634-A Summary of Logic PDF

You might also like

Download as pdf or txt
Download as pdf or txt
You are on page 1of 121

O8¯£ž$

˜Ô§£ž$²’
†
DO0XMD])LDO0DQWLT
Š

$6800$5<2)/2*,&

%<

Š † †
6D\\LG6DGLT6KLUD]L

7UDQVODWLRQ$QG1RWHV%\

$OL
$EGXU5DVKHHG

&RS\ULJKW‚$OL$EGXU5DVKHHG
0DGDQL(3XEOLFDWLRQV
DOLDUDVKHHG#JPDLOFRP

$OOULJKWVUHVHUYHG5HSURGXFWLRQRIWKLVSXEOLFDWLRQLQDQ\IRUPLQZKROHRULQSDUW
ZLWKRXWWKHH[SUHVVZULWWHQFRQVHQWRIWKHDXWKRULVSURKLELWHG
7$%/(2)&217(176

3UHIDFH         Y
† 
7KH3UHOLPLQDULHV DO0XTDGGDPDW 
6HFWLRQ2QH         
6HFWLRQ7ZR         
6HFWLRQ7KUHH         
6HFWLRQ)RXU         
6HFWLRQ)LYH         
6HFWLRQ6L[        
† † 
JQLILFDWLRQV DG'DODODW 
6LJQ
6HFWLRQ6HYHQ         
6HFWLRQ(LJKW         
6HFWLRQ1LQH         
6HFWLRQ7HQ         
6HFWLRQ(OHYHQ        
6HFWLRQ7ZHOYH         
7KH/LWHUDO$QG7KH)LJXUDWLYH  DO+DTHHTLDQGDO0DMD]L 
Š † 
6HFWLRQ7KLUWHHQ         
6HFWLRQ)RXUWHHQ        
QJXODU$QG7KH&RPSRXQG DO)DUGDQGDO0XUDNNDE 
7KH6LQJX 
6HFWLRQ)LIWHHQ        
6HFWLRQ6L[WHHQ        
7KH8QLYHUVDO$QG'LYLVLYH&RQFHSWV DO.XOOLDQGDO-X]L 

6HFWLRQ6HYHQWHHQ        
7KH)RXU5HODWLRQVKLSV DQ1LVDEDO$UED


6HFWLRQ(LJKWHHQ        
†
7KH)LYH8QLYHUVDO&RQFHSWV DO.XOOL\DWDONKDPVDK  
6HFWLRQ1LQHWHHQ        
6HFWLRQ7ZHQW\         
6HFWLRQ7ZHQW\2QH        
6HFWLRQ7ZHQW\7ZR        
7KH'HILQLHQ DO0X
DUULI 

6HFWLRQ7ZHQW\7KUHH        
6HFWLRQ7ZHQW\)RXU        
†
'LYLVLRQV2I7KH3URSRVLWLRQ $TVDPDO4DGL\DK  Š 
6HFWLRQ7ZHQW\)LYH        
†
'LYLVLRQV2I7KH$WWULEXWLYH3URSRVLWLRQ $TVDPDO4DGL\DKDO+DPDOL\\DK 
Š Š 
6HFWLRQ7ZHQW\6L[        
6HFWLRQ7ZHQW\6HYHQ        
6HFWLRQ7ZHQW\(LJKW        
6HFWLRQ7ZHQW\1LQH        
†
'LUHFWHG$WWULEXWHV DO+DPDOL\\DWDO0XZDMMDKDW 
Š † 
6HFWLRQ7KLUW\         
6HFWLRQ7KLUW\2QH        
(TXLYDOHQW&RQYHUVLRQ DO
$NVDO0XVWDZL 

6HFWLRQ7KLUW\7ZR        
&RQWUDGLFWRU\ † Š 
\2SSRVLWLRQ 7DQDTXG 
6HFWLRQ7KLUW\7KUHH        
6HFWLRQ7KLUW\)RXU        
5HYHUVH&RQWUDGLFWLRQ DO
$NVDQ1DTHHG  Š 
6HFWLRQ7KLUW\)LYH        
†
'LYLVLRQV2I(YLGHQFH $TVDPDO+XMMDK  Š 
6HFWLRQ7KLUW\6L[        
†– 
,QGXFWLRQ DO,VWLTUD 
6HFWLRQ7KLUW\6HYHQ        
RJ\
$QDORJ\ DW7DPWKHHO 

6HFWLRQ7KLUW\(LJKW\        
'LYLVLRQV2I7KH6\OORJ † 
RJLVP DO4L\DV 
6HFWLRQ7KLUW\1LQH        
7KH&RXSOHG6\OORJ †
RJLVP DO4L\DVDO,TWLUDQL  † 
6HFWLRQ)RUW\         
7KH)RXU)LJX †
JXUHV DO$VKNDODO$UED
 
6HFWLRQ)RUW\2QH        
&RQGLWLRQV)RU7KH)LUVW)LJXUH
6HFWLRQ)RUW\7ZR        
&RQGLWLRQV)RUWKH6HFRQG)LJX
JXUH
6HFWLRQ)RUW\7KUHH       
JXUH
&RQGLWLRQV)RU7KH7KLUG)LJX
6HFWLRQ)RUW\)RXU       
&RQGLWLRQV)RU7KH)RXUWK)LJXUH
6HFWLRQ)RUW\)LYH        
([FOXVLRQDU\
\6\OORJ † † 
RJLVP$QG,WV'LYLVLRQV DO4L\DVDO,VWLWKQD 
6HFWLRQ)RUW\6L[        
†
7KH(TXDWLRQDO6\OORJLVP DO4L\DVDO0XVDZDK  † † 
6HFWLRQ)RUW\6HYHQ        
† †
7KH)LYH6NLOOV DV6DQD
DWDO.KDPV 

6HFWLRQ)RUW\(LJKW        
† 
3URRI DO%XUKDQ 
6HFWLRQ)RUW\1LQH       
'LVSXWDWLRQ DO-DGO 

6HFWLRQ)LIW\         
Š†
2UDWLRQ DO.KDWDEDK  
6HFWLRQ)LIW\2QH        
3URYRFDWLRQ DVK6KL
U 
U 
6HFWLRQ)LIW\7ZR        
)DOODF\
F\ DO0XJKD † Š 
JKDODWDK 
6HFWLRQ)LIW\7KUHH        
1RWHV          
I±«£0
Ì
¤±<Mž$¨£<Mž$¬Ÿž$¤Q,

"¬1P$LH®¬£Ÿ‹0¶ž*µ8%=ž$²ª%¢®˜Ô§£ž$´I¹%’²ª%¢
Ê
¡¯< %¢Àš ¬‹¢ 2=1’ ©& µ5°I=ž$ SL$I£ž$ /Àb ¨¢  š ¬, LH%-° ¡$¾P
¥¯±ž$¤ž%Š²’µ]°M‹ž$µ±£Ÿ‹ž$…¯ÔEž$®¥%‹ž$²P$LIž$;%«§£ž$©Á ˜Ô§£ž$ 
Ê
%±¹%«¦ ˜Ô§£ž$ µP$LH¨Š©$¯ŸE°
²’ ¬±§±Š ?1’ ©& K§¢ ¬¦Á ¥%«“1PÅ$ $K«, LH%-° ©& .ž%Ԟ$ ˜< ¨£’ ©J*
SLH¬¦&¨±< ²’ ˜Ô§£ž$ ¤P*¬‹£P ™MÔ° ¤ž µ‹¢%9ž$ µ°%«¦ ¶1<µ±¹$I1,Å$
Ê
©¯§“ž$®¥¯Ÿ‹ž$”Ÿ1E¢¨¢´M±5š3%¢¯Ÿ‹¢¶ŸŠ Y<®$M±5š
/$¯9ž$
²’'ÔEž%’¬±’¸¶ÔD&³Kž$M¢Á$L$I—£,­L%4(®­H%Q’©¯›°¥¯Ÿ‹ž$²’'ÔEž$
¤Ÿ›1ž$­%§‹¢µŽÀ-ž$²’'ÔEž$®/M‹ž$I§Š¨9«1Q°%£,ˆ“Ÿ1ž$­%§‹¢ ¯=§ž$ 
¶ž*µ‹–$®µ-Q¦­%§‹¢F°L'1ž$²’'ÔEž$®¸%=Y“ž$®¸%,HÁ$¨ŠLI9°¿%£,
´IUž$²’'ÔEž$L$I—¢”Ÿ1E°©&²‹±-Ԟ$¨¢®$K›ª®$K›ª®%«-<%XM±Ž
M¢Áµ-Q§ž%,²YET¯\¯¢²’[%D'ÔD¬§›žµŸ—ž$®´M5›ž$®”‹]ž$®
¨±‹¢
&¯P& ® ¸%ÔDÁ$ M-š& ¯«’ ;%1§1PÅ$ ²’ ­%-1TÅ$ ® M›“ž$ ²’ 'ÔEž$ %¢&
©¯§“ž$®¥¯Ÿ‹ž$ ›ž ¢%T¥%Š'ÔD¬¦Á3%ª%-1TÅ$
²’'ÔEž$µ-Q¦®M›“ž$²’'ÔEž$¨Š©%Q¦Å$¤Y‹°³Kž$¤Ÿ‹ž$¯ª ˜Ô§£ž$ ®
¿*2Q±ž%ªM±Ž® F°L'1ž$ ® µŽÀ-ž$ ® ¯=§ž$ ¨¢­M±Ž²’'ÔEž$¶ž*M›“ž$
´IŠ%—ž$œŸ0H$M’&¨¢HM’²’'ÔEž$¶ž*µ±Ÿš´IŠ%–²’'ÔEž$µ-Q§š
Ê
¸%ÔDÁ$ 3%º¢ ® 3$MUŠ ²’ Œ—° ”±š L®M9¢  Š%’  š  ©&$¸ÔD¤Ÿ‹0 ¨£’
Ê
´I<$®´M¢ˆ“Ÿ1ž$²’'ÔD&¬§›ž ¯’M¢ Š%’ š ©&•MŠ¨¢•ÀE,%±¢¯°
Ê
²’%±¢¯°3$MU‹ž%,¸%ÔD&¬žŒ—0©&I,¿M›“ž$²’'ÔD&³Kž$œžKš Š%“ž$M9’
%«Ÿš¥¯Ÿ‹ž$
¬±ž*µ8%=ž$.-P®˜Ô§£ž$´I¹%’%§žM«‡0œžJ¨¢
¨Š ® ¡¿I1PÅ$ ²’ ­%-1TÅ$ ® ¯«Qž$ ¨Š %¦L%›’& ¤Y‹° ³Kž$ ¯ª ˜Ô§£ž%’
®'ÔEž$ =¢%§ž”U›±’3%£X%E£ž$²’3%«°¯£1ž$®3%Ԟ%£ž%,$IE¦Å$
Ê
³Kž$ ¤Ÿ‹ž$ ¯«’ •®M=ž$ ¶ŸŠ …%—§ž$ %¢%£0 Œ]±’ ¬°¯£1ž$ Œ–¯£ž %§«-§°
¤ŸŠ³&²’¯«Qž$¨¢'0¿¬¦®I,®¥¯Ÿ‹ž$ š²’­%-1TÅ$¨Šœ£Y‹°
¬£«“0®/%‹±1P+,¤Ÿ‹ž$$KªµP$LHI‹,¿* .ž%Ԟ$ ¬’M‹°¿­%¦MšH ³Kž$ $Kª®
˜£‹,
® µ°MU-ž$ ´Mԓž$ ¤±£X ¨¢ O1§¢ ¬¦Á ¿* ˜Ô§£Ÿž µ±ž%ž$ ´I¹%“ž$ ­Kª %¢ ®
©%Q¦Å$ ­%—Ÿ1° 6±=, ˜Ô§£ž$  2Ÿ‹8 ²1ž$ µ¢%‹ž$ µ±Ÿ—‹ž$ ¡¯XÁ$ ¨¢ H%“1Q¢
­MY,®¬¦J& -–¬0MԒ®¬Ÿ—‹,
¨¢µ¢%0 ´M±Y, ¶ŸŠ ©¯›° ©& ˜—=¢ ® .—§¢ ® 6<%,  š 3%°L®M\ ¨£’ ©J*
I—1‹°%£±’„Ÿ°¿®/%X&¬¦&¨‡°6±<¨¢'ÔE°À±›ž ˜Ô§£ž$ ¤ŸŠIŠ$¯–
?±=X¬¦&
¥IŠµ9±1¦¿*%«Ÿ±,%<',S%§ž$M5š&2’M8²1ž$´IP%“ž$¸³H%-£ž$­KªM5š&%¢®
®S%§ž$·M1’¥¯±ž$²£ž%‹ž$¥%‹ž$²£±Ÿ‹1ž$;%«§£ž$²’˜Ô§£ž$¤ŸŠ¤«1P$LH
?°L ›,©¯Ÿ±£°©®M›“£ž$¤«±’
¨¢ ;%1§1PÅ$ µ=X ® ­H%Q’ ¨¢ ¡¿I1PÅ$ /$¯X $¯’MŠ I– $¯¦%š ¤«¦& ¯ž ®
®´I’$®´M›’ šŒ¢$¯—Ÿ<O0%£ž3%¢I—£ž$¨¢µ9±1§ž$…%-§1P*µ±“±š®¬¹%ÔD
I°I8·&L š$¯—§1Š*¿
 ‹9±ž©$I±£ž$$Kª²’µ±¹$I,µž®%=¢¿*R±ž ˜Ô§£ž$²’O8¯£ž$ /%1›ž$$Kª®
µŸY“£ž$.1›Ÿž¬1P$LH?-Y1’µ±Ÿ›ž$­IŠ$¯–¤ª&¨¢´M-D¶ŸŠ¤Ÿ‹ž$$KªSL$H
¤«“0®´M±Y,¨Š´I—‹£ž$
Ì
.±9¢Œ±£P¬¦&¨Q<¡¯-—,­%—Ÿ1°®µ–%“ž$¥¯±ž·MDJ¬Ÿ‹9,©&¡®¾Q£ž$¬Ÿž$®
²§±Q=ž$³I«¢™H%XµPI—£ž$¸À,Mš
!#

