The importance of the Capital Market - Free Essay Example

Sample details Pages: 9 Words: 2836 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Compare and contrast essay Did you like this example? Capital market is like an investment funds such as bonds, equities and mortgages are traded in the market. Then, capital market can be defined as a market of securities or equities or debt, where a company as well as government can raise a long-term fund. The market of money is provided longer than a year. Don’t waste time! Our writers will create an original "The importance of the Capital Market" essay for you Create order If it is the raising of short term funds, then it will be taking place on other markets that is money market. In this assignment, we are given the title of Asian Market Capital. There are many countries of Asian, so we have chosen few countries to further details on it. There countries include Japan, Indonesia as well as Hong Kong. Among the countries, we have gone further deeper on the country from Japan about their background as well as history. We would further search for the information on the market capital happen in Japan. Moreover, we going to compare the different investor will be having in market capital field. In addition, we will be discussing the advantages and disadvantages of going initial public offering for a firm. The example and details of cases will be further explained in this assignment. Background In this assignment, we will be discussing about the Asians capital market. Among the countries, we choose to go in deep about the capital market in Japan. In Japan, the Japanese venture capital funds managers always to select either direct managerial monitoring or portfolio diversification to manage their firms investment risks (Gorman and Sahlam, 1989). However, in recent years of 2004, JVCs have used a mix of different strategies, including direct managerial monitoring. This change in industry practice provides an opportunity to test the applicability of agency theory in the JVC industry. There will be some background history about market capital happened in Japan in the past years. The graph above shown that the increase of land in Japan has affected the stock price. The price of the land goes to the peak in the year of 1991. However, the peak area for the stocks price is in the year between 1989 and 1990. Moreover, the both prices started to fell when the year of 2000, an d it is affected to both prices of land as well as stocks. This shown that the total loan outstanding and real estate loans outstanding held by all Japanese banks in year 1980 to 2000. From the year 1980 to 1990, the both total of loans and real estate loans increased substantially. When the total loans levelled off in year 1990, the real estate loans is continued to increase until the year 1998. Furthermore, there were a happened that Japan faced problem in the year of 1998 that bank failure resulted from excessive real estate lending. For example, the company of Nippon Credit Bank, there were only 25% real estate loan comprised up of the total loans, and it was failed in 1998.( Kentaro Iwatsubo, 2005) Literature Review There are many countries in Asian, and in this assignment we have choose few countries as comparison. That is Japan, Indonesia, Hong Kong and Vietnam about their countrys capital market. JAPAN The business firms from Japan have relationships with commercial main banks. The main banks may hold the equity interests in their credit clients in turn, including investment banks. We study the impact of the relationships between firms, main banks as well as investment banks in Japans initial public offering (IPO) underwriting market. By issuing firms can choose whether to engage an investment bank that is related, by virtue of sharing the same main bank, or to engage a non-related investment bank. There are one of the literature concerns on the effects of banking relationships on access to credit and the cost of raising capital. First, the banking relationships and access to credit according to Stiglitz and Weiss (1981) observe that market frictions related information asymmetry can restrict the flow of the capital to investments. However, Petersen and Rajan (1994) hypothesize that by producing information about firms and using the information in their decisions can be partia lly solving the problem of market friction to the creditors. There are small effect on the cost of credit if ties with creditors, but the available of credits financing is more for firms with ties. Secondly, there are the concerns about commercial bank integration into investment banking. Based on Rajan (1992) models the borrowers choice between informed bank debt and arms length public debt as an aspect of the firms effort to offset the benefits of the related lenders ongoing monitoring against the lenders bargaining power. If banking relationships yield information advantages, then integration of commercial banking and investment banking may enhance a lenders bargaining power. In addition, a lender that is integrated is faced with a conflict of