Shareholder Wealth Assignment Example | Topics and Well Written Essays - 1500 words

Shareholder Wealth - Assignment Example Such claims are limited by the proportion of ownership derived from the amount of the investment. Shareholders who invest have one common goal: maximise the value of invested wealth. Every investment decision is made with the expectation that its value would increase over time. Shareholders do not necessarily manage the business, so they hire managers as their agents to increase the value of their (shareholders') wealth such that there would be enough profits for everybody. A portion of these profits is given back to owners through dividends whilst the balance may be re-invested to create more wealth. The agency theory describes the dynamics of the relationship and potential conflicts of interest between shareholder-owners and manager-agents. How shareholder wealth is measured indicates how managers can maximise it. For any business with more than one shareholder, the ultimate measure of shareholder wealth is the share price, the value of one share of ownership in the business. Share valuation follows a systematic process based on the value of the corporation's assets, which equal its liabilities plus stockholders' equity, all information available from the balance sheet. At start-up, the value of a share is derived from dividing equity by the number of shares offered. Once the business generates profits, cash can be distributed as dividends to shareholders or re-invested in the business. Profits increase assets and the value of the shareholders' equity, thereby increasing each share's value. Or, assets can increase with debt, but it does not automatically follow that stockholders' equity would stay the same, decrease, or increase. The effects of debt depend on what managers do with it, and whether or not borrowing allows the corporation to generate more cash. At some future time, when a shareholder decides to sell the shares, both buyer and seller only need to analyse the balance sheet to agree on the price. However, a single share of stock is not only a claim on the assets the corporation owns today, or the value of the shareholders' equity now. It is also a claim on future profits and the future selling price of the share. Neither is the investment totally risk-free, since the share's value could drop because of mismanagement and bankruptcy. Risk is part of valuation because of the risk-return relationship. Therefore, a share's value today is calculated by getting the present value of: 1) Cash dividends until the shares are sold; 2) Proceeds from selling the shares; or if the corporation ceases operations, 3) The firm's break-up value after selling assets to pay off liabilities. Financial analysts simplify share valuation by focusing on the present value of cash dividends, making the convenient assumptions that shares would not be sold and the business would not be closed. Since cash dividends are equivalent to the free cash flow (FCF), the value of a share now is the present value of the FCF stream discounted at the rate of return investors expect to receive on comparable investments. FCF is not profits, which can be re-invested or given out as dividends. Rather, FCF is the cash not retained nor

Impact of Technology in War Term Paper Example | Topics and Well Written Essays - 2500 words

Impact of Technology in War - Term Paper Example Historical findings denoted that ancient mechanisms of handling war and the materials derived complications deterred the desired prompt confrontation, aggression, and combating of enemies in the battlefields. However, the advancement in technology led to the development of machineries that eased transportation of military equipment and personnel with increased convenience and accessibility to the war fields. The development of the wheel marked the advent ease in logistics. Since then, human societies developed engines and which further symbolized their application in locomotives to the currently used trucks, jetfighters, and military helicopters among others. Through the development of the engine, militarization advanced accordingly as nations converted the technology to power sophisticated weapons such as long-range missiles, atomic bombs, and rockets launchers in warships (Thompson 48). Similarly, technology poses as the origin of increased rate intelligence among nations, and comm unication among allied and enemy nations in their militaries. The history of plane carriers and airships dates back to the 1880s. However, research establishes that the First World War implemented a new outlook on improvisation of war machineries to confront enemies at a large scale as global powers engaged into war. The 1914-1918 war involved European nations, which varied and disagreed on policies and their overseas interests. These factors resulted to increased tensions among the nations, and experts subsequently engaged in innovation and development of weapons to ensure defensive against their unprecedented enemies who also indulged in production of weapons. Eventually, the nations entered... Adolf Hitler, one of the world’s ruthless dictators from Germany devised a technological aircraft with the ideology that he could suppress the advancing eastern allies. This was in 1944 during the Second World War when the European allied nations of capitalists strategized and engaged on a retaliatory battle the German soldiers drive out of their territories and possibly disintegrate the country’s power to a nutshell. German engaged on unprecedented aggression in the European nations and had won incredibly over the unpreparedness of the preys thus weakening confrontation and broadening its boundaries. The battle advanced to France, Belgium, and Spain and with such success, Hitler perceived that he could possibly suppress and bring the United Kingdom under his dictatorial regime. The desired plans hit an end after the toppled powers reorganized their armies and allied with the UK and U.S.A to attack the German side.The allied troops of the capitalist European nations man aged to engage in a successful battle that suppressed the German troops to Rome, the city of Italy. During this time, Hitler engaged on an alternative approach to tackle the aggressing allied troops who fought on land and simultaneously conducted air strikes to diminish the power of the Germany completely. Mainly, the airstrikes conducted by the eastern frontier targeted weaponry manufacturing industries in German as it was the only way the countries could diminish the level at which the Nazis could retaliate during the rebellious retreat.