,Q7KH1DPH2I$OODK7KH%HQHILFHQW7KH0HUFLIXO

:KDWLVWKHEHQHILWRI/RJLF":KDWLVWKHQHHGRIOHDUQLQJDQGVWXG\LQJLW"

,WLVDTXHVWLRQ\RXVWULNHLQWKHPLQGRIHYHU\VWXGHQWRIPRGHUQVFKRROV ,WLVD
TXHVWLRQ  ZKLFK RSHQV ZLWK LW D GLVFXVVLRQ DURXQG /RJLF EHFDXVH WKH JHQHUDO
PHWKRGVRIVWXG\DQGWKHYDVWLQWHOOHFWXDOZULWLQJVLQWKHZRUOGWRGD\DUHGHYRLGRI
WKHVWXG\RI/RJLFWRWKHXWPRVWGHJUHH

7KHUHIRUHLWLVWKHULJKWRIWKHVWXGHQWWREULQJWKLVTXHVWLRQWRPLQGEHFDXVHVLQFH
KHRSHQHGKLVH\HVLQWKHSULPDU\ OHYHOV XQWLOWKHHQGRIWKHXQLYHUVLW\WKHQDPH
/RJLFKDVQRWFRPHWRKLVDWWHQWLRQGXULQJWKHWLPHVZKLFKKHKDVVWXGLHGDORWDQG
DFTXLUHGPDQ\W\SHVRINQRZOHGJHRIYDULRXVVFLHQFHVDQGDUWV

7KHDQVZHU

0LVWDNHVLQVFLHQFHVDUHLWVFRUUXSWLRQDQGHIIHFWLQWKHPHDVXUHRIWKHPDWWHULQ
ZKLFK RQH ZDV PLVWDNHQ 7KHQ D PLVWDNH LQ JUDPPDU LWV PHDQLQJ LV
†
SURQXQFLDWLRQZLWKWKDWZKLFKLVLPSURSHUZLWKWKH
$UDE$PLVWDNHLQ%DODJKDK DQ
DGYDQFHG OHYHORI
$UDELFVWXGLHV LWVPHDQLQJLV WRVSHDNZLWKWKDWZKLFKLVQRW
DSSURSULDWH ZLWK FXOWXUHG ZULWHUV DQG HORTXHQW VSHDNHUV$ PLVWDNH LQ KLVWRU\ LWV
PHDQLQJLVWRDWWULEXWHDQRFFXUUHQFHWRRWKHUWKDQLWVRZQHUDQGVRIRUWKDQGVR
RQ,WLVQDWXUDOWKDWWKHUHEHGLIIHUHQFHVLQWKHPHDVXUHRIDPLVWDNHLQLQWHQVLW\
DQG IHHEOHQHVV DEXQGDQFH DQG LQVLJQLILFDQFH +RZHYHU LW LV D PLVWDNH LQ WKH
LQGLYLGXDOVXEMHFWZLWKUHJDUGWRDVSHFLILFPDWWHU

5HJDUGLQJWKHPLVWDNH LQWKLQNLQJDQGFRQIXVLRQLQGUDZLQJFRQFOXVLRQVLWLVWKH
JUHDWHVW RI PLVWDNHV DQG WKH ZRUVW FRQIXVLRQ EHFDXVH LW LV D FRPPRQ PLVWDNH
HQFRPSDVVLQJHYHU\VFLHQFHDQGDUW

/RJLF LV WKH NQRZOHGJH ZKLFK SURWHFWV PDQ IURP PLVWDNHV LQ WKLQNLQJ 7KH
UHODWLRQVKLSRIDPLVWDNHLQWKLQNLQJWRDPLVWDNHLQRWKHUWKDQJUDPPDU%DODJKDK †
DQG KLVWRU\ DQG RWKHU WKDQ WKDW LV QRWKLQJ H[FHSW OLNH UHODWLQJ D PLVWDNH LQ WKH
HQWLUHUXOHWRDPLVWDNHLQDRQHRIWKHSDUWVRIWKLVUXOH

+HZKROHDUQHGPLVWDNHQO\WKDW HYHU\6XEMHFWLVJHQLWLYH LPDJLQHLWRFFXUULQJLQ


WHQVDQGKXQGUHGVRIPLVWDNHVGDLO\FRQWUDU\WRWKHFRQYHQWLRQWKDW HYHU\6XEMHFW
LV QRPLQDWLYH  +RZHYHU KH LV PLVWDNHQ LQ SURQXQFLDWLRQ RQFH DQG PDNHV WKH
6XEMHFW JHQLWLYH /LNHZLVH KH ZKR PDNHV D PLVWDNH LQ WKLQNLQJ LW LV QHFHVVDU\
WKDWPLVWDNHVKDSSHQIRUKLPWHQVRIWLPHVGDLO\LQVFLHQFHDOORIWKHP

/RJLF WKHQ LV WKDW ZKLFK SURWHFWV RXU WKLQNLQJ IURP QHJOLJHQFH DQG FRQIXVLRQ LQ
GUDZLQJ FRQFOXVLRQV DQG IURP EHLQJ GHOXGHG E\ PLVWDNHV DQG GLVWRUWLRQ LQ
GLVSXWDWLRQV/RJLFWKHQXQFRYHUVIRUXVWKHSODFHRIWKHPLVWDNHDQGLWLQIRUPV
XVRIWKHVLWXDWLRQRIWKHGLVWRUWLRQ,WSXWVWKHGRWVRQWKHOHWWHUVFRPSOHWHO\,WLV
WKHNQRZOHGJHZKLFKSURWHFWV\RXIURPFRQIXVLRQLQHDFKRIWKHVFLHQFHV:LWKRXW
LW\RXFDQQRWEHVDIHIURPLQDWWHQWLYHQHVVLQZKLFKHYHUNQRZOHGJH7KLVZKLFKZH
KDYH PHQWLRQHG LV QRW UHDOL]HG E\ WKH VWXGHQW H[FHSW DIWHU VWXG\ RI WKLV VFLHQFH
ZLWKFRPSUHKHQVLRQDQG DIWHU KHXQGHUVWDQGVLWLQGHSWK

7KLV YDOXDEOH EHQHILW RI /RJLF LV RQO\ WKDW LW GUDZV IURP WKH LQQHUPRVW KXPDQ
QDWXUHDQGWKHXVDJHRIJHQHUDOUDWLRQDOSULQFLSOHVZKLFKPDNHV/RJLFVXFKWKDW
PDQPHHWVLWZLWKKLVUHDVRQLQJDQGKLVQDWXUHEHIRUHKLVHDUVDQGLVVLJKW

7KHUHIRUH LW LV QHFHVVDU\ IRU HYHU\ UHVHDUFKHU LQYHVWLJDWRU DQG LQTXLUHU WKDW WKH
UXOHV RI /RJLF EH VHW XSRQ KLV WRWDO LQVLJKW LQ RUGHU WKDW KH QRW EH PLVWDNHQ ZLWK
UHJDUG WR KLV DVVXPSWLRQ WKDW KH LV FRUUHFW DQG LV QRW PLVWDNHQ LQ WKDW ZKLFK KH
EHOLHYHVWREHSURSHU

0RVWRIWKHVHFRUUXSWIXQGDPHQWDOVZKLFKVZHHSDZD\WKHPDMRULW\RISHRSOHLQLWV
VQDUH DUH RQO\ WKH UHVXOW RI WKHLU ODFN RI VWXG\ RI WKH VFLHQFH RI /RJLF LQ WKH
PHWKRGRORJ\RIFRPPRQZRUOGVWXGLHVWRGD\7KHQ\RXVHHSHRSOHDPRQJWKHP
WKH WKLQNHUV EHQGLQJ ZLWK HYHU\ ZLQG ,I WKH\ FRXOG UHFRJQL]H WKH FRUUHFW
DUJXPHQWDWLRQIURPLWVFRUUXSW DUJXPHQWDWLRQ DQGWKHFRUUHFWPHWKRGRIGUDZLQJ
FRQFOXVLRQVIURPLWVPLVWDNHQ PHWKRGV DQGWKHPDQQHURIGHGXFLQJUHVXOWVIURP
SUHPLVHV WKH\ GR QRW VOLS ZLWK HYHU\ DUULYLQJ WKRXJKW DQG WKH\ GR QRW HPEUDFH
HYHU\QHZRSLQLRQ

†
7KLVERRN DO0XMD])LDO0DQWLT Š LVRQO\DEHJLQQLQJHIIRUWLQWKLVILHOGLQRUGHUWR
JLYH WKH VWXGHQW RI WKLV VFLHQFH H[SHULHQFHLQ WKH PRVW LPSRUWDQWRI LWVXQLYHUVDO
UXOHV 7KHQ KLV VWXG\ RI WKH GHWDLOHG ERRNV ZLOO EHFRPH D SRLQW RI LQVLJKW DQG
XQGHUVWDQGLQJ

%\*RGWKHDQVZHUDEOHPDNHLWDWUHDVXUHIRUWKHGD\RIQHHGLQHVVDQGPHHWLW
JRRGO\DFFHSWDQFHVXUHO\+HLVWKH+HDULQJ DQGWKH $QVZHUHU

+RO\.DUEDOD† Š †
6DGLT0DKGLDO+XVDLQL
Š
3%¢I—£ž$

   Y’
® ¨ªKž$ ¨±,™M“ž$¨›ž´(M£ž%šL¯Yž$%«±’V—1§0 ¨ªKž$ ¶£Q0´¯–¬ž©%Q¦Å$
®„—’¨±‹ž%,·M0²1ž$ 3$MY-£ž$ L¯X¿*%«±’V—1§0¿ ´(M£ž$ ©& ´(M£ž$ ¨±,
3¿¯—‹£ž$®3%P¯Q=£ž$M¹%P¨¢%ªM±Ž®3$MY-£ž$L¯XV—1§0 ¨ªKž$ ²’

7+(35(/,0,1$5,(6
6(&7,2121(

0DQKDVDFHUWDLQIDFXOW\FDOOHGWKHPLQG =KLKQ ,PDJHVDUHLQGXFHGLQWKHPLQGOLNHD


PLUURU7KHGLIIHUHQFHEHWZHHQWKHPLQGDQGWKHPLUURUKRZHYHULVWKDWWKHPLUURURQO\
LQGXFHVYLVXDOLPDJHVZKLFKDUHVHHQE\WKHH\H7KHPLQGLQGXFHVYLVXDOLPDJHVDQG
RWKHUVIURPWKHYDULRXVVHQVXDODQGUDWLRQDOVHQVHV

   Y’
®´MX%-ž$²ª®R£Ež$S$¯=ž$·I<*µÔP$¯,LI°®•M‹°³Kž$¸²Už$¯ªS¯Q=£ž$
µQ¢Àž$®µ—¹Kž$®µ¢%Už$®µ‹¢%Qž$
S¯Q=¢¸²T3¯Yž$® ´MX%-ž$ ¨±‹ž%,LI°®•M‹°¬¦ÁS¯Q=¢¸²T -9ž%’
3%P¯Q=£ž$ ¨¢ ¬°M›ž$ ?°Mž$ ® .±Ôž$ ?°Mž$ ®  µ‹¢%Qž$  ©JÁ%, LI° ® •M‹° ¬¦Á
%£«¦Á3%P¯Q=£ž$¨¢µ\¯£=£ž$®´®À=ž$® µ¢%Už$ ”¦Á%,©%šLI°®©%’M‹°%£«¦Á
LI°®•M‹0HM-ž$®M=ž$®µ¢¯‹§ž$®µ¦¯UEž$® µ—¹$Kž$ ©%QŸž%,©%šLI0®©%’M‹0
µQ£Ež$3%P¯Q=£ž$²ª­K«’ µQ¢Àž$ ©I-ž$¸$O8&Œ±£9,
1
 ;®N©%§4Å$ À5£’R£Ež$S$¯=ž$­KªM±,LI°®•M‹°³Kž$¸²Už$¯ª¡¯—‹£ž$®
Ê
®¨±‹ž%,LI0¿®•M‹0¿­Kª š  $I¹$N®  ²’ ® HM’I<$¯ž$ ®
%«ž¡%—°$Kž® —‹ž%,LI0®•M‹0%£¦*®R£Ÿž%,¿®©%QŸž%,¿®”¦Á%,¿®©JÁ%,¿
 3¿¯—‹£ž$ 

6(&7,217:2

Š † DUH WKLQJV ZKLFK DUH NQRZQ DQG SHUFHLYHG E\ PHDQV RI RQH RI
7KH 6HQVXDO 0DKVXV 
WKHILYHVHQVHVVLJKWKHDULQJVPHOOWDVWHDQGWRXFK7KHPRXQWDLQWKHQLVVRPHWKLQJ
†Š
SHUFHSWLEOHEHFDXVHLWLVNQRZQDQGSHUFHLYHGE\WKHH\H %DVLUDK 6RXQGLVVRPHWKLQJ
†
SHUFHSWLEOH EHFDXVH LW LV NQRZQ DQG SHUFHLYHG E\ WKH HDU 6DPL
DK  3OHDVDQW DLU DQG
RIIHQVLYHDLUDUHIURPWKHSHUFHSWLEOHWKLQJVEHFDXVHWKH\DUHERWKNQRZQDQGSHUFHLYHG
†
E\ WKH QRVH 6KDPPDK  6ZHHWQHVV DQG ELWWHUQHVV DUH SHUFHSWLEOH EHFDXVH WKH\ DUH
†
ERWKNQRZQDQGSHUFHLYHGE\WKHWRQJXH =KDLTDK 5RXJKQHVVVRIWQHVVKHDWDQGFROG
†
DUHNQRZQDQGSHUFHLYHGE\DOOSDUWVRIWKHERG\ /DPLVDK 7KHVHDUHWKHILYHVHQVHV