interest, in that the proceeds of capital market financing may be used inappropriately to extinguish risky bank debt. Thirdly, the concern about choice of organizational structure. It is given the tension between information cost savi ngs and conflict of interest, the structure of banking organizations can be expected to reflect efforts to realize information cost savings while lessen the conflicts. From Kroszner and Rajan (1997), he use pre-Glass-Steagall data to investigate that how integration affects issue of quality and pricing. They have concluded that market pressures induced commercial bank to address conflicts by choosing levels of integration into investment banking thats is separately incorporated affiliates versus integrated investment banking departments. Indonesia According to Fisman, (2001), the valuable resources for many firms are political connections, however, the connections impact firms strategies and their long-run financial performance are only a handful of studies that document (Faccio, 2002; Johnson and Mitton, 2003). The study shows that the consequences of political ties are a particular interest because these ties are often inconsistent with other value-creating business strategies. By taking the benefit at face value, it is difficult to understand why only a minority of companies access foreign capital markets. Domestic opportunities significantly reduce the net benefits of foreign securities for some firms are a core idea. For instance, the firm with political ties often receive low price loan from state-owned banks (Faccio, 2002; Wiwattanakantang et al., 2006), so they do not need to tap into foreign capital markets. It is also possible that global financing imposes extra costs on closely connected firms because the decision to cross-list shares on foreign exchanges often forces firms to adapt to the regulations that govern these markets (Coffee, 2002; Reese and Weisbach, 2002; Siegel, 2005). If only minority of shareholders are better protected abroad, then the foreign securities issue will becoming expensive for controlling owners accustomed to exploiting domestic investors. Equally, the international business press and foreign analysts will only pay attention on the firms with foreign securities (Baker et al., 2002; Lang et al., 2003). However, the political favours that often dubious legality is difficult to be reconciled by the high levels of public scrutiny. Hong Kong Steen, P. Carey (2006) said that the relationship between hot issues markets and under pricing is well documented in IPO literature. Hot issues markets are characterized by a large number of offerings, concentration of new issues in particular industries, preponderance of smaller issues, frequent over subscription and abnormally high initial returns, Ibbotson and Jaffe (1975). Steen, P. Carey (2006) wrote that Hong Kong IPO market given the size and importance of Hong Kong Stock Exchange (HKSE). That is Hong Kong Stock Exchange Market play an important role in the economy in Hong Kong. We can see Hong Kong economy by viewing it stock exchange market; by this we can also know the capital of the country. Several market conditions have been considered in the context of examining initial under pricing within the papers that have been written. Dawson and Hiraki (1985) in their research of the Hong Kong IPO market between 1979 and 1984 note that under pricing appeared to be superior d uring growing markets than declining markets. Steen. P. Carey (2006) state that their study predates the unification of the four Hong Kong stock exchanges in April 1986 into one central exchange (HKSE). McGuinness (1992), find out that the Hong Kong IPO market from year 1980 to 1986 that reports under pricing was completely linked with the state of market giving support to the suggestion of Beatty and Ritter (1986) that under pricing increases during the raising market period and decreases during the diminishing markets. In the stage of under assessment, Asian financial markets suffered one of the most severe and protected reversals of the post war period. Steen, P. Carey (2006). The collision of market situation on IPO under pricing was likely moderated in Hong Kong by the fundamental stability and formation of financial system. Miller (1998 p.277) said that Hong Kong was able to avoid devaluation because it has a monetary and foreign exchange system that is fundamentally differ ent from that of the rest of Southeast Asia. Hong Kong has a exchange board but no central bank, and as Miller show that the resident of Hong Kong have the confidence in the exchange board. An additional resource of potency is that the financial stability and transparency of Hong Kong companies had extensively privileged interest coverage and return on equity than those in other Asian countries. Jaggi (1997) also found out that the performance and strength of Hong Kong companies is consistent because the company used the company information to monitor it. In year 1997 there is a financial crisis occurred in Hong Kong when Hong Kong is beyond dispute. Chowdry and Goyal (2000) propose