements such as earnings, stock splits, divestures, takeovers and capital expenditures whereby stock pricing adjustments, in general, happen in a day as opposed to the theory as put forth by the efficient market hypothesis. The ‘efficient market hypothesis’ makes the strong assertion that since new information is available and thus incorporated into the stock price, that such information (new) thus helps to spark increased buying or selling based upon the nature of such information. Ball and Brown (1968, pp. 159-178) conducted a study in the foregoing area with respect to earnings and indicated that the normal prediction of this area represents accountants calculating income from divisions, cost, production, overhead, depreciation, taxes, research and development, leases, and all manner of computations to arrive at projected earnings for a company based upon the information supplied at a given point in time. New and probable income and or market events are generally keep in the accounting area as scenarios that they can utilize to make adjustments to earning when any of the prior predicted occurrences happen, thus there is a delay in the transference of this new information into real terms, hence the statement of stock price corrections taking about one day to manifest themselves, which is contrary to the efficient markets hypothesis. Muscarella and McConnell (1985, pp. 399-422) in their study of capital expenditures found that unanticipated increases in this ar ea had a positive outcome on the market value of a company, and that the reverse was also true. Thus the announcement of such events first sends analysts scrambling to their computers to work in the new variables, thereby effecting a delay in the stock price, with immediate buying taking place as portfolio managers understanding the plus or minus connotations of such announcements and thus getting in of the anticipated stock rise before it happens, meaning volume drives the price before the figures are known and then the price settles in. Chapter 3 The Process of Buying and Selling Stocks To understand the dynamics with regard to the stock trading process, an understanding of the mechanisms is important. Every security that is traded on the London Stock Exchange has a market maker who thus provides a quote representing the buy and sell price of the stock, with the difference between the bid and offer spread representing where they make their profit (StockExchangeSecrets.com, 2007). Marker makers on the London Stock Exchange utilise the SEAQ, which brokers utilize to find out the current quotation, bid/ask price on a particular security (Pagano and Roell, 1990, pp. 63-115). The SEAQ is the Stock Exchange Automated Quotation System that is driven by quotes whereby it updates on a continues basis the bid and offer quotes established by market makers (Pagano and Roell, 1990, pp. 63-115). However the largest and heaviest traded securities use the SETS, Stock Exchange Electronic Trading System), that is utilized to trade blue chip UK stocks that matches buy and sell orders using a price/time basis (Pagano and Roell, 1990, pp. 63-115). The changes in the bid and offer price are reflective of changes that the market makers use based upon their information about the impacts of stock buying and selling as well as the formulas for a company’s market capitalisation, earnings and other variables. In most instances, the run up in price as a result of buying after an announcement tends to be in line with what the relative value of the announcement has in terms of the company’s position, price earnings ratio, market capitalisation and the weight of the past accomplishments of the company over a long period of time. In other words, when a stock initially goes public, investment bankers utilize highly complex formulas along with valuation methods to determine the value of a company via how many shares are to be offered and the price of those shares (investopedia, 2007). The initial price of a stock is a product of the calculated determination of the varied formulas and the relative attractiveness of a stock in terms of its anticipated public acceptance and build-up through advance interest on the part of institutional and private investors (GlobalInvestment Institute, 2007). As the company settles in to performance and achieving results, the stock price begins to change in what can be termed price adjustments as a result of the establishment of more history on the company and the public’s reaction to it via the laws of supply and demand, meaning the number of shares available and stock price correlations (Hischey, 1985, pp. 326-335). The overall facets determining the price of a stock is a complex set of variables. It represents an estimate that is performed of the cash, that includes the company’s future earnings, which can be extracted from the company factored by the fact that cash in the near term is more valuable that cash represe nting five years hence Chan et al (1990, pp. 255-276). In so doing, estimates are run to reach a determination of the risk involved in the receipt of said future cash, or business, along with the time period or periods necessary to accrue the calculated sum(s) (Brainard and Tobin (1968, pp. 99-122). Technical factors as well as the individual and collective sentiments representative of the market place that can thus be termed supply and demand, with technical factors a representation of facts that can be predicted or quantified. The foregoing represent aspects such as the aforementioned position of the company in its industry sector, the rating of its products, goods and or services relative to said industry, positioning of its competitors, its technical and innovative prowess, historical record in its