7KH 5DWLRQDO 0D
TXO † DUH WKLQJV ZKLFK DUH NQRZQ RU SHUFHLYHG ZLWKRXW WKHVH ILYH
VHQVHV)RUH[DPSOHWKDWWZRLVHYHQDQGRQHLVRGGWZRWLPHVWZRHTXDOVIRXUWZRSOXV
RQHHTXDOVWKUHH(DFKRIWKHVHDUHQRWNQRZQRUSHUFHLYHGE\WKHH\HQRUWKHHDUQRU
WKH QRVH QRU WKH WRQJXH QRU E\ WKH WRXFK 7KH\ DUH RQO\ NQRZQ DQG SHUFHLYHG E\ WKH
† †
PLQG'XHWRWKDWWKH\DUHVDLGWREHUDWLRQDO 0D
TXODW 

2
   Y’
Ç Ê
¶ž*3M‡¦$J*® $L¯Y0 ¶£Q°$K«’œ§ªJ²’¬0L¯X24I<®©%Q¦*¶ž*2«8¯0$J*
Ê Ê
œ§ªJ²’7I<®%0¯X2‹£P$J*®%]°&L¯Y0$K«’œ§ªJ²’¬0L¯X2U—1¦$®œ°H
Ê
%]°& L¯Y0 ¤Ÿ‹ž$$K«’3¯Yž$œžK,¤Ÿ‹ž$
œžJ ¶ž* ¤Ÿ‹ž$ 2-Q¦ I—’ ¤ž%Š $Kª  2Ÿ– ® ¤ž%Š ©%Q¦Å$ œžJ ©& 2’MŠ $J* %¢'’
Ê
_±,&¬1°&L³Kž$œ°Iž$©&¶ž*2«8¯0$J*® %—°IY0 ¶£Q0µ-Q§ž$­K«’©%Q¦Å$
 ˜°IY0 µ-Q§ž$­K«’œ°Iž$œžJ¶ž*a%±-ž$2-Q¦I—’ _±,&œ°Iž$$Kª 2Ÿ—’
Ê
 I°N¨¢3¯Yž$$Kª 2Ÿ—’I°N3¯X¬1‹£P³Kž$3¯Yž$©&¶ž*2«8¯0$J*®%]°&
Ê
%]°& ˜°IY0 µ-Q§ž$­K«’I°N¨¢¬¦¯š3¯Yž$¶ž*2-Q¦I—’
˜°IY0%¢*®L¯Y0%¢*²ª¨ªKž$²’7I=0²1ž$L¯Yž$©&¤ŸŠ%’
Ê
¶ž*¸²Tµ-Q¦¨›0¤ž©*® %—°IY0 ¶£Q0´L¯Yž$œŸ0¸²T¶ž*¸²Tµ-Q¦©%š©+’
Ê
²’MY=§¢¸%±TÁ$$LH*¯ª³Kž$¤Ÿ‹ž%’©J* $L¯Y0 ¶£Q0´L¯Yž$œŸ1’¸²T
˜°IY1ž$®L¯Y1ž$
¥IŠµ-Q¦©¯›°I–® ¤¹%–I°N  5¢¸²T¶ž*¸²T/%9°*µ-Q¦©¯›°I–˜°IY1ž$®
I°N¶ž*¥%±—ž$¥IŠ.Q¦I–¬¦+’ ¤¹%—,R±žI°N  5¢¸²T¶ž*¸²T
6(&7,217+5((

:KHQ \RX ORRN WRZDUG D PDQ DQ LPDJH RFFXUV LQ \RXU PLQG 7KLV LPDJH LV FDOOHG
$SSUHKHQVLRQ  7DVDZZXU 
Š :KHQ \RX ORRN DW D FKLFNHQ DQ LPDJH LV FRPSRVHG LQ \RXU
PLQGWKLVLVFDOOHG$SSUHKHQVLRQDOVR:KHQ\RXKHDUDVRXQGNQRZOHGJHRIWKDWVRXQG
RFFXUVLQWKHPLQG7KLVNQRZOHGJHLVFDOOHG$SSUHKHQVLRQDOVR

$V IRU ZKHQ LW LV NQRZQ WKDW D PDQ LV D VFKRODU DQG \RX VD\ 7KLV LV D VFKRODU
.QRZOHGJH WKHQ LV DWWULEXWHG WR WKDW PDQ 7KLV DWWULEXWLRQ LV FDOOHG $  IILUPDWLRQ
7DVGHHT 7KHFKLFNHQZKLFK\RXVHHZKHQ\RXWXUQ\RXUDWWHQWLRQWRZDUGLWLVZKLWH
Š
<RXVD\ 7KLVFKLFNHQLVZKLWH:KLWHQHVVLVDWWULEXWHGWRWKDWFKLFNHQ7KLVDWWULEXWLRQLV
3
$IILUPDWLRQDOVR:KHQ\RXUDWWHQWLRQWXUQVWRWKHVRXQGZKLFK\RXKHDU LWRFFXUVLQWKH
PLQG WKDW  LW LV WKH YRLFH RI =DLG \RX VD\ 7KLV LV WKH YRLFH RI =DLG 7KLV DWWULEXWLRQ LV
$IILUPDWLRQDOVR

.QRZOHGJHWKHQLVWKDWLPDJHZKLFKRFFXUVLQWKHPLQGDQGLWLVHLWKHU$SSUHKHQVLRQRU
$IILUPDWLRQ 7DVDZZXURU7DVGHHT ,IWKHUHLVDQDVFULSWLRQRIRQHWKLQJWRDQRWKHUWKHQ
Š Š
WKLV LPDJH LV FDOOHG$IILUPDWLRQ ,I WKHUH ZDV QR DVFULSWLRQ RI RQH WKLQJ WR DQRWKHU WKLV
LPDJHLVFDOOHG$SSUHKHQVLRQ7KHUHIRUHNQRZOHGJHZKLFKLVWKHSHUFHSWLRQRIWKLQJVLV
UHVWULFWHGWR$SSUHKHQVLRQDQG$IILUPDWLRQ

6RPHWLPHV $IILUPDWLRQ LV WKH DVFULSWLRQ RI WKH DIILUPDWLRQ RI RQH WKLQJ IRU DQRWKHU IRU
H[DPSOH =DLG LV VWDQGLQJ 6RPHWLPHV $SSUHKHQVLRQ LV WKH DVFULSWLRQ RI WKH ODFN RI
VRPHWKLQJIRUVRPHWKLQJHOVH)RUH[DPSOH=DLGLVQRWVWDQGLQJ,WKDVDVFULEHGWKHODFN
RIVWDQGLQJWR=DLG
   Y’
¨±Š¯¦¶ŸŠL¯Y1ž$
 ²«°I-ž$L¯Y1ž$ ¶£Q°®%£ª¯=¦® ¸%£ž$ ® L%§ž$ L¯Y0 5¢¥¯Ÿ‹¢?\$®%¢*
L¯Y1ž$ ¶£Q° ®%£ª¯=¦ ® C®Mž$ ® ¨9ž$  L¯Y0  5¢?\$®M±Ž ¡¯«9¢ %¢*®
M›“ž$®M‡§ž$¶ž*¬1’M‹¢;%±1<Å ³M‡§ž$
¨±Š¯¦¶ŸŠ˜°IY1ž$œžKš®
˜°IY0 ¶£Q°®%£ª¯=¦® HL%,:Ÿ5ž$ ® ´L%<L%§ž$ ˜°IY0 5¢¥¯Ÿ‹¢?\$®%¢*
 ²«°I-ž$
¬—ŸD©%Q¦Å$ ® µ–¯ŸE¢%±¦Iž$  5¢M›“1ž$¶ž*;%1=° ,?\$®M±Ž¡¯«9¢%¢*®
M›“ž$®M‡§ž$¶ž*¬8%±1<Å ³M‡§ž$˜°IY1ž$ ¶£Q°® ¬Ÿž$
œžJ¶ž* X¯°¯=§, µ±«°I-ž$ 3$L¯Y1ž$.±0M0¯ª ³M‡§ž$L¯Y1ž$ µ’M‹¢˜°Mb®
 µ±«°I-ž$ 3%—°IY1ž$.±0M0¯ª ³M‡§ž$˜°IY1ž$ µ’M‹¢˜°Mb® ³M‡§ž$L¯Y1ž$ 
/%1›ž$MD$®&²’œžJµ±“±š²0'±P ³M‡§ž$˜°IY1ž$ œžJ¶ž* X¯°¯=§,

4
6(&7,21)285

$SSUHKHQVLRQ 7DVDZZXU LVRIWZRNLQGV


Š
,W LV HLWKHU DSSDUHQW DQG NQRZQ OLNH WKH FRQFHSW RI ILUH DQG ZDWHU DQG WKRVH FRQFHSWV
VLPLODUWRWKRVHWZR,WLVFDOOHG6LPSOH$SSUHKHQVLRQ 7DVDZZXU%DGHHKL 
Š
2ULWLVHLWKHUXQNQRZQDQGXQDSSDUHQWOLNHWKHFRQFHSWRILQYLVLEOHVSLULWV -LQQ DQGWKH
VRXO 5XK 
Š DQG VLPLODU FRQFHSWV 7KH\ DUH FDOOHG &RJQ
RJQLWLYH $SSUHKHQVLRQ 7DVDZZXU
Š

1D]DUL GXHWRWKHQHHGRIFRQWHPSODWLRQDQGWKLQNLQJLQRUGHUWRFRPSUHKHQGWKHP
Š

/LNHZLVH$IILUPDWLRQLVRIWZRNLQGVLWLVHLWKHUDSSDUHQWDQGNQRZQOLNHWKHFRQFHSWWKDW
ILUH LV KRW DQG LFH LV FROG DQG VLPLODU FRQFHSWV ,W LV FDOOHG 6LPSOH$IILUPDWLRQ 7DVGHHT
Š
%DGHHKL 2ULWLVHLWKHUXQNQRZQDQGXQDSSDUHQW5DWKHULWUHTXLUHVFRQWHPSODWLRQOLNH
WKH HDUWK LV FUHDWHG RU WKH FUHDWRU RI PDQ LV *RG ,W LV FDOOHG &RJQ RJQLWLYH $IILUPDWLRQ

7DVGHHT1D]DUL GXHWRLWVQHHGIRUFRQWHPSODWLRQDQGWKLQNLQJ
Š Š

7KHPHWKRGRIDWWDLQLQJWKH&RJQLWLYH$SSUHKHQVLRQ 7DVDZZXU1D]DUL LVWRDUUDQJHWKH


Š Š
6LPSOH $SSUHKHQVLRQV 7DVDZZXUDW
Š † %DGHHKL  LQ VXFK D PDQQHU WKDW WKH\ OHDG WR WKH
&RJQLWLYH $SSUHKHQVLRQ 7KH PHWKRG RI DWWDLQLQJ WKH &RJQLWLYH $IILUPDWLRQ 7DVGHHT
Š
Š Š †
1D]DUL LVWRDUUDQJHWKH6LPSOH$IILUPDWLRQV 7DVGHHTDW%DGHHKL LQVXFKDPDQQHUWKDW
WKH\OHDGWRWKH&RJQLWLYH$IILUPDWLRQ7KHPHWKRGRI&RJQLWLYH$IILUPDWLRQZLOOFRPHLQ
WKHHQGRIWKHERRN

   Y’
 X¯0 ²1ž$ µ±«°I-ž$ µ¢¯Ÿ‹£ž$ 3$L¯Y1ž$ œŸ1ž ¡%—°  ˜Ô§£ž$ ¸%£ŸŠ I§Š •M‹£ž$ 
Ê
%¢¯Ÿ‹¢¬Ÿ‹91’¡¯«9¢ ³M‡¦ L¯Y0¶ž*©%Q¦Å$
¶ž*©%Q¦Å$ X¯0²1ž$ µ±«°I-ž$ µ¢¯Ÿ‹£ž$3%—°IY1ž$œŸ1ž¡%—°¤ªI§Š µ9=ž$ ®
Ê
%¢¯Ÿ‹¢¬Ÿ‹91’¡¯«9¢ ³M‡¦ ˜°IY0
¶ŸŠZEUž$¨›£1°¶1<„—’ µ9=ž$ ® •M‹£ž$ µ’M‹¢˜Ô§£ž$¨’¨¢H¯Y—£ž%’
® µ¢¯Ÿ‹£ž$ 3$L¯Y1ž$  ¨¢ µ±—°IY1ž$  ® µ°L¯Y1ž$  3¿¯«9£ž$  ±Y=0
µ¢¯Ÿ‹£ž$ 3%—°IY1ž$ 
5
6(&7,21),9(