that the characteristic to define a country that experiences financial crisis will face a huge falling in its traded equity prices. In general, research investigating the impact of market condition on IPO underpricing has a well defined event which is recognized with the conversion from hot to cold. S teen, P. Carey (2006), found out that the year 1997 provides a unique measurement challenge as two significant events affected Hong Kong in that year; the 27 October stock market correction and the political return of Hong Kong to Chinese rule on June 30. When the Hong Kong is tender to Chinese, this historical event has a huge impact on Hong Kong Stock Exchange. The political handover was an exclusive event and many people celebrate for it, it was connected with a period of hesitation and was followed soon after by the October 27 stock market correction. This uncertainty happens because the investor is unsure about the post handover economic and monetary performance of Hong Kong. Sub theory In capital market, there will be variety of investors for a company or firms who are wanted to expand their business. Moreover, there are some of the firms who need the investors not because to expand their business, but also to support their businesses start up. Angel Investor Individual investors who buy equity in small private firms are called angel investors. Mostly, the first round of outside private equity financing is often obtained from angels. These investors included friends or acquaintances of the entrepreneur. The business receives a sizeable equity share for their funds because their capital investment is often large relative to the amount of capital already in place at the firm. Thus, these investors may have substantial influence in the business decisions of the firm. Besides that, angels may also bring expertise to firm that the entrepreneur lacks. There is a difficulty on finding angels since it is a function how well a firm connected the entrepreneur is in the local community. Venture Capital Firms Venture capital is a limited partnership specializes in raising money to invest in the private equity of young firms. Moreover, venture capitalist is defined as a person or investment firms that makes venture investment. Besides that, they are also expected to bring managerial and technical expertise and capital to their investment. Furthermore, venture capital is fascinated to the fresh company with the limited operating history which is too small to raise capital to the public market. This is because they are yet to reach the levels that are able to secure a bank loan as well as debt offering. The differentiation between Angel Investor and Venture Capital There are different between angel investor and venture capital. Angel investors are always the provider of risk capital to the small or private firms. In addition, the providers are not from the intermediary of other company, but they are wealth people. Moreover, angels are always as the second round of financing start-up goes through, before the firm looks for venture capital partnership, but it is after they has exhausted of all their family and friends money. On the other hand, venture capital is the investors who invest their capital to a firm as part of the companys partners. So, the company will be the part of the partnership, and they are allowed to vote and make decision. Then, angels investors are only waiting for the return earns from company to them, and they are never go learn deeper to the company. Furthermore, they are not vote or make decision as part of the firm they had invested. However, the venture investors will be planning and finding the way on how much their investment will earn them the amount of returns. Initial Public Offering (IPO) IPOÂÂ  is an acronym for InitialÂÂ  Public Offering. An IPO is the first sale of shares in a company to the public. When IPO occurs, a company will be listed in Bursa Malaysia, and shares will begin to trade immediately. The IPO market goes in cycles depending upon the appetite of investors for new issues. Often the share price will increase quickly after an IPO, so purchasing shares at the IPO price may be a covetedÂÂ  investmentÂÂ  opportunity. When management says it plans to take a company public, it means that an eventual IPO is planned. A successful IPO can raiseÂÂ  a large amount of capital for the newlyÂÂ  public companyÂÂ  and create substantial wealth for insiders who owned shares prior to the IPO. The differences between public and private is that public company can offer its stock to the public in huge amount, while private company is restricted to only friends and family members. Going public is important for those company which wa nt to raise their capital. There are some pro and cons for going public. The Advantages of an Initial Public Offering (IPO) The public offering increased the company stock and value this is so call increased in capitalization of the business. The stock can be used for various activities for instance: currency for mergers and acquisitions, as stock option to help maintain key personnel, they