market sector and effectiveness in combating its rivals, the extent of its products and market penetrations in comparison to its competitors as well as its capabilities and resources to deal with and respond to unforeseen events (Brainard and Tobin (1968, pp. 99-122). An example of a company in a solid current market position with sound prospects for the future is Dyson. Its revolutionary Dual Cyclone vacuum represented the first real innovation in the industry in decades, along w ith its revolutionary design, performance and value. The history of dramatic growth and successful expansion into international markets, coupled with its reputation, earnings and positioning as the top selling manufacturer in Western Europe as well as the leading company in the sales of upright vacuums in the large U.S. market in just 16 years represents an example of the preceding (UGS, 2007). The preceding illustrations concerning trading volume have been undertaken to provide the foundational background for a foundational understanding of stock price variation and trading volume on the London Stock Market. As indicated in the examples, factors, theories and explanations utilized represent a complex set of differing variables that are interconnected, yet separate aspects acting within the same context. And number of separate facets can trigger a surge in trading volume of an upward or downward nature that is usually first tied to investor sentiment, and in the case of institutional investors, their individual calculations, projections and analysis of company positions, financials and other factors. And for all of the preceding, it represents a series of initial educated guesses, backed up by technical information, market savvy, and doses of follow the leader, in the case of institutional firms. Chapter 4 – Relationship Between Trading Volume and Stock Price Variations on the London Stock Exchange The importance, impact and influence of trading volume as a compoent in the determination of stock price variations that has been examined through the effects of institutional investing trading volumes, regulations, the follow the leader and peer perspectives, impact of institutional funds as a factor of company and market percentages, efficient market hypothesis, and how stocks are brought and sold. Stock trading volume is linked to the activities conducted by companies as a component of their reputation, future business and earning prospects, the activities of public relations activities to keep the company in the minds of the investing and general public, the effectiveness of its products, goods and services in relationship with its competitors in its industry, and the relative position of the firm in its life cycle. Just as is the case with products that have what are termed their market introduction phase, period of growth, market maturity and sales decline that varying in lengt h and timing (Day, 1981, pp. 66-67), such is also true for companies. The company life cycle (QuickMBA, 2007) represents the stages that a company passes through which can vary in the period of time it remains in certain stages as a factor of its industry type as well as management innovation. The preceding has importance in an examination of stock price variations as well as trading volume in that newer firms will experience more stock price volatility than mature companies that are settled into their industries, such as General Motors, British Airlines, Marks and Spencer, and ASDA/Wall- Mart, as opposed to Dyson, Cambridge Display Technology and innocent. The relative position of a company in its life cycle standing of initial growth / emerging, rapid growth, mature and declining positioning represents a large difference in how the institutional and well as individual investor will view it in terms of it being speculative, growth, long term investment or income, meaning dividends (investopedia, 2007). The preceding represents facets that are reflecte d in its volatility, as initial growth / emerging companies represent a different investment as opposed to a mature company that has been around for decades and has an established stock price. As the later groups, mature and declining companies do not represent the optimum examples to examine stock price variation and their relationship to trading volume, they will be excluded from this examination, as their stock prices are relatively stable, show minor price variation swings and have steady established volume ranges whereby new developments, announcements, news and events, unless extremely dramatic, do not produce large stock price changes. And as is the case with trading volume, stock price variations can have a number of variables that represent differing factors in determining price at any given time. As explained in Chapter 3, The Process of Buying and Selling Stocks, the internal mechanisms of the London Stock Exchange operates in pretty much the same fashion as other major exchanges in that it utilizes market makers, bid and offer spreads and computerized quotation systems to provide brokers with information. As explained by Hischey (1985, pp. 326 – 335) companies are a product of their past and present industry performance as well as their reputation and appeal to the public representing supply and demand for its stock in correlation to that performance and projections of its performance in the future. Chan et al (1990, pp. 255-276) advises that the preceding also includes technical calculations of risk, and future performance along with cash positions and value. The ability of the company to demonstrate i ts potential to handle stable and unstable economic conditions as well as known and unforeseen events arising from competitors along with marketplace conditions, and