6835$6(*0(17$/$1$/<6,62)(1*/,6+
,QWURGXFWLRQ
,Q WKLV FRXUVH ZH KDYH EHHQ ORRNLQJ DW KRZ LQGLYLGXDO VRXQGV DUH
SURQRXQFHG SKRQHPHV DQG DOORSKRQHV RU KRZ WKH\ FKDQJH ZKHQ
WKH\DUHSURQRXQFHGLQ WKH VSHHFK FKDLQ FRQQHFWHG VSHHFK ,Q WKLV
XQLW ZH ZLOO ORRN DW SURVRG\ DOVR FDOOHG VXSUDVHJPHQWDOV ZKLFK
GHDOVZLWK
‡ WKH ZD\ LQ ZKLFK DQ XWWHUDQFH LV EURNHQ LQWR FKXQNV :H ZLOO FDOO
WKHVHFKXQNV WRQH XQLWV ZKLFK KDYH WR GR ZLWK WKH VSHFLDO UK\WKP
WKDW(QJOLVKKDV
‡ZLWKLQDWRQHXQLWWKHUHLVDZRUGWKDWKDVPRUHHPSKDVLVWKDQWKH
RWKHUV WKLV LV FDOOHG QXFOHDU VWUHVV &RPSDUH WKH IROORZLQJ
TXHVWLRQV
18&/($5675(66
)2&86
&DQ , ERUURZ WKLV ERRN IRU D ¶,RQO\ZDQWLWIRUDZHHNQRWDPRQWK¶
:((."
&DQ , ERUURZ WKLV %22. IRU D ¶QRWWKLVYLGHRWDSH¶
ZHHN"
&DQ , ERUURZ 7+,6 ERRN IRU D ¶WKLVERRNQRWWKHRWKHURQH¶
ZHHN"
&DQ , %2552: WKLV ERRN IRU D ¶,¶PRQO\ERUURZLQJLW,¶PQRWWDNLQJLW¶
ZHHN"
&DQ , ERUURZ WKLV ERRN IRU D ¶GR
ZHHN"
\RX
WUXVW
PH
LQ
FRQWUDVW
VRPHRQHHOVH"¶
$OO WKHVH TXHVWLRQV KDYH WKH VDPH PHDQLQJ RI FRXUVH EXW WKH
LQIRUPDWLRQIRFXVFKDQJHVLQHDFKRQH
,Q DGGLWLRQ WR ZRUGV LQ VHQWHQFHV ZH ZLOO DOVR ORRN DW ZKLFK V\OODEOH
ZLWKLQDZRUGLVVWUHVVHG
‡ WKH WRQH RI YRLFH DOVR FKDQJHV LQ GLIIHUHQW XWWHUDQFHV RU LW FDQ
FKDQJH WKH VHQVH RI LGHQWLFDO XWWHUDQFHV 7KH LQVWUXFWRU ZLOO UHDG WKH
IROORZLQJGLDORJLQFODVV
+H
5HDG\
6KH
1R
+H
:K\
6KH
3UREOHPV
+H
3UREOHPV
6KH
<HV
+H
:KDW
6KH
%DE\VLWWHU
WR
+RZ GRHV WKH WRQH RI YRLFH FKDQJH LQ WKLV GLDORJ" 1RZ OLVWHQ WR WKH
IROORZLQJ VHQWHQFHV DQG WU\ WR GHFLGH ZKHWKHU WKH VSHDNHU ZKR LV
DVNLQJWKHPLV685(RU81685(RIWKHVWDWHPHQWV
8WWHUDQFH
6XUH
8QVXUH
<RXUQDPHLV'DYLGLVQ¶WLW"
7KLVVXPPHUZLOOEHKRWZRQ¶WLW"
<RXZDQWHGWRJRGLGQ¶W\RX"
7KHVHFKDQJHVRIWKHWRQHRIYRLFHDUHFDOOHGLQWRQDWLRQ
7KHV\OODEOH
9RZHOVDQGFRQVRQDQWVDUHQRWXQRUGHUHGLQPHDQLQJOHVVVXFFHVVLRQ
WKH\DUHJURXSHGLQµSDFNV¶WKDWDUHWHFKQLFDOO\FDOOHG V\OODEOHV7DNH
IRUH[DPSOHWKHIROORZLQJSRHP
³:KHQHYHUDFURZG,DGGUHVV
,IHHODZKROHORWRIGLVWUHVV´
:K\ GR WKHVH YHUVHV UK\PH" 7KH DQVZHU LV REYLRXV WKH KDYH WKH
VDPHHQGLQJ±UHVVDQGWKDWHQGLQJLVIRUPHGE\V\OODEOHV
6\OODELFVWUXFWXUH
7KH WZR PDLQ FRQVWLWXHQWV VWUXFWXUHV ZLWKLQ D V\OODEOH DUH WKH
RQVHW2DQGWKH UK\PH 5,QWKHZRUGSLOOIRUH[DPSOHWKHILUVW
VHJPHQW
R FRQVWLWXWHV WKH RQVHW RI WKH V\OODEOH DQG WKH ODVW WZR
+ DQG N WDNHQ WRJHWKHU IRUP WKH UK\PH :K\ GR ZH
VHJPHQWV
GLYLGH V\OODEOHV LQWR WKHVH SDUWV" ,Q UK\PLQJ LW LV WKH YRZHO LQ WKH
V\OODEOHDQGDQ\VRXQGV ZKLFK IROORZ LW ZKLFK GHWHUPLQH LI WZR ZRUGV
UK\PH DV LQ WKH FDVH RI µDGGUHVV¶ DQG µGLVWUHVV¶ LQGHSHQGHQWO\ RI
WKHVRXQGVLQWKHRQVHW7KLVLVZK\ZHQHHGWRGLIIHUHQWLDWHEHWZHHQ
RQVHWDQGUK\PHWKH\DUHLQGHSHQGHQWVWUXFWXUHV
7KHUK\PHLVGLYLGHGLQWRQXFOHXV1DQGFRGD&,QWKHZRUGSLOO
WKH YRZHO
+ LV WKH QXFOHXV DQG WKH FRQVRQDQW N LV WKH FRGD
6\OODEOHVDUHQRUPDOO\UHSUHVHQWHGLQV\OODEOHWUHHV
SLOO
2
5
1&
SLOO
$ V\OODEOH PXVW KDYH D QXFOHXV EXW LW LV SRVVLEOH WR KDYH D V\OODEOH
ZKLFKGRHVQRWFRQWDLQDQ\HOHPHQWRWKHUWKDQDQXFOHXVH\H
G+FRXOG\RXILQGPRUHH[DPSOHV"
C+
$
7KH VRXQG RFFXS\LQJ WKH QXFOHXV LV QRUPDOO\ D YRZHO WKHUH FDQ EH
DOVR VRPH FRQVRQDQWV FDOOHG SUHFLVHO\ V\OODELF FRQVRQDQWV 7KH
VRXQGV SUHFHGLQJ LQ WKH RQVHW DQG IROORZLQJ LQ WKH FRGD WKH
QXFOHXV DUH QRUPDOO\ FRQVRQDQWV %RWK WKH RQVHW DQG WKH FRGD PD\
EUDQFKWKDWLVWKH\PD\FRQWDLQPRUHWKDQRQHVRXQG)RUH[DPSOH
WKHZRUGµSODQN¶ SO41N
SODQN
2
5
1&
SO
D
QN
6\OODEOHV WKDW KDYH QR FRGD DUH RSHQ V\OODEOHV DQG V\OODEOHV WKDW
KDYHDFRGDDUHFORVHGV\OODEOHV$QH[DPSOHRIDQRSHQV\OODEOH
SOD\
25
1
SOD\
$QH[DPSOHRIDFORVHGV\OODEOH
VLW
25
1&
VLW
3KRQRWDFWLFV
7KHRFFXUUHQFHRIVRXQGVLQ V\OODEOH VWUXFWXUH LV UHVWULFWHG E\ FHUWDLQ
UXOHV FDOOHG SKRQRWDFWLFV ,I \RX DVN DQ (QJOLVK VSHDNHU ZKHWKHU WKH
ZRUG µ1JDOD¶ PD\ EH D SRVVLEOH (QJOLVK ZRUG WKH\ ZLOO FHUWDLQO\
DQVZHU WKDW LW LVQ¶W :K\" %HFDXVH ±QJ± LV QRW D SRVVLEOH RQVHW LQ
(QJOLVK 5HPHPEHU WKDW RQVHWV DUH IRUPHG E\ WKH FRQVRQDQWV WKDW
SUHFHGHWKHYRZHO
7KHVRQRULW\VFDOH
,Q DQ\ XWWHUDQFH VRPH VRXQGV DUH PRUH VRQRUDQW WKDQ RWKHUV :KDW
GRHV WKLV PHDQ" )RU LQVWDQFH LQ (QJOLVK ZKHQ RQH ZDQWV WR DWWUDFW
VRPHRQH¶V DWWHQWLRQ WKH\ W\SLFDOO\ XVH D YRZHO OLNH ³R\´ RU ³HK´
QHYHU D FRQVRQDQW OLNH S RU O 1RWLFH DOVR WKDW LI ZH VKRXW RXW IRU
KHOSLWLVWKHYRZHOWKDWZHZLOOOHQJWKHQIRUHPSKDVLVKHHHHHOSQRW
