Machine learning is the scientific study of algorithms and statistical models that computer systems use to perform a specific task without using explicit instructions, relying on patterns and inference instead. It is seen as a subset of artificial intelligence. Machine learning algorithms build a mathematical model of sample data, known as "training data", in order to make predictions or decisions without being explicitly programmed to perform the task. Machine learning algorithms are used in a wide variety of applications, such as email filtering, computer vision, where it is infeasible to develop an algorithm of specific instructions for performing the task. Machine learning is related to computational statistics, which focuses on making predictions using computers; the study of mathematical optimization delivers methods and application domains to the field of machine learning. Data mining is a field of study within machine learning, focuses on exploratory data analysis through unsupervised learning.
In its application across business problems, machine learning is referred to as predictive analytics. The name machine learning was coined in 1959 by Arthur Samuel. Tom M. Mitchell provided a quoted, more formal definition of the algorithms studied in the machine learning field: "A computer program is said to learn from experience E with respect to some class of tasks T and performance measure P if its performance at tasks in T, as measured by P, improves with experience E." This definition of the tasks in which machine learning is concerned offers a fundamentally operational definition rather than defining the field in cognitive terms. This follows Alan Turing's proposal in his paper "Computing Machinery and Intelligence", in which the question "Can machines think?" is replaced with the question "Can machines do what we can do?". In Turing's proposal the various characteristics that could be possessed by a thinking machine and the various implications in constructing one are exposed. Machine learning tasks are classified into several broad categories.
In supervised learning, the algorithm builds a mathematical model from a set of data that contains both the inputs and the desired outputs. For example, if the task were determining whether an image contained a certain object, the training data for a supervised learning algorithm would include images with and without that object, each image would have a label designating whether it contained the object. In special cases, the input may be only available, or restricted to special feedback. Semi-supervised learning algorithms develop mathematical models from incomplete training data, where a portion of the sample input doesn't have labels. Classification algorithms and regression algorithms are types of supervised learning. Classification algorithms are used. For a classification algorithm that filters emails, the input would be an incoming email, the output would be the name of the folder in which to file the email. For an algorithm that identifies spam emails, the output would be the prediction of either "spam" or "not spam", represented by the Boolean values true and false.
Regression algorithms are named for their continuous outputs, meaning they may have any value within a range. Examples of a continuous value are the length, or price of an object. In unsupervised learning, the algorithm builds a mathematical model from a set of data which contains only inputs and no desired output labels. Unsupervised learning algorithms are used to find structure in the data, like grouping or clustering of data points. Unsupervised learning can discover patterns in the data, can group the inputs into categories, as in feature learning. Dimensionality reduction is the process of reducing the number of "features", or inputs, in a set of data. Active learning algorithms access the desired outputs for a limited set of inputs based on a budget, optimize the choice of inputs for which it will acquire training labels; when used interactively, these can be presented to a human user for labeling. Reinforcement learning algorithms are given feedback in the form of positive or negative reinforcement in a dynamic environment, are used in autonomous vehicles or in learning to play a game against a human opponent.
Other specialized algorithms in machine learning include topic modeling, where the computer program is given a set of natural language documents and finds other documents that cover similar topics. Machine learning algorithms can be used to find the unobservable probability density function in density estimation problems. Meta learning algorithms learn their own inductive bias based on previous experience. In developmental robotics, robot learning algorithms generate their own sequences of learning experiences known as a curriculum, to cumulatively acquire new skills through self-guided exploration and social interaction with humans; these robots use guidance mechanisms such as active learning, motor synergies, imitation. Arthur Samuel, an American pioneer in the field of computer gaming and artificial intelligence, coined the term "Machine Learning" in 1959 while at IBM; as a scientific endeavour, machine learning grew out of the quest for artificial intelligence. In the early days of AI as an academic discipline, some researchers were interested in having machines learn from data.