its past history in the handling of these variables are also factors that are determinants of stock pricing (Brainard and Tobin, 1968, pp. 99-122). The correlation between the preceding and the effects of trading volume on stock pricing and how this impacts it, variations, represents a context that calls into play the aspects of trading volume referred to in Chapter 2 – Trading Volume, as well as Chapter 3 – The Process of Buying and Selling Stocks, and how these factors impact on stock price variations. Karpoff (1987, pp. 109-126) as well as Rogalski (1978, pp. 268-274) agree on the fact that there is a positive correlation between trading volume and price changes and that volume is related to price change magnitudes. The mixture of distributions hypothesis represents a dynamic method illustrating returns and trading volume when the information process regarding arrival has been identified (Andersen, 1996, pp. 169-204). Volatility in stocks represents the standard deviation of change in price that occurs in a specific time period (martinsewell.com, 2006). The mixtur

Essay --

In the last couple of years there has been increasing amount of American soldiers being relived from active duty, being sent back to their family and friends. As these men and woman return from war they struggle to reintegrate into their civilian lives. Such strains as Post Traumatic stress disorder and very few job opportunities pose a problem. Eddie Ray Routh a former solider had many strains in his life, which eventually lead him to murder American hero Chris Kyle and Chad Littlefield. Using criminologist Robert Agnew’s â€Å"General Strain Theory†, I will explain the motives behind these murders. Former navy seal Chris Kyle was known as, â€Å"one of America’s deadliest military snipers (Fernandez & Schwirtz, 2013).† Mr. Kyle earned his reputation in Iraq fighting the war on terror killing an estimated 150 Iraqi insurgents. Throughout his time as navy seal he earned two silver stars and five bronze stars for acts of valor. Once Mr. Kyle retired from the military he wrote a book called the, â€Å"American sniper: the Autobiography of the most lethal Sniper in U.S. Military History†. This c...

Life stage

Psychodrama counseling and therapy Involves a number of Important elements, which perhaps Is what makes the psychodrama approach more and more interesting to those who go on developing in their work. (E. G.Erik Erosion's work on life stages and the object relation theory) While in no sense wishing to undervalue the importance of basic listening and responding skills, nor the centrality of a positive therapeutic relationship, the ongoing experience of working with people leads to more and more thirst for understanding how and why different personalities unction differently, why people think, feel and behave the way they do (Jacobs Michael, 1998). – Consider deleting the above.Our experiences and the world around us daily confront us with the fact that effects have causes. Erosion's work on the theory of psychosocial stages of development and Melanie Kelvin's contributions in the Object Relations Theory will be focus of my discussion In the first part of this work. Erikson empha sizes that personality develops in a predetermined order and build upon previous stages of development – the epigenetic principle. He holds that the ego successfully develops when it is able to strictly resolve problems that are socially related.With Klein, the early stages of life are very strategic in the nature of the child's unconscious phantasm visit-a-visit its interaction with the world of reality. This period, she holds, forms the basis for the later development of more complex states of mental life. Erik Erosion's Theory of Life Stages While Freud puts great emphasis on the id and its conflicting interaction with the superego, Erikson talks about the ego and its interaction with the socio-cultural environment. Erosion's model is a combination of â€Å"psychosocial† and â€Å"psychosocial† elements.There can sometimes be an attempt to overcome the human tendency to mistake what can be submitted to established techniques for the true nature of things. â⠂¬â€œ Consider deleting. In his opinion, healing always calls for a holistic attitude that does not argue with established factors but to attempt to Include them In a wider context of some enlightening quality. (Erikson Erik, Erosion's historical experiences Influenced his assumption that â€Å"a human being's existence depends at every moment on three necessary and complementary processes† (Erikson, 1997).These processes are: The biological process – the functional connectivity of the efferent organs that constitute the human body (soma). The psychic process – the function of the psyche which Is responsible for the Individual's experience In the form of the ego synthesis (psyche) and, The communal process – which is about the cultural organization of the interdependence of persons (ethos). There is a symphony among these processes that bring about holistic human event. Hence, any form of failure or the isolation of any one part of the three processes res ults in somatic tension.In view of the indispensability this Interdependence – the organisms principle, Erikson maintains that the process Is Inevitable grounding of the In his description, epigenetic refers to the probability that all growth and development follow analogous patterns. In the epigenetic sequence of development, each organ has its time of origin. (Erikson, 1997) According the epigenetic principle, we develop through a predetermined unfolding of personality, which occurs in eight stages. This principle emphasizes the importance of each organ developing properly at the appropriate stage.He writes that (Erikson, 