7KH 'HILQLHQ DO0X


DUULI  ZLWK WKH VFKRODUV RI /RJLF LV VDLG RI WKRVH NQRZQ 6LPSOH
$SSUHQKHQVLRQV 7DVDZZXU
Š %DGHHKL  E\ ZKLFK PDQ DUULYHV DW WKH XQNQRZQ &RJQLWLYH
$SSUHKHQVLRQ 7DVDZZXU
Š 1D]DUL 
Š WKHUHE\ PDNLQJ LW NQRZQ (YLGHQFH DO+XMMDK 
Š ZLWK
WKHVFKRODUVRI/RJLFLVVDLGRIWKRVHNQRZQ6LPSOH$IILUPDWLRQV 7DVGHHT%DGHHKL E\
Š
ZKLFK PDQ DUULYHV DW WKH XQNQRZQ &RJQLWLYH $IILUPDWLRQV 7DVGHHT Š 1D]DUL 
Š WKHUHE\
PDNLQJWKHPNQRZQ

7KH DLP LQ WKHDUWRI /RJLF LVVROHO\ WKH UHFRJQLWLRQRI WKH 'HILQLHQ DO0X
DUULI  DQG WKH
(YLGHQFH DO+XMMDK 
Š XQWLO LW LV SRVVLEOH IRU DQ LQGLYLGXDO WR DWWDLQ WKH XQNQRZQ LQ
$SSUHKHQVLRQDQG$IILUPDWLRQIURPWKHNQRZQ$SSUHKHQVLRQVDQG$IILUPDWLRQV

   Y’
®&µ,M‹¢µ¢®O9¢®&´L®M9¢®&µ,¯Y§¢®&µŠ¯’M¢%«¦&®‰%“žÁ$µ’M‹£žŒ\®¯=§ž$
µ’M‹£žŒ\®˜Ô§£ž$¨›ž®%«0$Kž‰%“žÁ$¶ž*;%1=°¯=§ž$¤Ÿ‹1°©&I°M°³Kž%’µ±§-¢
¶ž* X¯0²1ž$µ¢¯Ÿ‹£ž$3$L¯Y1ž$œŸ0²¦%‹£ž$¯ª •M‹£ž$ ©Á‰%“žÁ$¿²¦%‹£ž$
²1ž$µ¢¯Ÿ‹£ž$3%—°IY1ž$œŸ0²¦%‹¢²ª µ9=ž$ ®%«†%“ž&¿ ³M‡¦ ¡¯«9¢L¯Y0
‰%“žÁ$¨Š˜Ô§£ž$²’6=-ž$%£¦*®%«†%“ž&¿ ³M‡¦ ¡¯«9¢˜°IY1ž$¶ž* X¯0
¤±«“0¨›£°¿J*‰%“žÁ$¶ŸŠ²¦%‹£ž$µ’M‹¢”–¯1ž¯ª%£¦*µ¢H%—ž$¡¯Y“ž$_‹-š
ˆ“Ÿž%,¿*˜±£‹ž$¶§‹£ž$¤«“0¨›£°¿œžKš®ˆ“Ÿž%,¿*˜±£‹ž$¶§‹£ž$

6(&7,216,;

1DKZ $EUDQFKRI
$UDELFJUDPPDU ZDVFUHDWHGIRUWKHUHFRJQLWLRQRIZRUGVWKDWWKH\
Š
† $FFXVDWLYH 0DQVXE 
DUH QRPLQDWLYH 0DUIX
 Š† *HQLWLYH 0DMUXU † -XVVLYH 0DM]XP 
†
'HFOLQDEOH 0X
UDE RU,QGHFOLQHDEOH 0DEQL\ 7KDWZKLFKLVLQWHQGHGWREHOHDUQHG LH
1DKZ 
Š UHTXLUHV ZRUGV WKHPVHOYHV /RJLF KRZHYHU ZDV FUHDWHG IRU WKH UHFRJQLWLRQ RI
PHDQLQJV QRW ZRUGV EHFDXVH WKH 'HILQLHQ DO0X
DUULI  LV WKH PHDQLQJ RI WKRVH NQRZQ
$SSUHKHQVLRQVE\ZKLFKRQHFDQDUULYHDWWKHXQNQRZQ&RJQLWLYH$SSUHKHQVLRQQRWLWV
ZRUGV

6
7KH (YLGHQFH DO+XMMDK 
Š LV WKH PHDQLQJV RI WKRVH NQRZQ $IILUPDWLRQV E\ ZKLFK RQH
DUULYHVWRWKHXQNQRZQ&RJQLWLYH$IILUPDWLRQVQRWLWVZRUGV7KHVWXG\LQ/RJLFLVRQO\
DERXW WKH ZRUGV DV LQ VRPH RI WKH FRPLQJ VHFWLRQV LQ WKDW FRPSUHKHQVLRQ RI WKH
PHDQLQJLVGHSHQGHQWRQO\XSRQZRUGV7KHUHIRUHXQGHUVWDQGLQJWKHSURIRXQGPHDQLQJ
LVQRWSRVVLEOHH[FHSWWKURXJKWKHZRUG$VVXFKLWLVQRWSRVVLEOHIRU\RXWRXQGHUVWDQG
WKHSURIRXQGPHDQLQJH[FHSWWKURXJKWKHZRUG

3¿¿Iž$
   Y’
¬8¯ž$´M“YšMD(¸²U,¤Ÿ‹ž$¬§¢¥Ož¬,¤Ÿ‹ž$ Y<¯ž6±=,¸²Už$©¯š²ªµž¿Iž$
¬’¯E,¤Ÿ‹ž$¡¯Y<œžJ¨¢¥OŸ°ZET¬8®´M“Y,¤Ÿ‹ž$ Y<¯Ÿ’•¯Ež$¶ŸŠµž$Iž$
¸²Už%,¤Ÿ‹ž$¡®Á$¸
 ²Už%,¤Ÿ‹ž$¨¢¥OŸ°6±=,MD(¸²U,¸²TZ±YE0¯ªŒ\¯ž$®
M±Y±’ ¬§,Å ¤PÅ$ $Kª ZD ¬¦& ¶§‹£, ²ŸŠ  ¤P* ¬§,Å I°N Œ\® ¯ž À5¢ ²¦%5ž$
¡%–¯ž ®­I°M°À8L©&I°N ¨,* •M‹° ²ŸŠ  ZET ¡%– ¯ž6±=, I°N ¨,Å ²ŸŠ 
¤Q–Œ\¯ž$©J*¥À›ž$$K«,H¯Y—£ž$¯ª¬§,*©',I°N¤Ÿ‹° $Kš ‹’²ŸŠ I°OžZET
²0'±P%£šµž¿Iž$¨¢
† † 
6,*1,),&$7,216 $''$/$/$7 
6(&7,216(9(1
6LJQ †
JQLILFDWLRQ DO'DODODK LVWKHUHDOLW\RIVRPHWKLQJZKHUHE\LINQRZOHGJHLVREWDLQHGRI
LWNQRZOHGJHRIVRPHWKLQJHOVHLVDOVRQHFHVVDU\/LNH\HOORZQHVVRIWKHIDFHVLJQLILHV
IHDU,INQRZOHGJHLVDWWDLQHGRIWKH\HOORZQHVVRIWKHIDFHRIDSHUVRQLWLVQHFHVVDU\WR
DWWDLQIURPWKDWNQRZOHGJHRIKLVIHDU

)RUPXODWLRQ  DO:DG

Š LV FRLQDJH RI RQH WKLQJ IRU VRPHWKLQJ HOVH ZKHUHDV IURP WKH
NQRZOHGJHRIWKHILUVWWKLQJNQRZOHGJHRIWKHVHFRQGWKLQJLVQHFHVVDU\)RUH[DPSOHLI
=DLGKDGVSHFLILHGWKHQDPH
$OLIRUKLVVRQLQWKHPHDQLQJWKDWWKLVQDPHLVVSHFLILFIRU
KLVVRQ7KHQ
$OLEHFRPHVWKHQDPHIRUWKHVRQRI=DLGVRWKDWLIDQLQGLYLGXDOVDLG
$OL
WKHQWKHVRQRI=DLGNQRZVWKDWWKHPDQLQWHQGVKLP,IWKHPDQVD\V
$OLGLGVRDQGVR
=DLGNQRZVWKDWKLVVRQLVWKHDLPRIWKHVHZRUGV7KHUHIRUH)RUPXODWLRQ DO:DG
LVD
Š
†
GLYLVLRQRI6LJQLILFDWLRQ DO'DODODK DVZLOOVRRQFRPH

7
   Y’
¥%Q–&µ4À4¶ŸŠµž¿Iž$
Œ\¯ž$¯ª%«±’µž¿Iž$.-P©¯›°²1ž$²ª®µ±‹\¯ž$µž¿Iž$ 
 —‹ž$%«±’µž¿Iž$.-P©¯›°²1ž$²ª®µ±Ÿ—‹ž$µž¿Iž$ 
µ‹±-Ԟ$%«±’µž¿Iž$.-P©¯›°²1ž$²ª®µ±‹-Ԟ$µž¿Iž$ 
µ±‡“žM±Ž®&µ±‡“ž%¢*¥%Q–Á$­Kª¨¢I<$® š®
I°N¨,*¶ŸŠ¡I°³Kž$ ²ŸŠ  5¢µ±‡“Ÿž$µ±‹\¯ž$µž¿Iž%’
¶ŸŠ.Y§ž$®3$L%TÅ$®I—‹ž$®…¯ÔEž$µž¿H 5¢µ±‡“Ÿž$M±Žµ±‹\¯ž$µž¿Iž$®
%«±¦%‹¢
Ê
¤Ÿ›1°%¦%Q¦*©',¤Ÿ‹ž$¬ž Y=°µ,%ÔDZETŒ£P¯ž¬¦& 5¢µ±‡“Ÿž$µ±Ÿ—‹ž$µž¿Iž$®
¯ª —‹ž$©Áµ±Ÿ—Š®¤Ÿ›1¢.±ÔDH¯8®¶ŸŠ2žHµ,%ÔEž$‰%“ž&©Áµ±‡“žµž¿Iž%’
¤Ÿ›1¢¨¢LIY°©&.9°¥Àš š©&¶ŸŠ¡I°³Kž$
Ì
˜ž%Ež$ ¬Ÿž$  H¯8® ¶ŸŠ 3%–¯ŸE£ž$ ­Kª µž¿H  5¢ µ±‡“Ÿž$ M±Ž µ±Ÿ—‹ž$ µž¿Iž$ ®
Ì
¡I°³Kž$¯ª —‹ž$J*µ±Ÿ—Š®¬Ÿž$H¯8¯,¤Ÿ›10¿3%–¯ŸE£ž$©Áµ±‡“žM±Žµž¿Iž%’
Ì
¬¦%=-P¬Ÿž$¯ª3$H¯8¯£ž$­Kª˜ž%D©&¶ŸŠ©%Q¦Å$
¬¦&¶ŸŠ¡I°©%Q¦Å$Œ-ԒLIYž$Œ8®¶ŸŠ C&C& µž¿Išµ±‡“Ÿž$µ±‹-Ԟ$µž¿Iž$®
‰%“ž&3$¯XÁ$­Kª©Áµ±‡“žµž¿Iž$®3$¯XÁ$­Kª¬§¢;ME°ZETLIXŒ8®¶1¢
­LIXŒ8®¨¢¤’¨¢;ME0

8
¶ŸŠ¬8¯ž$´M£<®•¯Ež$¶ŸŠ¬8¯ž$´M“Xµž¿H 5¢µ±‡“Ÿž$M±Žµ±‹-Ԟ$µž¿Iž$®
M£<&ZET 9D®&¬«8®M“X&ZET•%D¶1¢¬¦&¶ŸŠ¡I°©%Q¦Å$Œ-Ԓ 9Ež$
µ±‡“žM±Žµž¿Iž%’‰%“žÁ$¨¢%1Q±ž´M“Yž$®´M£=ž$®¬«8®

9
6(&7,21(,*+7
†
6LJQLILFDWLRQ 'DODODK KDVWKUHHGLYLVLRQV

  )RUPXODWLYH6LJQ †
JQLILFDWLRQ DO'DODODKDO:DG
L\\DK ,WLVWKDWLQZKLFKWKHFDXVH
Š
RIVLJQLILFDWLRQLV)RUPXODWLRQ DO:DG

Š
   5DWLRQDO 6LJQ †
JQLILFDWLRQ DO'DODODK DO
$TOL\\DK  ,W LV WKDW LQ ZKLFK WKH FDXVH RI
6LJQLILFDWLRQLVUHDVRQLQJ
$TO 
   1DWXUDO 6LJQ †
JQLILFDWLRQ  DO'DODODK DO7DE
L\\DK  ,W LV WKDW LQ ZKLFK WKH FDXVH RI
6LJQLILFDWLRQLVQDWXUDO 7DEHH
DK 