Financial Accounting Midterm Project Essay Example | Topics and Well Written Essays - 2000 words

Financial Accounting Midterm Project - Essay Example Meanwhile, managerial accounting reports are designed to serve specific needs of the management. They make use of both historical data and estimated data. While financial accounting reports have to be prepared according to the Generally Accepted Accounting Principles (GAAP), the same does not hold true with managerial accounting reports. (Warren, Reeve, etc., 1987, pp. 2-4) A job opening in the field of financial accounting at the Monster website states that "the Accounting Manager is responsible and accountable for the entire Company's Accounting Department." As such, he/she will manage and provide direction to the accounting department personnel as well as direct and lead all accounting functions to ensure that all accounting, financial and tax information are properly disseminated and reported. The job requirements include a bachelor's degree in Accounting, experience in cost accounting and the preparation of cash flow statements and skills in preparing tax returns and audit revie ws. (Monster 2010) Meanwhile, a job opening in the field of managerial accounting requires a Revenue Accounting Manager who will have the following main duty: "continuously work to understand the various revenue streams to ensure the highest levels of revenue recognition." (Monster 2010) Similarly, the job requirements include a bachelor's degree in Accounting. In contrast to the job opening for a financial accountant, however, this one requires "strong project management and planning skills" and an "analytical mind which is able to process information logically delivering value added analysis." These stuffs are definitely necessary in the domain of managerial accounting. 2. According to history, accounting was first established by Luca Pacioli - an Italian Renaissance mathematician, a close friend and tutor to Leonardo da Vince and a contemporary of Christopher Columbus. Pacioli described in his work entitled "Summa de Arithmetica, Geometria, Proportione et Proportionalite" a syste m that served to make sure that financial information were efficiently kept in accurate records. This basic system eventually became established as the way to note down all transactions of businesses. (Weygandt, Kieso, etc. 2009, pp. 5-6) 3. The following are the liquidity ratios of Microsoft Corporation (MSFT) and Apple Inc. (AAPL) for the year 2010: MSFT AAPL Current Ratio 2.5 1.8 Acid Test Ratio 2.2 1.6 These ratios show that both MSFT and AAPL have sufficient liquid resources to pay up their short-term liabilities. Of the two, MSFT is the company with the higher level of liquidity. The current ratios indicate that their current assets can well be utilized to fully settle their current liabilities. Meanwhile, the acid test ratios indicate that the two companies would be able to fully settle all their short-term liabilities by using only the most liquid of their assets - namely: cash, marketable securities and accounts receivable. 4. The following are the activity measures of Micr osoft Corporation (MSFT) and Apple Inc. (AAPL) for the year 2010: Asset Management Ratios MSFT AAPL Inventory Turnover (# of times) 19.2 63.9 Accounts Receivable Turnover 5.5 16.7 Fixed Assets Turnover 8.8 17.0 Total Assets Turnover 0.8 1.1 The above

Impact of Technology in War Term Paper Example | Topics and Well Written Essays - 2500 words

Impact of Technology in War - Term Paper Example Historical findings denoted that ancient mechanisms of handling war and the materials derived complications deterred the desired prompt confrontation, aggression, and combating of enemies in the battlefields. However, the advancement in technology led to the development of machineries that eased transportation of military equipment and personnel with increased convenience and accessibility to the war fields. The development of the wheel marked the advent ease in logistics. Since then, human societies developed engines and which further symbolized their application in locomotives to the currently used trucks, jetfighters, and military helicopters among others. Through the development of the engine, militarization advanced accordingly as nations converted the technology to power sophisticated weapons such as long-range missiles, atomic bombs, and rockets launchers in warships (Thompson 48). Similarly, technology poses as the origin of increased rate intelligence among nations, and comm unication among allied and enemy nations in their militaries. The history of plane carriers and airships dates back to the 1880s. However, research establishes that the First World War implemented a new outlook on improvisation of war machineries to confront enemies at a large scale as global powers engaged into war. The 1914-1918 war involved European nations, which varied and disagreed on policies and their overseas interests. These factors resulted to increased tensions among the nations, and experts subsequently engaged in innovation and development of weapons to ensure defensive against their unprecedented enemies who also indulged in production of weapons. Eventually, the nations entered... Adolf Hitler, one of the world’s ruthless dictators from Germany devised a technological aircraft with the ideology that he could suppress the advancing eastern allies. This was in 1944 during the Second World War when the European allied nations of capitalists strategized and engaged on a retaliatory battle the German soldiers drive out of their territories and possibly disintegrate the country’s power to a nutshell. German engaged on unprecedented aggression in the European nations and had won incredibly over the unpreparedness of the preys thus weakening confrontation and broadening its boundaries. The battle advanced to France, Belgium, and Spain and with such success, Hitler perceived that he could possibly suppress and bring the United Kingdom under his dictatorial regime. The desired plans hit an end after the toppled powers reorganized their armies and allied with the UK and U.S.A to attack the German side.The allied troops of the capitalist European nations man aged to engage in a successful battle that suppressed the German troops to Rome, the city of Italy. During this time, Hitler engaged on an alternative approach to tackle the aggressing allied troops who fought on land and simultaneously conducted air strikes to diminish the power of the Germany completely. Mainly, the airstrikes conducted by the eastern frontier targeted weaponry manufacturing industries in German as it was the only way the countries could diminish the level at which the Nazis could retaliate during the rebellious retreat.

The conflict between the Arabs and Jews Essay Example | Topics and Well Written Essays - 1750 words