They attempted to approach the problem with various symbolic methods, as well as what were termed "neural networks". Probabilistic reasoning was employed in automated medical
Frank Quattrone is an American technology investment banker who started technology sector franchises at Morgan Stanley, Deutsche Bank, Credit Suisse First Boston. He helped bring dozens of technology companies public during the 1990s tech boom, including Netscape and Amazon.com. He was prosecuted for interfering with a government probe into Credit Suisse First Boston's behavior in allocating "hot" IPOs; the case was dropped. He was earning $120 million a year during his peak at the firm. Quattrone is now head of investment banking firm Qatalyst Group, which he founded in March 2008. Quattrone grew up in Philadelphia and attended St. Joseph's Preparatory School on an academic scholarship, he was graduated with honors. Following business school at Stanford University, he began work at Morgan Stanley's technology investment banking group. In 2003, Quattrone was confronted with evidence of incriminating emails in a publicized series of trials; the first trial resulted in a hung jury. The second trial resulted in a conviction.
On appeal the U. S. Court of Appeals for the Second Circuit reversed Quattrone's conviction, based in part upon the Supreme Court case Arthur Andersen LLP v. United States that Quattrone's jury had been given erroneous jury instructions; the appeals court agreed with the defense that in the interest of justice, subsequent proceedings should take place in front of a different judge. On August 22, 2006, Quattrone reached a deferred prosecution agreement, which allowed him to avoid prison time, "leading legal observers to label the agreement an exoneration." The National Association of Securities Dealers dropped their charges. It was stated that he "plan to resume business career." According to reports, Mr. Quattrone would receive $100 million to $550 million in overdue compensation, so long as he would abide by an agreement and would not break the law for a year. Credit Suisse had paid for Quattrone's legal costs. Since 2004, Frank Quattrone and his wife Denise have supported the Northern California Innocence Project based at Santa Clara University School of Law.
Quattrone is an active fund-raiser for the project. At the NCIP inaugural Justice for All Awards Dinner in March 2008, Quattrone accepted the Leadership Award. In his acceptance speech, he referred to his motivation for supporting the Innocence Project—that at the moment he was found guilty of the government's charges, he realized that there must be other innocent people who were in prison but unlike him they lacked the resources to fight for justice. In March 2008, Quattrone founded Qatalyst Group, a high-end corporate advisory firm focused on technology. After the firm issued its founding press release, it was reported to be advising Google on the Yahoo takeover deal pending with Microsoft; the article reporting the collaboration said: "That Mr. Schmidt would call on Mr. Quattrone is no surprise; the two men have worked together for years, Mr. Schmidt was quoted in the press release announcing the creation of Qatalyst'I look forward to working with him again and am enthusiastic about Qatalyst’s prospects for success.'"
Qatalyst has since advised on some of the most high-profile assignments in the industry. It represented Data Domain on its sale to EMC, nearly doubling the firm's purchase price, represented struggling mobile device maker Palm in its sale to Hewlett Packard; the success of Data Domain sale was followed by the bidding war for 3Par, which concluded in Hewlett Packard paying more than double the 3Par's value on the public markets. Netezza and Isilon were other storage clients advised by Qatalyst in 2010; the success of 2010 was overshadowed by Qatalyst's assignments in 2011. Qatalyst advised Riot Games on its sale to Tencent, Kosmix on its sale to Wal-Mart, Atheros on its sale to Qualcomm, Zong on its sale to eBay, PopCap on its sale to EA, National Semiconductor on its sale to Texas Instruments, Autonomy on its sale to Hewlett Packard, Motorola Mobility on its sale to Google, Netlogic on its sale to Broadcom, among many others
Financial institutions, otherwise known as banking institutions, are corporations that provide services as intermediaries of financial markets. Broadly speaking, there are three major types of financial institutions: Depository institutions – deposit-taking institutions that accept and manage deposits and make loans, including banks, building societies, credit unions, trust companies, mortgage loan companies. Financial institutions can be distinguished broadly into two categories according to ownership structure: Commercial Banks Cooperative BanksSome experts see a trend toward homogenisation of financial institutions, meaning a tendency to invest in similar areas and have similar business strategies. A consequence of this might be fewer banks serving specific target groups, small-scale producers may be under-served. Standard Settlement Instructions are the agreements between two financial institutions which fix the receiving agents of each counterparty in ordinary trades of some type; these agreements allow traders to make faster trades since the time used to settle the receiving agents is conserved.
