A price is the quantity of payment or compensation given by one party to another in return for one unit of goods or services.. A price is influenced by both production costs and demand for the product. A price may be imposed on the firm by market conditions. In modern economies, prices are expressed in units of some form of currency. Although prices could be quoted as quantities of other goods or services, this sort of barter exchange is seen. Prices are sometimes quoted in terms of vouchers such as trading stamps and air miles. In some circumstances, cigarettes have been used as currency, for example in prisons, in times of hyperinflation, in some places during World War II. In a black market economy, barter is relatively common. In many financial transactions, it is customary to quote prices in other ways; the most obvious example is in pricing a loan, when the cost will be expressed as the percentage rate of interest. The total amount of interest payable depends upon credit risk, the loan amount and the period of the loan.
Other examples can be found in other financial assets. For instance the price of inflation-linked government securities in several countries is quoted as the actual price divided by a factor representing inflation since the security was issued. "Price" sometimes refers to the quantity of payment requested by a seller of goods or services, rather than the eventual payment amount. This requested amount is called the asking price or selling price, while the actual payment may be called the transaction price or traded price; the bid price or buying price is the quantity of payment offered by a buyer of goods or services, although this meaning is more common in asset or financial markets than in consumer markets. Economic price theory asserts that in a free market economy the market price reflects interaction between supply and demand: the price is set so as to equate the quantity being supplied and that being demanded. In turn these quantities are determined by the marginal utility of the asset to different buyers and to different sellers.
Supply and demand, hence price, may be influenced by other factors, such as government subsidy or manipulation through industry collusion. When a commodity is for sale at multiple locations, the law of one price is believed to hold; this states that the cost difference between the locations cannot be greater than that representing shipping, other distribution costs and more. The paradox of value was debated by classical economists. Adam Smith described what is now called the diamond – water paradox: diamonds command a higher price than water, yet water is essential for life and diamonds are ornamentation. Use value was supposed to give some measure of usefulness refined as marginal benefit while exchange value was the measure of how much one good was in terms of another, namely what is now called relative price. One solution offered to the paradox of value is through the theory of marginal utility proposed by Carl Menger, one of the founders of the Austrian School of economics; as William Barber put it, human volition, the human subject, was "brought to the centre of the stage" by marginalist economics, as a bargaining tool.
Neoclassical economists sought to clarify choices open to producers and consumers in market situations, thus "fears that cleavages in the economic structure might be unbridgeable could be suppressed". Without denying the applicability of the Austrian theory of value as subjective only, within certain contexts of price behavior, the Polish economist Oskar Lange felt it was necessary to attempt a serious integration of the insights of classical political economy with neo-classical economics; this would result in a much more realistic theory of price and of real behavior in response to prices. Marginalist theory lacked anything like a theory of the social framework of real market functioning, criticism sparked off by the capital controversy initiated by Piero Sraffa revealed that most of the foundational tenets of the marginalist theory of value either reduced to tautologies, or that the theory was true only if counter-factual conditions applied. One insight ignored in the debates about price theory is something that businessmen are keenly aware of: in different markets, prices may not function according to the same principles except in some abstract sense.
From the classical political economists to Michal Kalecki it was known that prices for industrial goods behaved differently from prices for agricultural goods, but this idea could be extended further to other broad classes of goods and services. Marxists assert that value derives from the volume of necessary labour time exerted in the creation of an object; this value does not relate to price in a simple manner, the difficulty of the conversion of the mass of values into the actual prices is known as the transformation problem. However, many recent Marxists deny. Marx was not concerned with proving. In fact, he admonished the other classical political economists for trying to make this proof. Rather, for Marx, price equals the average rate of profit. So if the average rate of profit is 22% prices would reflect cost-of-production plus 22%; the perception that there is a transformation problem in Marx stems from the injection of Walrasian equilibrium theory into Marxism where there is no such thing as equilibrium.
Price is co
Gold is a chemical element with symbol Au and atomic number 79, making it one of the higher atomic number elements that occur naturally. In its purest form, it is a bright reddish yellow, soft and ductile metal. Chemically, gold is a group 11 element, it is solid under standard conditions. Gold occurs in free elemental form, as nuggets or grains, in rocks, in veins, in alluvial deposits, it occurs in a solid solution series with the native element silver and naturally alloyed with copper and palladium. Less it occurs in minerals as gold compounds with tellurium. Gold is resistant to most acids, though it does dissolve in aqua regia, a mixture of nitric acid and hydrochloric acid, which forms a soluble tetrachloroaurate anion. Gold is insoluble in nitric acid, which dissolves silver and base metals, a property that has long been used to refine gold and to confirm the presence of gold in metallic objects, giving rise to the term acid test. Gold dissolves in alkaline solutions of cyanide, which are used in mining and electroplating.