1997) â€Å"If the organ misses its time of ascendancy, it is not only doomed as an entity, it endangers at the same time the hole hierarchy of organs, â€Å"Not only does the arrest of a rapidly budding part tend to suppress its development temporarily, but the premature loss of supremacy to some other renders it impossible for the suppressed part to co me again into dominance so that it is permanently modified. † Improper development gives rise to detrimental situations. For instance, it could force a child into adulthood.One idea that calls to mind here is the sometimes misapplication of the concept of â€Å"responsible person† in some societies. Children are passively or actively forced to take up great responsibilities which, given their extent f experience and maturity, are not befitting of their age. Thus, the natural process of psychic development is truncated. The possible consequence of such a marred process, lacking in the right support or experience, is maladaptive behavior patterns or malignant behaviors.In a normal physical and emotional development, the individual is faced with tasks that generate in them a trust-mistrust way of relating to their environment. Erikson argues that a balanced form of learning rests on how, say the trust-mistrust elements are managed by the ego. He holds that (Erikson, 1997), â€Å"How, after birth, the maturing organism continues to unfold, by growing playfully and by developing a prescribed sequence of physical, cognitive, and social capacities- all that is described in the literature of child development †¦ If properly guided, can be trusted to conform to the epigenetic laws of development as they now create a succession of potentialities for significant interaction with a growing number of individuals and with the mores that govern them†. Hence, the individual stands the chance of growing psychologically stronger insofar as they are given the appropriate support at each stage of development by the key persons. Erosion's psychosocial theory considers the impact of external factors, like parents and the society, has on personality development from childhood to adulthood.Every person must pass through a series of eight interrelated stages over the entire life cycle. 1. Infancy: 0-18 Months Old/Trust versus Mistrust. The right amount of feed ing and care is pretty much the determinant factor at this stage. Erikson emphasizes that if the infant is well fed and cared for, it will develop a healthy balance between trust and mistrust. This however excludes over-indulgence mistrust. On the other hand, infants who grow up to trust are more able to hope and eve faith that ‘things will generally be okay'. 2. Muscular – Anal: 18 Months-arrears: Autonomy v Shame.At this stage, a sense of independence of thought, basic confidence to think and act for oneself begins to generate. During this stage the well-cared for child is sure of himself and self-esteems himself in a positive light as against withdrawing into himself in shame. At this stage, defiance, temper, tantrums, and stubbornness can also appear. At this period, children tend to be vulnerable. Besides being shrouded in shame, they are also impacted upon by low self-esteem if they become aware of their inability to learn certain skills. Locomotors: 3-6 Years â⠂¬â€œ Initiative versus Guilt. At this stage the child develops a sense of responsibility which increases their ability to use their initiative. During this stage they experience the desire to copy the adults around them and take initiative in creating play opportunities. They also start to explore the world around them, asking the â€Å"why-questions†. Guilt and sense of inferiority result from being admonished or when there is a belief that something is wrong or likely to attract disapproval. At this stage the relationship with the family is very significant. 4.Latency: 6-12 Years – Industry versus Inferiority. Here, the child develops the capability of learning social skills that the society requires of them. There is a strong desire to acquire numerous new skills and to acquire knowledge, which helps them to develop industriously. If for any reason there is stagnation, the child may experience feelings of inadequacy and inferiority among their peers. They can have serious problems in terms of competence and self esteem. Here competency is the virtue to strike the balance. 5. Adolescence: 12-18 Years- Identity versus Role Confusion.In adolescence, some form of conflict between struggling to belong to a particular group, being accepted ND affirmed by the group, exists in young people, amidst the desire to also become individuals. This in itself is a big dilemma for them. It is mostly in the early part of this stage that pubic consciousness sets in. 6. Young Adult: 19-30 Years: Intimacy versus Isolation. Young adulthood is the middle stage of adolescence and the concern at this stage of development centers around issues of independence from parental influence, and moving towards autonomy and self-direction.There is also the desire for economic independence. Hence, in order to chart a career path, striving to make the most of homeless in the best possible way. 7. Middle Adult 30-65 Years: Generatively versus Stagnation. The adult person concern a t this stage is to embark on projects that will outlast him; leaving legacies could be having children or establishing projects that will benefit others in the society. It can be making one's mark in the scheme of affairs in the world. Simply, it is to make better the world around us by actively caring for others according to one's capability.Generative feelings contrast with those of stagnation in that in the latter, the individual think of themselves as unproductive and uninvolved in the world round them. Stagnation evokes feelings of disconnect with their environment and failure to improve their life or the society in which the live. Thus, it is a stage whereby to find a sense of purpose and identity informs every experimentation that the adult embarks on. In sum, it is a lasting self image-making adventurous stage in life and in some ways, linkable with the first stage. 