KKKKKHOS KHOOOOOOOS RU KHOSSSSS 7KH UHDVRQ IRU DOO WKLV LV WKDW YRZHO
VRXQGVUHDFKDJUHDWHUGLVWDQFHWKDQFRQVRQDQWVEHFDXVHYRZHOVDUH
PRUHVRQRURXVWKDQFRQVRQDQWV
6RXQGV FDQ WKHUHIRUH EH VHW XS LQ D VRQRULW\ VFDOH IURP PRUH
VRQRURXVWROHDVWVRQRURXV
YRZHOV
DSSUR[LPDQWV
QDVDOV
IULFDWLYHV
DIIULFDWHV
SORVLYHV
%\ DQG ODUJH WKH HOHPHQWV RI D V\OODEOH DUH DUUDQJHV DFFRUGLQJ WR
WKHLU VRQRULW\ ZLWK WKH PRVW VRQRURXV YRZHO LQ WKH QXFOHXV :KHQ
WZRFRQVRQDQWVRFFXULQWKHRQVHWRIDZRUGWKH\IROORZWKHVRQRULW\
VFDOHIURPOHVVVRQRURXVWRPRUHVRQRURXV
WUDLQSOHDVH
V LV OHVV VRQRURXV WKDQ WKH DSSUR[LPDQW T WKH
SORVLYHRLVOHVVVRQRURXVWKDQWKHDSSUR[LPDQWN
7KH SORVLYH
$QG WKH VDPH KDSSHQV LQ WKH FRGD WKLV WLPH IURP PRUH VRQRURXV WR
OHVVVRQRURXV
KHOSMXQN
N LV PRUH VRQRURXV WKDQ WKH SORVLYH R WKH QDVDO 1
LVPRUHVRQRURXVWKDQWKHSORVLYHM
7KH ODWHUDO
7KHUHDUHVRPHSKRQRWDFWLFIDFWVZRUWKPHQWLRQLQJ
1
/RQJYRZHOVDQGGLSKWKRQJDUHQHYHUIROORZHGE\
6KRUW YRZHOV DUH QHYHU WKH QXFOHXV RI DQ RSHQ V\OODEOH D ZRUG
P3 LV LPSRVVLEOH LQ (QJOLVK 7KLV LV ZK\ WKH )UHQFK ZRUG
OLNH µEDOOHW¶ SURQRXQFHG EDOp LQ WKLV ODQJXDJH EHFRPHV EªOH, LQ
(QJOLVK 6KRUW YRZHOV KDYH WR EH IROORZHG E\ D FRGD WKDW LV LQ D
FORVHGV\OODEOHDQGIRUWKLVUHDVRQWKH\DUHFDOOHG FKHFNHG YRZHOV
9RZHOV WKDW FDQ RFFXU ERWK LQ RSHQ DQG FORVHG V\OODEOHV DUH IUHH
YRZHOV
7KH FRQVRQDQW = RFFXUV DV DQ RQVHW LQ ZRUGV RI IRUHLJQ RULJLQ
OLNHJHQUHJLJROR=KLYDJR,QFRGDSRVLWLRQWKLVVRXQGRFFXUVRQO\LQ
ZRUGVRIUHFHQW)UHQFKRULJLQEHLJHURXJHFDPRXIODJH
,Q RQVHWV ZLWK WKUHH FRQVRQDQWV WKH ILUVW HOHPHQW LV DOZD\V V
WKH VHFRQG HOHPHQW PXVW EH D SORVLYH DQG WKH WKLUG HOHPHQW DQ
DSSUR[LPDQW([DPSOHVVFUHDPVWUD\DQGVSODVK
7KH(IIHFWRI6WUHVVRQWKH6\OODEOH
7KH VWUHVVHG YRZHO RI D SRO\V\OODELF ZRUG FDQ DOZD\V EH LGHQWLILHG
ZLWK WKH YRZHO RI VRPH PRQRV\OODELF ZRUGV )RU H[DPSOH WKH
VWUHVVHGYRZHORIDURPDLVWKHVDPHDVWKHYRZHORIURZ7RLGHQWLI\
XQVWUHVVHG YRZHOV LV QRW DOZD\V VR HDV\ 7KH PRVW FRPPRQ
XQVWUHVVHG YRZHO LV WKH RQH WKDW RFFXUV LQ WKH LQLWLDO DQG ILQDO
V\OODEOHVRIDURPDWKLVYRZHOLVFDOOHGVFKZDDQGLWLVUHSUHVHQWHGDV

,Q ORQJ ZRUGV WKHUH LV RIWHQ D VHTXHQFH RI VWURQJ DQG ZHDN
V\OODEOHVDOWHUQDWLQJZLWKRQHDQRWKHU
XQGHUVWDQG
SHQHWUDWH
SHQHWUDWLRQ
±±±±
7KH VWURQJ XQVWUHVVHG V\OODEOHV DUH VLPLODU WR VWUHVVHG V\OODEOHV LQ
FHUWDLQZD\V
VWURQJV\OODEOHVQHYHUFRQWDLQDVFKZD
YRLFHOHVV SORVLYHV DW WKH RQVHW RI D VWURQJ XQVWUHVVHG V\OODEOHV DUH
DVSLUDWHG FRPSDUH WKH DVSLUDWHG
V RI SHQHWUDWH DQG DUFKLWHFWXUH
VRIFDWHUSLOODU
ZLWKWKHXQDVSLUDWHG
D VWURQJ V\OODEOH LV SRWHQWLDOO\ D VWUHVVHG V\OODEOH $ SKUDVH OLNH
XQGHUVWDQGWKHDQVZHUPD\EH
XQGHUªVWDQGWKHªDQVZHU
EXWLWLVPRUHOLNHO\WREH
ªXQGHU©VWDQGWKHªDQVZHU
7KHV\OODEOHVWDQGUHPDLQVVWURQJHYHQZKHQXQVWUHVVHGMXVWDVXQ±
LVVWURQJZKHWKHUVWUHVVHGRUQRW
6WUHVV7LPLQJLQ(QJOLVK
:KHQ ZH VSHDN QDWXUDOO\ ZRUGV DUH SDUWV RI SKUDVH DQG ORQJHU
VHQWHQFHV:KDWZHKHUHLVDVHTXHQFHRIV\OODEOHVLQWLPHOLNHQRWHV
LQ PXVLF 7KH WLPH UHODWLRQVKLSV DPRQJ V\OODEOHV PDNH XS WKH
UK\WKP RI ODQJXDJH /XVW DV PXVLFDO QRWHV DUH RI GLIIHUHQW OHQJWKV
QRWHVQRWHVDQGDUHJURXSHGLQWRPHDVXUHVWLPH
WLPH V\OODEOHV DOVR PDNH SDWWHUQV WKDW KHOS XV WR ILJXUH ZKHUH
ZRUGV EHJLQ DQG HQG DQG ZKLFK ZRUGV DUH PRUH LPSRUWDQW WKDQ
RWKHUV
(YHU\ ODQJXDJH KDV LWV RZQ UK\WKP /RRN DW WKH WZR VHQWHQFHV
EHORZ:KLFKVHQWHQFHVRXQGVPRUHQDWXUDOLQ(QJOLVK":K\"
%LJEODFNGRJVFKDVHVPDOOZKLWHFDWV
$ELJEODFNGRJLVFKDVLQJDOLWWOHFDW
7KH DQVZHU LV QXPEHU DQG WKH H[SODQDWLRQ LV WKDW WKLV VHQWHQFH
KDV DQ DOWHUQDWLRQ RI VWUHVVHG DQG XQVWUHVVHG V\OODEOHV $OO WKH
V\OODEOHVDUHVWUHVVHGLQWKHILUVWVHQWHQFH
7KH UK\WKP RI (QJOLVK LQYROYHV DQ DOWHUQDWLRQ RI VWUHVVHG DQG
XQVWUHVVHGV\OODEOHVWKHIRUPHUEHLQJ VWURQJDQGWKHODWWHUQRUPDOO\
ZHDN UHGXFHG +DYLQJ D QXPEHU RI VWUHVVHG V\OODEOHV LQ VXFFHVVLRQ
LV XQQDWXUDO LQ (QJOLVK DQG WKLV LV FDOOHG VWDFFDWR UK\WKP $Q
HVVHQWLDOFKDUDFWHULVWLFRI(QJOLVKUK\WKPLVWKDW
VWUHVVHGV\OODEOHVDUH/21*(5&/($5(5DQG+,*+(5LQ3,7&+
XQVWUHVVHGV\OODEOHVDUH6+257(581&/($5DQG/2:(5LQ3,7&+
7KLV PHDQV WKDW WKH GLIIHUHQFH EHWZHHQ VWUHVVHG DQG XQVWUHVVHG
V\OODEOHV LQ D VHQWHQFH LV YHU\ PDUNHG LQ (QJOLVK HVSHFLDOO\ LQ
IDPLOLDUUDSLGVSHHFK
,Q ODQJXDJHV OLNH 6SDQLVK RQ WKH FRQWUDU\ WKH FRQWUDVW EHWZHHQ
VWUHVVHG DQG XQVWUHVVHG V\OODEOHV LV QRW VR PDUNHG DQG XQVWUHVVHG