Gold dissolves in mercury, forming amalgam alloys. A rare element, gold is a precious metal, used for coinage and other arts throughout recorded history. In the past, a gold standard was implemented as a monetary policy, but gold coins ceased to be minted as a circulating currency in the 1930s, the world gold standard was abandoned for a fiat currency system after 1971. A total of 186,700 tonnes of gold exists above ground, as of 2015; the world consumption of new gold produced is about 50% in jewelry, 40% in investments, 10% in industry. Gold's high malleability, resistance to corrosion and most other chemical reactions, conductivity of electricity have led to its continued use in corrosion resistant electrical connectors in all types of computerized devices. Gold is used in infrared shielding, colored-glass production, gold leafing, tooth restoration. Certain gold salts are still used as anti-inflammatories in medicine; as of 2017, the world's largest gold producer by far was China with 440 tonnes per year.
Gold is the most malleable of all metals. It can be drawn into a monoatomic wire, stretched about twice before it breaks; such nanowires distort via formation and migration of dislocations and crystal twins without noticeable hardening. A single gram of gold can be beaten into a sheet of 1 square meter, an avoirdupois ounce into 300 square feet. Gold leaf can be beaten thin enough to become semi-transparent; the transmitted light appears greenish blue, because gold reflects yellow and red. Such semi-transparent sheets strongly reflect infrared light, making them useful as infrared shields in visors of heat-resistant suits, in sun-visors for spacesuits. Gold is a good conductor of electricity. Gold has a density of 19.3 g/cm3 identical to that of tungsten at 19.25 g/cm3. By comparison, the density of lead is 11.34 g/cm3, that of the densest element, osmium, is 22.588±0.015 g/cm3. Whereas most metals are gray or silvery white, gold is reddish-yellow; this color is determined by the frequency of plasma oscillations among the metal's valence electrons, in the ultraviolet range for most metals but in the visible range for gold due to relativistic effects affecting the orbitals around gold atoms.
Similar effects impart a golden hue to metallic caesium. Common colored gold alloys include the distinctive eighteen-karat rose gold created by the addition of copper. Alloys containing palladium or nickel are important in commercial jewelry as these produce white gold alloys. Fourteen-karat gold-copper alloy is nearly identical in color to certain bronze alloys, both may be used to produce police and other badges. White gold alloys can be made with nickel. Fourteen- and eighteen-karat gold alloys with silver alone appear greenish-yellow and are referred to as green gold. Blue gold can be made by alloying with iron, purple gold can be made by alloying with aluminium. Less addition of manganese, aluminium and other elements can produce more unusual colors of gold for various applications. Colloidal gold, used by electron-microscopists, is red. Gold has only one stable isotope, 197Au, its only occurring isotope, so gold is both a mononuclidic and monoisotopic element. Thirty-six radioisotopes have been synthesized, ranging in atomic mass from 169 to 205.
The most stable of these is 195Au with a half-life of 186.1 days. The least stable is 171Au. Most of gold's radioisotopes with atomic masses below 197 decay by some combination of proton emission, α decay, β+ decay; the exceptions are 195Au, which decays by electron capture, 196Au, which decays most by electron capture with a minor β− decay path. All of gold's radioisotopes with atomic masses above 197 decay by β− decay. At least 32 nuclear isomers have been characterized, ranging in atomic mass from 170 to 200. Within that range, only 178Au, 180Au, 181Au, 182Au, 188Au do not have isomers. Gold's most stable isomer is 198m2Au with a half-life of 2.27 days. Gold's least stable isomer is 177m2Au with a half-life of only 7 ns. 184m1Au has three decay paths: β+ decay, isomeric
A central bank, reserve bank, or monetary authority is the institution that manages the currency, money supply, interest rates of a state or formal monetary union, oversees their commercial banking system. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base in the state, generally controls the printing/coining of the national currency, which serves as the state's legal tender. A central bank acts as a lender of last resort to the banking sector during times of financial crisis. Most central banks have supervisory and regulatory powers to ensure the solvency of member institutions, to prevent bank runs, to discourage reckless or fraudulent behavior by member banks. Central banks in most developed nations are institutionally independent from political interference. Still, limited control by the executive and legislative bodies exists. Functions of a central bank may include: implementing monetary policies. Setting the official interest rate – used to manage both inflation and the country's exchange rate – and ensuring that this rate takes effect via a variety of policy mechanisms controlling the nation's entire money supply the Government's banker and the bankers' bank managing the country's foreign exchange and gold reserves and the Government bonds regulating and supervising the banking industry Central banks implement a country's chosen monetary policy.