8. Maturity/Late Adulthood 65-Death: Ego Integrity versus Despair.This is the stage of stock taking of how one lived their life. It is a moment when thoughts of a productively lived life are rewarded with feelings of fulfillment and integrity on count of one's industrious involvements in the world around them. Or it could be a time of regret and despair for misused opportunities upon reflecting on their experiences and failures. Those who feel proud about themselves indicate they have lived accomplished life hence they associate integrity and satisfaction to themselves. Not having much to regret about their life, they can attain wisdom even when confronting death.The unaccomplished person will feel they have wasted their lifetime and are thus left in bitterness and despair. Nonetheless, these stages are however not set in stone. Though certain issues are nonfood to a particular stage, some others which seem to be pertinent to particular periods can surface at any other time. They are not always resolved by passing through the one stage alone. They could sometimes remain a concern throughout life. Jacobs Michael 1998) OBJECT RELATIONS THEORY: In Fraud's psychoanalysis, the term, â€Å"object† is employed to designate the target of all drives.The object in Fraud's view is a means through which gratification can either be obtained or denied. Object in Fraud's psychology is secondary for the reason that it does not form part of the constitutive nature of drives. But with Melanie Klein, elation's to object are very central to her psychoanalysis, for in her views, it constitutes the fabric of the self. In her contributions in the object relations theory, she explains the nature of the child's unconscious phantasm concerning its mother's â€Å"inside†, which is populated by varieties of organs and babies.She argues that this phantasm is carried on in earlier months of life, but at this time, it is about the child's â€Å"inside† or its internal presence which is populated by body parts substances and people etc. As development progresses, the child's exp eriences with objects in its environment and significant there are internally represented in images. According to Stephen A. Mitchell, (1981, 2), Klein holds that the state of one's internal object world forms the basis of their relations with internal and external objects, as well as the drives, closely bound together, constitute the crucial determinant of the most important psychical process.Klein argues that internal objects are inherent in the child and prior to experience. As development progresses the child's images of objects gradually take on aspects of the real object they represent in the world. The desire to find the real representation f these earliest internal images in relation to a child's environment informs its loving or hateful drives. Klein posits a somewhat similar idea of death instinct in further explanation of the inherent, fantastic early object, as does Freud. She argues that, immediately following birth, the child feels within itself, a threat to its life a nd this must take place if it is to survive.This is seen in the cry which a child gives off at birth. She holds that the child's first experience of an object in the internal or external world at this point grows out of perceptual misinterpretation of some foreign object whose purpose is to annihilate the child. This sort of experience, Klein explains, accounts for subsequent frustration of bodily needs, physical sensations, tension and discomfort in life. Conversely, pleasurable sensations are attributed to good forces. Klein holds that a child has no sense of self or any rational mind, amidst huge and unmediated feelings.The mother is psychologically the child's ego and the means of dealing with these feelings. She argues that (1957, 248), â€Å"†¦ The infant has an innate unconscious awareness of the existence of the mother this instinctual knowledge s the basis for the infant's primal relation to his mother. † Hence, having a great mother has a huge impact on the wel lbeing and development of the child, as well as its psychosis later in life. In contrast to Fraud's emphasis on the intra-psychic conflict of sexual drives, Klein, emphasis is on the breast.For her, the object of the mother- baby relationship is all about the breast. In place of libidinal drives, she posits aggressive drives as the force of the object of a child's relations to its creating environment. Thus, the breast is no less an object for the child as do its mother and father. Object relations theory is largely maternal in approach because it stresses the foundational impact of the intimacy and nurturing of the mother on the child. The relations aspect of Kelvin's theory points to the nature of the structure of interpersonal relationships.This structure can be usefully employed in exploring and tracing what and how experiences might be the cause of present psychosis. â€Å"CAN WE EVER LEAVE THE PAST BEHIND†? The relationship between the present and the past is a fascinat ing one. The idea that the past influences the present can be argued for based on the principle of cause and effect. According to Jacob Michael (1998) â€Å"Older philosophical thinking used this as one of the arguments for the existence of God: that wherever there is an effect, there must be a cause; since behind every cause there must be another, this