The conflict between the Arabs and Jews - Essay Example The partition of Palestine resulted in the creation of the State of Israel, and of the Palestine refugee problem. The dispute has resulted in major regional wars and two Palestinian Intifadas with tragedies on both sides. Throughout, there have been repeated attempts to resolve the conflict, from Bernadotte in 1948 through to President George W. Bush's roadmap in 2003." (Book Description, 2007). Therefore, the Arab-Israeli conflict, which started almost a century ago, continues to be one of the most serious issues of international dispute. Investigating the roots of the conflict, it becomes lucid that the establishment of the Zionist movement has been a major reason for the Arab-Israeli conflict. Similarly, following the Zionist movement, the modern State of Israel was established in the region which was regarded by the Jews as their historical homeland. However, the Pan-Arab movement maintained that it was a territory belonging to the Palestinians. All these issues contributed to th e deepening of the conflict between the Arab and the Israelis and the religious dimension of the conflict is often emphasised. This paper makes a profound analysis of the background of the Arab-Israeli conflict, incorporating the history of the Arabs and the Jews, the religious dimension of the conflict, Judaism and Islam, and the history of the land of modern Israel, in order to determine the basic issues involved in the conflict. In a reflective exploration of the ancient history of Israel and Palestine, one comes to recognize that the ancient Jewish kingdoms of Israel and Judea were consecutively conquered and subjugated by several foreign empires and kings. One of the major empires to conquer the land was the great Roman Empire and there were several revolts against the foreign rule in the region. In 135 CE, the Roman Empire overpowered the third revolt against its rule in the region and consequently expelled the surviving Jews from Jerusalem and its surroundings. Many of these Jews were sold for slavery and the Roman province was then renamed'Palestine'. "After the Arab conquest of Palestine in the 7th century the remaining inhabitants were mostly assimilated into Arab culture and Muslim religion, though Palestine retained Christian and Jewish minorities, the latter especially living in Jerusalem. Apart from two brief periods in which the Crusaders conquered and ruled Palestine (and expelled the Jews and M uslims from Jerusalem), it was ruled by several Arab empires, and it became part of the Ottoman (Turkish) Empire in 1516." (The Arab-Israeli Conflict). Therefore, the land of the Palestine was occupied by people belonging to Arab culture and Muslim religion, although there were Christian and Jewish minorities. Represented by twenty one separate countries, the Arab nations today form a significant power in the region and there is only one Jewish nation with a tiny country in the region, i.e. Israel. To trace the history of the people of Israel (also called the 'Jewish People'), they trace their origin to Abraham of the Old Testament and they regard Abraham, his son Yitshak (Isaac), and grandson Jacob (Israel), as the patriarchs of the Israelites. It has been emphasised by several writers that the very embodiment of Jewish continuity is Israel which inherits all the

Compare Romeo and Juliet Essay Example for Free

Compare Romeo and Juliet Essay Romeo and Juliet and Pride and Prejudice are two of the most admirable and exquisite works ever written about the struggling love of two opposing forces. The novels have had a great literary importance and give us a sense of love and marriage on its most bewildered journey during the Elizabethan Era and the Napoleonic wars. Even though these two novels are from two different eras and are quite divergent as a result of it, this essay will argue that both Romeo and Juliet and Pride and Prejudice are indubitable similar in the concern of love and marriage. Firstly, this essay will present a short amount of background regarding love and marriage during the Elizabethan era and in the turn of the nineteenth century. Secondly, the essay will talk about the comparison and distinction in love and marriage present in the novels. Thirdly, this essay will discuss and hopefully conclude with the chosen thesis. During the Elizabethan era women were subservient to men and they were raised not to consider otherwise. They were expected to marry whomever the father would hold appropriate. The Scottish protestant leader John Knox wrote â€Å"Women in her greatest perfection was made to serve and obey man.( Alchin, L.K. Elizabethan Women.) The marriages were arranged to create alliances with other powerful families which becomes the obvious environment in the play about Romeo and Juliet. Love was not significant between a man and a woman. Instead the importance of financial security and a life in everlastingly safety was prioritized through the marriage of a wealthy suitor. In the play by Shakespeare Romeo and Juliet, Juliet is being arranged to marry Paris, a kinsman of the prince, a well suited husband for her despite of her disapproval. As Paris speaks â€Å"God shield I should disturb devotion!—Juliet, on Thursday early will I rouse ye.(kisses her) Till then, adieu, and keep this hol y kiss.† ( Romeo and Juliet, 4.1 William Shakespeare) This is not a marriage for love and this typical prejudice of marriage is also highly present in Jane Austen’s book Pride and Prejudice. One of the characters Charlotte amongst other, is utterly convinced of a socially ideal marriage which was the most common way to unite in the turn of the nineteenth century. â€Å"I am not romantic, you know; I never was. I ask only a comfortable home; and considering Mr. Collinss character,  connection, and situation in life, I am convinced that my chance of happiness with him is as fair as most people can boast on entering the marriage state. (Chapter 22. Page 193. Pride and Prejudice. N.p.: Planet Pdf). Most women decided to marry rather than depend on other family members for financial support. Due to this choice or lack thereof, love and passion were presumed to be less essential in people’s lives. Charlotte’s quote expresses more or less the plight woman had throughout the turn of the nineteenth century. It’s very likely that the Author of Pride and Prejudice, Jane Austen intentionally tried to reveal woman’s position in love and marriage as they were. Shakespeare on the other hand probably had a slightly different agenda which was mainly to please the audiences. All though it is important to note that Shakespeare pre sumably wrote about this social decay because he did not approve of what was going on at the time. We might say that this includes the social condition of women and their meager rights in love and marriage. â€Å"Get thee a good husband, and use him as he uses thee.†(Alls Well That Ends Well 1.1.212-13) In Romeo and Juliet the matter of love dominates the play.