Limiting the trader to an SSI lowers the likelihood of a fraud. SSIs are used by financial institutions to facilitate accurate cross-border payments. Financial institutions in most countries operate in a regulated environment because they are critical parts of countries' economies, due to economies' dependence on them to grow the money supply via fractional reserve lending. Regulatory structures differ in each country, but involve prudential regulation as well as consumer protection and market stability; some countries have one consolidated agency that regulates all financial institutions while others have separate agencies for different types of institutions such as banks, insurance companies and brokers. Countries that have separate agencies include the United States, where the key governing bodies are the Federal Financial Institutions Examination Council, Office of the Comptroller of the Currency - National Banks, Federal Deposit Insurance Corporation State "non-member" banks, National Credit Union Administration - Credit Unions, Federal Reserve - "member" Banks, Office of Thrift Supervision - National Savings & Loan Association, State governments each regulate and charter financial institutions.
Countries that have one consolidated financial regulator include: Norway with the Financial Supervisory Authority of Norway, Germany with Federal Financial Supervisory Authority and Russia with Central Bank of Russia. Merits of raising funds through financial institutions are as follows: Financial institutions provide long term finance, which are not provided by commercial banks; such a company can raise funds from other sources as well. Cooperative banking
Sponsoring something is the act of supporting an event, person, or organization financially or through the provision of products or services. The individual or group that provides the support, similar to a benefactor, is known as sponsor. Sponsorship is a cash and/or in-kind fee paid to a property in return for access to the exploitable commercial potential associated with that property. While the sponsoree may be nonprofit, unlike philanthropy, sponsorship is done with the expectation of a commercial return. While sponsorship can deliver increased awareness, brand building and propensity to purchase, it is different from advertising. Unlike advertising, sponsorship can not communicate specific product attributes. Nor can it stand alone, as sponsorship requires support elements. A range of psychological and communications theories have been used to explain how commercial sponsorship works to impact consumer audiences. Most use the notion that a brand and event become linked in memory through the sponsorship and as a result, thinking of the brand can trigger event-linked associations.
Cornwell and Roy have published an extensive review of the theories so far used to explain commercial sponsorship effects. One of the most pervasive findings in sponsorship is that the best effects are achieved where there is a logical match between the sponsor and sponsoree, such as a sports brand sponsoring a sports event. Work by Cornwell and colleagues however, has shown that brands that don't have a logical match can still benefit, at least in terms of memory effects, if the sponsor articulates some rationale for the sponsorship to the audience. Series sponsor is the highest status of sponsorship; the name and the logo of the sponsor is incorporated into the title of the series. This status allows companies to have a decisive voice on the issue of presence among sponsors other companies operating in the same business, the priority right to use teams, team members, players and the sanctioning body for conducting joint promotions, right of presence at all official events dedicated to a sports event, mandatory mentioning in all activities conducted on behalf of the team, highlighting the name of title sponsor in film credits, television programs which were created with its financial support, placement of logos and banners.
A patch or sticker is required to placed or worn on a visible item of every competitor if their personal sponsor is in direct competition with the series sponsor. Title sponsor characterizes the most significant contribution to a company in organizing and hosting an event; the name of such sponsor is placed next to the name of competition, individual athletes and is associated with it. In case of title sponsor's presence, the general sponsor position may remain free. General sponsor is a sponsor that makes one of the largest contributions and that receives for it the right to use the image of competition as well as extensive media coverage. If necessary, the status of the general sponsor may be supplemented by the general sponsors for certain categories, as well as the main sponsor. Team sponsor provides funds for individual teams; the more money provided, the larger area and more visible location are allocated. In some instances, the team sponsor may be rotated between the secondary sponsor roles.