V\OODEOHV DUH RQO\ D ELW VKRUWHU WKDQ VWUHVVHG V\OODEOHV DQG QRUPDOO\
WKH\DUHDVFOHDUDVVWUHVVHGV\OODEOHV
%HFDXVHDOORIWKLVLWLVVDLGWKDWLQ(QJOLVKWKHWLPHLWWDNHVWRVD\D
VHQWHQFH GHSHQGV RQ WKH QXPEHU RI VWUHVVHV LH VWUHVVHG V\OODEOHV
ZKHUHDVLQODQJXDJHVOLNH6SDQLVKWKHWLPHLWWDNHVWRVD\VRPHWKLQJ
GHSHQGVRQWKHQXPEHURIV\OODEOHV
7KHILUVWW\SHRIUK\WKPLVFDOOHGVWUHVVWLPLQJDVLQ(QJOLVK
7KHVHFRQGW\SHRIUK\WKPLVFDOOHGV\OODEOHWLPLQJDVLQ6SDQLVK
7KXVLWLVDVVXPHGWKDWLQ(QJOLVKWKHWKUHHVHQWHQFHV
.,'6
/,.(
6&+22/
WKH.,'6
ZLOO
/,.(
WKH6&+22/
WKH.,'6
ZLOOEH/,.LQJ
WKH6&+22/
WDNH URXJKO\ WKH VDPH WLPH WR VD\ EHFDXVH WKH\ KDYH WKH VDPH
QXPEHURIVWUHVVHGV\OODEOHV
$JDLQ WKLV LV ZKDW VWUHVVWLPLQJ PHDQV ([SHULPHQWDO VWXGLHV
KRZHYHU VKRZ WKDW WKLQJV GR QRW UHDOO\ ZRUN WKLV ZD\ LQ WKH UHDO
ZRUOGDQGWKDWWKHPRUHLPSRUWDQWGLIIHUHQFHEHWZHHQODQJXDJHVOLNH
(QJOLVK DQG 6SDQLVK LV WKDW (QJOLVK GLIIHUHQWLDWHV YHU\ PDUNHGO\
EHWZHHQ VWUHVVHG DQG XQVWUHVVHG V\OODEOHV PDNLQJ WKH ILUVW PXFK
ORQJHUFOHDUHUDQGORXGHU
,Q DGGLWLRQ VWUHVVHG DQG XQVWUHVVHG V\OODEOH LQ (QJOLVK WHQG WR
DOWHUQDWHLQWKHVWUHDPRIVSHHFKZKLFKLVWKHUHDVRQZK\WRRPDQ\
VWUHVVHGV\OODEOHVVRXQGµEDG¶DVZHKDYHVHHQ7KLVLVSUHFLVHO\ZK\
ZH ILQG D SDUWLFXODU SKHQRPHQRQ WKDW LV FDOOHG VWUHVV VKLIW
3URQRXQFHWKHVHQWHQFHVWKDWIROORZ
0DU\MXVWWXUQHGQLQHWHHQ
0D\LVQLQHWHHQ\HDUVROG
6KHLODOLYHVULJKWQH[WGRRU
7KH)OLQWVDUHRXUQH[WGRRUQHLJKERUV
/HW¶VJRWR1HZ<RUN
,XVHGWRUHDGWKH1HZ<RUN7LPHVRQ6XQGD\V
:KDW LV KDSSHQLQJ" 7KH DQVZHU LV WKDW ZRUGV OLNH QLQHªWHHQ DUH
VWUHVVHG LQ WKH ODVW V\OODEOH EXW ZKHQ WKH\ DUH IROORZHG E\ D ZRUG
EHJLQQLQJZLWKDVWUHVVHGV\OODEOHDVLQQLQHWHHQ ª\HDUVWKHVWUHVVRQ
WKH ODVW V\OODEOH LV VKLIWHG WR WKH ILUVW V\OODEOH ªQLQHWHHQ ª\HDUV 7KLV
LV EHFDXVH WKH UK\WKP RI (QJOLVK DV ZH KDYH VHHQ LQYROYHV DQ
DOWHUQDWLRQ RI VWUHVVHG DQG XQVWUHVVHG V\OODEOHV :KHQ WKH VWUHVV LV
VKLIWHGLWLVFDOOHGVWUHVVVKLIWLQJ
6WUHVVHGDQG5HGXFHG6\OODEOHV
<RXKDYHDOUHDG\VHHQWKDWLQDVHQWHQFHFHUWDLQZRUGVDUHVWUHVVHG
VSRNHQ ZLWK D FOHDU IXOO YRZHO DQG RWKHU ZRUGV DUH QRUPDOO\
XQVWUHVVHG VSRNHQ UDWKHU TXLFNO\ DQG QRW YHU\ FOHDUO\ 7KLV ODWWHU
IHDWXUH RI (QJOLVK SURQXQFLDWLRQ LV WKH PDLQ UHDVRQ ZK\ VRPHWLPHV
ZHPD\KDYHGLIILFXOW\XQGHUVWDQGLQJVSRNHQ(QJOLVK
IXQFWLRQZRUGV
•
•
DUWLFOHVGHILQLWHLQGHILQLWH
FRQWHQWZRUGV
•
QRXQV
•
PDLQYHUEV
•
DGMHFWLYHV
•
DGYHUEV
•
GHPRQVWUDWLYHV
DX[LOLDU\YHUEV
•
•
•
EH
PRGDOV
DX[LOLDULHV ZLOO KDYH GR
•
•
•
SURQRXQV
SUHSRVLWLRQV
FRQMXQFWLRQV
XQVWUHVVHGUHGXFHGYRZHO
QRUPDOO\
VWUHVVHG
QRQSURPLQHQW
SURPLQHQW
VWURQJ
YRZHO
,Q RUGHU WR DFKLHYH D JRRG UK\WKP LQ (QJOLVK \RX QHHG WR D VORZ
GRZQ E VWUHWFK RXW DQG F YHU\ FOHDUO\ SURQRXQFH VWUHVVHG
V\OODEOHV$QG\RXQHHGWRUHGXFHXQVWUHVVHGV\OODEOHV7KHWZRPRVW
FRPPRQ PLVWDNHV PDGH E\ QRQQDWLYH VSHDNHUV DUH SURQRXQFLQJ
VWUHVVHG V\OODEOHV WRR TXLFNO\ DQG QRW UHGXFLQJ IXQFWLRQ ZRUGV DQG
XQVWUHVVHG V\OODEOHV 6WUHVV LV WKH PDLQ VLJQ RI ZRUG ERXQGDULHV LQ
VSRNHQ ODQJXDJH HTXLYDOHQW WR VSDFHV LQ ZULWWHQ ODQJXDJH ZKLFK
WHOOWKHOLVWHQHUZKHUHZRUGVEHJLQDQGHQG
/LQNLQJDQG3DXVLQJ3DXVHJURXSV
*RRG UK\WKP LQ (QJOLVK DOVR PHDQV VSHDNLQJ DW D UHJXODU VSHHG ZLWK
FRUUHFW SKUDVLQJ DQG SDXVLQJ *URXSLQJ IXQFWLRQ ZRUGV WRJHWKHU ZLWK
FRQWHQW ZRUGV LQWR SKUDVHV DOVR KHOSV WKH OLVWHQHU XQGHUVWDQG \RX
3DXVLQJ HTXLYDOHQW WR SXQFWXDWLRQ PDUNV LQ ZULWLQJ OHWV WKH OLVWHQHU
NQRZ ZKHUH WKH PDLQ JUDPPDWLFDO XQLW HQGV DQG JLYHV WKH OLVWHQHU
WLPHWRILJXUHRXWWKHPHDQLQJ
3DXVHVRFFXU
EHIRUHSXQFWXDWLRQPDUNV
EHIRUHFRQMXQFWLRQV
EHWZHHQJUDPPDWLFDOXQLWVSKUDVHVFODXVHVDQGVHQWHQFHV
(YHU\ SDXVH JURXS PXVW FRQWDLQ DW OHDVW RQH VWUHVVHG V\OODEOH
7KHUHIRUH\RXFDQQRWSDXVHEHWZHHQIXQFWLRQZRUGVDQGWKHFRQWHQW
ZRUGVWKH\JRZLWK'HSHQGLQJRQKRZIDVW\RXVSHDNSDXVHJURXSV
ZLOO EH ORQJHU ZLWK VWUHVVHG V\OODEOHV RU VKRUWHU ZLWK RU VWUHVVHGV\OODEOHV,WLVDJRRGLGHDWRSDXVHPRUHIUHTXHQWO\DQGIRU
D ORQJHU WLPH LI SHRSOH KDYH WURXEOH XQGHUVWDQGLQJ \RX ,Q (QJOLVK
V\OODEOHEHIRUHSDXVHVDUHOHQJWKHQHG
:LWKLQ SDXVH JURXSV ZRUGV VKRXOG EH OLQNHG VR WKDW WKH\ VRXQG OLNH
RQH ZRUG ,Q QRUPDO VSHHFK WKHUH DUH QR ³ZKLWH VSDFHV´ EHWZHHQ
FORVHO\FRQQHFWHGZRUGV
:RUG6WUHVVDQG6HQWHQFH6WUHVV
,Q (QJOLVK VWUHVVHG V\OODEOHV DUH ORQJHU FOHDUHU DQG KLJKHU LQ SLWFK
SLWFK PHDQV WRQH RI YRLFH ORXGQHVV 7KXV WKH YRZHO LQ D VWUHVVHG