sequence extends into infinity until the prime cause is reached†. Occasional allusions to insights of some psychologists At a very general level, in the human society is indubitable that civic policies and laws take their shape and form from experiences of the past. Much so, it is with human behavior in all its complexities. Past experiences can act as stabilizing and purporting scripts influence on the trajectory of a present lifestyle. The extent to which this is exclusively true cannot be wholly guaranteed, however.It may also be that suppressing past conflicts is much more pragmatic for some others, and presents a rather f luid ways of managing the present, only that such approach leaves one a prisoner of an unresolved past until it is attended to. It is worth noting that, however one decides to suppress the past, certain events in the present will somehow unravel it. The bereavement experiences of a friend whose mother passed away is one of many examples that calls to mind which demonstrates that past experiences impact on present. Rose, the first child and only sister of five brothers developed a strong bond with her mother.The mother, for her represented her other self. Hence, she was an integral part of Rose development as a human being. The extent of the relationship was such that, now that her mother is no more, Rose finds life rather â€Å"meaningless and worthless to live†. From our discussions, I can deduce and summaries her feelings thus, â€Å"The pillar on which she leant, having now fallen, portends a threat or imaginable discomfort to her continued existence. † Two points s eemed operative in the deep bonding that Rose had with her late mother.First, she is the only daughter and had been taught by her mother on how to be domesticated as is generally and proudly the natural character of African women. As a hardworking and industrious woman her mother remained a model for her. Secondly, to be a first child in the African setting, one gradually develops a sense of responsibility to looking after their younger ones. Of course, Rose as a social being needed to relate and share with someone with whom she found compatible. She was more naturally inclined towards her mother, being the only woman in the family. Though she has friends, her mother was top in her list.She grew to understand what it meant to be loved, supported and to be a responsible woman from her mother. Now that her heroine is no more, Rose is at the stage where she feels an abysmal hollow in her life such that deflecting its impact and projecting her mother's fugue into her environment is inde ed a struggle, having recognized that, she nevertheless, has to find a way to continue to live. How to make best of the â€Å"here and now' is a challenge that confronts her. Thus, to break away from the deeply grafted emotional attachment to her mother is indeed a huge challenge.Thus, on the question of â€Å"can we ever leave the past behind†, and based on the instances of Rose's present condition, I will state that it is somewhat of a difficult a thing to do, depending on how our relationship is impacting on us at a given time. Discussions that we had, I kept the principle of â€Å"triangle of insight† in view while making my inputs Just so that a possible link might be made between the developmental patterns of the images of her internal and those of her external oral; the past and the present. No matter what the content of our past is, it is well worth our while to approach it with an open mind.This can either help us to understand how our past consciously or unc onsciously interferes with our present or how to make best of a not-so-good condition. Rose understands that she needs to get on with life. It is the how of it that is the real task. She needs facing the inevitable with confidence and with a degree of mental and physical independence. Hence, she needs embarking on resolving her past by taking up the tough task of emotional attachment from her late intimate friend, less her physical discomfort in all its forms persist and her instinct for life remains threatened.From Rose's story, I gathered that her mother represented more of a trust figure, while others were somewhat of mistrust figures. She experienced a great deal of protection from her late mother that she so thought of herself as being fragile. Rose's intimacy with her mother appeared not to have given her the opportunity to develop a much healthier relationship with her peers (Erikson). That being the case, she is now faced with the challenge of establishing a trusting relatio nship with others.As much as she cherishes the memory of her mother, she must be careful not to allow her qualities have an overbearing effect on her inevitable adventure, less it will be difficult to establish the degree of trust that her moving on in life needs. Conclusion: The past is in some way informative of who we are, how and why we relate to others the way we do. And so, looking into the past is very necessary but we need to be careful as not to become stuck in it or too Judgmental about ourselves or past history; for there is always something to take from the past in order to meaningfully chart the resent course of life.Rose can only come to terms with the fact that her mother is no more, it is impossible that she will leave her memories and friendship behind. On the basis of the foregoing instances, my position is that it is impossible to completely leave the past behind. Klein, Melanie, (1957) ‘Our Adult World and its Roots in Infancy in Envy and Gratitude and Othe r Works, London: Hogwash, Mitchell, Stephen, (1981), The Origin and Nature of the â€Å"Object† in the Theories of Klein and Birdbrain. Contempt. Psychoanalyst. 17: 74-398, Accessed June 06, 2014, g:mom.