† My bounty is as boundless as the sea, My love as deep; the more I give to thee, The more I have, for both are infinite. (Romeo and Juliet 2.2, William Shakespeare). Love in this play is simply not one-sided. There is puppy love or shallow love which is the love Romeo has for Rosalie, merely drawn to her appearances’. This view of love is also present in the novel Pride and Prejudice. One of the main characters Mr. Darcy speaks of the woman who later becomes his wife She is tolerable; but not handsome enough to tempt me;† (Jane Austen, Pride and Prejudice,Planet Pdf p.14 Ch. 3) Romeo and Juliet and Pride and Prejudice are both acclaimed love stories which center around a man and a woman and their love for each other. The other characters seem to play their important role converging upon these lovers or lovers to be. In both stories we see a strong opposing love due to a distinctness of social class as occurring in Pride and Prejudice between the middle class, the Bennett’s and the Aristocrats Darcy’s and new money the Bingley’s. In Romeo and Juliet the antagonistic love is more defined as a feud between two power ful families who will not by any circumstances find peace with each other. â€Å"Two households, both alike in dignity, In fair Verona, where we lay our scene, From ancient grudge break to new mutiny, Where civil blood makes civil hands unclean.† (Romeo and  Juliet, Prologue p.7 William Shakespeare). The House of Montegue and the House of Capulet are the two families who are sworn enemies, never to reconcile until Romeo and Juliet’s deaths. Nevertheless both the novel and the play have in common the opposing forces set in the story. These two main characters should not be together in love as a result of society’s rules. They both defy society’s instructions and give in to love rather than reason. This way of writing was probably intentional by Shakespeare considering the Renaissance period was also about universal order as in Humanism which was a significant factor in general in Shakespeare’s plays.( Renaissance Humanism and Shakespeare†.) Both Romeo and Juliet and Pride and Prejudice paint marriage as one of life’s most important choices. Even though this is the case, it is considerably important to envision that Pride and Prejudice has a slightly closer focus on family over husband whereas Romeo and Juliet leans more toward love for husband over family in my opinion. The reason for this is the personalities of the women in the Novel and the Play. Both Juliet and Elizabeth are strong female characters who are being presented as very respectable human beings despite their flaws. In a way we can say that both authors, Jane Austen and William Shakespeare speak for the women at that time and their difficult situations in love and marriage. Passion, love and hate is also a common denominator in these stories. These three words as a whole provide us with an overall understanding of these books. Passion as source of consistency, love as a diversity present in different elements, and hate as an opposition to love to create balance. All though there are quite a few similarities between the novel and the play, there are also a few contrasts present in the books which are important to consider in an analysis of love and marriage. The play Romeo and Juliet has an overwhelming amount of overpowering force of love in it which supersedes everything. The love Romeo and Juliet has for each other is almost obsessive, and self-destructive as a result of it. (â€Å"Love is a smoke raised with the fume of sighs; Being purged, a fire sparkling in lovers eyes; Being vexd a sea nourishd with lovers tears: What is it else? a madness most discreet, A choking gall and a preserving sweet.† ( Romeo and Juliet, 1.1, William Shakespeare.) Romeo speaks of love as he has read in books, but unlikely experienced. Romeo’s passionate feelings develop into a deadly love at the end of the play when the couple’s  tragic destiny prevails and they both die by their own hands. Pride and Prejudice do not have this uncontrol lable intense love. The novel focuses more on the achievement of marriage and stability in life, financial and the image of respectability rather than the passionate lusty love. It is important to remember that love is also one of the themes of Pride and Prejudice and that the love in which the main characters Darcy and Elizabeth have for each other at the end of the novel is some of the reasons why this book is so successful. Even though the excessive love is more present in the play about Romeo and Juliet as a result of their lawless passion as archetypal lovers, it is relatively different than what we see in Pride and Prejudice. Both stories have a background of society’s expectation in love and marriage such as Juliet’s arranged marriage to Paris and Elizabeth’s friend Charlotte’s marriage to Mr. Collins an overbearing, and ridiculous heir to the entailed Bennett’s estate. In the play about Romeo and Juliet they are being referred to as star-crossed lovers â€Å"Where civil blood makes civil hands unclean. From forth the fatal loins of these two foes .A pair of star-crossd lovers take their life; Whose misadventurd piteous overthrows. Doth with their death bury their parents strife.( Romeo and Juliet, the Prologue. p.7, William Shakespeare,) The stars functions as an opposition to Romeo and Juliet’s destiny and is there-for an indication of a not intended univ ersal love as we can see clearly at the tragic end of the play followed by the death of the two young lovers. Pride and Prejudice have a slightly different ending. It has lot more satisfying completion where the two main characters finally can live a fulfilled life together despite the society’s heavy burden of commandment which the reader of the novel was most likely able to anticipate through-out the novel. We see that Romeo and Juliet and Pride and Prejudice have an evident distinction at the end of the two books towards the consideration of meaning. Clearly Romeo and Juliet is a forced equation whereas Darcy and Elisabeth are more likely to be predestined. By analyzing some of the similarities and contrasts in love and marriage in the two books I find the similarities no more substantial than the contrasts. This might be a result of the underlying elements that keep on grasping the connections as we see it. Some of the leading aspects of this influence are the love against all odds in Romeo and Juliet versus the more  predestined version in Pride and Prejudice. Another important element is shallow love which presents it-self in both books through the ignorance of the characters. We see similarities in the society’s established rules of marriage and the characters capability to oppose to these â€Å"decrees†. Then again there is an over-powering and obsessive force of love in Romeo and Juliet which is not accounted for in Pride and Prejudice. Due to these almost completely balanced analogies and divergences I cannot conclude with the chosen thesis and instead I accept the equity of exceptional authorship. Work cited Alchin, L.K. Elizabethan Women. Elizabethan Women. Www.elizabethan-era.org.uk, 16 May 2012. Web. 13 Feb. 2014. Shakespeare, William, Barbara A. Mowat, and Paul Werstine. The Tragedy of Romeo and Juliet. New York: Simon Schuster Paperbacks, 2011. Print. Austen, Jane. Pride and Prejudice. N.p.: Planet Pdf, n.d. Http://www.planetpdf.com/. Planet Pdf. Web. 13 Feb. 2014. Alls Well That Ends Well: Entire Play. Alls Well That Ends Well: Entire Play. Http://shakespeare.mit.edu/allswell/full.html, n.d. Web. 14 Feb. 2014. Renaissance Humanism and Shakespeare. Http://www.saylor.org/site/wp-content/uploads/2011/11/SAYLOR.ORG-ENGL401-RENAISSANCE-HUMANISM-SHAKESPEARE.pdf. The Sailor Foundation, n.d. Web.