V\OODEOH LV RI JUHDWHU OHQJWK WKDQ XQVWUHVVHG YRZHOV 7KH WKUHH
IHDWXUHVWKDWGHILQHVWUHVVLQ(QJOLVKDUH
/(1*7+
7KHYRZHOLQWKHVWUHVVHGV\OODEOHLVORQJHU
3,7&+
7KHVWUHVVHGV\OODEOHKDVKLJKHUSLWFK
&/($592:(/
7KHVWUHVVHGV\OODEOHKDVDIXOOFOHDUYRZHO
:RUG6WUHVVDQG6HQWHQFH6WUHVV
'HILQLWLRQDQGDFRXVWLFFRUUHODWHVRIVWUHVV
6WUHVV LV RQH RI WKH VRFDOOHG VXSUDVHJPHQWDO IHDWXUHV DORQJ ZLWK
UK\WKPDQGLQWRQDWLRQ
$FFRUGLQJ WR 7UDVN VWUHVV LV D FHUWDLQ W\SH RI
SURPLQHQFH ZKLFK LQ VRPH ODQJXDJHV LV SUHVHQW XSRQ FHUWDLQ
V\OODEOHV 1DWLYH VSHDNHUV DQG SKRQHWLFLDQV XVXDOO\ ILQG LW HDV\ WR
GHWHUPLQHZKLFKV\OODEOHVEHDUVWUHVVDQGHYHQWRGLVWLQJXLVKYDU\LQJ
GHJUHHV RI VWUHVV EXW WKH SKRQHWLF FKDUDFWHUL]DWLRQ RI VWUHVV LV
H[FHHGLQJO\ GLIILFXOW VWUHVV LV YDULRXVO\ DVVRFLDWHG ZLWK JUHDWHU
ORXGQHVV KLJKHU SLWFK DQG JUHDWHU GXUDWLRQ DQ\ RI ZKLFK PD\ EH
PRVW LPSRUWDQW LQ D JLYHQ FDVH DQG VRPHWLPHV DOVR ZLWK YRZHO
TXDOLW\ (DUOLHU DWWHPSWV WR LGHQWLI\ VWUHVV ZLWK JUHDWHU LQWHQVLW\ RI
VRXQG DUH QRZ GLVFUHGLWHG DQG FXUUHQW WKLQNLQJ KROGV WKDW VWUHVV LV
SULPDULO\DPDWWHURIJUHDWHUPXVFXODUHIIRUWE\WKHVSHDNHUDQGWKDW
KHDUHUV WDNH DGYDQWDJH RI VHYHUDO W\SHV RI LQIRUPDWLRQ WR LGHQWLI\
WKDWHIIRUW
,Q IDFW /DYHU VWDWHV ³2WKHU WKLQJV EHLQJ HTXDO RQH
V\OODEOH LV PRUH SURPLQHQW WKDQ DQRWKHU WR WKH H[WHQW WKDW LWV
FRQVWLWXHQW VHJPHQWV GLVSOD\ KLJKHU SLWFK JUHDWHU ORXGQHVV ORQJHU
GXUDWLRQRUJUHDWHUDUWLFXODWRU\H[FXUVLRQIURPWKHQHXWUDOGLVSRVLWLRQ
RIWKHYRFDOWUDFW´
:RUGVWUHVV
0RWW GLYLGHV WKH ODQJXDJHV RI WKH ZRUOG LQWR WZR
JURXSVRQWKHEDVLVRIVWUHVV7KHUHDUH
L ODQJXDJHV ZKLFK KDYH D IL[HG SODFH IRU WKH VWUHVV LQ ZRUGV ,Q
)UHQFK 7XUNLVK RU 0RGHUQ +HEUHZ WKH VWUHVV LV DOZD\V RQ WKH ODVW
V\OODEOH RI D ZRUG ,Q +XQJDULDQ )LQQLVK DQG &]HFK WKH VWUHVV LV
DOZD\VRQWKHILUVWV\OODEOHRIZRUGV
LL ODQJXDJHV LQ ZKLFK WKHUH LV QR IL[HG SODFH IRU WKH VWUHVV LQ ZRUGV
'\QDPLF 6WUHVV /DQJXDJHV /DQJXDJHV OLNH (QJOLVK 6SDQLVK
*HUPDQ RU 5XVVLDQ KDYH YDULDEOH ZRUG VWUHVV 6SDQLVK KDV WKH
DGYDQWDJH RI XVLQJ D JUDSKLF DFFHQW WR PDUN LUUHJXODU VWUHVV
WpUPLQR WHUPLQy DV RSSRVHG WR WHUPLQR EXW (QJOLVK XVHV QR VXFK
GHYLFH WR DVVLVW WKH OHDUQHU +RZHYHU (QJOLVK VWUHVV FDQQRW EH
HQWLUHO\ XQSUHGLFWDEOH EHFDXVH QDWLYH (QJOLVK VSHDNHUV DUH DEOH WR
SODFH WKH VWUHVV WR XQIDPLOLDU ZRUGV ZLWK DW OHDVW VRPH GHJUHH RI
VXFFHVV ZKLFK PHDQV WKDW (QJOLVK VWUHVV SODFHPHQW PXVW EH UXOH
ERXQG
6LPSOHZRUGV
,Q DQ\ ZRUG WKHUH LV D V\OODEOH WKDW LV VWUHVVHG %XW LI WKH ZRUG LV
ORQJHU WKDQ WKUHH V\OODEOHV \RX ZLOO SUREDEO\ KHDU PRUH WKDQ RQH
VWUHVVHGV\OODEOH
:KHQZHWDONDERXWZRUGVWUHVVWKHTXHVWLRQLVRIFRXUVH:+(5(LQ
WKH ZRUG WKH VWUHVV IDOOV ,Q ODQJXDJHV OLNH 6SDQLVK ZH KDYH VLPSOH
UXOHV WKDW GLFWDWH VWUHVV SODFHPHQW ,Q )UHQFK WKLQJV DUH HYHQ
VLPSOHU \RX DOZD\V VWUHVV WKH ODVW V\OODEOH RI WKH ZRUG +RZHYHU LQ
(QJOLVK ZH FDQQRW JLYH SUHFLVH DQG VLPSOH UXOHV OLNH LQ 6SDQLVK RU
)UHQFK 0DQ\ ZRUGV LQ (QJOLVK KDYH QR V\VWHPDWLF UXOHV IRU VWUHVVHG
DQG XQVWUHVVHG V\OODEOHV 2WKHUV GR KDYH UXOHV EXW WKH\ DUH WRR
FRPSOLFDWHGWREHXVHIXO+HQFHZHZLOORQO\OHDUQVRPHYHU\JHQHUDO
WHQGHQFLHVWKDWFDQEHXVHIXOIRU\RX
:HZLOOVWDUWE\ORRNLQJDWWKHPRUHJHQHUDOUXOH:KHQDUXOHLVYHU\
JHQHUDO WKDW PHDQV LW PD\ EH D ELW LPSUHFLVH KDYLQJ VRPH
H[FHSWLRQV7KH WHQGHQF\ LV QRXQV DUH VWUHVVHG LQ WKH LQLWLDO V\OODEOH
DQGYHUEVDUHVWUHVVHGLQWKHILQDOV\OODEOH
3UHGLFWLQJZRUGVWUHVVLQ(QJOLVK
7KH SODFHPHQW RI VWUHVV RQ (QJOLVK ZRUGV LV H[WUHPHO\ FRPSOH[ DQG
WKH PDLQ UHDVRQ IRU WKLV FRPSOH[LW\ LV WKDW WKH (QJOLVK ODQJXDJH LV D
ODUJHO\ PL[WXUH RI 5RPDQFH DQG *HUPDQLF 0RWW ,I ZH
ORRNDWVXIIL[DWLRQLQWKHVHWZRODQJXDJHJURXSVZHILQGWZRRSSRVLWH
SULQFLSOHV DFWLQJ RQ ZRUGV ,Q WKH 5RPDQFH ODQJXDJHV LI D VXIIL[ LV
DGGHG WR D ZRUG WKH VWUHVV LV PRYHG XS RQWR LW )RU H[DPSOH LQ
6SDQLVK HVW~SLGR HVWXSLGp] ,Q WKH *HUPDQLF ODQJXDJHV RQ WKH
RWKHU KDQG WKH VWUHVV VWD\V ZKHUH LW LV )RU H[DPSOH LQ (QJOLVK
IyOORZ IyOORZHU IyOORZLQJ 7KH SUREOHP LV WKDW (QJOLVK KDV DGRSWHG
ERWK SULQFLSOHV EXW YHU\ RIWHQ UHJDUGOHVV RI WKH RULJLQ RI ZRUGV 7R
WDNH RQH H[DPSOH FDWKROLF /DW &$7+2/,&86 *U NDWKROLNRV
ZRXOGEHH[SHFWHGWREHDUVWUHVVRQWKHVHFRQGV\OODEOH DV LQ *UHHN
DQG /DWLQ EXW WKH ZRUG KDV XQGHUJRQH *HUPDQLF VWUHVVLQJ DQG WKH
VWUHVVKDVEHHQIURQWHG