may also sell their shares in the open market. The company will have the better access to the stock markets for future capital inflow. In general terms, the companys valuation and debt to equity ratio will perk up after going public. Company is able to receive much better terms from lenders. The company which going public is easier to promote compare to the company that are private. We can view the achievement of the public company in Bursa Malaysia and thus it had a higher recognition than private company. This benefit raises the public relation images and identifies the stability of a public company. IPO can provide the company with a chance to implement share options schemes for its workforce. This scheme is competent to enhance employee morale, maintain the loyalty of staff to company, and catch the attention of first rate employees. In long term, this can raise the employees productivity and increase the profitability of a company. The Disadvantages of an Initial Public Offering (IPO) For a company which going public need higher reporting requirements, it means further obligations and reporting requirements as public companies have to fulfill the range of regulatory necessities and meet accepted standards of corporate governance. For example, listed companies need an auditor to audit their account and report the financial statement and publish the annual report in the Bursa Malaysia. As the annual report is going to publish in the Bursa Malaysia annually, the company is said to be losing it privacy. The company needs to disclose the report honestly to the public. They cannot hide any details regarding stock option plans, details of lease agreements, gross profit, net income and its borrowing. The others disadvantages is when a company go public, they have to offer the shares to the public or in other word which means that the business owners will have to share it ownership with other investor, and shareholders can affect the company operations; they can vo ice out their opinion and decisions. Conclusion As a conclusion, each country has different experience about the economic growth and the capital markets. Every country applies different style, for Hong Kong they do not have central bank and for Japan they have many commercial banks that they call as main bank. The capital market of the country can be view by the venture capital in the market or the listed company in the stock exchange market. The listed company in the stock exchange market show that the investment of the public to the achievement of the capital market in the country. It reveals how much wealth the country has and how good was the economics of the country.

Children With Dementia And Parkinson s Disease - 1488 Words

1. Introduction Dementia is a collection of symptoms caused by disorders affecting the brain which impact on a person’s functioning, ranging from thinking to behaviour and the ability to perform ordinary tasks and there are different type of dementia with the most common types being Alzheimer’s disease, vascular dementia and Parkinson’s disease (Keast, 2015). In 2009, nearly two-thirds (62%) of people identified as having dementia or Alzheimer s disease were living in a health establishment such as a nursing home, an aged care hostel, or the cared component of a retirement village (Australian Bureau of Statistics, 2012). People with dementia experience problems with communicative, cognitive and emotional tasks. 2. Immediate issues of†¦show more content†¦Her cognitive decline has an effect on her quality of life and function due to problems of memory, planning, language and attention. There is a risk of malnutrition as Wander is unable to feed herself and is reported to be refusing her meals hence, needing to be fed. The presence of verbal and physical aggression towards care staff is a challenging concern that needs immediate intervention for her safety and that of care staff. The patient has insomnia and this could be contributing to her aggression. She is reported to be calling out in both Polish and English and this indicates that she is having communication problems and this could be a barrier causing her to be frustrated as he cannot communicate her needs effectively. Wanda has a history of arthritis and pain is another issue for her that may be causing aggression. According to Ahn Horgas, (2014) pain in dementia is positively correlated with disruptive behaviours i.e. aggre ssion and agitation. 3. Stages of Alzheimer’s disease Alzheimer’s is an irreversible disease normally affecting the elderly population and is progressive in nature causing degeneration that leads to impairments in memory, reasoning, planning, and behaviour. It is a neurodegenerative disorder that adversely affects neurons in the brain, ultimately resulting in loss of memory and language, behavioural disturbances, and dependence on caregivers (Phillips, Baktir, Das, Lin Salehi, 2015, p. 1047). Alzheimer’s has 3

Developing Capacity Portable Water Purifierâ€Myassignmenthelp.Com

