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The World in Three Acts

The same basic writing structure:

JournalismTV CommercialsNovels

ScreenplaysLiterature

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Act 1Introduce the characters or key elements

Act II

Develop the characters, introduce theconflict, develop the conflict

Act IIIResolve the conflict, provide a solution

and/or conclusion

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Romeo & JulietRomeo meets Juliet and falls in love because she

looks better than her sister, even though theyre fromwarring families.

They secretly marry, but people find out and start

trying to expose them, while Juliets father unwittinglyplots to marry her to another man.Juliet tries to escape her family by faking her death,

but the plan to inform Romeo fails. Romeo comes to

believe Juliet is dead, so goes to her fake deathbed andcommits suicide. Juliet wakes up, discovers Romeosdeath and then kills herself for real.

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Bankers & Consultants Video Act IBankers think of themselves as the most elite professionals

on Wall Street because they are paid a lot and like toshow off their money. Consultants believe they havemore rewarding careers overall.

Act IIMembers of the two groups confront each other on the

street and stage a rapping contest to see who canhumiliate other best in rhyme to a beat.

Act IIIBankers defeat the consultants by demonstrating theirsupreme confidence in themselves in an amusing mix of rap rhymes and finance business slang.

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Seven Samurai

Bandits threaten a village, which has no weaponsand little fighting skill to defend itself.The villagers cannot easily hire samurai to defend them,

because they have little money and, in the past, samuraihave raped their daughters. They decide to find samuraiwho work cheaply, and after they succeed, the samuraiarrive only to be disappointed that they are not warmlygreeted by locals.

The samurai and villagers learn to trust each otherand thereby defeat the bandits.

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Typical M&A Deal Act 1Company A buys company B to gain company Bs

revenue and assets. Act II

Company A had to pay an amount that some saywas too high and others say was a good deal.The new merged company will face challengesx,y and z in their industry.

Act IIIPeople in a position to know and who have a

track record of being right say the merger was agood idea, or say it was a bad one.

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Sources of Dramatic Tension in Financial Writing

Conflict winners and losers, follow the money,past versus future

Surprise you thought this, but that

Importance first, most, last, least, best, worst

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Business & Finance Writing Winter 2010 9

Words, the atoms of structure

Verbs and nounsConcrete vs abstract

Specific vs vagueSimple vs complicatedFamiliar vs unfamiliar

Layman's terms vs jargon

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The US economy grew its fastest rate since 2003, thefourth quarter GDP report on Friday revealed. Pick up inbusiness investment mainly contributed to annualizedrate of 5.7 percent growth. The faster than expectedgrowth and the acceleration from 2.2 percent in the thirdquarter raised the hopes that a sustainable recovery isunder way.

Homework Review

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The US economy grew its fastest rate since2003, the fourth quarter GDP report on Fridayrevealed . Pick up in business investmentmainly contributed to annualized rate of 5.7

percent growth. The faster than expectedgrowth and the acceleration from 2.2 percentin the third quarter raised the hopes that asustainable recovery is under way.

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The US economy grew a better-than-expected 5.7 percent, the fastest since 2003,driven mainly by an increase in businessinvestment.

Fourth-quarter growth was more than doublethe previous three month periods 2.2 percent,the government reported Friday, raisingexpectations for a sustainable recovery.

The US economy grew its fastest rate since its fastest ratesince 2003, the fourth quarter GDP report on Fridayrevealed . Pick up in business investment mainlycontributed to annualized rate of 5.7 percent growth.The faster than expected growth and the accelerationfrom 2.2 percent in the third quarter raised the hopesthat a sustainable recovery is under way.

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On Wednesday, January 18 th , JapansNikkei average dropped over 10 percent

after Toyota Motor announced to haltsales and produces some of its mostpopular vehicles which include the best-

selling auto in America, Camry in U.S dueto the fix sticking gas pedals that couldmake the cars accelerate without warning.

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On Wednesday, January 18 th , JapansNikkei average dropped over 10 percent

after Toyota Motor announced to haltsales and produces some of its mostpopular vehicles which include the best-

selling auto in America, Camry in U.S dueto the fix sticking gas pedals that couldmake the cars accelerate without warning.

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Japans Nikkei average plunged over 10percent today, the biggest drop since the

start of the financial crisis, after ToyotaMotor halted sales and production of someof its most popular vehicles.

The decline, led by a 14% plummet inToyota shares, comes as the nations

biggest carmaker expanded a globalvehicle recall that includes its best-sellingCamry model in the U.S.

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Toyota Motor recalled for the eight models, includes Camry,affecting 2.5 million vehicles. On the other hand, Honda Motor said on Wednesday its profits forthe for quarter period increase 9 percent, \150billion in the quarter,more than \10billion a year earlier. Paolo de Guzman, an auto analyst for consulting firm in NOK said

Toyota is one of the symbolic auto sectors in Japan and sincemarket anticipates that Toyotas a \400 billion group operating lossand a \300 billion group net loss for the business year ending inMarch, investors pessimistic about business recovery and worryabout the double-dip recession for Japanese market.

Toyota Motor will maintain its forecast of a return profit for the 12months to March 31 st . However, Toyotas image of safe and highquality will be damaged for a while.