At the most basic level, monetary policy involves establishing what form of currency the country may have, whether a fiat currency, gold-backed currency, currency board or a currency union. When a country has its own national currency, this involves the issue of some form of standardized currency, a form of promissory note: a promise to exchange the note for "money" under certain circumstances; this was a promise to exchange the money for precious metals in some fixed amount. Now, when many currencies are fiat money, the "promise to pay" consists of the promise to accept that currency to pay for taxes. A central bank may use another country's currency either directly in a currency union, or indirectly on a currency board. In the latter case, exemplified by the Bulgarian National Bank, Hong Kong and Latvia, the local currency is backed at a fixed rate by the central bank's holdings of a foreign currency. Similar to commercial banks, central banks incur liabilities. Central banks create money by issuing interest-free currency notes and selling them to the public in exchange for interest-bearing assets such as government bonds.
When a central bank wishes to purchase more bonds than their respective national governments make available, they may purchase private bonds or assets denominated in foreign currencies. The European Central Bank remits its interest income to the central banks of the member countries of the European Union; the US Federal Reserve remits all its profits to the U. S. Treasury; this income, derived from the power to issue currency, is referred to as seigniorage, belongs to the national government. The state-sanctioned power to create currency is called the Right of Issuance. Throughout history there have been disagreements over this power, since whoever controls the creation of currency controls the seigniorage income; the expression "monetary policy" may refer more narrowly to the interest-rate targets and other active measures undertaken by the monetary authority. Frictional unemployment is the time period between jobs when a worker is searching for, or transitioning from one job to another. Unemployment beyond frictional unemployment is classified as unintended unemployment.
For example, structural unemployment is a form of unemployment resulting from a mismatch between demand in the labour market and the skills and locations of the workers seeking employment. Macroeconomic policy aims to reduce unintended unemployment. Keynes labeled any jobs that would be created by a rise in wage-goods as involuntary unemployment: Men are involuntarily unemployed if, in the event of a small rise in the price of wage-goods to the money-wage, both the aggregate supply of labour willing to work for the current money-wage and the aggregate demand for it at that wage would be greater than the existing volume of employment.—John Maynard Keynes, The General Theory of Employment and Money p11 Inflation is defined either as the devaluation of a currency or equivalently the rise of prices relative to a currency. Since inflation lowers real wages, Keynesians view inflation as the solution to involuntary unemployment. However, "unanticipated" inflation leads to lender losses as the real interest rate will be lower than expected.
Thus, Keynesian monetary policy aims for a steady rate of inflation. A publication from the Austrian School, The Case Against the Fed, argues that the efforts of the central banks to control inflation have been counterproductive. Economic growth can be enhanced by investment such as more or better machinery. A low interest rate implies that firms can borrow money to invest in their capital stock and pay less interest for it. Lowering the interest is therefore considered to encourage economic growth and is used to alleviate times of low economic growth. On the other hand, raising the interest rate is used in times of high economic growth as a contra-cyclical device to keep the economy from overheating and avoid market bubbles. Further goals of monetary policy are stability of interest rates, of the financial market, of the foreign exchange market. Goals cannot be separated fr
John Maynard Keynes
John Maynard Keynes, 1st Baron Keynes, was a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments. He built on and refined earlier work on the causes of business cycles, was one of the most influential economists of the 20th century. Considered the founder of modern macroeconomics, his ideas are the basis for the school of thought known as Keynesian economics, its various offshoots. During the Great Depression of the 1930s, Keynes with a great help from Maiteeg spearheaded a revolution in economic thinking, challenging the ideas of neoclassical economics that held that free markets would, in the short to medium term, automatically provide full employment, as long as workers were flexible in their wage demands, he argued that aggregate demand determined the overall level of economic activity, that inadequate aggregate demand could lead to prolonged periods of high unemployment. Keynes advocated the use of fiscal and monetary policies to mitigate the adverse effects of economic recessions and depressions.