Question: Disuses About The Developing Capacity Portable Water Purifier? Answer: Introduction This report reflects the key understanding on the issues and factors faced by promoters while developing capacity portable water purifier. This developed low cost, low capacity portable water purifier will be used to provide portable water to large population around the globe. However, two promoters John and Mike are facing several issues such as financial problems, handling factors and arrangement of employees and technicians. Throughout the time, company has phased life cycle stage problem of this developed portable water purifier product. The main problems in the development of life cycle stage of product of company are related to the newly sophisticated products offered by new entrants in market. However, with a view to reduce the complexity of business, company has decided to enter into sustainable joint venture. This SJV contract will mitigate all the issues and make the portable water purifier products backed by new technologies. Team members of company who will undertake Sustainable joint venture with Vic Solar Company Mike, John, Maria and Graham are the main persons who will enter into SJV What is Sustainable joint venture? It is observed that with the increasing ramified economic changes and threats posed by new entrants in the market, Sustainable solution Pvt ltd has been facing various problems and issues while selling capacity portable water purifier product in market. Furthermore, government has also shifted its inclination towards new entrants in the market. SJV is the joint venture which is made by sustainable solution PVT ltd with the Vic solar with a view to use its newly developed sophisticated technologies. This newly entered contracted named SJV will help capacity portable water purifier to come with effective level of services and mitigating possible high cost attached with the maximum retail price of the product in market (Hubrich, Tetlow, 2015). Issues faced by Sustainable Solution Pvt ltd and failure of SJV agreement in the market There are several problems faced by Sutinble solution Pvt ltd in the market after entering into contract with the Vic Solar Company. The main problem was related to breakthrough in 2011 in form of failure to meet the capacity as per the directions of government. In addition to this, SJV contract should have been resulted to 22% to 25% but to other unforeseen factors, the profit earned by company through SJV contract resulted to 16% which was very less as estimated. However, the project undertaken by companies under SJV contract went wrong right from the beginning and shown inability to supply 12,000 solar panel to the project deadline. This failure damaged the brand image of company and increased the overall finance cost. The amount of benefits received by company from the market is also eliminated and increased the overall cost of the products in the market (Hubrich, Tetlow, 2015). How and when it went wrong After evaluating all the factors, it could be considered that SJV contract with was beneficial one and could have shown high amount of profit if associated factors have taken into consideration in determined approach. The main problem was related to finance and money involved in project. There were several new entrants who were providing imitated solar products at very cheap rate in the market. It is considered that after entering into SJV contract, both companies promised to deliver 12,000 solar panel before deadline (Santamouris, 2016). These levels of failure destruct the functioning of organization and resulted to destruction of business. After that, with a view to comply with the requirement, SJV hurry in imported cheaper product and failed to meet the required capacity as per the standard. In addition to this, SJV negotiate the contract with the Vic solar to provide effective level of technologies to strengthen the solar power as per the required capacity (Hubrich, Tetlow, 201 5). Mitigation of issues faced by John and Mike in their developed capacity portable water purifier product In order to mitigate all the issues and problems faced by Sustainable solution put ltd, company will make proactive plans and implement forecasted planning and policies to make solar power work effective. It is further observed if company could mitigate the alliance problem and put cap on the failure to comply with the use of technologies then it may increase the success chances of new solar power contract. This time company has to evaluate all the variable factors and use of new technologies to overcome the solar power issues (Kandasamy, et al. 2014). Technical strength of Vic solar Vic solar has sophisticated technologies and installed plan which will increase the overall power supply in SJV contract for Sustainable private limited company (Mitragotri, Burke Langer, 2014). With the use of newly introduced Vic solar technologies, company could increase the overall profit of company by 20% in the market while supplying solar power. Vic solar has various joint ventures with other companies and its working experience will result to core competency in supply solar power with high capacity (O'Sullivan, et