Depression and Monoamine Neurotransmitters

Depression and Monoamine Neurotransmitters Depression is no longer seen as a disorder of monoamine neurotransmitters discuss this assertion in the light of the current neurobiological hypotheses of depression The most common mental health disorder not only in United Kingdom but everywhere around the world is depression. Even more disturbing is the fact that depression disorder is estimated to affect around 10% of the people in England. Moreover, approximately 5 to 15 percent of men population and 10 to 20 percent of women population in the USA will suffer from depression during their life. Or to put it more simply, one in five adults worldwide will experience depression at some point of their lives (Kessler et al, 1997). World Health Organization described depression as state of sadness which is accompanied by loss of pleasure or interest in almost every activity. It also includes feelings of guilt, low self-worth, tiredness, poor concentration and disturbed sleep and appetite. According to the criteria of Diagnostic and Statistical Manual of Mental Disorders (DSM) for depression, a person suffers from depression if it experience at least five of the symptoms during the same 2 weeks perio d. These symptoms include depressed mood, loss of interest, weight loss or weight gain, lack of energy, feelings like worthlessness and thoughts of death or suicide etc. Apart from the mental suffering that depression brings, it is also considered as one of the most often reasons for deaths. In 1996 suicide was listed as one of the leading causes of death in the USA (Mireault Deman, 1996). In other words, depression was the reason for more than 30,000 people to take their lives, which was even more than the one infected with the AIDS virus. Even more disturbing is the verifiable truth that most of the investigators believe that the number of deaths because of depression are more than the ones listed due to the fact that those who kill themselves sometimes do it in a way that looks not like a suicide because of depression (Nemeroff, 1998). The financial costs due to depression are also extremely high. Only in UK costs for the economy are estimated at around  £8.6 billion a year. R ecent research revealed that consultations with the GP for treating a depression are estimated at around  £30 million a year and moreover, treating it in hospitals costs more than  £200 million a year. Furthermore, anti-depressants are also one of the leading costs for NHS  £270 million for the last year only (Mentalhealth.org.uk, 2016). Results of recent studies also showed that the major depressive disorder increase the risk of future hearth attack or stroke (McManus, Meltzer, Brugha, Bebbington and Jenkins, 2009). Having explained how important the problem of depression is to our society, it is now important to review the hypotheses and reasons of why people suffer from it. Firstly, this essay will aim to introduce and explain the genetic factors, how the monoamine theory of depression was developed and why in the recent years depression is no longer seen as a disorder of the monoamine transmitters. In addition, this essay aims to discuss how early life stress can increase the risk of depression later in life. One of the oldest explaining of depression provided by researchers is the fact that it runs in families. In other words, geneticist determined that the ones that are blood related to the one suffering from severe depression are much more likely to suffer from this condition too than the general population. Furthermore, family, twin and adoption studies also supported the hypothesis that depression might be inherited (Sanders et al., 1999; Fava and Kendler, 2000). According to the results, around 40% 50% of the risk of depression is on genetic base. Even though the researchers were able to confirm that the risk of depression is partly genetic, there are still many difficulties in finding the vulnerable genes. This is due to the fact that depression is a very complex disorder and it is believed that it involves many genes (Burmeister, 1999). (Nestler et al., 2002). Another reason for the complexity and difficulty in the identifying the faulty gene is that it is also possible that diff erent variants in genes may cause depression in families. Additionally, as the risk of depression is only partly genetic, another important point needs to be considered the nongenetic factors such as individually specific or environmental. Results from a number of studies, including Akiskal (2000) and Fava and Kendler (2000), shed light on the importance of the stress and emotional trauma during the brain development and the importance they have in the etiology of depression. Even though there are a lot of evidences that depression is a stress related disorder, stress itself is not the leading cause of it. As a matter of fact, usually after a stressful event or situations most of the people are not becoming depressed. Indeed, experiencing a serious stress because of physical abuse or rape does not lead to depression but to post-traumatic stress disorder (PTSD). Another important point to consider is also that in general, there are gender differences in the way people respond to a stressor. To put it simply, Kendler, Thornton and Prescott ( 2001) found that even though men and women are more or less equally sensitive to stressful life events, depending on the type of stressor they tend to respond very differently. In their study they revealed that men are much more likely to become depressed after divorce or having troubles in the work place. On the contrary, it was found that women are more likely to have depressive episodes if they have difficulties in relationships, suffer from serious illnesses or death of someone close to them. Having said that, findings again shed the light into the fact that depression is very complex disorder and there are other important factors and mechanisms that need investigation. While genetic researchers continued to look to try to identify the faulty genes, neuroscientists concentrated themselves on the possible brain changes leading to depression. At the beginning most of the work was focused on the neurotransmitters of the monoamine class serotonin, norepinephrine and dopamine in the central nervous system. The reason why researchers became interested in monoamines was because in the early 50s physicians found that depression symptoms appeared in around 20% of patients who were treated with drug reserpine which on the other hand was found to exhaust the supply of the monoamines. In other words, researchers found that these antidepressants were effective for depression as a side effect but they didnt know yet exactly how they worked. Following these results, another research revealed that there is an underlying biological basis for depression and therefore the monoamine hypothesis of depression was proposed. However, it wasnt cleared which of the monoamin es was the most important in depression. At the beginning the theory was called the norepinephrine theory of depression because the scientist thought that the affected neurotransmitter is the norepinephrine. However, several