This occurs with auto racing teams that travel over a vast area. A team sponsor may take the primary sponsorship role at a race in an area where they are present, such as a store chain; that sponsor may take a secondary sponsorship role, or not be on the car, in an area they have little or no presence, or are prohibited by law to sell, such as alcohol or tobacco products. Official sponsor is a sponsor; the given status may be granted by category. Technical sponsor is a sponsor which promotes organization of sporting events through the partial or full payment of goods and services. Participating sponsor is a company, the sponsorship fee size of which does not exceed 10% of total raised funds.. Informational sponsor is an organization that provides informational support through media coverage, conducting PR-actions, joint actions, etc. All sponsorship should be based on contractual obligations between the sponsor and the sponsored party. Sponsors and sponsored parties should set out clear terms and conditions with all other partners involved, to define their expectations regarding all aspects of the sponsorship deal.
Sponsorship should be recognisable as such. The terms and conduct of sponsorship should be based upon the principle of good faith between all parties to the sponsorship. There should be clarity regarding the specific rights being sold and confirmation that these are available for sponsorship from the rights holder. Sponsored parties should have the absolute right to decide on the value of the sponsorship rights that they are offering and the appropriateness of the sponsor with whom they contract; the sa
Credit is the trust which allows one party to provide money or resources to another party wherein the second party does not reimburse the first party but promises either to repay or return those resources at a date. In other words, credit is a method of making reciprocity formal enforceable, extensible to a large group of unrelated people; the resources provided may be financial. Credit encompasses any form of deferred payment. Credit is extended by a creditor known as a lender, to a debtor known as a borrower; the term "credit" was first used in English in the 1520s. The term came "from Middle French crédit "belief, trust," from Italian credito, from Latin creditum "a loan, thing entrusted to another," from past participle of credere "to trust, believe"." The commercial meaning of "credit" "was the original one in English" The derivative expression "credit union" was first used in 1881 in American English. Bank-issued credit makes up the largest proportion of credit in existence; the traditional view of banks as intermediaries between savers and borrower is incorrect.
Modern banking is about credit creation. Credit is made up of two parts, the credit and its corresponding debt, which requires repayment with interest; the majority of the money in the UK economy is created as credit. When a bank issues credit, it writes a negative entry into the liabilities column of its balance sheet, an equivalent positive figure on the assets column; when the debt is repaid, the credit and debt are cancelled, the money disappears from the economy. Meanwhile, the debtor receives a positive cash balance, but an equivalent negative liability to be repaid to the bank over the duration. Most of the credit created goes into the purchase of land and property, creating inflation in those markets, a major driver of the economic cycle; when a bank creates credit, it owes the money to itself. If a bank issues too much bad credit, the bank will become insolvent; that the bank never had the money to lend in the first place is immaterial - the banking license affords banks to create credit - what matters is that a bank's total assets are greater than its total liabilities, that it is holding sufficient liquid assets - such as cash - to meet its obligations to its debtors.
If it fails to do this it risks bankruptcy. There are two main forms of private credit created by banks. To reduce their exposure to the risk of not getting their money back, banks will tend to issue large credit sums to those deemed credit-worthy, to require collateral. In this instance, the bank uses sale of the collateral to reduce its liabilities. Examples of secured credit include consumer mortgages used to buy houses, boats etc. and PCP credit agreements for automobile purchases. Movements of financial capital are dependent on either credit or equity transfers; the global credit market is three times the size of global equity. Credit is in turn dependent on the reputation or creditworthiness of the entity which takes responsibility for the funds. Credit is traded in financial markets; the purest form is the credit default swap market, a traded market in credit insurance. A credit default swap represents the price at which two parties exchange this risk – the protection seller takes the risk of default of the credit in return for a payment denoted in basis points of the notional amount to be referenced, while the protection buyer pays this premium and in the case of default of the underlying, delivers this receivable to the protection seller and receives from the seller the par amount.