(DFK RQH RI WKHVH GLYLVLRQV DUH HLWKHU 9HUEDO /DI]L\\DK 


Š RU 1RQ9HUEDO
*KDLUXO/DI]L\\DK 
Š
• 9HUEDO)RUPXODWLYH6LJQ †
JQLILFDWLRQ DO'DODODKDO:DG
L\\DKDO/DI]L\\DK IRUH[DPSOH
Š Š
WKHQDPH $OLZKLFKLQGLFDWHVWKHVRQRI=DLG
•1RQ9HUEDO)RUPXODWLYH6LJQ †
JQLILFDWLRQ DO'DODODKDO:DG
L\\DK*KDLUXDO/DI]L\\DK 
Š Š
OLNH WKH VLJQLILFDWLRQ RI D OLQH D NQRW JHVWXUHV DQG D VLJQ LQGLFDWLQJ LWV LQWHQGHG 
PHDQLQJ
†
• 9HUEDO 5DWLRQDO 6LJQLILFDWLRQ DO'DODODK DO
$TOL\\DK DO/DI]L\\DK 
Š IRU H[DPSOH LI D
SHUVRQKHDUVVRPHRQHVSHDNLQJKHDWWDLQVNQRZOHGJHWKDWLWLVDKXPDQVSHDNLQJ
7KHVLJQLILFDWLRQLVYHUEDOEHFDXVHWKHZRUGRIWKHVSHDNHUVLJQLILHVWKHH[LVWHQFHRID
VSHDNHU VSHDNLQJ WKRVH ZRUGV  ,W LV UDWLRQDO EHFDXVH UHDVRQLQJ LV WKDW ZKLFK
LQGLFDWHVWKDWDOOVSHHFKLVUHTXLUHGWRHPDQDWHIURPDVSHDNHU
•  1RQ9HUEDO 5DWLRQDO 6LJQ †
JQLILFDWLRQ DO'DODODK DO
$TOL\\DK *KDLUX DO/DI]L\\DK 
Š OLNH
WKH VLJQLILFDWLRQ RI WKLV FUHDWLRQ XSRQ WKH H[LVWHQFH RI $OODK WKH &UHDWRU 7KH
VLJQLILFDWLRQ LV QRQ9HUEDO EHFDXVH WKH FUHDWLRQ GRHV QRW VSHDN RI WKH H[LVWHQFH RI
$OODK,WLVUDWLRQDOZKHQUHDVRQLQJLVWKDWZKLFKLQGLFDWHVWRPDQWKDWWKH&UHDWRURI
WKLVFUHDWLRQLV*RGEH+H*ORULILHG
• 9HUEDO 1DWXUDO 6LJQ †
JQLILFDWLRQ DO'DODODK DO7DE
L\\DK DO/DI]L\\DK 
Š OLNH WKH
VLJQLILFDWLRQ RI WKH VRXQGV  $K$K XSRQ SDLQ LQ WKH FKHVW 7KH QDWXUH RI PDQ
LQGLFDWHVWKDWZKHQWKHFKHVWRIDSHUVRQKXUWVWKHVHVRXQGVHPHUJHIURPKLP,WLV
9HUEDOVLJQLILFDWLRQEHFDXVHWKHVHVRXQGVDUHH[SUHVVLRQVHPHUJLQJIURPWKHPRXWK
GXHWRWKHSDLQRIKLVFKHVW

10
•  1RQ9HUEDO 1DWXUDO 6LJQ †
JQLILFDWLRQ DO'DODODK DO7DE
L\\DK *KDLUX DO/DI]L\\DK 
Š IRU
H[DPSOH WKH VLJQLILFDWLRQ RI WKH \HOORZQHVV RI WKH IDFH XSRQ IHDU DQG WKH
VLJQLILFDWLRQ RI  UHGQHVV RI WKH IDFH XSRQ HPEDUUDVVPHQW 7KH QDWXUH RI PDQ
LQGLFDWHV WKDW ZKHQ D SHUVRQ EHFRPHV DIUDLG KLV IDFH EHFRPHV \HOORZ RU ZKHQ D
SHUVRQ LV HPEDUUDVVHG KLV IDFH WXUQV UHG 5HGQHVV DQG \HOORZQHVV DUH QRW
H[SUHVVLRQVWKHUHIRUHWKHVLJQLILFDWLRQLVQRQ9HUEDO

   Y’
µ±‹\¯ž$µž¿Iž$ ¡®Á$¯ª2Qž$3¿¿Iž$­Kª¨¢˜Ô§£ž$¸%£Ÿ‹ž$I§ŠM-1‹£ž$
´MY=§¢µ±‡“Ÿž$µ±‹\¯ž$µž¿Iž$®%«,´H%“1PÅ$®´H%’Å$©&²’.ž%ž$©Á µ±‡“Ÿž$
 ¥$O1žÅ$ ® ¨£]1ž$ ® µ—,%Ô£ž$ ¥%Q–&µ4À4²’
¬¦&6±<¨¢ˆ“Ÿž$œžJ¬žŒ\®³Kž$¶§‹£ž$¥%£0¶ŸŠˆ“Ÿž$µž¿H²ªµ—,%Ô£ž%’
¨±¹O8®J©%Q¦Å$¶§‹¢©+’ ˜b%§ž$©$¯±=ž$ ¶§‹¢¶ŸŠ©%Q¦Å$µž¿Iš­%§‹¢¥%£0
²’¬¢I–¶ž*¬P&L¨¢¬¹$O8&Œ±£8¶ŸŠ I°N ˆ“žµž¿Iš®µ±—b%§ž$®µ±¦$¯±=ž$
 I°N¸%8 œž¯–
¸O8¬¦&6±<¨¢ˆ“Ÿž$œžJ¬žŒ\®³Kž$¶§‹£ž$¸O8¶ŸŠˆ“Ÿž$µž¿H¯ª¨£]1ž$®
®I°N©I,Œ±£8¸%8­%§‹¢ I°N¸%8 œž¯—’­I°®&¬P&L¶ŸŠ I°N µž¿Iš¶§‹£ž$
¨£]1ž%,¬P&L®­I°¶ŸŠµž$H I°N µ‡“ž©¯›1’©I-ž$¨£\²’I±ž$®S&Mž$
²’ˆ“Ÿž¥N¿®ˆ“Ÿž$¶§‹¢µ—±—<¨Š;L%D¸²T¶ŸŠˆ“Ÿž$µž¿H¯ª¥$O1žÅ$®
ˆ“Ÿž$MšJ%£Ÿš6±=,µ—±—=ž$¨Š;L%Ež$¸²Už$œžJ©%š©',œžKš¯ª6±<¨¢¨ªKž$
Ê
;L%D%ª¸¯\©+’%«¹¯\¶ŸŠR£Už$µž¿Iš%]°&Œ¢%Qž$¨ªJ¶ž*¸²Už$œžJLH%,
©%ªJÁ$¶ž*LI1,* R£Už$ µ‡“ž3MšJ%£Ÿš6±=,¯ª¸¯]ž$¨›ž®%«1—±—=ž$¨Š
Ê
 [M– R“¦¶ž*µ’%\Å%,%]°&%«¹¯\¶§‹¢

11
6(&7,211,1(

7KHVLJQLILFDWLRQFRQVLGHUHGPRVWVXEVWDQWLDO RIWKHVHVL[6LJQLILFDWLRQZLWKVFKRODUVRI
/RJLF LV WKH ILUVW 9HUEDO )RUPXODWLYH 6LJQLILFDWLRQ  EHFDXVH PRVW RI WKH EHQHILW DQG
XVDJH LV ZLWK 9HUEDO )RUPXODWLYH 6LJQLILFDWLRQ 7KH 9HUEDO )RUPXODWLYH 6LJQLILFDWLRQ LV
OLPLWHGWRWKUHHGLYLVLRQV

†
•&RLQFLGHQWDO 0XWDEDTDK 

•3DUWLDO 7DGDPPXQ 
Š
†
•$VVRFLDWLYH ,OWL]DP 

Š†
&RLQFLGHQWDO DO0XWDEDTDK  ,W LV WKH VLJQLILFDWLRQ RI DQ H[SUHVVLRQ XSRQ WKH WRWDO
PHDQLQJ IRU ZKLFK WKDW H[SUHVVLRQ ZDV IRUPXODWHG VR LW LV LWV WRWDO PHDQLQJ /LNH WKH
† †Š
VLJQLILFDWLRQRI PDQXSRQWKHPHDQLQJRI $UDWLRQDOEHLQJ DO+D\DZDQDQ1DWLT 7KHQ
Š
WKH PHDQLQJ RI PDQ SRVVHVVHV
 †
WZR SDUWV EHLQJ DQ DQLPDO +D\DZDQL\\DK 
Š DQG
†Š
UDWLRQDOLW\ 1DWLTL\\DK /LNHLQ\RXUVD\LQJ =DLGFDPHWKHVLJQLILFDWLRQRIWKHZRUG=DLG
LVXSRQDOORIKLVSDUWVIURPKLVKHDGWRKLVIHHW

3DUWLDO DO7DGDPPXQ ,WLVWKHVLJQLILFDWLRQRIDQH[SUHVVLRQXSRQSDUWRIWKHPHDQLQJIRU


Š
ZKLFKWKDWH[SUHVVLRQZDVIRUPXODWHGVRWKDWLWLVSDUWRIWKHPHDQLQJ/LNHIRUH[DPSOH
WKHVLJQLILFDWLRQRIWKHZRUG=DLGXSRQKLVKHDGRUKLVKDQGLQ\RXUVD\LQJ=DLGFDPH,WV
PHDQLQJLVWKDWDOORIWKHERG\RI=DLGFDPHKLVKHDGDQGKLVKDQGEHLQJFRPSRQHQWVRI
WKH ERG\ 7KHUHIRUH WKH H[SUHVVLRQ =DLG LQGLFDWHV XSRQ KLV KDQG DQG KLV KHDG ZLWK
SDUWLDOQHVV

†
$VVRFLDWLYH DO,OWL]DP ,WLVWKHVLJQLILFDWLRQRIDQH[SUHVVLRQRIVRPHWKLQJRXWVLGHRIWKH
UHDOPHDQLQJRIWKHH[SUHVVLRQ7KHH[SUHVVLRQUHTXLUHVWKHPLQG WRUHFRJQL]H WKDWLWLV
DV VXFK LQ WKDW ZKHQHYHU WKH ZRUG LV PHQWLRQHG WKH WKLQJ RXWVLGH RI WKH UHDOLW\
LPPHGLDWHO\RFFXUVLQWKHPLQGRIWKHOLVWHQHUDOVR/LNHIRUH[DPSOHWKHVLJQLILFDWLRQRI
WKH ZRUG 6XQ XSRQ
 LWV OLJKW &HUWDLQO\ WKH OLJKW LV RXWVLGH RI LWV UHDOLW\ LQ PHDQLQJ 
KRZHYHU ZKHQHYHU WKH ZRUG 6XQ LV  PHQWLRQHG WKH PHDQLQJ RI LWV OLJKW RFFXUV LQ WKH
PLQGDOVRZLWKDGGLWLRQWRWKHDFWXDOPHDQLQJRIWKHGLVFRIWKHVXQ

12
   Y’
œž¯—’µ±—,%Ô¢µž¿H¡%£‹1PÅ$HM9£,ˆ“Ÿž$¬žŒ\®³Kž$¶§‹£ž$¥%£0¶ŸŠ¡I°ˆ“Ÿž$
I°NIQ8¸$O8&Œ±£8¶ŸŠ¡I°¬,ˆ“Ÿ1ž$HM9£, I°N 
HM9£,  I°N  œž¯—’ µ±§£]0 µž¿H ¬¹O8 ¶ŸŠ  ¡%£‹1PÅ$ HM9£,  ¡I° œžKš ®
¬¹$O8&¨¢œžJM±Ž®­I°®I°NS&L¶ŸŠ¡I°¬,ˆ“Ÿ1ž$
µž¿Iž$%¢&®ˆ“Ÿž$¬žŒ\®³Kž$¯ª¶§‹£ž$¥%£0©Â’¶§‹£ž$¥%£0¶ŸŠˆ“Ÿž$µž¿H%¢&
¸$O8Á$œŸ0_‹,¶ŸŠ¡I°¬¦I,¸$O8&Œ±£8¶ŸŠ¡H³Kž$I°Nˆ“ž©Â’¶§‹£ž$¸O8¶ŸŠ
Ê
¸O9ž$¤«’¥OŸ1Q° ›ž$¤«’©Á%]°&
ˆ“Ÿž$MšJ%£Ÿš6±=,µ—±—=ž$¨Š;L%Ež$¶§‹¢œžJ©¯š¶ž*;%1=0¥$O1žÅ$µž¿H¨›ž
®R£Už$µ“±—<¨Š;L%D¯ª³Kž$R£Už$¸¯]š¨ªKž$²’;L%Ež$¶§‹£ž$œžJ¸%8
 R£Už$ µ‡“ž3MšJ%£ŸšŒ¢%Qž$¨ªJ²’ DI°¬§›ž
ˆ“žMšJ%£ŸšJ*µ±¢$O1ž*µž¿H¬žR±ž I°N  5£’µ±¢$O1ž*µž¿Hˆ“Ÿž¨›°¤ž¿*®
²’©®M-1‹°˜Ô§£ž$¸%£ŸŠ®¬1—±—<¨Š;L%D¶§‹¢Œ¢%Qž$¨ªJ²’¸²9°¿ I°N 
Ê
µ±Ÿš®%£¹$Hµ—±—=ž$¨Š;L%Ež$¶§‹£ž$œžJ¶ŸŠµž¿Iž$¥$O1žÅ$µž¿H

6(&7,217(1

7KHZRUGRUH[SUHVVLRQVLJQLI\LQJWKHWRWDOPHDQLQJIRUZKLFKWKHZRUGRUH[SUHVVLRQZDV
†
IRUPXODWHG E\ PHUH XVDJH LV &RLQFLGHQWDO 6LJQLILFDWLRQ DO'DODODK Š†
DO0XWDEDTL\\DK 
7KHQ\RXUVD\LQJ=DLGE\PHUHSURQXQFLDWLRQRILWVLJQLILHVDOORIWKHSDUWVRIWKHERG\RI
†
=DLG /LNHZLVH LW VLJQLILHV E\ PHUH XVDJH KLV SDUWV DV 3DUWLDO 6LJQLILFDWLRQ 'DODODK
7DGDPPXQL\\DK <RXU
Š VD\LQJ =DLG E\ PHUH SURQXQFLDWLRQ VLJQLILHV WKH KHDG RI =DLG
KLVKDQGVDQGRWKHUWKDQWKDWRIKLVSDUWVRIWKHERG\