years after the monoamine theory was proposed, there was a research on the hallucinogen lysergic acid diethylamide (LSD) and its action. During the investigation it was revealed that the serotonin receptors are being blocked by the LSD which brought the question whether serotonin might have an important role in the explaining of mood disorders and specifically depression. Therefore, these findings made serotonin the most studied neurotransmitter in the depression disorder. There are several indications that there is an aberrant decreased function of the serotonergic system. The most obvious evidence of reduced serotonin synthesis comes from the studies of Neumeister, Konstantinidis, Stastny et al. (2002) and Neumeister, Nurgent, Waldeck et al. (2004) in which wa s used tryptophan depletion. The results from these studies once again revealed and confirmed that the reduction of serotonin neurotransmitter leads to the development of depressive disorder. Despite the evidences that the studies on serotonin depletion provided, its mechanism in the depressed patients it still unclear. Meyer, Ginovart, Boovariwala et al. (2006) proposed that high amount of monoamine oxidase (MAO) in the brain is one of the reasons that causes the deficiency of the serotonin. Since the hypothesis was proposed various of antidepressants were developed in order to increase the levels of serotonin in the nervous system. However, scientists realized that even though many of the produced antidepressants relieved the symptoms of depression they actually does not affect the serotonin levels. In fact, they were affecting the dopamine, norepinephrine and cholinergic systems but not the serotonin. Furthermore, there were also some drugs that acted only on the norepinephrine system but still they had shown to improve the symptoms of depression. Another important point to consider regarding the serotonin hypothesis is the fact that antidepressants dont work immediately. In fact it can take more than a month to relieve the depression (Onder and Tural, 2002). Therefore, it raises the question if depression is caused because of the low serotonin levels in the brain then why the increasing levels did not change the symptoms right after. Another limitation of the theory i s the fact that the antidepressants does not work on every depressed person. For example recently it was found that antidepressant drugs work in approximately 60 percent of the depressive patients (Gartlehner, Hansen, Thieda, DeVeaugh-Geiss, Gaynes, Krebs, Lux, Morgan, Shumate, Monroe and Lohr, 2007). This again raises the debates whether the low serotonin levels were really responsible for depression. Also, the final problem of the theory is that it is expected that the decreased levels of serotonin in human brain will low the mood. However, several studies were not able to conclude it. Actually, it was found that despite the fact the serotonin is increased by the antidepressants, the lack of serotonin in the brain does not cause the depression (it is like having a stomachache and taking a pill to reduce the pain, however not taking the pill does not mean it started to hurt you because of that), (van der Veen, Evers, Deutz and Schmitt, 2007). Following this discussion it is important to conclude that the depressive disorder is not entirely caused by the serotonin levels in the brain. The monoamine theory of depression does not sufficiently explain the pathology and treatment of depression. It is a fact that human brain is a very complex place and there is a high probability that depression is caused by a combination of factors. Nowadays, it is generally accepted that mood disorders such as depression are definitely occurring as a result of combinations of factors such as genetic, biological and environmental. The discussion above made it clear that the low serotonin levels are not the cause of the depression. Even though antidepressants do not work on everyone, it is essential to examine the other things that these drugs are doing in the brain. Interestingly, recent study has found that the antidepressant drugs not only increase the levels of neurotransmitters in the brain but in fact they can also stimulate the birth of new neuron cells in the brain which is also called neurogenesis (Lucassen, Meerlo, Naylor, van Dam, Dayer, Fuchs, Oomen and Czeh, 2010). Over the past decade, researchers are arising their interest on the fundamental process called neuronal plasticity (or neuroplasticity) which allows the brain to receive information and also to respond in an appropriate way to the same stimuli. The most studied examples of the neural plasticity are learning and memory or in other words the hippocampus of the brain. However, the structures of the brain and the neural plasticity in it can be also activated by various of other stimuli. An example of these include the environmental, pharmacological, social and behavioural. In other words, brain can be stimulated to produce new cells by positive emotions, actions, thoughts etc. These include healthy diet, active lifestyle (sport), good and healthy relationships, sex or in generally being happy stimulate the brain to produce new cells. Pharmacological stimuli such as antidepressant drugs have also been found to increase the formation of new cells and then neurons. On the contrary, bad life style like binge drinking, smoking, having a stressful relationship, poor diet and chronically experience stress is associated with loss and death of brain cells, which on the other hands is believed to play an important role in the pathology of depression. Furthermore, according to the neurogenic hypothesis of depression, the reduced neurogenesis in the adult hippocampus lead to depression symptoms. Controversially, it has been suggested that the increased formation of new neurons in the adult hippocampus is associated with successful treatment of depression disorder. As a matter of fact it rapidly became clear that neural plasticity is one of the most important process that the human brain is able to perform and moreover it is closely associated with most of the functions of the nervous system (Duman, 2004). Having introduced the topic of neurogenesis or neuroplasticity, it is now necessary to look at the factors that suppress the formation of new cells and what influence the formation of the new one. Over the past 25 years a certain amount of excellent reviews have been written on the topic of depression and stress (Kessler, 1997; Paykel, 2003; Monroe Hadjiyannakis, 2002; Tenant, 2002). Many studies revealed that the experience of stress during the development of the brain is highly associated with impact on emotional and cognitive functions (Ammerman, Van Hasselt Hersen, 1991; Fernald Gunnar, 2009). Examples of stress events associated with vulnerability to stress related disorders later in life include poverty, loss of parent, divorce of parents, substance abuse of any of the parents, physical abuse etc. (Repetti, Taylor Seeman, 2002; Halligan, Herbert, Goodyer Murray, 2007; Lupien, McEwen, Gunnar Heim, 2009; Schore, 2000). Post-traumatic stress disorder, depression and anxiety are all stress related disorders