There are many types of credit, including but not limited to bank credit, consumer credit, investment credit, international credit, public credit and real estate. In commercial trade, the term "trade credit" refers to the approval of delayed payment for purchased goods. Credit is sometimes not granted to a buyer who has financial difficulty. Companies offer trade credit to their customers as part of the terms of a purchase agreement. Organizations that offer credit to their customers employ a credit manager. Consumer debt can be defined as "money, goods or services provided to an individual in the absence of immediate payment". Common forms of consumer credit include credit cards, store cards, motor vehicle finance, personal loans, consumer lines of credit, payday loans, retail loans and mortgages; this is a broad definition of consumer credit and corresponds with the Bank of England's definition of "Lending to individuals". Given the size and nature of the mortgage market, many observers classify mortgage lending as a separate category of personal borrowing, and
Lloyd's of London
Lloyd's of London known as Lloyd's, is an insurance and reinsurance market located in London, United Kingdom. Unlike most of its competitors in the industry, it is not an insurance company; these underwriters, or "members", are a collection of both corporations and private individuals, the latter being traditionally known as "Names". The business underwritten at Lloyd's is predominantly general insurance and reinsurance, although a small number of syndicates write term life assurance; the market has its roots in marine insurance and was founded by Edward Lloyd at his coffee house on Tower Street in c. 1686. Today, it has a dedicated building on Lime Street within which business is transacted at each syndicate's "box" in the underwriting "Room", with the insurance policy documentation being known traditionally as a "slip"; the market's motto is Fidentia, Latin for "confidence", it is associated with the Latin phrase uberrima fides, or "utmost good faith", representing the relationship between underwriters and brokers.
Having survived multiple scandals and significant challenges through the second half of the 20th century, most notably the asbestosis affair, Lloyd's today promotes its strong financial "chain of security" available to promptly pay all valid claims. At the end of 2018 this chain consisted of £53.5 billion of syndicate-level assets. In 2018 there were 84 syndicates managed by 55 managing agencies that collectively wrote £35.5bn of gross premiums on risks placed by 303 approved brokers. Around 50 per cent of premiums emanated from North America, 30 per cent from Europe and 20 per cent from the rest of the world. Direct insurance represented around 70 per cent of the premiums covering property and casualty, while the remaining 30 per cent was reinsurance; the market collectively reported a pre-tax loss of £1bn for 2018, resulting from above-average major claims and a weak investment environment. The market began in Lloyd's Coffee House, owned by Edward Lloyd, in around 1686 on Tower Street in the City of London.
This establishment was a popular place for sailors and ship-owners, Lloyd catered to them with reliable shipping news. The coffee house soon became recognised as an ideal place for obtaining marine insurance; the shop was frequented by mariners involved in the slave trade. Historian Eric Williams notes: "Lloyd's, like other insurance companies, insured slaves and slave ships, was vitally interested in legal decisions as to what constituted'natural death' and'perils of the sea'." Lloyd's obtained a monopoly on maritime insurance related to the slave trade and maintained it until the early 19th century. Just after Christmas 1691, the small club of marine insurance underwriters relocated to Lombard Street; this arrangement carried on until 1773, long after the death of Edward Lloyd in 1713, when the participating members of the insurance arrangement formed a committee and underwriter John Julius Angerstein acquired two rooms at the Royal Exchange in Cornhill for "The Society of Lloyd's". The Royal Exchange was destroyed by fire in 1838.
It was rebuilt by 1844. In 1871, the first Lloyd's Act was passed in Parliament which gave the business a sound legal footing. Around that time, it was unusual for a Lloyd's syndicate to have six backers. A marine underwriter named Frederick Marten is credited for first identifying this issue and creating the first "large syndicate" of 12 capacity providers. By the 1880s Marten's syndicate had outgrown many of the major insurance companies outside Lloyd's. A subsequent Lloyd's Act in 1911 set out the Society's objectives, which include the promotion of its members' interests and the collection and dissemination of information. On 18 April 1906 a major earthquake and resulting fires destroyed over 80 per cent of the city of San Francisco; this event was to have a profound influence on building practices, risk modelling and the insurance industry. Lloyd's losses from the earthquake and fires were substantial though the writing of insurance business overseas was viewed with some wariness at the time.