Family Health Assessment - 1196 Words

Running head: FAMILY HEALTH ASSESSMEN Family Health Assessment Open-Minded, Family Focused Questions: I interviewed my dad on all11 Functional Health Patters. Values, health perception: 1. Do you have any past medical history like surgery or chronic illness? 2. Do you use tobacco, alcohol or drugs? 3. Are you taking any prescription/nonprescription medications? 4. What religion are you? 5. Is there any religious restrictions or practices? Nutrition: 1. Are you in any kind of diet? 2. Do you take any vitamins/supplements? 3. Do you have any difficulty swallowing? Sleep/Rest: 1. How many hours do you sleep? 2. Do you take any medication to sleep? 3. Do you have any sleep apnea? Elimination: 1. How often do you have†¦show more content†¦Health Perception is asking patient about their past medical history such as past surgery, illnesses, chronic disease, Immunization, use of tobacco, alcohol or drugs. Does patient take any prescription/nonprescription drugs and do they have any allergy to medicine. Knowing patients religion and religion restriction can be very useful to the nurse. As a nurse always good to know patients height and weight. When it comes to nutrition some patients have some diet restrictions. For example low cholesterol, low sodium, diabetic diet. There are patients with decreased appetite unable to tolerate food due to decreased taste or some health condition. Nutrition can affect a person health if a person has swallowing or chewing difficulties. In this case tube feeding is required. When assessing a patient, nurses ask patient about their bowel habits. How often does he/she move their bowel. Do they have diarrhea, constipation. Bladder habits are they able to urinate or they have incontinence. Exercise is a good way to stay healthy. If a person is unable to do any kind of exercise daily their body becomes weak. Sleeping habits are not same for everyone. Some people have to take medication to fall asleep. Some have to watch television, read, listen to music and drink warm liquid like milk to fall asleep. When doing a cognitive assessment on a patient nurses look for how alert is the patient, is he/she drowsy or lethargic. How is the patient’sShow MoreRelatedFamily Health Assessment : Family Assessment Essay1469 Words   |  6 PagesFamily Health Assessment Family is so important in the society and it is a blessing from God. Healthy behaviors learn from within the family and family member’s stimulus one to each other with health promotion practices. There fore, the health behaviors are very essential in the family assessment and which notifies health-promotion and disease-prevention. Within families, members will be the first one to learn about to promoting health. Families have impact on children’s lifestyle choices. The AmericanRead MoreFamily Health Assessment : Family Assessment1884 Words   |  8 Pages Family Health Assessment The family assessment involves a simultaneous data collection on individual family members or if able the whole family. The nurses and other healthcare professionals interview individuals and family as a whole to understand and assess the health of the family. This interview help professionals detecting the possible origin or factors contributes to the family’s health problems. The Gordon’s functional health pattern will be used as a model to collect and organizeRead MoreFamily Health Assessment1252 Words   |  6 PagesFamily Health Assessment A family health assessment is an important tool in formulating a health care plan for a family. This paper will discuss the nurse’s role in family assessment and how this task is performed. A nurse has an important role in health promotion. To perform these tasks the author has chosen a nuclear family. 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