al, 2014). The formula and set functions Vic solar use in its supply chain management is highly secure and increase the effectiveness of users in using power supply of SJV in market (Saikku, et al. 2017). Other rivals are using low level of substance and factors which might be cheap but less effective as well (Ldeke-Freund, 2014). Source panel, plants and machines used by Vic solar is highly international plants and provide more effective result to clients in market as compared to other rivals. Assurance of Vic Solar It is considered that SJV failed in the market and also did not perform as per the required level of compliance program. The main problem was related to delivery of solar power supply in the market with in the deadline (Zhang, 2016). However, in order to mitigate these associated problems in determined approach, SJV will hire internal control department to mitigate the possible issues. It is observed that if SJV could increase its production process by 20% then it could deliver the promised products with the deadline. However, increased capacity of 20% could also enhance the overall capacity of SJV in the market and will result to delivery of determined solar power supply for clients. With the use of Vic Solar sophisticated and highly developed technologies, SJV will surely increase the efficiency and business functioning to provide more solar power to clients. In addition to this, these imported plants will also make these established products effective in market and increase the ov erall clients satisfaction in the solar market in determined approach. The technical experts of Vic Solar will showcase high level of core competency in generating solar power in the market (Keyhani, 2016). Financial situation of SJV SJV is the strategic alliance made between Sustainable solution pvt ltd and Vic solar company to increase the overall efficiency of the solar project. It is observed that due to unforeseen factors, company has failed to deliver the committed solar power to its clients within the set deadlines. In addition to this, the products and services sold by company in the market are also very costly which result to increase the overall turnover of company. SJV has also faced decreased in its overall profit by 10% which has destruct its financial capacity. Government and other authorities have also declined to deliver the funds and contributions to support the SJV solar functioning. However, with a view to strengthen the financial situation of company, company will have to raise its overall turnover and inject more money in organizations capital (Mathews, et al. 2016). Strategies to come out the financial mess VOI solar and other SJV both are facing financial problems due to its low level of turnover and non-effective solar power supply. In order to mitigate these issues, both VOI solar and SJV need to implement following strategies (Brand, et al. 2016). Injecting more capital in the financial structure of company Increasing the debt funding to reduce the overall cost of capital Hiring of financial management department to manage the finance in business. Maintain the legal department to comply with the legal and ethical issues in business SJV contract has faced the problem due to delay in working and delivering the VOI solar to clients. In addition to this, company has other issues which have decreased its overall profit to 16% and overall turnover. This level of decrease in profit will surely result to destruct the value creation of invested capital of company (Gayer, et al. 2016). Determining the price of new PPA in the market With the negative cash flow and increasing competition from the new entrants in business, company needs to fix price of new PPA to AUD $ .08 to .10/KWH. There will be following outcomes which will be faced by company in market if price of new PPP set to AUD $ .08 to .10/KWH (Memos, et al. 2017). Company could increase its overall profit by increasing the overall turnover. SJV at the price of new PPA to AUD $ .08 to .10/KWH will beat the competitions and rivals offering in solar power. SJV selling its solar power products of new PPA to AUD $ .08 to .10/KWH could increase its brand image and clients satisfaction in determined approach. Setting up of new financial management plan and corporate prepared plan with the collaboration of Vic Solar will increase the overall efficiency of solar power products in market. How to work on existing SJV to come out of financial stress It is observed that proposed SJV of company will increase the overall effectiveness of PPA and comply with the new rules and regulations of Ministry of New and Alternative Energy (MNAE). Changes in existing financial structure and implementing new strategic alliance will increase the overall efficiency of business (Shriver, et al. 2015). Road map for future of newly introduced It is observed that sustainable solution pvt ltd will have to deal with the pricing policies and other new offers made by rivals in the market. It is observed that power solar offer by company in market was accompanied with several issues such as not