13
5HJDUGLQJ WKH VLJQLILFDWLRQ RI DQ H[SUHVVLRQ XSRQ WKH WRWDO PHDQLQJ LW LV EHFDXVH WKH
WRWDO PHDQLQJ LV WKDW IRU ZKLFK WKH ZRUG RU H[SUHVVLRQ ZDV IRUPXODWHG 5HJDUGLQJ WKH
VLJQLILFDWLRQ RI DQ H[SUHVVLRQ XSRQ SDUW RI WKH PHDQLQJ LW LV EHFDXVH WKH ZRUG =DLG LV
WKDW ZKLFK VLJQLILHV DOO RI WKH SDUWV RI KLV ERG\ ,W VLJQLILHV VRPH RI WKHVH SDUWV DOVR
EHFDXVHXQGHUVWDQGLQJWKHZKROHUHTXLUHVXQGHUVWDQGLQJRIWKHSDUW

$VVRFLDWLYH6LJQLILFDWLRQKRZHYHUUHTXLUHVWKHHVVHQFHRIWKDWPHDQLQJWREHRXWVLGHRI
WKHUHDOLW\LQVXFKDZD\WKDWZKHQHYHUWKHZRUGRUH[SUHVVLRQLVPHQWLRQHGWKDWRXWVLGH
PHDQLQJFRPHVLPPHGLDWHO\LQWKHPLQGOLNHWKHOLJKWRIWKHVXQZKLFKLVRXWVLGHRIWKH
UHDO PHDQLQJ RI WKH VXQ ,W HQWHUV WKH PLQG RI WKH OLVWHQHU ZKHQHYHU WKH ZRUG VXQ LV
PHQWLRQHG 2WKHUZLVH WKHUH LV QR $VVRFLDWLYH 6LJQLILFDWLRQ IRU D ZRUG RU H[SUHVVLRQ
7KHQIRUH[DPSOHWKHZRUG =DLGKDVQR$VVRFLDWLYH6LJQLILFDWLRQ7KHUHIRUHZKHQHYHU
WKHZRUG =DLGLVPHQWLRQHGWKHUHGRHVQRWFRPHLQWKHPLQGRIWKHOLVWHQHUDPHDQLQJ
RXWVLGHRILWVUHDOPHDQLQJ7KHVFKRODUVRI/RJLFFRQVLGHULQ$VVRFLDWLYH6LJQLILFDWLRQ
WKDW WKH VLJQLILFDWLRQ RI WKDW PHDQLQJ RXWVLGH RI WKH UHDO PHDQLQJ EH SHUSHWXDO LQ DOO
WLPHV DQGDOOHQFRPSDVVLQJ LHIRUDOOSHRSOH 

   Y’
¬ž¸O8¿„±Q,­%§‹¢®&¸$O8&¬ž.šM¢­%§‹¢%¢*¶§‹£ž¯\¯£ž$ˆ“Ÿž$
©%§4*¸$O8&­%§‹£ž³Kž$.šM£ž%’
²«’ R£Už$ µ‡“ž 5¢¥$O1žÅ$®¨£]1ž$®µ—,%Ô£ž$7À5ž$3¿¿Iž$¬±’%¢¡®Á$
[M—ž$”Y¦¶ŸŠ¡I0®µ—,%Ô£ž$­K«’R£Už$[M–Œ±£8¶ŸŠ¡I0%«,ˆ“Ÿ1ž$HM9£,
¶ŸŠ¡I0®¨£]1ž$$Kª®¶ž®&˜°MÔ,¬“Y¦¶ŸŠ¡I°[M—ž$Œ±£8¶ŸŠ¡I°%¢©Á
3MšJ%£Ÿ’ R£Už$ Œ¢¥NÀ¢®R£Už$µ—±—<¨Š;L%DL¯§ž$®%«§¢;L%Ež$L¯§ž$
¥$O1žÅ$$Kª®%ªL¯¦©%ªJÁ$¶ž*LH%-0µ‡“Ÿž$­Kª
ˆ“Ÿ1ž$HM9£,%«¦+’ I°N µ‡“ž 5¢ˆ—’¨£]1ž$µž¿H®µ—,%Ô£ž$µž¿H¬±’%¢²¦%5ž$
Ê
¨£]1ž$$Kª®%§£\I°NS&L¶ŸŠ¡I0®µ—,%Ô£ž$­K«’I°N©I,Œ±£8¶ŸŠ¡I0%«,
Ê
%]°&©%§4*­%§‹£ž¸O8¿³Kž$„±Q-ž$ˆ“Ÿž$®

14
Ì
¤PÅ$$K«,ˆ“Ÿ1ž$HM9£,¬¦+’ ¬Ÿž$  5¢¥$O1žÅ$µž¿H®µ—,%Ô£ž$µž¿H¬±’%¢¡®Á$
Ì
¥$O1žÅ$$Kª® ˜ž%Ež$ ¬¦&¶ŸŠ¡I°µ—,%Ô£ž$­K«’¶ž%‹0¬Ÿž$3$J¶ŸŠ¡I°¤‡ŠÁ$
Ì
¨£]1ž$µž¿H ¬Ÿž$ BžR±Ÿ’œžJ¨Š¶ž%‹0¸O8¬žR±ž®
•M=ž$œžJ¯ª%ª%§‹¢©+’ ¥%«“1PÅ$´O£ª  5¢„—’µ—,%Ô£ž$µž¿H¬±’%¢²¦%5ž$
µž¿H¬±’R±Ÿ’¥N¿¿®¬ž¸O8¿6±<®µ—,%Ô£ž$­K«’¤“ž$¨¢;ME°³Kž$C¯1“£ž$
¥$O1žÅ$µž¿H¿®¨£]1ž$

15
6(&7,21(/(9(1

7KHZRUGVXEMHFWLVIRUDPHDQLQJHLWKHULWVPHDQLQJLV&RPSRXQG 0XUDNNDE KDYLQJ


SDUWVRULWVPHDQLQJLV8QFRPSRXQGHG %DVHHW KDYLQJQRSDUWV7KH&RPSRXQGWKHQ
Š Š
ZKLFKKDVSDUWVIRULWVPHDQLQJDUHWZRNLQGV
)LUVW WKDW ZKLFK KDV WKH WKUHH VLJQLILFDWLRQV &RLQFLGHQWDO 3DUWLDO DQG $VVRFLDWLYH
Š† †
0XWDEDTDK7DGDPPXQDQG,OWL]DP )RUH[DPSOHWKHZRUG
Š VXQ%\PHUHPHQWLRQLW
VLJQLILHV WKH HQWLUH GLVF RI WKH VXQ 7KHUHIRUH WKLV LV 0XWDEDTDKŠ† &RLQFLGHQWDO
6LJQLILFDWLRQ  ,W VLJQLILHV KDOI RI WKH GLVF EHFDXVH WKDW ZKLFK VLJQLILHV WKH ZKROH GLVF
VLJQLILHV KDOI RI LW E\ WKH KLJKHU PHWKRG 7DUHHTXO8OD  WKLV LV 7DGDPPXQ
Š 3DUWLDO  ,W
VLJQLILHVWKHOLJKWHPHUJLQJIURPLW7KHOLJKWLVRXWVLGHRIWKHUHDOPHDQLQJRIWKHVXQEXW
DVVRFLDWHGZLWK WKHVXQ:KHQWKLVZRUG VXQ LV PHQWLRQHGLWVOLJKWRFFXUVLQWKHPLQG
†
DQGWKLVLV,OWL]DP $VVRFLDWLYH 

Š†
6HFRQGWKDWZKLFKKDV&RLQFLGHQWDO6LJQLILFDWLRQ 0XWDEDTDK DQG3DUWLDO6LJQLILFDWLRQ
7DGDPPXQ 
Š RQO\ /LNH WKH ZRUG =DLG %\ PHUH PHQWLRQ LW VLJQLILHV WKH HQWLUH ERG\ RI
Š†
=DLGWKLVLV&RLQFLGHQWDO 0XWDEDTDK DQGLWVLJQLILHVWKHKHDGRI=DLGDVDFRPSRQHQW
WKLVLV3DUWLDO 7DGDPPXQ 
Š
7KH8QFRPSRXQGHGH[SUHVVLRQZKLFKKDVQRSDUWVWRLWVPHDQLQJDUHWZRNLQGVDOVR

Š†
)LUVWWKDWZKLFKKDV&RLQFLGHQWDO6LJQLILFDWLRQ 0XWDEDTDK DQG$VVRFLDWLYH6LJQLILFDWLRQ
†
,OWL]DP  )RU H[DPSOH WKH ZRUG $OODK %\ PHUH PHQWLRQ RI WKLV *UHDW 1DPH LW VLJQLILHV
Š†
WKHHVVHQFHRI*RGWKH([DOWHG7KLVLV&RLQFLGHQWDO 0XWDEDTDK DQGLWVLJQLILHVWKDW+H
† 7KHUH DUH QR  SDUWV IRU +LP +H LV H[DOWHG DERYH WKDW
LV WKH &UHDWRU WKLV LV ,OWL]DP
7KHUHIRUHWKHUHLVQR3DUWLDO6LJQLILFDWLRQ 7DGDPPXQ 
Š
6HFRQGLVWKDWZKLFKKDV&RLQFLGHQWDO6LJQLILFDWLRQRQO\OLNHWKH,QWHUURJDWLYH 3DUWLFOH 
+DP]DK DO+DP]DK DO,VWLIKDP †  D V\PERO XVHG LQ DQ
$UDELF VHQWHQFH WR PDNH WKH
VHQWHQFHLQWHUURJDWLYH ,WVPHDQLQJLVWKDW3DUWLFOHYRZHOHGZLWKDVRXQGZKLFKHPHUJHV
Š†
IURPWKHPRXWK7KLVLV 0XWDEDTDKZKHUHDVWKHUHDUHQRSDUWVIRULWDQGQRQHFHVVDU\
DVVRFLDWLRQ7KHUHIRUHWKHUHLVQHLWKHU3DUWLDO6LJQLILFDWLRQQRU$VVRFLDWLYH6LJQLILFDWLRQ

16
   Y’
©%Š¯¦²—,%Ô£ž$¶§‹£ž$¶ŸŠ¡$Iž$ˆ“Ÿž$
µž¿Iž$ ­Kª 2¦%š ® H¯Y—£ž$ ­%§‹¢ ¸O8 ¶ŸŠ ­½O8 ¡H ³Kž$ ˆ“Ÿž$ ¯ª ® .šM¢ 
Ê
¶§‹£ž$¸O8¶ŸŠ¡I°µŸ£9ž$­Kª¸O8¯ª³Kž$ $I°N ©+’ ¤¹%–I°N  5¢´H¯Y—¢
¸O8¶ŸŠ¡I°µŸ£9ž$­Kª¸O8¯ª³Kž$ ¤¹%– œžKš®¥¯Ÿ‹£ž$¨±‹£ž$ZEUž$œžJ²§‹°
Ê
I°N ¡¯—°%£§±<¤Ÿ›1£ž$©&J*%]°&´H¯Y—¢µž¿Iž$­Kª® ¥%±—ž$ ²§‹°¶§‹£ž$
¬žŒ\®³Kž$­%§‹¢ ¤¹%– ® I°N ¨¢I<$® ›,IY—° ¤¹%–
® H¯Y—¢ µž¿H ´H¯Y—£ž$ ­%§‹¢ ¸O8 ¶ŸŠ ­½O8 ¡I° ¿ ³Kž$ ˆ“Ÿž$ ¯ª ® HM“¢ 
¥%Q–&µ‹,L&¶ž*HM“£ž$¤Q—§°
Ê
 & µ<¯1“£ž$¥%«“1PÅ$´O£«šÀX$¸O8¬‡“Ÿž¨›°¤ž%¢¡®Á$
 5¢¶§‹£ž$¸O8¶ŸŠˆ“Ÿž$¸O8¡I°¿¨›ž®¸O8¶§‹£Ÿž®¸O8ˆ“Ÿž©%š%¢²¦%5ž$
ZEUž$œžJ¯ª®­%§‹£ž® ¡$Iž$ ® ¸%±ž$ ® ¸$Ož$ ¸$O8&µ4À4¬‡“Ÿž©+’ I°N 
¡I0¿ I°N µ‡“ž¸$O8&¨›ž®%ªM±Ž®S&Mž$® 8Mž$®I±ž$¨¢´M±5š¸$O8&¨±‹£ž$
Ê
 8L¶ŸŠ¡I0¿¸%±ž$® I°N I°¶ŸŠ¡I0¿À5¢¸$Ož%’ I°N ©I,¸$O8&¶ŸŠ
 I°N 
¶ŸŠ¿¨›ž¶§‹£ž$¸O8¶ŸŠˆ“Ÿž$¸O8¡H®¸O8­%§‹£ž®¸O8ˆ“Ÿž©%š%¢6ž%5ž$
Ê Ê Ì
©(O8¬žˆ“Ÿž$©+’ZEUž%£P*®%£ŸŠ©%š$J* ¬Ÿž$I-Š  5¢H$M£ž$¶§‹£ž$¸O8
Ê Ì
¡I°I-‹ž%’¶§‹£ž$¸O8¶ŸŠ¡I°ˆ“Ÿž$¸O8®%]°&©(O8¬ž¶§‹£ž$® ¬Ÿž$ ® I-Š 
Ì Ì
¯ª ¬Ÿž$I-Š µ£Ÿš¨¢H$M£ž$¨›ž®˜ž%Ež$¶ŸŠ¡I° ¬Ÿž$ ® M=ž$  ,%—°%¢¶ŸŠ
Ì
œžJ©I,¨¢¸O8¶ŸŠ¡I°¿ I-Š ® ¬Ÿž$­I-Š ¬£P*³Kž$¨±‹£ž$ZEUž$œžJ
Ê Ê Ì Ì
$M±-š$¯ŸŠœžJ¨Š¬Ÿž$¶ž%‹0MDÃ$¬¹O8¶ŸŠ¡I°¿ ¬Ÿž$ ®ZEUž$
17
¤ž¨›žH$M£ž$¶§‹£ž$¸O8¶ŸŠˆ“Ÿž$¸O8¡H®¸O8­%§‹£ž®¸O8ˆ“Ÿž©%š%¢Œ,$Mž$
Ê
¬žˆ“Ÿž$©+’©%Q¦Å%£P*L%X$J* ˜b%§ž$©$¯±=ž$  5¢´H¯Y—¢µž¿Iž$­Kª¨›0
Ê
¸O8 ¶ŸŠ ¡I° ˆ“Ÿž$ ¸O8 ®  %]°& ©(O8 ¬ž ¶§‹£ž$ ®  ˜b%§ž$  ® ©$¯±=ž$  ©(O8
µ±—b%¦¶ŸŠ¡I° ˜b%§ž$ ®©%Q¦Å$²’´H¯8¯£ž$µ±¦$¯±=ž$¶ŸŠ¡I°©$¯±=ž%’¶§‹£ž$
²’H¯8¯£ž$¶§‹£ž$ $Kª R“¦ ¯ª ˜b%§ž$  ® ©$¯±=ž$  ²1£Ÿš ¨¢ H$M£ž$ ® ©%Q¦Å$
Ê
©%Q¦Å$œžJ$IX%– ˜b%§ž$©$¯±=ž$¸%8 ¡¯—°%£§±<¤Ÿ›1£ž$H¯Y—¢¨›ž©%Q¦Å$
¤Ÿ›1£ž$•M‹° ¿ %£,LJ* µ±—b%§ž$® µ±¦$¯±=ž%, ”Y1¢ ³Kž$ ¸%8 ¬¦& R±ž  ¨±‹£ž$
¤P*¬žŒ\®³Kž$¨±‹£ž$ZEUž$œžJ¸%8­H¯Y—¢%£¦*® ˜b%§ž$©$¯±=ž$ ¶§‹¢
 ˜b%§ž$©$¯±=ž$ 
6(&7,217:(/9(