:KLOHLWLVQRWSRVVLEOHWRSUHGLFWWKHVWUHVVLQDOO(QJOLVKZRUGVWKHUH
DUHPDQ\RWKHUVZKLFKIROORZJHQHUDOSULQFLSOHVRUUXOHV6WUHVVUXOHV
DUHEDVHGRQWKUHHNLQGVRILQIRUPDWLRQV\QWDFWLFPRUSKRORJLFDODQG
SKRQRORJLFDOLQIRUPDWLRQ.UHLGOHU
'LIIHUHQW UXOHV DSSO\ WR WKH GLIIHUHQW SDUWV RI VSHHFK QRXQV YHUEV
DGMHFWLYHV DQG DGYHUEV 7KH QRXQ tQVXOW LV VWUHVVHG GLIIHUHQWO\ IURP
WKHYHUELQV~OWVLPLODUO\FRPSDUHWKHDGMHFWLYHSUpVHQWZLWKWKHYHUE
SUHVpQW
2Q WKH RWKHU KDQG WKH PRUSKRORJLFDO FRPSRVLWLRQ RI D ZRUG KDV D
UROH LQ GHWHUPLQLQJ VWUHVV 'LIIHUHQW NLQGV RI VXIIL[HV DUH UHOHYDQW LQ
GHWHUPLQLQJWKHSODFH RI VWUHVV 7KH IROORZLQJ DUH H[DPSOHV RI ZRUGV
ZLWK
WRQLF
HQGLQJV
HPSOR\pH
EDOOyRQ
NLWFKHQpWWH
&KLQpVH
PLOOLRQiLUHRUDQWtTXH
7KHSODFHRIVWUHVV LQ SDUWLFXODU ZRUGV GHSHQGV LQ SDUW RQ WKH QDWXUH
RI WKH ODVW WZR V\OODEOHV DQG RFFDVLRQDOO\ RQ WKH QDWXUH RI DQ HDUOLHU
V\OODEOH :H QHHG WR FRQVLGHU ZKHWKHU D V\OODEOH KDV D IUHH YRZHO
ORQJYRZHORUGLSKWKRQJDQGWKHQXPEHURIFRQVRQDQWVZKLFKFORVH
WKH V\OODEOH WKDW LV ZKHWKHU LW LV VWUHVVDEOH IUHH YRZHO RU VKRUW
YRZHOIROORZHGE\WZRFRQVRQDQWVRUQRW
6LQFH SKRQRORJLFDO IDFWV LQWHUDFW ZLWK PRUSKRORJLFDO DQG V\QWDFWLF
IDFWV ZH VKDOO VHH WKDW UXOHV DUH GLIIHUHQW IRU QRXQV YHUEV DQG
DGMHFWLYHV
&RPSRXQGZRUGV
7\SHRIFRPSOH[ZRUG
([DPSOH
(DUO\
/DWH
IURQW
HQG
VWUHVV
VWUHVV
VXIIL[HVWKDWDWWUDFWVWUHVV
HHU
PRXQWDLQHHU
HVH
3RUWXJXHVH
HVTXH
EXUOHVTXH
LTXH
WHFKQLTXH
RRQ
EDOORRQ
HWWH
PDMRUHWWH
[
VXIIL[HVWKDWVKLIWVWUHVV
RXV
PRXQWDLQRXV
LDO
FHUHPRQLDO
LDQ
OLEUDULDQ
LF
WHFKQLF
LRQ
HGXFDWLRQ
QRXQFRPSRXQGV
VFKRROEXV
[
[
SURSHUQDPHV
-DFN6PLWK
[
WLUW\WKUHH
[
GRJHDUHG
[
QXPHUDOV
DGMHFWLYHFRPSRXQGV
WUXHSKUDVDOYHUEV
ORRNXS
[
1XFOHDU6WUHVVDQG,QWRQDWLRQ
,Q WKLV VHFWLRQ ZH ZLOO DQDO\]H RQ KRZ IOXHQW VSHDNHUV RI (QJOLVK
VHJPHQWVSHHFKDQGKLJKOLJKWLPSRUWDQWLQIRUPDWLRQLQGLVFRXUVH7KH
EDVLF IXQFWLRQ RI QXFOHDU VWUHVV DQG LQWRQDWLRQ LQ (QJOLVK LV WR IRFXV
WKH OLVWHQHU
V DWWHQWLRQ WR ZKDW WKH VSHDNHU IHHOV LV LPSRUWDQW LQ KLV
RUHKHUPHVVDJHLQWKLVVHQVHLWLVRQHRI WKH IXQGDPHQWDO IHDWXUHV
RIVSRNHQ(QJOLVK
2Q WKH RWKHU KDQG LQWRQDWLRQ DOVR KLJKOLJKWV LQIRUPDWLRQ %HVLGHV LW
VHUYHV WKH YHU\ LPSRUWDQW IXQFWLRQ RI VLJQDOLQJ WKH JUDPPDWLFDO
IXQFWLRQRIDQXWWHUDQFHDQGVRPHWLPHVLWDOVRFRQYH\VWKHVSHDNHUV
DWWLWXGH RU HPRWLRQDO VWDWH :H ZLOO VWXG\ PRUH FORVHO\ WKH ILUVW WZR
UROHVRILQWRQDWLRQVHPDQWLFDQGJUDPPDWLFDO
7RQHXQLWVWKHLUUROHLQVSRNHQ(QJOLVK
,QWRQDWLRQ XQLWV DUH WKH VDPH DV WKH SDXVH JURXSV ZH KDYH VHHQ
DERYH7KLVLVKRZWKHVSHHFKVWUHDPLVGLYLGHGLQWRVWUXFWXUHGXQLWV
(DFKWRQHXQLWW\SLFDOO\
LVVHWRIIE\SDXVHVEHIRUHDQGDIWHUVHWRIIE\SDXVHVEHIRUHDQ
FRQWDLQVRQHSURPLQHQWHOHPHQWRQHSURPLQHQWHOHPHQW
KDVDQLQWRQDWLRQFRQWRXURILWVRZQ
KDV D JUDPPDWLFDOO\ FRKHUHQW LQWHUQDO VWUXFWXUH DQ LQWRQDWLRQ RI
LWVRZQ
7KH SURPLQHQW HOHPHQW LV D V\OODEOH WKDW UHFHLYHV ZKDW ZH ZLOO FDOO
QXFOHDU VWUHVV VRPHWLPHV DOVR NQRZQ DV VHQWHQFH VWUHVV DQG
WKLVLVSUHFLVHO\WKHQXFOHXVRIDWRQHXQLW
7KHUH LV QR LQIDOOLEOH ZD\ WR GLYLGH DQ XWWHUDQFH LQWR WRQH XQLWV ,Q
UDSLGVSHHFKWRQHXQLWVPD\EHIDLUO\ORQJLQVORZVSHHFKWKH\PD\
EHVKRUWHUDQGEUHDNVEHWZHHQXQLWVZLOOEHWKHUHIRUHPRUHIUHTXHQW
:KHUH WKH XWWHUDQFH GLYLVLRQ IDOOV ZLOO DOVR GHSHQG RQ WKH LQGLYLGXDO
VSHDNHU ZLWK VRPH VSHDNHUV SURGXFLQJ IHZHU RU PRUH EUHDNV WKDQ
RWKHUV )LQDOO\ VXFK GLYLVLRQV DUH GHSHQGHQW RQ WKH FRQWH[W 3XEOLF
VSHDNHUV IRU H[DPSOH WHQG WR SDXVH IUHTXHQWO\ WR PDNH WKHLU
PHVVDJHFOHDUHURUPRUHHPSKDWLFDVLQDSROLWLFDOVWDWHPHQW
,SURPLVHWRVHUYHP\IHOORZFLWL]HQVWRWKHEHVWRIP\DELOLW\
7DNH DOVR LQWR DFFRXQW WKDW WRR PDQ\ SDXVHV DQG LQ FRQVHTXHQFH
WRQH XQLWV FDQ VORZ GRZQ VSHHFK DQG FUHDWH WRR PDQ\ SURPLQHQW
HOHPHQWV FDXVLQJ WKH OLVWHQHU GLIILFXOW\ LQ FRPSUHKHQGLQJ WKH RYHUDOO
PHVVDJH
'HILQLWLRQRI1XFOHDU6WUHVV3URPLQHQFH
$V ZH KDYH VHHQ MXVW DV LQGLYLGXDO XWWHUDQFHV FDQ EH GLYLGHG LQWR
ZRUGV DQG WKHVH ZRUGV LQWR V\OODEOHV VR WR WKH ODUJHU VWUHDP RI
VSHHFKFDQEHEURNHQLQWRVPDOOHUXQLWVZKLFKZHKDYHFDOOHG SDXVH
JURXSV RU WRQH XQLWV 2QH FKDUDFWHULVWLF RI WKHVH WRQH XQLWV LV WKDW
WKH\ FRQWDLQ DW OHDVW RQH SURPLQHQW HOHPHQW ZKLFK LV WKH PRVW
VWUHVVHGZRUGLQWKDWJURXS
7KH GLVFRXUVH FRQWH[W JHQHUDOO\ LQIOXHQFHV ZKLFK VWUHVVHG ZRUG LQ D
JLYHQ XWWHUDQFH UHFHLYHV SURPLQHQFH WKDW LV ZKLFK ZRUG WKH
VSHDNHUZDQWVWRHPSKDVL]H