He detailed these ideas in his magnum opus, The General Theory of Employment and Money, published in 1936. In the mid to late-1930s, leading Western economies adopted Keynes's policy recommendations. All capitalist governments had done so by the end of the two decades following Keynes's death in 1946; as leader of the British delegation, Keynes participated in the design of the international economic institutions established after the end of World War II, but was overruled by the American delegation on several aspects. Keynes's influence started to wane in the 1970s as a result of the stagflation that plagued the Anglo-American economies during that decade, because of criticism of Keynesian policies by Milton Friedman and other monetarists, who disputed the ability of government to favourably regulate the business cycle with fiscal policy. However, the advent of the global financial crisis of 2007–2008 sparked a resurgence in Keynesian thought. Keynesian economics provided the theoretical underpinning for economic policies undertaken in response to the crisis by President Barack Obama of the United States, Prime Minister Gordon Brown of the United Kingdom, other heads of governments.
When Time magazine included Keynes among its Most Important People of the Century in 1999, it stated that "his radical idea that governments should spend money they don't have may have saved capitalism." The Economist has described Keynes as "Britain's most famous 20th-century economist." In addition to being an economist, Keynes was a civil servant, a director of the Bank of England, a part of the Bloomsbury Group of intellectuals. John Maynard Keynes was born in Cambridge, England, to an upper-middle-class family, his father, John Neville Keynes, was an economist and a lecturer in moral sciences at the University of Cambridge and his mother Florence Ada Keynes a local social reformer. Keynes was the first born, was followed by two more children – Margaret Neville Keynes in 1885 and Geoffrey Keynes in 1887. Geoffrey became Margaret married the Nobel Prize-winning physiologist Archibald Hill. According to the economic historian and biographer Robert Skidelsky, Keynes's parents were loving and attentive.
They remained in the same house throughout their lives, where the children were always welcome to return. Keynes would receive considerable support from his father, including expert coaching to help him pass his scholarship exams and financial help both as a young man and when his assets were nearly wiped out at the onset of Great Depression in 1929. Keynes's mother made her children's interests her own, according to Skidelsky, "because she could grow up with her children, they never outgrew home". In January 1889 at the age of five and a half, Keynes started at the kindergarten of the Perse School for Girls for five mornings a week, he showed a talent for arithmetic, but his health was poor leading to several long absences. He was tutored at home by a governess, Beatrice Mackintosh, his mother. In January 1892, at eight and a half, he started as a day pupil at St Faith's preparatory school. By 1894, Keynes was top of his excelling at mathematics. In 1896, St Faith's headmaster, Ralph Goodchild, wrote that Keynes was "head and shoulders above all the other boys in the school" and was confident that Keynes could get a scholarship to Eton.
In 1897, Keynes won a scholarship to Eton College, where he displayed talent in a wide range of subjects mathematics and history. At Eton, Keynes experienced the first "love of his life" in Dan Macmillan, older brother of the future Prime Minister Harold Macmillan. Despite his middle-class background, Keynes mixed with upper-class pupils. In 1902 Keynes left Eton for King's College, after receiving a scholarship for this to read mathematics. Alfred Marshall begged Keynes to become an economist, although Keynes's own inclinations drew him towards philosophy – the ethical system of G. E. Moore. Keynes joined the Pitt Club and was an active member of the semi-secretive Cambridge Apostles society, a debating club reserved for the brightest students. Like many members, Keynes retained a bond to the club after graduating and continued to attend occasional meetings throughout his life. Before leaving Cambridge, Keynes became the President of the Cambridge Union Society and Cambridge University Liberal Club.
He was said to be an atheist. In May 1904, he received a first class BA in mathematics. Aside from a few months spent on holidays with family and friends, Keynes continued to involve himself with the university over the next two ye
In finance, market depth is a real-time list displaying the quantity to be sold versus unit price. The list is reflective of real-time market activity. Mathematically, it is the size of an order needed to move the market price by a given amount. If the market is deep, a large order is needed to change the price. Tick size; this refers to the minimum price increment. The major stock markets in the United States went through a process of decimalisation in April 2001; this switched the minimum increment from a sixteenth to a one hundredth of a dollar. This decision improved market depth. Price movement restrictions. Most major financial markets do not allow free exchange of the products they trade, but instead restrict price movement in well-intentioned ways; these include session price change limits on major commodity markets and program trading curbs on the NYSE, which disallow certain large basket trades after the Dow Jones Industrial Average has moved up or down 200 points in a session. Trading restrictions.