Š†
7KHH[SUHVVLRQVLJQLI\LQJD&RLQFLGHQWDO6LJQLILFDWLRQ 0XWDEDTDK DUHRIWZRW\SHV
&RPSRXQG 0XUDNNDE ,WLVWKHH[SUHVVLRQLQZKLFKLWVSDUWVLJQLILHVSDUWRILWVLQWHQGHG
PHDQLQJ DQG WKLV VLJQLILFDWLRQ LV LQWHQGHG )RU H[DPSOH =DLG LV VWDQGLQJ =DLG LV WKDW
ZKLFK LV D SDUW RI WKLV VHQWHQFH VLJQLI\LQJ SDUW RI WKH PHDQLQJ LQ RWKHU ZRUGV WKDW
VSHFLILF NQRZQ LQGLYLGXDO QDPHG =DLG  /LNHZLVH VWDQGLQJ LV WKDW ZKLFK LV SDUW RI WKLV
VHQWHQFHVLJQLI\LQJSDUWRIWKHPHDQLQJLQRWKHUZRUGV VWDQGLQJDQGWKLVVLJQLILFDWLRQLV
LQWHQGHGDOVR7KHUHIRUHWKHVSHDNHUDWWKHWLPHRIVD\LQJ=DLGLVVWDQGLQJLQWHQGHGIRU
HDFKZRUG=DLGDQG6WDQGLQJWKHPHDQLQJIRUZKLFKWKH\ZHUHIRUPXODWHGRUFUHDWHG

  6LQJXODU )DUG ,WLVWKHH[SUHVVLRQLQZKLFKLWVSDUWGRHVQRWLQGLFDWHXSRQSDUWRILWV


LQWHQGHG PHDQLQJ WKH LQWHQGHG VLJQLILFDWLRQ 7KH 6LQJXODU )DUG  LV GLYLGHG LQWR IRXU
GLYLVLRQV
)LUVW 7KDW H[SUHVVLRQ ZKLFK RULJLQDOO\ KDV QR SDUW OLNH WKH ,QWHUURJDWLYH +DP]DK
YRZHOHGZLWK)DWKDK 
Š

18
6HFRQG7KDWH[SUHVVLRQZKLFKKDVDSDUWKRZHYHUSDUWRIWKHH[SUHVVLRQGRHVQRW
LQGLFDWHXSRQSDUWRIWKHPHDQLQJIRUH[DPSOH =DLG7KHZRUGKDVWKUHHSDUWV WKH
OHWWHUV =<DQG')RULWV LQWHQGHG PHDQLQJZKLFKLVWKDWVSHFLILFLQGLYLGXDOWKHUH
DUHPDQ\SDUWVWKHKDQGWKHOHJWKHKHDGDQGRWKHUWKDQWKHVH+RZHYHUSDUWVRI
WKH ZRUG =DLG  GRHV QRW VLJQLI\ SDUWV RI WKH ERG\ RI =DLG 7KH  = WKHQ GRHV QRW
VLJQLI\WKHKDQGRI=DLGDQGWKH<GRHVQRWVLJQLI\WKHOHJRI=DLG
7KLUG7KDWWKHH[SUHVVLRQZKLFKKDVDSDUWDQGIRULWVPHDQLQJLVDSDUWDQGSDUWRI
WKH H[SUHVVLRQ VLJQLILHV SDUW RI WKH PHDQLQJ KRZHYHU QRW XSRQ WKH SDUW RI WKH
LQWHQGHGPHDQLQJ)RUH[DPSOH
$EGXOODK:KHQLWLVDSURSHUQDPHDQGQRXQIRUD
SHUVRQWKLVH[SUHVVLRQKDVWZRSDUWV
$EGDQG$OODKDQGWKHPHDQLQJKDVWZRSDUWV
DOVR3DUWRIWKHH[SUHVVLRQVLJQLILHVSDUWRIWKHPHDQLQJ
$EGVLJQLILHVWKDWZKLFKLV
WKHRSSRVLWHRIIUHH PHDQLQJDVODYH DQG $OODKVLJQLILHVWKH&UHDWRU+RZHYHUWKH
LQWHQWLRQRIWKHZRUG
$EGXOODKLVWKDWSDUWLFXODUSHUVRQZKRVHQDPHLV
$EGXOODK
$EG
GRHV QRW VLJQLI\ SDUW RI WKH ERG\ RI WKDW SHUVRQ DQG $OODK GRHV QRW VLJQLI\ LWV RWKHU
SDUWV$OODKLVH[DOWHGIDUDERYHWKDW

)RXUWK 7KDW WKH H[SUHVVLRQ KDV D SDUW DQG WKH PHDQLQJ KDV D SDUW DQG SDUW RI WKH
H[SUHVVLRQ VLJQLILHV SDUW RI WKH LQWHQGHG PHDQLQJ +RZHYHU WKLV VLJQLILFDWLRQ LV QRW
† †Š
LQWHQGHG)RUH[DPSOHWKHUDWLRQDODQLPDO DO+D\DZDQDO1DWLT :KHQLWEHFRPHVD
Š
QDPH IRU WKH KXPDQ WKHQ LW KDV WZR SDUWV DO+D\DZDQ
Š † DQG DO1DWLT
†Š 7KH PHDQLQJ
KDV WZR SDUWV DOVR DQG SDUW RI WKH H[SUHVVLRQ VLJQLILHV SDUW RI WKH PHDQLQJ
DO+D\DZDQ
Š † VLJQLILHV WKH DQLPDOLVP H[LVWLQJ LQ WKH KXPDQ DQG DO1DWLT
†Š VLJQLILHV WKH
UDWLRQDOLW\RIWKHKXPDQ

† †Š
7KHLQWHQWRIWKHWZRZRUGVDO+D\DZDQDQGDO1DWLTLVWKHPHDQLQJLWVHOIH[LVWLQJLQ
Š
WKHKXPDQ+RZHYHUWKHLQWHQWLRQRIWKHVSHDNHUDWWKHWLPHRIVD\LQJ7KHUDWLRQDO
DQLPDO FDPH LQWHQGLQJ WKDW SDUWLFXODU KXPDQ ,W LV QRW WKDW VRPHRQH FDPH EHLQJ
GHVFULEHGZLWK WKHFKDUDFWHULVWLFVRI DQLPDOLVPDQGUDWLRQDOLVP7KHQSHUKDSVWKH
† †Š
VSHDNHULVQRWIDPLOLDUZLWKWKHPHDQLQJRIDO+D\DZDQDO1DWLTDQGKHRQO\LQWHQGHG
Š
† †Š
WRVD\ WKDWSDUWLFXODUSHUVRQZKRPWKHQDPHDO+D\DZDQDO1DWLTZDVFRLQHGIRU
Š

19
N%9£ž$®µ—±—=ž$
   Y’
2°&L œž¯– 5¢ µ—±—< ¶£Q°ˆ“Ÿž$¬ž¯\¯£ž$¶§‹£ž$¥%£0 ²’ ˆ“Ÿž$ ¡%£‹1P*
¯\¯£ž$¶§‹£ž$¸O8²’ˆ“Ÿž$¡%£‹1P*®R£Už$[M–Œ±£82°&Lœ¦&IY—0 R£Už$
Ê
2°&L œ¦& IY—0 R£Už$ 2°&L  œž¯–  5¢ $N%9¢ ¶£Q°  ¬8L%D ²’ ®& ˆ“Ÿž$ ¬ž
R£Už$L¯¦2°&Lœ¦&IY—0®&/®Mž$¨±<R£Už$[M–_‹,
Ê Ê
œž¯– 5¢%]°& $N%9¢ ¶£Q°¬ž¯\¯£ž$¶§‹£ž$M±Ž²’ˆ“Ÿž$¡%£‹1P*œžKš®
Ê Ê Ê Ê Ê
¸$¯P$N%9¢ˆ“Ÿž$¡%£‹1P*¨±<²’I,¿®%Š%9TÀ8L2°&Lœ¦&$IX%– $IP&2°&L 
¶§‹£ž$ ´H$L* ¶ŸŠ ¡I0 µ§°M– ¨¢ MD( ¶§‹¢ ²’ ®& ¬8L%D ²’ ®& ¶§‹£ž$ ¸O8 ²’
³N%9£ž$
Ê
©+’ •¯Q›ž$¡%<²’R£Už$2°&L ¶§‹£ž$¸O8²’ˆ“Ÿž$¡%£‹1P*¨±<¡¯—0À5£’
_‹,2°&Lœ¦&®%«]‹, R£Už$ ¨¢H$M£ž$©&¶ŸŠ¡I0µ§°M– •¯Q›ž$¡%<²’ 
R£Už$[M–_‹,·M°¿•¯Q›ž$¡%<¬¦Á[M“ž$¥%£0ÅR£Už$[M–
µ£Ÿ›’  ²1’MŽ ²’ R£Už$ 2ŸDH  ¶§‹£ž$ ;L%D ²’ ˆ“Ÿž$ ¡%£‹1P* ¨±<¡¯—0 ®
L¯¦¯ªµ’Mž$ DI°³Kž$©Á%ªL¯¦ R£Už$ ¨¢H$M£ž$©&¶ŸŠ¡I0µ§°M– 2ŸDH 
R£Už$[M–R“¦¿R£Už$
Ê
 ¥%£=ž$²’ µ£Ÿ›’ ¥%£=ž$²’$IP&2°&L ­%§‹¢M±Ž²’ˆ“Ÿž$¡%£‹1P*¨±<¡¯—0®
H$M£ž$%£¦*®SM1“£ž$©$¯±=ž$²§‹°²ŸXÁ$­%§‹¢R±ž IP& ¨¢H$M£ž$©&¶ŸŠµ§°M–
 IPÁ$  %¢& ¥%£=ž$  DI° ³Kž$ ¯ª %9Už$  8Mž$ J* %9Už$  8Mž$ ¯ª IP&  ¨¢
¥%£=ž$ DI°À’SM1“£ž$

20
7+(/,7(5$/$1'7+(),*85$7,9(
6(&7,217+,57((1

7KHXVHRIDQH[SUHVVLRQLQWKHWRWDOPHDQLQJRIWKHVXEMHFWRIWKHH[SUHVVLRQLVWHUPHG
/LWHUDO +DTHHTL )RUH[DPSOH\RXUVD\LQJ
Š ,VDZWKHVXQLQWHQGLQJWKDW\RXVDZDOORI
WKHGLVFRIWKHVXQ7KHXVHRIDQH[SUHVVLRQLQSDUWRIWKHPHDQLQJRIWKHVXEMHFWRIWKH
†
H[SUHVVLRQRULQLWV PHDQLQJ RXWVLGH WKHOLWHUDOPHDQLQJ LVWHUPHG)LJXUDWLYH 0DMD]L 
)RUH[DPSOH\RXUVD\LQJ,VDZWKHVXQLQWHQGLQJWKDW\RXVDZSDUWRIWKHGLVFRIWKHVXQ
DWWKHWLPHRIVXQVHWRULQWHQGLQJWKDW\RXVDZWKHOLJKWRIWKHVXQ