which are considered as important part of chronic early life stress (CES) (Heim, Newport, Mletzko, Miller Nemeroff, 2008; Bremner, Southwick, Johnson, Yehuda Charney, 1993; MacMillarn et al., 2001). Interestingly, recent studies proposed that the loss of the neurons in the hippocampus may contribute to the developing of the depressive disorder. As a matter of fact, the hippocampus is one of the parts of the brain where the formation of neurons is a very essential process that takes place during the life of the humans and animals (Eriksson et al., 1998). Many researchers also reported that the neurogenesis in the hippocampus is able to be influenced by several factors one of which is stress (Kempermann et al., 1997; van Praag et al., 1999). In a number of studies was demonstrated that hippocampus plays a significant role in the pathophysiology of the major depressive disorder (Ho and Wang, 2010; MacMillarn et al., 2001). Moreover, in one recent stud y (Ho and Wang, 2010) confirmed the theory using animal models that stress and shock reduce the cells in the hippocampus and also that the long term use of antidepressant treatment can significantly reverse the effect. Another important evidence supporting the neurogenesis theory are the posmortem studies of the hippocampal tissue. By investigating the hippocampal tissue from depressed patients, researchers found reductions in the neuropil network as well as decline in the neurogenesis of the hippocampus (Sheline, Wand, Gado, Csernansky and Vannier, 1996; Sheline, Gado and Kraemer, 2003). Following the evidences that there is a possible link between the stress, depression and neurogenesis in the hippocampus, a study of Malberg, Eisch, Nestler and Duman (2000) aimed to examine whether the treatment with antidepressant drug will influence the neurogenesis in the hippocampus of an adult rat. It is challenging and difficult to create an animal model that can completely represent the symptoms of depression. This is due to the fact that most of the animals do not have self-consciousness, thinking abilities and most importantly they are not able to indicate the symptoms of the depressive disorders such as the depressed mood, the low self-esteem, the suicidal desires etc. However, many mental disorders including depression, consists endophenotypes which allows to be evaluated in animals. Examples of these endophenotypes that can be observed in the animal model of depression are anhedonia, changes in appetite, behavioural hopelessness, weight gain, changes in sleep etc. (Hasle r et al., 2004). Moreover, brain responses to stress is similar in rodents (Lupien, McEwen, Gunnar and Heim, 2009).   So, in order to examine the effect that antidepressants have on the neurogenesis Malberg, Eisch, Nestler and Duman, (2000) examined adult rats. During the experiments, different kinds of antidepressant drugs were used for a period of 28 days. In order to find out the effects of the drugs on the cells there were two group of rats. In short, to one of the group was given antidepressant and to the other vehicle. To label the dividing cells, four days after the last antidepressant drug treatment rats were given a thymidine analog bromodeoxyuridine (BrdU) and one of them were killed after 24 hours (to measure the cell proliferation) and the other one were killed after another 28 days (to determine the phenotype). The results of the study revealed that continuously treatment with antidepressants increases the formation of new neurons in the hippocampus part of the brain of an adult rats. Another very important finding that this study demonstrated is the fact that antidepressants are increasing the neurogenesis after a chronic treatment (28 days) and not a straight after the intake of the drug (short term).   These results are also consistent with the results of several similar studies (Santarelli, Saxe, Gross, Surget, Battaglia, Duman et al., 2003;). Furthermore, few recent studies also examined the effects that antidepressant drug therapies have on the cognitive functions of healthy humans. Results in one of the studies (Mowla et al., 2007) demonstrated that antidepressants positively influence the memory and other cognitive functions in the old patients that have cognitive problems. Several other researchers also demonstrated that antidepressant drug treatment of depression is associated with improvements in memory and also the cognitive functions (Allain et al, 1992). To summarize, the neurogenesis theory has been supported by many researchers that also include animal studies. As stated earlier, antidepressant drugs were found to increase not only the levels of the neurotransmitters in the brain (serotonin, norepinephrine and dopamine) but also to increase the formation of the new cells in the brain on in other words the neurogenesis. It is generally widely known that during the life of a person new neurons are growing in the hippocampus. On the other hand, it was also found that stress is able to reduce the neurons in the hippocampus of the brain. However, nowadays there are a lot of evidences that taking antidepressant drugs for at least month will significantly increase the neurogenesis in the brain which at the same time will reduce the depression symptoms. In contrasts with the monoamine theory, neurogenesis theory takes the right amount of time to have an effect on the brain. Furthermore, many researchers are now trying to investigate the pa rt that neurogenesis plays in depression disorder. This at the same time will help to increase the production of new cells directly, rather than focusing the antidepressants on the neurotransmitters. However, there are still many debates whether there are real changes in the neurogenesis in the brain of the people suffering from depression (Werry, Enjetu, Halliday, Sachdev and Double, 2010). Further investigation of the neuroplasticity and the antidepressant treatments will lead to better understanding of the disorder and the development of new treatments. References Akiskal, H. (2000). S27.05 Temperamental dysregulations in mood disorders. European Psychiatry, 15, p.s268. Ammerman, R., Van Hasselt, V. and Hersen, M. (1991). Parent-Child Problem-Solving Interactions in Families of Visually Impaired Youth. Journal of Pediatric Psychology, 16(1), pp.87-101. Allain H, Lieury A, Brunet-Bourgin F, Mirabaud C, Trebon P, Le Coz F et al (1992). Antidepressants and cognition: comparative effects of moclobemide, viloxazine and maprotiline. Psychopharmacology (Berl) 106: S56-S61. Bremner, J., Southwick, S., Johnson, D., Yehuda, R. and Charney, D. (1993). Childhood physical abuse and combat-related posttraumatic stress disorder in Vietnam veterans. The American Journal of Psychiatry, 150(2), pp.235-239. Burmeister, M. (1999). Basic concepts in the study of diseases with complex genetics. Biological Psychiatry, 45(5), pp.522-532. Duman, R. (2004). Neural plasticity: consequences of stress and actions of antidepressant treatment. Pharmacological aspects, pp.157-166. Eriksson, P., Perfileva, E., Bjork-Eriksson, T., Alborn, A., Nordborg, C., Peterson, D. and Gage, F. (1999). Neurogenesis in the adult human hippocampus. Nat