5XOHVIRU/RFDWLQJ1XFOHDU6WUHVV
7KHUH DUH WKUHH EDVLF UXOHV WR NQRZ ZKLFK ZRUG KDV QXFOHDU VWUHVV
7KH
ILUVW
LV
ZKHUH
WKH
VSHDNHU
SODFHV
SURPLQHQFH
RQ
QHZ
LQIRUPDWLRQ :LWKLQ D WRQH XQLW ZRUGV H[SUHVVLQJ ROG RU JLYHQ
LQIRUPDWLRQ WKLV PHDQV LQIRUPDWLRQ WKDW LV VHPDQWLFDOO\ SUHGLFWDEOH
DUH XQVWUHVVHG DQG VSRNHQ ZLWK ORZHU SLWFK ZKLOH ZRUGV H[SUHVVLQJ
QHZ LQIRUPDWLRQ DUH VSRNHQ ZLWK VWURQJ VWUHVV DQG KLJKHU SLWFK
1RUPDOO\LWLVWKHODVWFRQWHQWZRUGWKDWWHQGVWRKDYHSURPLQHQFH
3DWULFLD
,¶YHORVWDQXP%5(/OD
-RKQ
$/$G\¶VXPEUHOOD"
3DWULFLD
<(6DODG\¶VXPEUHOODZLWK67$56RQLW*5((1VWDUV
,Q WKLV H[DPSOH XPEUHOOD LQ WKH ILUVW WRQH XQLW IXQFWLRQV DV QHZ
LQIRUPDWLRQ KRZHYHU LQ -RKQ¶V UHSO\ ODG\¶V UHFHLYHV SURPLQHQFH
EHFDXVH LW LV QHZ LQIRUPDWLRQ ,Q 3DWULFLD¶V VHFRQG XWWHUDQFH ERWK
XPEUHOODDQGODG\¶VDUHROGLQIRUPDWLRQZKHUHDVVWDUVDQGJUHHQDUH
QHZLQIRUPDWLRQWKXVUHFHLYLQJSURPLQHQFH
$ VHFRQG FLUFXPVWDQFH JRYHUQLQJ WKH SODFHPHQW RI SURPLQHQFH LV
HPSKDWLFVWUHVVZKHQWKHVSHDNHUZDQWVWRSODFHVSHFLDOHPSKDVLV
RQDSDUWLFXODUHOHPHQW,QWKHSKUDVH³,¶P127JRLQJWRFODVVWRGD\´
IRU LQVWDQFH WKH VSHDNHU PLJKW ZDQW WR PHDQ D VWURQJ QHJDWLYH
DWWLWXGHWRZDUGWKHIDFWRIJRLQJWRFODVV
7KH WKLUG FLUFXPVWDQFH JRYHUQLQJ WKH SODFHPHQW RI SURPLQHQFH LV
FRQWUDVWLYH VWUHVV ,Q WKLV FDVH WZR SDUDOOHO HOHPHQWV FDQ UHFHLYH
SURPLQHQFH ZLWKLQ DQ XWWHUDQFH )RU H[DPSOH LQ WKH XWWHUDQFH ³,
GLGQ¶W PHHW WKH 35(VLGHQW , PHW WKH (;SUHVLGHQW´ ERWK SUHVLGHQW
DQGH[DUHSURPLQHQWWKH\DUHFRQWUDVWHGE\WKHVSHDNHU
7RQHDQG,QWRQDWLRQ/DQJXDJHV
/DQJXDJHV RI WKH ZRUG DUH GLIIHUHQW DFFRUGLQJ WR KRZ WKH\ WUHDW
LQWRQDWLRQZLWKLQWKHLUOLQJXLVWLFVWUXFWXUH7KHUHDUH WRQHODQJXDJHV
OLNH&KLQHVHDQGPDQ\$IULFDQODQJXDJHVLQZKLFKGLIIHUHQFHVLQWRQH
VLJQLI\ GLIIHUHQFHV RI PHDQLQJ ZLWKLQ D ZRUG 7KH FODVVLFDO H[DPSOH
FRPHVIURPWKHURRWPDLQ0DQGDULQ&KLQHVHZKLFKPHDQV
PDZLWKDOHYHOWRQHPHDQV³PRWKHU´
PDZLWKDZLWKDULVLQJWRQHPHDQV³KHPS´
PDZLWKDZLWKDIDOOLQJWRQHPHDQV³VFROG´
7KHVH ODQJXDJHV WKHUHIRUH XVH WRQH WR GLIIHUHQWLDWH ZRUGV WRQH LV
WKHQ D SKRQRORJLFDO IHDWXUH +RZHYHU LQ ODQJXDJH OLNH (QJOLVK RU
6SDQLVKWRQHLVXVHGLQDGLIIHUHQWZD\GLIIHUHQWWRQHVGRQRWFKDQJH
WKHIXQGDPHQWDOPHDQLQJRIDZRUGUDWKHUWKH\UHIOHFWWKHGLVFRXUVH
FRQWH[WZLWKLQZKLFKDZRUGRFFXUV&RQVLGHUWKHIROORZLQJH[DPSOH
<HV ZLWK D OHYHO WRQH GHQRWHV ERUHGRP RU WLUHGQHVV IURP WKH SDUW RI
WKHVSHDNHU
<HVZLWKDULVLQJWRQHLQGLFDWHVWKDWWKHVSHDNHULVUHDG\WROLVWHQ
<HV ZLWK D IDOOLQJULVLQJ WRQH PHDQV WKDW WKH VSHDNHU LV XQVXUH RU
GXELRXV
+HUH WKH ZRUG \HV GRHV QRW FKDQJH LWV IXQGDPHQWDO PHDQLQJ LW
VLPSO\LPSOLHVGLIIHUHQWDWWLWXGHVIURPWKHSDUWRIWKHVSHDNHU
6SHHFK KDV D PHORG\ FDOOHG LQWRQDWLRQ ,QWRQDWLRQ LV WKH YDULDWLRQV
ZKLFKWDNHSODFHLQWKHSLWFKRIWKHYRLFHLQFRQQHFWHGVSHHFKWKDWLV
WKH YDULDWLRQV LQ WKH SLWFK RI WKH PXVLFDO QRWH SURGXFHG E\ WKH
YLEUDWLRQ RI WKH YRFDO FRUGV 0RWW &KDQJH LQ SLWFK LV
SURGXFHG LQ WZR ZD\V E\ WHQVLQJ WKH YRFDO FRUGV RU E\ LQFUHDVLQJ
VXEJORWWDOSUHVVXUH
$V5RDFKH[SODLQVZHZLOOQRWEHLQWHUHVWHGLQDOODVSHFWVRID
VSHDNHU¶V SLWFK EXW RQO\ LQ WKRVH ZKLFK FDUU\ OLQJXLVWLF LQIRUPDWLRQ
7KHUH DUH WKUHH QHFHVVDU\ FRQGLWLRQV IRU SLWFK GLIIHUHQFHV WR EH
OLQJXLVWLFDOO\VLJQLILFDQW
LWKH\VKRXOGEHXQGHUWKHVSHDNHU¶VFRQWURO
LLWKH\PXVWEHSHUFHSWLEOHWRWKHKXPDQHDU
LLLWKH\DUHFDSDEOHRIFRQWUDVWLQJZLWKDQRWKHULWHP
(DFKODQJXDJHZLOOH[SORLWOLQJXLVWLFDOO\DFHUWDLQQXPEHURIYDULDWLRQV
RI WKH SLWFK VLPLODU RU GLIIHUHQW WR WKRVH RI RWKHU ODQJXDJHV
7UDGLWLRQDOO\ D GLVWLQFWLRQ KDV EHHQ HVWDEOLVKHG EHWZHHQ WRQH
ODQJXDJHVDQGLQWRQDWLRQODQJXDJHV
7KHODQJXDJHVZKLFKXVHGLIIHUHQWWRQHVIRUOH[LFDOFRQWUDVWDUHFDOOHG
WRQHODQJXDJHV0DQGDULQ&KLQHVHLVWKHPRVWZLGHO\NQRZQH[DPSOH
RI WKHVH VRUW RI ODQJXDJHV DQG KDV IRXU GLVWLQFWLYH WRQHV DV
H[HPSOLILHG LQ WKH GLIIHUHQW PHDQLQJV ZKLFK PD\ EH DVVLJQHG WR WKH
V\OODEOHPD0RWW
KLJKOHYHO³PRWKHU´
ORZIDOOULVH³KRUVH´
KLJKULVH³KHPS´
KLJKIDOO³WRVFROG´
/DQJXDJHV ZKLFK GR QRW XVH WRQH IRU OH[LFDO FRQWUDVW EXW KDYH D
PHORG\ VSUHDG RYHU D FRPSOHWH XWWHUDQFH VXFK DV (QJOLVK RU
6SDQLVK DUH FDOOHG LQWRQDWLRQ ODQJXDJHV %\ YDU\LQJ WKH GLUHFWLRQ RI
WKH SLWFK LQ WKHVH ODQJXDJHV ZH LQWURGXFH DWWLWXGLQDO RU JUDPPDWLFDO
FKDQJHVQRWOH[LFDORQHV
7RQDOLW\7RQLFLW\DQG7RQH
,QWRQDWLRQLVFRQFHUQHGZLWKWKUHHPDWWHUV
7KH WRQHRIXWWHUDQFHV$VLQWKHH[DPSOHDERYH\HVZLWKDULVLQJ
=
= ?