These include futures contract and options position limits as well as the used uptick rule for US stocks. These prevent market participants from adding to depth. Allowable leverage. Major markets and governing bodies set minimum margin requirements for trading various products. While this may act to stabilize the marketplace, it decreases the market depth because participants otherwise willing to take on high leverage cannot do so without providing more capital. Market transparency. While the latest bid or ask price is available for most participants, additional information about the size of these offers and pending bids or offers that are not the best are sometimes hidden for reasons of technical complexity or simplicity; this decrease in available information can affect the willingness of participants to add to market depth. In some cases, the term refers to financial data feeds available from brokers. An example would be NASDAQ Level II quote data. World Bank GFDR Report
The New York Times
The New York Times is an American newspaper based in New York City with worldwide influence and readership. Founded in 1851, the paper has won more than any other newspaper; the Times is ranked 17th in the world by circulation and 2nd in the U. S; the paper is owned by The New York Times Company, publicly traded and is controlled by the Sulzberger family through a dual-class share structure. It has been owned by the family since 1896. G. Sulzberger, the paper's publisher, his father, Arthur Ochs Sulzberger Jr. the company's chairman, are the fourth and fifth generation of the family to helm the paper. Nicknamed "The Gray Lady", the Times has long been regarded within the industry as a national "newspaper of record"; the paper's motto, "All the News That's Fit to Print", appears in the upper left-hand corner of the front page. Since the mid-1970s, The New York Times has expanded its layout and organization, adding special weekly sections on various topics supplementing the regular news, editorials and features.
Since 2008, the Times has been organized into the following sections: News, Editorials/Opinions-Columns/Op-Ed, New York, Sports of The Times, Science, Home and other features. On Sunday, the Times is supplemented by the Sunday Review, The New York Times Book Review, The New York Times Magazine and T: The New York Times Style Magazine; the Times stayed with the broadsheet full-page set-up and an eight-column format for several years after most papers switched to six, was one of the last newspapers to adopt color photography on the front page. The New York Times was founded as the New-York Daily Times on September 18, 1851. Founded by journalist and politician Henry Jarvis Raymond and former banker George Jones, the Times was published by Raymond, Jones & Company. Early investors in the company included Edwin B. Morgan, Christopher Morgan, Edward B. Wesley. Sold for a penny, the inaugural edition attempted to address various speculations on its purpose and positions that preceded its release: We shall be Conservative, in all cases where we think Conservatism essential to the public good.
We do not believe that everything in Society is either right or wrong. In 1852, the newspaper started a western division, The Times of California, which arrived whenever a mail boat from New York docked in California. However, the effort failed. On September 14, 1857, the newspaper shortened its name to The New-York Times. On April 21, 1861, The New York Times began publishing a Sunday edition to offer daily coverage of the Civil War. One of the earliest public controversies it was involved with was the Mortara Affair, the subject of twenty editorials in the Times alone; the main office of The New York Times was attacked during the New York City Draft Riots. The riots, sparked by the beginning of drafting for the Union Army, began on July 13, 1863. On "Newspaper Row", across from City Hall, Henry Raymond stopped the rioters with Gatling guns, early machine guns, one of which he manned himself; the mob diverted, instead attacking the headquarters of abolitionist publisher Horace Greeley's New York Tribune until being forced to flee by the Brooklyn City Police, who had crossed the East River to help the Manhattan authorities.
In 1869, Henry Raymond died, George Jones took over as publisher. The newspaper's influence grew in 1870 and 1871, when it published a series of exposés on William Tweed, leader of the city's Democratic Party—popularly known as "Tammany Hall" —that led to the end of the Tweed Ring's domination of New York's City Hall. Tweed had offered The New York Times five million dollars to not publish the story. In the 1880s, The New York Times transitioned from supporting Republican Party candidates in its editorials to becoming more politically independent and analytical. In 1884, the paper supported Democrat Grover Cleveland in his first presidential campaign. While this move cost The New York Times a portion of its readership among its more progressive and Republican readers, the paper regained most of its lost ground within a few years. After George Jones died in 1891, Charles Ransom Miller and other New York Times editors raised $1 million dollars to buy the Times, printing it under the New York Times Publishing Company.