Med, (4), pp.1313-1317. Fava, M. and Kendler, K. (2000). Major Depressive Disorder. Neuron, 28(2), pp.335-341. Fernald, L. and Gunnar, M. (2009). Poverty-alleviation program participation and salivary cortisol in very low-income children. Social Science Medicine, 68(12), pp.2180-2189. Halligan, S., Herbert, J., Goodyer, I. and Murray, L. (2007). Disturbances in Morning Cortisol Secretion in Association with Maternal Postnatal Depression Predict Subsequent Depressive Symptomatology in Adolescents. Biological Psychiatry, 62(1), pp.40-46. Heim, C., Newport, D., Mletzko, T., Miller, A. and Nemeroff, C. (2008). The link between childhood trauma and depression: Insights from HPA axis studies in humans. Psychoneuroendocrinology, 33(6), pp.693-710. Ho, Y. and Wang, S. (2010). Adult neurogenesis is reduced in the dorsal hippocampus of rats displaying learned helplessness behavior. Neuroscience, 171(1), pp.153-161. Kendler, K., Thornton, L. and Prescott, C. (2001). Gender Differences in the Rates of Exposure to Stressful Life Events and Sensitivity to Their Depressogenic Effects. American Journal of Psychiatry, 158(4), pp.587-593. Kessler, R. (1997). THE EFFECTS OF STRESSFUL LIFE EVENTS ON DEPRESSION. Annual Review of Psychology, 48(1), pp.191-214. Konstantinidis, A., Stastny, J., Ptak-Butta, J., Hilger, E., Winkler, D., Barnas, C., Neumeister, A. and Kasper, S. (2002). Intravenous mirtazapine in the treatment of depressed inpatients. European Neuropsychopharmacology, 12(1), pp.57-60. Kempermann, G., Kuhn, H. and Gage, F. (1997). More hippocampal neurons in adult mice living in an enriched environment. Nature, 386(6624), pp.493-495. Lupien, S., McEwen, B., Gunnar, M. and Heim, C. (2009). Effects of stress throughout the lifespan on the brain, behaviour and cognition. Nature Reviews Neuroscience, 10(6), pp.434-445. Lucassen, P., Meerlo, P., Naylor, A., van Dam, A., Dayer, A., Fuchs, E., Oomen, C. and Czà ©h, B. (2010). Regulation of adult neurogenesis by stress, sleep disruption, exercise and inflammation: Implications for depression and antidepressant actionà ¢Ã‹Å"† . European Neuropsychopharmacology, 20(1), pp.1-17. MacMillan, H., Fleming, J., Streiner, D., Lin, E., Boyle, M., Jamieson, E., Duku, E., Walsh, C., Wong, M. and Beardslee, W. (2001). Childhood Abuse and Lifetime Psychopathology in a Community Sample. American Journal of Psychiatry, 158(11), pp.1878-1883. Malberg, J., Eisch, A., Nestler, E. and Duman, R. (2000). Chronic antidepressant treatment increases neurogenesis in adult rat hippocampus. Neurosci, 20, pp.9104-9110. Meyer, J., Ginovart, N., Boovariwala, A., Sagrati, S., Hussey, D., Garcia, A., Young, T., Praschak-Rieder, N., Wilson, A. and Houle, S. (2006). Elevated Monoamine Oxidase A Levels in the Brain. Archives of General Psychiatry, 63(11), p.1209. Monroe, S. and Hadjiyannakis, K. (2002). The social environment and depression: focusing on severe life stress. Gotlib Hammen, pp.314-40. Morgan, L., Gartlehner, G., Richard, H., Thieda, P., DeVeaugh-Geiss, A., Krebs, E., Monroe, L. and Lohr, K. (2012). P-1102 Comparative effectiveness of second generation antidepressants in the pharmacologic treatment of adult depression. European Psychiatry, 27, p.1. Mowla A, Mosavinasab M, Pani A (2007). Does fluoxetine have any effects on the cognition of patients with mild cognitive impairment? A double-blind, placebo-controlled, clinical trial. J Clin Psychopharm 27: 67-70. Mireault, M., DeMan, A. (1996). Suicidal ideation among older adults: Personal  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚  Ãƒâ€šÃ‚   variables, stress and social support. Social Behavior and Personality, 24, 385-392. Mentalhealth.org.uk. (2016). Mental health statistics: the most common mental health problems. [online] Available at: https://www.mentalhealth.org.uk/statistics/mental-health-statistics-most-common-mental-health-problems [Accessed 4 Dec. 2016]. McManus S., Meltzer H., Brugha T., Bebbington P., Jenkins R. (2009). Adult Psychiatric Morbidity in England 2007: results of a household survey. NHS Information Centre for Health and Social Care. [online] Available at: http://www.hscic.gov.uk/pubs/psychiatricmorbidity07 [Accessed 15 Dec 2016]. Nestler, E., Barrot, M., DiLeone, R., Eisch, A., Gold, S. and Monteggia, L. (2002). Neurobiology of Depression. Neuron, 34, pp.13-25. Neumeister, A., Nugent, A., Waldeck, T., Geraci, M., Schwarz, M., Bonne, O., Bain, E., Luckenbaugh, D., Herscovitch, P., Charney, D. and Drevets, W. (2004). Neural and Behavioral Responses to Tryptophan Depletion in UnmedicatedPatients With Remitted Nemeroff, C. (1988). The neurobiology of aging and the neurobiology of depression: Is there a relationship?. Neurobiology of Aging, 9, pp.120-122. Major Depressive Disorder and Controls. Archives of General Psychiatry, 61(8), p.765. Nemeroff, C. (1988). The neurobiology of aging and the neurobiology of depression: Is there a relationship?. Neurobiology of Aging, 9, pp.120-122. ÃÆ'-nder, E. and Tural, U. (2002). Faster response in depressive patients treated with fluoxetine alone than in combination with buspirone. Journal of Affective Disorders, 76(1-3), pp.223-227. Paykel, E. (2003). Life events and affective disorders. Acta Psychiatr Scand, 108(3), pp.61-66. Sanders, A., Detera-Wadleigh, S. and Gershon, E. (1999). Molecular genetics of mood disorders. In Neurobiology of Mental Illness, pp.299-316. Tennant, C. (2002). Life events, stress and depression: a review of recent findings. Australian and New Zealand Journal of Psychiatry, 36(2), pp.173-182. van der Veen, F., Evers, E., Deutz, N. and Schmitt, J. (2007). Effects of Acute Tryptophan Depletion on Mood and Facial Emotion Perception Related Brain Activation and Performance in Healthy Women with and without a Family History of Depression. Neuropsychopharmacology, 32(1), pp.216-224. Van Praag, H. (2005). The World Journal of Biological Psychiatry. 2(5), p.22. Repetti, R., Taylor, S. and Seeman, T. (2002). Risky families: Family social environments and the mental and physical health of offspring. Psychological Bulletin, 128(2), pp.330-366. Santarelli, L., Saxe, M., Gross, C., Surget, A., Battaglia, F., Duman, R., Daluwa, S. and Weisstaub, N. (2003). Requirement of Hippocampal Neurogenesis for the Behavioral Effects of Antidepressants. Science, 301(5634), pp.805-809. Schore, A. (2000). Attachment and the regulation of the right brain. Attachment Human Development, 2(1), pp.23-47. van Praag, H., Kempermann, G. and Gage, F. (1999). Running increases cell proliferation and neurogenesis in the adult mouse dentate gyrus. Nat Neurosci, 2, pp.226-270. Werry, E., Enjeti, S., Halliday, G., Sachdev, P. and Double, K. (2010). Effect of age on proliferation-regulating factors in human adult neurogenic regions. Journal of Neurochemistry, 115(4), pp.956-964. Y. I. Sheline, P.W.Wang,M. H. Gado, J. G. Csernansky, and M. W. Vannier (1996), Hippocampal atrophy in recurrent major depression,. Proceedings of the National Academy of Sciences of the United States of America, vol. 93, no. 9, pp. 3908-3913. Y. I. Sheline, M. H. Gado, and H. C. Kraemer (2003), Untreated depression and hippocampal volume loss, American Journal of Psychiatry, vol. 160, no. 8, pp. 1516-1518.