WRQH ®@VLJQDOVDTXHVWLRQZKHUHDV\HVZLWKDIDOOLQJWRQH ¯ LWLV
DIDFWXDODQVZHU7KHVHGLIIHUHQFHVDUHRIWRQH
7RQDOLW\ UHIHUV WR KRZ WKH VSHDNHU GLYLGHV XWWHUDQFHV LQWR WRQH
XQLWV DV ZH VDZ EHIRUH )RU H[DPSOH WKH XWWHUDQFHV , ZDQW \RX WR
OHDYH DQG , _ ZDQW \RX _ WR OHDYH GLIIHU LQ WRQDOLW\ KRZ WKH\ DUH
GLYLGHGE\WKHVSHDNHU
7RQLFLW\ LV D V\QRQ\P IRU SURPLQHQFH $V ZH KDYH VHHQ WKLV
UHIHUV WR WKH SRVLWLRQ RI WKH SURPLQHQW ZRUG ZLWKLQ D WRQH XQLW )RU
H[DPSOH,ZDQW\RXWR/($9(DQG,ZDQW<28WROHDYHGLIIHURQO\LQ
WRQLFLW\
,QWRQDWLRQPD\EHDQDO\]HGDVDFRPSOH[RIWKUHHV\VWHPLFYDULDEOHV
RUFKRLFHVWRQDOLW\WRQLFLW\DQGWRQH&RXSHU.XKOHQ
,Q WRQDOLW\ WKH FKRLFH LV WKDW RI WKH ORFDWLRQ RI WKH WRQHJURXS
ERXQGDULHV 7KH SDUWLFXODU SDUW RI D VHQWHQFH RYHU ZKLFK D SDUWLFXODU
SDWWHUQ RI SLWFK H[WHQGV LV FDOOHG D WRQHJURXS RU WRQHXQLW 7KHUH LV
QR RQHWRRQH FRUUHVSRQGHQFH EHWZHHQ WKH WRQHJURXS DQG DQ\
SDUWLFXODU JUDPPDWLFDO XQLW $ WRQHJURXS LV D XQLW RI LQIRUPDWLRQ
UDWKHU WKDQ D V\QWDFWLFDOO\ GHILQHG XQLW +RZHYHU WKHUH LV D VWURQJ
WHQGHQF\ IRU WKH WRQHJURXS WR EH FRH[WHQVLYH ZLWK WKH FODXVH DQG
WKH QXFOHDU WRQH PRVWO\ IDOOV RQ WKH ODVW OH[LFDO LWHP LQ WKH WRQH
JURXS
,QWRQLFLW\WKHFKRLFHLVWKDWRIWKHORFDWLRQRIWKHQXFOHDUWRQHLQWKH
WRQHJURXSWRQLFV\OODEOHRUQXFOHXV
7RQH LV WKH VHOHFWLRQ E\ WKH WRQHJURXS IURP D QXPEHU RI WRQH
SDWWHUQV2EYLRXVO\DWRQHJURXSPXVWFRQWDLQDWOHDVWRQHV\OODEOH
SUHKHDGKHDGQXFOHXVRUWRQLFV\OODEOHWDLO
7RQLF V\OODEOH WKH V\OODEOH LQ WKH WRQHJURXS ZKLFK VWDQGV RXW
EHFDXVHLWFDUULHVWKHPDMRUSLWFKFKDQJH
+HDG DOO WKDW SDUW RI D WRQHXQLW WKDW H[WHQGV IURP WKH ILUVW
VWUHVVHG V\OODEOH XS WR EXW QRW LQFOXGLQJ WKH WRQLF V\OODEOH ,I
WKHUH LV QR VWUHVVHG V\OODEOH SUHFHGLQJ WKH WRQLF V\OODEOH WKHUH LV
QRWDKHDG
3UHKHDG DOO WKH XQVWUHVVHG V\OODEOHV LQ D WRQHXQLW SUHFHGLQJ
WKHILUVWVWUHVVHGV\OODEOH
7DLO DQ\ V\OODEOHV EHWZHHQ WKH WRQLF V\OODEOH DQG WKH HQG RI WKH
WRQHXQLW
)RUPRI(QJOLVK,QWRQDWLRQ
'LIIHUHQFHVLQSLWFKWRQHDUHEDVLFDOO\RIWZRW\SHVWKHYRLFHHLWKHU
®
¯
JRHV XS LQ SLWFK RU JRHV GRZQ 7KHVH DUH WKH EDVLF WRQHV ULVH
UHSUHVHQWHG >
@ DQG IDOO UHSUHVHQWHG >
@ 7KHUH LV D WKLUG EDVLF
¯®
WRQH WKDW ZH VDZ LQ WKH H[DPSOH RI WKH ZRUG H[DPSOH RI WKH ZRUG
\HV WKH OHYHO >➝@ WRQH 7KH RWKHU WZR WRQHV IDOOULVH >
ULVHIDOO >
®¯
@ DQG WKH
@ DUH GHULYHG IURP WKH EDVLF WRQHV 7KHUH DUH WKHQ ILYH
WRQHVLQ(QJOLVKRIZKLFKWKHIDOOULVHDQGULVHIDOODUHPRUHXVHG
$FFRUGLQJWR5RDFKWKHIROORZLQJDUHWKHWRQHVRI(QJOLVK
¯
®
L/HYHO>➝@LWVRXQGVYHU\XQQDWXUDO
LL)DOO>
LLL5LVH>
@LWGHVFHQGVIURPDKLJKHUWRDORZHUSLWFK
@PRYHPHQWIURPDORZHUSLWFKWRDKLJKHURQH
¯®
®¯
LY)DOO5LVH>
Y5LVH)DOO>
@WKHSLWFKGHVFHQGVDQGWKHQULVHVDJDLQ
@WKHSLWFKULVHVDQGWKHQLWGHVFHQGV
6RPHVFKRODUV GLVWLQJXLVK EHWZHHQ KLJK IDOO DQG ORZ IDOO HWF ,Q IDFW
HDFKVSHDNHUKDVKLVRUKHURZQQRUPDOSLWFKUDQJHDWRSOHYHOKLJK
SLWFK DQG D ERWWRP OHYHO ORZ SLWFK WKDW LV WKHUH DUH QR DEVROXWH
YDOXHV ,Q RUGLQDU\ VSHHFK WKH LQWRQDWLRQ WHQGV WR WDNH SODFH ZLWKLQ
WKH ORZHU SDUW RI WKH VSHDNHU¶V SLWFK UDQJH DQG HPRWLRQDO VSHHFK
ZLWKLQWKHXSSHUSDUW
)XQFWLRQRI(QJOLVK,QWRQDWLRQ
,QWRQDWLRQPDNHVLWHDVLHUIRUDOLVWHQHUWRXQGHUVWDQGZKDWDVSHDNHU
LV WU\LQJ WR H[SUHVV 7KHUH DUH VHYHUDO ZD\V LQ ZKLFK LQWRQDWLRQ GRHV
WKLV
LQWRQDWLRQ HQDEOHV XV WR H[SUHVV HPRWLRQV DQG DWWLWXGHV DV ZH
VSHDNWKLVLVWKHDWWLWXGLQDOIXQFWLRQRILQWRQDWLRQ
LQWRQDWLRQ FRQWULEXWHV WR SURGXFH WKH HIIHFW RI SURPLQHQFH RQ WKH
QXFOHDU VWUHVV RI D WRQH XQLW WKLV LV WKH DFFHQWXDO IXQFWLRQ RI
LQWRQDWLRQ
WKH OLVWHQHU LV DEOH WR UHFRJQL]H WKH JUDPPDWLFDO DQG V\QWDFWLF
VWUXFWXUH RI ZKDW LV EHLQJ VDLG E\ XVLQJ WKH LQIRUPDWLRQ FRQWDLQHG LQ
WKH LQWRQDWLRQ IRU H[DPSOH VXFK WKLQJV DV WKH SODFHPHQW RI