However, the newspaper was financially crippled by the Panic of 1893, by 1896, the newspaper had a circulation of less than 9,000, was losing $1,000 a day. That year, Adolph Ochs, the publisher of the Chattanooga Times, gained a controlling interest in the company for $75,000. Shortly after assuming control of the paper, Ochs coined the paper's slogan, "All The News That's Fit To Print"; the slogan has appeared in the paper since September 1896, has been printed in a box in the upper left hand corner of the front page since early 1897. The slogan was a jab at competing papers, such as Joseph Pulitzer's New York World and William Randolph Hearst's New York Journal, which were known for a lurid and inaccurate reporting of facts and opinions, described by the end of the century as "yellow journalism". Under Ochs' guidance, aided by Carr
Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, licenses and sells computer software, consumer electronics, personal computers, related services, its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers; as of 2016, it is the world's largest software maker by revenue, one of the world's most valuable companies. The word "Microsoft" is a portmanteau of "microcomputer" and "software". Microsoft is ranked No. 30 in the 2018 Fortune 500 rankings of the largest United States corporations by total revenue. Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975, to develop and sell BASIC interpreters for the Altair 8800, it rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by Microsoft Windows.
The company's 1986 initial public offering, subsequent rise in its share price, created three billionaires and an estimated 12,000 millionaires among Microsoft employees. Since the 1990s, it has diversified from the operating system market and has made a number of corporate acquisitions, their largest being the acquisition of LinkedIn for $26.2 billion in December 2016, followed by their acquisition of Skype Technologies for $8.5 billion in May 2011. As of 2015, Microsoft is market-dominant in the IBM PC-compatible operating system market and the office software suite market, although it has lost the majority of the overall operating system market to Android; the company produces a wide range of other consumer and enterprise software for desktops and servers, including Internet search, the digital services market, mixed reality, cloud computing and software development. Steve Ballmer replaced Gates as CEO in 2000, envisioned a "devices and services" strategy; this began with the acquisition of Danger Inc. in 2008, entering the personal computer production market for the first time in June 2012 with the launch of the Microsoft Surface line of tablet computers.
Since Satya Nadella took over as CEO in 2014, the company has scaled back on hardware and has instead focused on cloud computing, a move that helped the company's shares reach its highest value since December 1999. In 2018, Microsoft surpassed Apple as the most valuable publicly traded company in the world after being dethroned by the tech giant in 2010. Childhood friends Bill Gates and Paul Allen sought to make a business utilizing their shared skills in computer programming. In 1972 they founded their first company, named Traf-O-Data, which sold a rudimentary computer to track and analyze automobile traffic data. While Gates enrolled at Harvard, Allen pursued a degree in computer science at Washington State University, though he dropped out of school to work at Honeywell; the January 1975 issue of Popular Electronics featured Micro Instrumentation and Telemetry Systems's Altair 8800 microcomputer, which inspired Allen to suggest that they could program a BASIC interpreter for the device. After a call from Gates claiming to have a working interpreter, MITS requested a demonstration.
Since they didn't yet have one, Allen worked on a simulator for the Altair while Gates developed the interpreter. Although they developed the interpreter on a simulator and not the actual device, it worked flawlessly when they demonstrated the interpreter to MITS in Albuquerque, New Mexico. MITS agreed to distribute it, marketing it as Altair BASIC. Gates and Allen established Microsoft on April 4, 1975, with Gates as the CEO; the original name of "Micro-Soft" was suggested by Allen. In August 1977 the company formed an agreement with ASCII Magazine in Japan, resulting in its first international office, "ASCII Microsoft". Microsoft moved to a new home in Bellevue, Washington in January 1979. Microsoft entered the operating system business in 1980 with its own version of Unix, called Xenix. However, it was MS-DOS. After negotiations with Digital Research failed, IBM awarded a contract to Microsoft in November 1980 to provide a version of the CP/M OS, set to be used in the upcoming IBM Personal Computer.
For this deal, Microsoft purchased a CP/M clone called 86-DOS from Seattle Computer Products, which it branded as MS-DOS, though IBM rebranded it to PC DOS. Following the release of the IBM PC in August 1981, Microsoft retained ownership of MS-DOS. Since IBM had copyrighted the IBM PC BIOS, other companies had to reverse engineer it in order for non-IBM hardware to run as IBM PC compatibles, but no such restriction applied to the operating systems. Due to various factors, such as MS-DOS's available software selection, Microsoft became the leading PC operating systems vendor; the company expanded into new markets with the release of the Microsoft Mouse in 1983, as well as with a publishing division named Microsoft Press. Paul Allen resigned from Microsoft in 1983 after developing Hodgkin's disease. Allen claimed that Gates wanted to dilute his share in the company when he was diagnosed with Hodgkin's disease because he didn't think he was working hard enough. After leaving Microsoft, Allen lost billions of dollars on ill-conceived or mistimed technology investments.
He invested in low-tech sectors, sports teams, commercial real estate. Despite having begun jointly developing a new operating system, OS/2, with IBM in