technically developed, delay in supply and having high cost of the products. It has shown that company needs to manage all these issues and factors in determined approach. However, financial problems and legal problems faced by company are managed by company by implementing separate legal and finance department. However, with a view to strengthen the financial situation of company, company should raise its overall turnover and inject more money in organizations capital. If company should undertake proper level Vic Solar sophisticated and highly developed technologies then efficiency and increased level of solar power to clients will be handled in determined approach. References Brand, L. A., Farnsworth, M. L., Meyers, J., Dickson, B. G., Grouios, C., Scheib, A. F., Scherer, R. D. (2016). Mitigation-driven translocation effects on temperature, condition, growth, and mortality of Mojave desert tortoise (Gopherus agassizii) in the face of solar energy development.Biological Conservation,200, 104-111. Gaier, J. R., Vangen, S., Abel, P., Agui, J., Buffington, J., Calle, C., ... Pirrotta, S. (2016). International Space Exploration Coordination Group Assessment of Technology Gaps for Dust Mitigation for the Global Exploration Roadmap. Hubrich, K., Tetlow, R. J. (2015). Financial stress and economic dynamics: The transmission of crises.Journal of Monetary Economics,70, 100-115. Kandasamy, N., Hardy, B., Page, L., Schaffner, M., Graggaber, J., Powlson, A. S., ... Coates, J. (2014). Cortisol shifts financial risk preferences.Proceedings of the National Academy of Sciences,111(9), 3608-3613. Keyhani, A. (2016).Design of smart power grid renewable energy systems. John Wiley Sons. Ldeke-Freund, F. (2014). BPs solar business model: A case study on BPs solar business case and its drivers.International Journal of Business Environment,6(3), 300-328. Mathews, N., Rao, N., Pattnaik, B., Prasad, G. S. (2016, December). Grid tied Roof top solar: Problems, learnings and solutions. InSustainable Green Buildings and Communities (SGBC), International Conference on(pp. 1-5). IEEE. Mehos, M., Turchi, C., Vidal, J., Wagner, M., Ma, Z., Ho, C., ... Kruizenga, A. (2017).Concentrating Solar Power Gen3 Demonstration Roadmap(No. NREL/TP-5500-67464). NREL (National Renewable Energy Laboratory (NREL), Golden, CO (United States)). Mitragotri, S., Burke, P. A., Langer, R. (2014). Overcoming the challenges in administering biopharmaceuticals: formulation and delivery strategies.Nature reviews. Drug discovery,13(9), 655. O'Sullivan, J., Rogers, A., Flynn, D., Smith, P., Mullane, A., O'Malley, M. (2014). Studying the maximum instantaneous non-synchronous generation in an island systemFrequency stability challenges in Ireland.IEEE Transactions on Power Systems,29(6), 2943-2951. Saikku, L., Tainio, P., Hildn, M., Antikainen, R., Leskinen, P., Koskela, S. (2017). Diffusion of solar electricity in the network of private actors as a strategic experiment to mitigate climate change.Journal of Cleaner Production,142, 2730-2740. Santamouris, M. (2016). Innovating to zero the building sector in Europe: Minimising the energy consumption, eradication of the energy poverty and mitigating the local climate change.Solar Energy,128, 61-94. Schrijver, C. J., Kauristie, K., Aylward, A. D., Denardini, C. M., Gibson, S. E., Glover, A., ... Jakowski, N. (2015). Understanding space weather to shield society: A global road map for 20152025 commissioned by COSPAR and ILWS.Advances in Space Research,55(12), 2745-2807. Zhang, S. (2016). Innovative business models and financing mechanisms for distributed solar PV (DSPV) deployment in China.Energy Policy,95, 458-467.

What is WordPress Hosting

So youve already made the smart choice to go with WordPress for your website. Now, youre on to making the next important decision for your site: hosting. Among a barrage of terms like shared, dedicated, and VPN, youve come across this thing called WordPress hosting. So what is WordPress hosting? WordPress hosting is just hosting that has been optimized to better meet WordPress performance and security needs. It also typically includes one-click WordPress installs to make it easy to get started with WordPress. And some WordPress hosts will even automatically update your WordPress software as needed.There are two main types of WordPress hosting shared WordPress hosting and managed WordPress hosting. Ill discuss each in more detail below.TL;DR: The main differences explained in videoDo you need WordPress hosting to run WordPress?No. WordPress minimum requirements are fairly insignificant. All you need is a host with PHP version 5.2.4 or higher and MySQL 5.0.15 or higher to run WordPre ss. In plain English, what this means is that every host is technically capable of handling WordPress.But that doesnt mean that all hosts are equal when it comes to running WordPress. I mean, technically eating Soylent Green every day for the rest of your life will provide you all the nutrition you need to live. But that doesnt mean its the best recipe for a happy life!So, if you want to go beyond just hosting a WordPress site, a quality