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Daiichi Life Acquires Life Insurance Unit of UOB in Thailand

Daiichi Life Co. agreed Wednesdaywith United Overseas Bank Ltd. to buy itslife insurance subsidiary in Thailand for428 million Singapore dollars(US$306.2million) to expand business in

Southeast Asia. The transaction is the firstacquisition by the second-largest Japaneselife insurer after it demutualized last

October.

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Daiichi Life Co. agreed Wednesdaywith United Overseas Bank Ltd. to buy its

life insurance subsidiary in Thailand for428million Singapore dollars(US$306.2million) to expand business inSoutheast Asia. The transaction is the firstacquisition by the second-largest Japaneselife insurer after it demutualized lastOctober.

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Daiichi Life Co. paid 428million Singaporedollars (US$306.2million) for the lifeinsurance unit of United Overseas Bank Ltd. to expand its business in Southeast

Asia.

Or even Daiichi Life Co. bought the life insuranceunit of United Overseas Bank Ltd., the

Japanese insurers first acquisition sincedemutualizing last October, to expand itsbusiness in Southeast Asia.

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UOB, Singapore's third-largest bank byassets, started writing life insurance in1996 and operates in Singapore, Thailandand Indonesia. As of December 31, 2009,UOB Thai Life had about 60,000

policyholders with 80,000 policies and netasset of S$244million. Daiichi Life willdistribute protection and savings productsthrough multiple channels it will succeedfrom Thai Life.

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Daiichi Life expects to benefit by sellingprotection and savings products toUOB Thai Life customers.

The unit of UOB, Singapore's third-largestbank by assets, had about 80,000 policiesand net assets of S$244million as of lastyear.

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Allan Cheng, UOBs chief executive said, The life unit isa small contributor for us in the very competitiveindustry and we decided to concentrate on our corebanking business by divesting the business. UOB isexpected to receive a premium above the units book value, said one person familiar with the transaction.

With the acquisition, Daiichi Life will accelerate itsgrowth strategy overseas with capital raised bydemutualization, specifically in the rapidly growingSoutheast Asian markets. The deal could spur

demutualization and M&A activity of other majorJapanese life insurers seeking opportunities outside thesaturated marke t.

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Kraft of the United States merges with Cadbury of the UnitedKingdom to create the worlds largest confectioner pushing Mars of the US out of the number-one place. At first rejected, Cadburyaccepted Krafts new, sweetened takeover bid on 19 January 2010. Kraft dangled 9% more cash than previously offered and slashed anearlier move to create more shares to be offered to leverage thedeal. (A higher number of shares offered to leverage a deal dilutesper share value of book value.) Kraft proposed and Cadbury agreedto reduce the number of new shares to be offered to leverage thedeal from 370m to 265m, down some 30%. The deal consolidates US, British, European, Indian and Chinese

confectionary markets. One poison pill was union resistance; unionsfear that Cadbury factories may move to eastern Europe.

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Kraft has done its due diligence; Buffet, a controller of alarge number of Kraft shares (he supports the bid),

demanded that Kraft not be giddy about the low priceand offer too much; Kraft used kid gloves to protectCadburys wide goodwill and 186 -year reputation (Kraft106 years old.). The deal catapults the group to be the

number one confectionary in sales surpassing Mars.

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Dividend yield

Annual dividends per share divided by theshare price and expressed as apercentage.

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Index Weight

The amount of shares outstanding that isused in the calculation of an index.The weight of a given share within anindex can tell you how much price movesfor that share will affect the index.

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Outperform/Underperform

To perform better than. Usually refers toperformance that is better than anindex or average that includes rivalsecurities or assets.

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Float

The number of shares available to the public. Float iscalculated by subtracting the shares held by insiders,and those deemed stagnant shareholders, from the totalshares outstanding. Stagnant shareholders includeEmployee Stock Ownership Plans, employee benefitstrusts, board members, directors, executives,corporations not actively managing money, governmentownership, and venture capital companies.

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Price earnings ratio

A stock's price divided by earnings pershare. The ratio tells you how muchinvestors are willing to pay for the right toa share of the company's futureearnings.

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Market capitalization

The number of shares outstandingmultiplied by the stock price. Marketcapitalization is often used to compare thesize of companies.

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Common stock

A security that represents ownership in acorporation. Holders of common stock exercisecontrol by electing a board of directors andvoting on corporate policy. Commonstockholders are on the bottom of the priorityladder for ownership structure. In the event of liquidation, common shareholders have rights toa company's assets only after bondholders,preferred shareholders and other debtholdershave been paid in full.

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Preferred stock

Shares that have a higher claim on the assets andearnings than common stock. Preferred stock generallyhas a dividend that must be paid out before dividends tocommon stockholders and the shares usually

do not have voting rights.The precise details as to the structure of preferredstock is specific to each corporation. However, the bestway to think of preferred stock is as a financialinstrument that has characteristics of both debt (fixed

dividends) and equity (potential appreciation). Alsoknown as "preferred shares".

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Initial Public Offering (IPO)

The first time an issuer sells stock to thepublic and is listed on an official exchange.

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Short selling

Selling a borrowed security in anticipationof gaining by buying it back at a lowerprice before returning it to the lender.