ERXQGDULHV EHWZHHQ SKUDVHV RU VHQWHQFHV DUH PDUNHG E\ WKH WRQH
XQLWV7KLVLVWKHJUDPPDWLFDOIXQFWLRQRILQWRQDWLRQ
LQWRQDWLRQ FDQ VLJQDO WR WKH OLVWHQHU ZKDW LV QHZ DQG ROG
LQIRUPDWLRQ RU FDQ VXJJHVW ZKHQ WKH VSHDNHU LV LQGLFDWLQJ VRPH
FRQWUDVW ZLWK PDWHULDO LQ DQRWKHU WRQH XQLW FRQWUDVWLYH VWUHVV
UHPHPEHU 7KHVH IXQFWLRQV DUH H[DPSOHV RI WKH GLVFRXUVH IXQFWLRQ
RILQWRQDWLRQ
7KH EDVLF OLQJXLVWLF IXQFWLRQV DWWULEXWHG WR (QJOLVK LQWRQDWLRQ DUH WKH
IROORZLQJ
DJUDPPDWLFDOIXQFWLRQ
EDWWLWXGLQDOIXQFWLRQ
FLQIRUPDWLRQDODQGGLVFRXUVHIXQFWLRQ
L*UDPPDWLFDOIXQFWLRQRI(QJOLVKLQWRQDWLRQ
&RXSHU.XKOHQ LOOXVWUDWHV WKH VRFDOOHG JUDPPDWLFDO IXQFWLRQ
RI (QJOLVK LQWRQDWLRQ WKDW LV LQWRQDWLRQDO FRQWUDVWV UHODWHG WR
VHQWHQFHW\SHE\PHDQVRIWKHIROORZLQJH[DPSOHV
®
¯
D-RKQ¶VJRLQJ
E-RKQ¶VJRLQJ
F6KXWWKH
®
¯
G6KXWWKH
KRPH
KRPH
GRRU
GRRU
7KHXVHRIDULVLQJFRQWRXUDVRSSRVHGWRDIDOOLQJFRQWRXUDSSHDUVWR
WXUQ D VWDWHPHQW D LQWR D TXHVWLRQ E D FRPPDQG F LQWR D
UHTXHVWG
2QWKHRWKHUKDQGLQWRQDWLRQLVFODLPHGWRGLVDPELJXDWHZKDWZRXOG
RWKHUZLVHEHDQDPELJXRXVV\QWDFWLFFRQVWUXFWLRQ)RUH[DPSOH
®
H*HRUJHKDVGLUHFWLRQVWR
®
I*HRUJHKDV
IROORZ
GLUHFWLRQVWRIROORZ
³GLUHFWLRQV WR IROORZ´ ZRXOG EH GHULYDEOH IURP HLWKHU ³GLUHFWLRQV WKDW
*HRUJH PXVW IROORZ VRPHRQH´ RU IURP ³*HRUJH PXVW IROORZ WKH
GLUHFWLRQV´
EDWWLWXGLQDOIXQFWLRQ
%DVLFDOO\ FRQYH\HG E\ PHDQV RI SLWFK UDQJH DQG SLWFK GLUHFWLRQ )RU
H[DPSOHLQJUHHWLQJV
¯
®
DKLJKJRRG
EORZJRRG
PRUQLQJFKHHUIXODQGIULHQGO\
PRUQLQJURXWLQHDQGSHUIXQFWRU\
FLQIRUPDWLRQDODQGGLVFRXUVHIXQFWLRQ
$ WRQHJURXS LV D XQLW RI LQIRUPDWLRQ DQG WRQLFLW\ LV WKH ORFDWLRQ RI
WKHNH\ZRUGLQDXQLWRILQIRUPDWLRQ
$FFRUGLQJ WR %UD]LO HW DO D IDOOLQJ SURFODLPLQJ WRQH PDUNV
WKHLQIRUPDWLRQDVQHZZKHUHDVDIDOOULVHUHIHUULQJWRQHPDUNVWKH
LQIRUPDWLRQDVJLYHQ
¯®
¯
D KH¶OO EH
WZHQW\"
E KH¶OOEH
¯
¯®
WZHQW\ LQ
WZHQW\LQ
$XJXVW :KHQ ZLOO KH EH
$XJXVW+RZROGZLOOKHEH
LQ$XJXVW"
$ ULVLQJ PDUNHG UHIHUULQJ WRQH PHDQV WKDW WKH DUHD RI
FRQYHUJHQFH QHHGV UHDFWLYDWLRQ $QG ZLWK D ULVHIDOO PDUNHG
SURFODLPLQJ WRQH WKH VSHDNHU LV VLPXOWDQHRXVO\ DGGLQJ LQIRUPDWLRQ
ERWK WR WKH FRPPRQ JURXQG DQG WR KLV RZQ VWRUH RI NQRZOHGJH WKLV
PHDQLQJLVPRUHHYLGHQWLQUHVSRQVHVWRXQH[SHFWHGQHZV
®
F,ZHQWWRWKH
FLQHPDDQGWKHQ,ZHQWEDFNKRPH
®¯
G'R\RXNQRZZKR¶VEHHQFKRVHQ"
$UWKXU
)XQFWLRQVRI(QJOLVK7RQHV
)DOO>²
¯
@
¯
7KLVWRQHLVUHJDUGHGDVPRUHRUOHVV³QHXWUDO´,IVRPHRQHLVDVNHGD
TXHVWLRQ DQG UHSOLHV \HV RU QR ZLWK D IDOO >
@ LW ZLOO EH XQGHUVWRRG
WKDW WKH TXHVWLRQ LV DQVZHUHG DQG WKHUH LV QRWKLQJ PRUH WR EH VDLG
7KLVWRQHJLYHVDQLPSUHVVLRQRIILQDOLW\,WLVXVHGLQVWDWHPHQWVZK
TXHVWLRQVDQGFRPPDQGVDQGLQWDJTXHVWLRQVHOLFLWLQJDJUHHPHQW
3OHDVHFRPHKHUH
®
5LVH>
@
,Q D YDULHW\ RI ZD\V WKLV WRQH JLYHV DQ LPSUHVVLRQ WKDW VRPHWKLQJ
PRUH ZLOO IROORZ ,W LV WKHUHIRUH XVHG LQ \HVQR TXHVWLRQV UHSHWLWLRQ
TXHVWLRQV
XQILQLVKHG
VWDWHPHQWV
RSHQFKRLFH
TXHVWLRQV
HQXPHUDWLRQ¶VDQGWDJTXHVWLRQVVLJQDOLQJXQFHUWDLQW\
$([FXVHPH
%<HV"
¯®
@
)DOOULVH>
7KLVWRQHLVXVHGDORWLQ(QJOLVKDQGLWKDVUDWKHUVSHFLDOIXQFWLRQV,W
PD\ PHDQ ³OLPLWHG DJUHHPHQW´ RU ³UHVSRQVH ZLWK UHVHUYDWLRQV´ ,W LV
DOVR XVHG ZKHQ WKH VSHDNHU LV XQVXUH DQG LW LV DOVR XVHG LQ
SDUHQWKHWLFDOVOLNHZHOOUHDOO\
$,¶YHKHDUGSKRQHWLFVLVDORWRIIXQ
%<HV
®¯
5LVHIDOO>
@
7KLVWRQHLVXVHGWRFRQYH\VWURQJIHHOLQJVRIDSSURYDOGLVDSSURYDORU
VXUSULVH
$<RXUJLUOIULHQGLVUHDOO\QLFH
%<HV
5()(5(1&(6
' %UD]LO &RXOWKDUG 0 DQG -RKQV & 'LVFRXUVH ,QWRQDWLRQ DQG
/DQJXDJH7HDFKLQJ/RQGRQ/RQJPDQ
( &RXSHU.XKOHQ $Q ,QWURGXFWLRQ WR (QJOLVK 3URVRG\ /RQGRQ
(GZDUG$UQROG
- /DYHU 3ULQFLSOHV RI 3KRQHWLFV &DPEULGJH &DPEULGJH 8QLYHUVLW\
3UHVV
%0RWW$&RXUVHLQ3KRQHWLFVDQG3KRQRORJ\IRU6SDQLVK/HDUQHUVRI
(QJOLVK%DUFHORQD338
3 5RDFK (QJOLVK 3KRQHWLFV DQG 3KRQRORJ\ &DPEULGJH &DPEULGJH
8QLYHUVLW\3UHVV