While some insurance companies were denying claims for fire damage under their earthquake policies or vice versa, one of Lloyd's leading underwriters, Cuthbert Heath, famously instructed his San Francisco agent to "pay all of our policy-holders in full, irrespective of the terms of their policies". The prompt and full payment of all claims helped to cement Lloyd's reputation for reliable claim payments and as an important trading partner for US brokers and policyholders, it was estimated that around 90 per cent of the damage to the city was caused by the resultant fires, as such since 1906 fire following earthquake has been a specified insured peril under most policies. Heath is credited for introducing the now used "excess of loss" reinsurance protection for insurers following the San Francisco disaster. Heath's background was that he became an underwriting member of Lloyd's in 1880, upon reaching the minimum age of 21, on J. S. Burrows' syndicate. Within a year he was underwriting for himself on a three-man syndicate, in 1883 he opened a brokerage business.
In 1885 he wrote the first fire reinsurance contra
A security is a tradable financial asset. The term refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some jurisdictions the term excludes financial instruments other than equities and fixed income instruments. In some jurisdictions it includes some instruments that are close to equities and fixed income, e.g. equity warrants. In some countries and languages the term "security" is used in day-to-day parlance to mean any form of financial instrument though the underlying legal and regulatory regime may not have such a broad definition. In the United Kingdom, the national competent authority for financial markets regulation is the Financial Conduct Authority. In the United States, a security is a tradable financial asset of any kind. Securities are broadly categorized into: debt securities equity securities derivatives; the company or other entity issuing the security is called the issuer. A country's regulatory structure determines. For example, private investment pools may have some features of securities, but they may not be registered or regulated as such if they meet various restrictions.
Securities may be represented by a certificate or, more "non-certificated", in electronic or "book entry" only form. Certificates may be bearer, meaning they entitle the holder to rights under the security by holding the security, or registered, meaning they entitle the holder to rights only if he or she appears on a security register maintained by the issuer or an intermediary, they include shares of corporate stock or mutual funds, bonds issued by corporations or governmental agencies, stock options or other options, limited partnership units, various other formal investment instruments that are negotiable and fungible. Securities may be classified according to many categories or classification systems: Currency of denomination Ownership rights Terms to maturity Degree of liquidity Income payments Tax treatment Credit rating Industrial sector or "industry". Region or country Market capitalization State Securities are the traditional way that commercial enterprises raise new capital; these may be an attractive alternative to bank loans depending on their pricing and market demand for particular characteristics.
Another disadvantage of bank loans as a source of financing is that the bank may seek a measure of protection against default by the borrower via extensive financial covenants. Through securities, capital is provided by investors who purchase the securities upon their initial issuance. In a similar way, a government may issue securities too. Investors in securities may be retail, i.e. members of the public investing other than by way of business. The greatest part of investment, in terms of volume, is wholesale, i.e. by financial institutions acting on their own account, or on behalf of clients. Important institutional investors include investment banks, insurance companies, pension funds and other managed funds; the traditional economic function of the purchase of securities is investment, with the view to receiving income or achieving capital gain. Debt securities offer a higher rate of interest than bank deposits, equities may offer the prospect of capital growth. Equity investment may offer control of the business of the issuer.
Debt holdings may offer some measure of control to the investor if the company is a fledgling start-up or an old giant undergoing'restructuring'. In these cases, if interest payments are missed, the creditors may take control of the company and liquidate it to recover some of their investment; the last decade has seen an enormous growth in the use of securities as collateral. Purchasing securities with borrowed money secured by other securities or cash itself is called "buying on margin". Where A is owed a debt or other obligation by B, A may require B to deliver property rights in securities to A, either at inception or only in default. For institutional loans, property rights are not transferred but enable A to satisfy its claims in the event that B fails to make good on its obligations to A or otherwise becomes insolvent. Collateral arrangements are divided into two broad categories, namely security interests and outright collateral transfers. Commercial banks, investment banks, government agencies and other institutional investors such as mutual funds are significant collateral takers as well as providers.
In addition, private parties may utilize stocks or other securities as collateral for portfolio loans in securities lending scenarios. On the consumer level, loans against securities have grown into three distinct groups over the last decade: 1) Standard Institutional Loans offering low loan-to-value with