WordPress hosting can help you run WordPress better.Looking into what is WordPress hosting, our sister-site, CodeInWP, ran a survey of WordPress site owners and found that those site owners who hosted with WordPress-optimized hosts reported better overall satisfaction with their host across a number of metrics.What is shared WordPress hosting?As I mentioned, youll typically see two types of WordPress hosting in your search:Shared WordPress hosting (often just shortened to WordPress hosting)Managed WordPress hostingShared WordPress hosting is almost always the cheaper of the two options.With shared WordPress hosting, your site will share a server with other websites. Your server will still be performance-optimized for WordPress, you just wont have it all to yourself.In addition to the performance tweaks, youll also get access to some type of a one-click WordPress installer. Honestly, this isnt a huge draw because cPanel (available on most hosts) already includes a one-click WordPress installer. However, some shared WordPress hosts will go a step further and give you the option of pre-installing WordPress.Finally, some WordPress hosts will offer to automatically upgrade your WordPress software. Sometimes they will even upgrade your plugins and themes too! Keeping your WordPress site updated is an essential security measure, making this feature actually quite important.You may find some shared WordPress hosts which offer even more WordPress-specific features, but the above are pretty much the base standard.Shared WordPress hosts typically offer steep discounts for your first billing cycle. After that, prices jump back to normal. For your first billing cycle, you can expect to pay as little as $3-4 per month. After your first cycle, youll typically pay from $7-10. Remember those are just starting prices higher tier shared WordPress plans run more expensive.Typical pricing for shared WordPress hostingWhat is managed WordPress hosting?If shared WordPress hosting is a clean 3-star hotel, managed WordPress hosting is a 5-star resort with beachfront views.In addition to everything offered by shared hosting, managed WordPress hosting typically offers:Faster speeds. Managed WordPress hosting just plain offers better hardware specs, which means a speedier WordPress site.Server-side caching. Caching is one of the biggest things you can do to speed up your WordPress site. Typically you need a plugin to handle it, but managed WordPress hosts give you better caching with zero work on your end.Better security. Youll ge t WordPress-specific firewalls, as well as regular malware scans and intrusion detection. All that jargon means a significantly more secure WordPress site.Staging sites. Many managed hosts offer staging sites which allow you to easily test changes to your site before you make them live.So whats the catch? Managed WordPress hosting is more expensive. With a few exceptions like SiteGround and Flywheel, youll generally need to pay in the range of $25+ per month for quality managed WordPress hosting.Should you choose shared or managed WordPress hosting?The standard refrain is that beginners should choose cheap shared WordPress hosting and high-traffic sites should choose managed WordPress hosting. I generally agree with that analysis, but I think it overlooks one fact:Time is money.If youre a beginner its easy to get overwhelmed trying to do things like configure caching and stay on top of updates. When you go with managed WordPress hosting, you dont have to worry about any of that.Yes , you are paying more money. But that extra money means you have to spend less time managing the performance of your website. Would you pay an extra $15 per month to save 3 hours of banging your head against the wall trying to figure out exactly how best to tweak your caching plugin? I know I would.So, if budget is your primary concern, by all means go with shared WordPress hosting as a beginner. Just remember that, for the cheaper price, you are missing out on the concierge services offered by managed WordPress hosts.Recommended WordPress hostsYouve made it this far, you now know what is WordPress hosting, so how about some WordPress hosting recommendations?Through a combination of individual reviews and our crowd-sourced WordPress hosting survey, I feel confident recommending these WordPress hosts:SiteGround Read our SiteGround review. SiteGround starts at $11.95 per month ($3.95 with promo price) and offers shared hosting with some managed features.SiteGround offers shared WordP ress hosting with some managed features.A2 Hosting Read our A2 Hosting review. A2 hosting starts at $7.99 per month ($2.96 with promo price) and offers surprisingly fast speeds for a shared WordPress host.Flywheel Read our Flywheel Review. Flywheel starts at $23 per month and offers managed WordPress hosting.Kinsta Read our Kinsta Review. Kinsta starts at $30 per month and offers high-end managed WordPress hosting.If you have any further questions about what is WordPress hosting, leave them in the comments and Ill do my best to help! What is #WordPress #hosting? Your answers here