$V VXFK WKH XVDJH RI WKH H[SUHVVLRQ LQ RWKHU WKDQ WKH PHDQLQJ RI LWV VXEMHFW LV FDOOHG
)LJX †
JXUDWLYH 0DMD]L DOVR)RUH[DPSOH\RXUVD\LQJ ,VDZDOLRQLQWHQGLQJWKDW\RXVDZD
EUDYHPDQ,WLVQHFHVVDU\DWWKHWLPHRIXVLQJWKHH[SUHVVLRQILJXUDWLYHO\ ZKHWKHULQSDUW
RI LWV PHDQLQJ RU RXWVLGH LWV PHDQLQJ RU LQ DQRWKHU PHDQLQJ  WR KDYH DQ LQGLFDWLRQ
VLJQLI\LQJWKHLQWHQWRIWKHILJXUDWLYHPHDQLQJ

)RUH[DPSOH\RXVD\ ,VDZWKHVXQLQWKHVWDWHRIDQHFOLSVH7KHQLQWKHVWDWHRIDQ
HFOLSVHLVDQLQGLFDWLRQVLJQLI\LQJWKDWWKHLQWHQWRI WKHVXQLVSDUWRILWDQGWKDW\RXVDZ
SDUWRIWKHGLVFRIWKHVXQQRWWKHWRWDOGLVFEHFDXVHLQWKHVWDWHRIDQHFOLSVHSDUWRIWKH
VXQLVQRWVHHQ

<RXVD\DWWKHWLPHRIXVLQJWKHH[SUHVVLRQRXWVLGHWKHPHDQLQJWKHVXQHQWHUHGLQWRP\
URRP 7KH ZRUG HQWHUHG LV DQ LQGLFDWLRQ VLJQLI\LQJ WKDW WKH LQWHQW RI WKH VXQ LV
 LWV OLJKW
EHFDXVH WKDW ZKLFK HQWHUHG LQWRWKHURRP LV WKH OLJKW RIWKHVXQQRWWKHGLVFRIWKH VXQ
LWVHOI

<RXVD\DWWKHWLPHRIXVLQJWKHH[SUHVVLRQLQRWKHUWKDQLWVPHDQLQJ,VDZDOLRQLQWKH
EDWKKRXVH7KHZRUGVLQWKHEDWKKRXVHLVDQLQGLFDWLRQWKDWWKHLQWHQWRIDOLRQLVQRWLWV
RULJLQDOPHDQLQJLQRWKHUZRUGVDFDUQLYRURXVDQLPDO7KHLQWHQWRIDOLRQLVRQO\DEUDYH
PDQ 7KHUHIRUH WKH EUDYH PDQ LV KH ZKR HQWHUHG LQWR WKH EDWK KRXVH 5HJDUGLQJ WKH
FDUQLYRURXVDQLPDOLWGLGQRWHQWHULQWRWKHEDWKKRXVH

21
   Y’
³Kž$¯ª³N%9£ž$¶§‹£ž$œžJ©¯›°6±=,³N%9£ž$­%§‹¢²’ˆ“Ÿž$¡%£‹1P*M5›°I–
Ê
 ¿¯—§¢ ¶£Q°$K«’µ§°M–©®I,²—±—=£ž$¶§‹£ž$¤«“°¿®µ§°M–©®I,ˆ“Ÿž$¨¢¤«“°
®L%X ›T³',®©%š¯¦³', ¸%ŠIž$ ¯ª²ŸXÁ$²—±—=ž$%ª%§‹¢©+’´ÀYž$ 5¢
¶§‹£ž$$Kª²’%«ž%£‹1P*´M5š¨›ž®N%9¢µX¯YE£ž$3%‹šMž$­Kª²’%«ž%£‹1P*
¶§‹£ž$¤«“°¿®³N%9£ž$¶§‹£ž$%«§¢¤«“° ´ÀYž$ ¡%—°%£Ÿš6±=,%«Ÿ‹8³N%9£ž$
©%±0Å$¨¢²—±—=ž$­%§‹¢´H$L*®ˆ“Ÿž$$Kª 5¢¡%£‹1P*I§Š.9°Kº§±=’²—±—=ž$
2±ŸX ¡¯—0©& 5¢L¯9«£ž$²—±—=ž$­%§‹¢ˆ“Ÿž$¨¢H¯Y—£ž$©&¶ŸŠ¡I0µ§°M—,
µ°½LI§Š.=1Q£ž$©Á¸%ŠIž$¯ª ´ÀYž$ ¨¢H$M£ž$©&¶ŸŠµ§°M– ¡À«ž$µ°½L´ÀX
À’¬±ž*¡¯—§£ž$³N%9£ž$­%§‹¢²’¬ž%£‹1P*I§Š%¢&®´ÀYž$¿¸%ŠIž$¯ª¡À«ž$
¤«“° ´ÀX2±ŸX 2Ÿ–¯Ÿ’µ§°M–©®I,H¯Y—£ž$¶§‹£ž$¤«“°J*µ§°M–¶ž*;%1=°
¸%ŠIž$ ¤«“° ¿ ® ¨±£ŸQ£ž$ ³Iž µ’®M‹£ž$ 3%‹šMž$ 3$J ´ÀYž$ ²ª H$M£ž$ ©& Œ¢%Qž$
Ê
ÀX&
6(&7,21)2857((1

$WWLPHVWKHXVDJHRIDQH[SUHVVLRQLVLQLWVILJXUDWLYHPHDQLQJZKHUHDVWKDWILJXUDWLYH
PHDQLQJLVWKDWZKLFKLVXQGHUVWRRGIURPWKHH[SUHVVLRQZLWKRXWDQ\LQGLFDWLRQDQGWKH
OLWHUDOPHDQLQJLVQRWXQGHUVWRRGZLWKRXWDQLQGLFDWLRQ 4DUHHQDK 7KLVWKHQLVWHUPHG
† )RU H[DPSOH 6DODK
7UDQIHUUHG  0DQTXO  †–
Š † SUD\HU  ,WV RULJLQDO OLWHUDO PHDQLQJ LV 'X
D
VXSSOLFDWLRQ ZKDWHYHUW\SHRIVXSSOLFDWLRQLWPD\EHDQGZKDWHYHUIRUPLWPDNHWDNH,WV
†
XVDJHLQWKHPHDQLQJRIWKHVHVSHFLDOF\FOHV 5DND
DW LVILJXUDWLYH+RZHYHUWKHH[FHVV
Š †  LV VDLG WKH
RI LWV XVDJH LQ WKLV ILJXUDWLYH PHDQLQJ PDNHV LW DV VXFK :KHQHYHU 6DODK
ILJXUDWLYHPHDQLQJLVXQGHUVWRRGDQGWKHOLWHUDOPHDQLQJLVQRWXQGHUVWRRG

,WLVREOLJDWRU\DWWKDWWLPHRIXVLQJVLPLODUH[SUHVVLRQVDQGLQWHQGLQJLWVOLWHUDOPHDQLQJ
WRSURGXFHDQLQGLFDWLRQVLJQLI\LQJWKDWWKHLQWHQWLRQRIWKHH[SUHVVLRQLVLWVDEDQGRQHG
OLWHUDO PHDQLQJ )RU H[DPSOH \RX VD\ , SUD\HG WKH SUD\HU RI VLJKWLQJ WKH QHZ PRRQ
Š †  LV VXSSOLFDWLRQ
7KHQ VLJKWLQJ WKH QHZ PRRQ LV DQ LQGLFDWLRQ WKDW WKH LQWHQW RI 6DODK
EHFDXVHWKHUHFRPPHQGHG DFWLRQ DWWKHWLPHRIVLJKWLQJWKHQHZPRRQLVVXSSOLFDWLRQ
QRWSUD\HU5HJDUGLQJXVLQJLWLQLWVILJXUDWLYHPHDQLQJWKHWUDQVIHUUHGPHDQLQJLWGRHV
22
QRW UHTXLUH DQ\ LQGLFDWLRQ7KH LQWHQGHG PHDQLQJ WKHUHIRUH LV XQGHUVWRRG ZLWKRXW DQ\
Š †  WKH OLVWHQHU XQGHUVWDQGV WKDW WKH LQWHQWLRQ LV WKH
LQGLFDWLRQ ,I \RX VD\ , SUD\HG 6DODK
†
SUD\HUKDYLQJF\FOHV 5DND
DW NQRZQWR0XVOLPV6XSSOLFDWLRQLVQRWXQGHUVWRRGDWDOO

.šM£ž$®HM“£ž$
   Y’
¶ŸŠ.šM£ž$ˆ“Ÿž$®´$H&®&µ£Ÿš®&¤P*%¢*$¯¦&µ4À4¶ŸŠHM“£ž$¯\¯£ž$ˆ“Ÿž$
¨±£Q–
„—’¥%1ž$ˆ“Ÿž$$K«,ZET¤Ÿ›0¯ž¬¦&¶§‹£,­I‹,3¯›Qž$?Y°³Kž$¯ª®¥%0
Ê Ê
©%Š¯¦$Kª®%Y–%¦¬¢Àš©¯›°¿%º±T­I‹, —°¤ž®2›P¤4
©&?Y°¬¦+’ ¤¹%–I°N  5¢ /Kš ® ™IX ¬±’¡%—°©&?Y°³Kž$¯ª® M-D %¢*
Ê
¯ª$Kª® µ±]– %]°&¶£Q°® /Kš$Kª ¬±’¡%—°©&?Y°® ™IX$Kª ¬±’¡%—°
3%—°IY1ž$²’M-1‹£ž$
¿¬¦+’ /M\*  5¢ /Kš ¿® ™IX ¬±’¡%—°©&?Y°¿³Kž$¯ª® ¸%U¦* %¢*®
¬±ž*™MÔ1°³Kž$©Á /Kš$Kª ¬±’¡%—°©&?Y°¿® ™IX$Kª ¬±’¡%—°©&?Y°
œžKšR±Ÿ’¸²U,M¢Á$%¢&¸²T —¦®¸²T¨ŠL%-DÁ$¯ª/K›ž$®™IYž$
©%£Q–¸%U¦Å$®
­%§‹¢ /M\* B’ ¥%«“1PÅ$ ® ²«§ž$ ® M¢Á$  5¢µ<$MYž%,.ŸÔž$¶ŸŠ¡I°%¢*
 /M]0 ª ®µ<$MX/M]ž$¥IŠ.Ÿb­%§‹¢ /M]0¿ ®µ<$MX/M]ž$.Ÿb
µ<$MX"¿¥&/M]°¬¦&¤«’.Ÿb­%§‹¢
® .9‹1ž$  ® ²8M1ž$  ® ²§£1ž$   5¢ µ<$MYž%, ¿ ¨›ž .ŸÔž$ ¶ŸŠ ¡I° %¢*
23
Ê Ê
2§š²§Ÿ‹ž ®µ<$MX¿¨›ž®$M¹%b¬¦¯š.Ÿb­%§‹¢ $M¹%b2§š²§1±ž B’ ¸$I§ž$ 
Ê Ê
.9‹0.Ÿb­%§‹¢ ¸%£ž$M5š&%¢ ®µ<$MYž%,¿¨›ž%«±—’¬¦¯š.Ÿb­%§‹¢ %«±—’
Ê
M±,¨›žI°N.Ÿb­%§‹¢ I°N%° ®µ<$MX©®I,%-Ÿb¨›ž¸%£ž$´M5š¨¢Œ¢%Qž$
µ<$MX
Z–%§ž$ˆ“Ÿž$$K«,ZET¤Ÿ›0¯ž¬¦&¶§‹£,­I‹,3¯›Qž$?Y°¿³Kž$¯ª®Z–%¦
Ê Ê
©%Š¯¦$Kª®%Y–%¦¬¢Àš©¯›°%º±T­I‹, —°¤ž®2›Q’„—’
Ê Ê
¸O9Ÿž$I±–²¦%5ž$¸O9ž$©%š®¨±¹O8¨¢%-šM¢©%š³Kž$¯ª®³I±±—02šM¢%¢*
©¯›°I—’²¦%5ž$¸O9ž$¬‹¢©%š$J*¿*¡®¿$¸O9ž$¨¢H¯Y—£ž$¤«“°¿6±=,¡®Á$
6±<L$Iž$©+’ I°NL$H  5¢²¦%5ž$¸O9ž$¶ž*¡®Á$¸O9ž$µ’%\*µ«8¨¢I±±—1ž$$Kª
µ«8¨¢I±±—1ž$©¯›°I–®I°N%«‹¢MšJ$J*¿*L$Iž$¨¢H$M£ž$¤Ÿ‹°¿I°N¶ž*2“±\&
$J+’©$¯±=Ÿžµ“X˜b%§ž$©+’ ˜b%§ž$©$¯±=ž$  5¢¡®Á$¸O9Ÿžµ“X²¦%5ž$¸O9ž$©&
¯ª¯§ž$$Kª®˜b%§ž$¬‹¢MšJ$J*¿*©%Q¦Å$¬,H$M£ž$©&¤Ÿ‹°¤ž„—’©$¯±=ž$MšJ
3$L¯Y1ž$/%,²’´I£‹ž$
Ê
©%š©',¡®Á$¸O9Ÿž$I±–¬§¢²¦%5ž$¸O9ž$¨›°¤ž³Kž$¯ª®³I±±—0M±Ž.šM¢%¢*®
©+’ MUŠµQ£D  5¢­I<®©%š¥&²¦%5ž$¸O9ž$¬‹¢©%š¸$¯P­%§‹¢¤«“°¡®Á$¸O9ž$
¿¥&´MU‹ž$%«‹¢©%š¸$¯P¥¯Ÿ‹¢%§‹¢µQ£Ež$

24
25
7+(6,1*8/$5$1'&203281'
6(&7,21),)7((1

7KHH[SUHVVLRQRIDVLQJXODUVXEMHFWLVRIWKUHHNLQGVWKHQRXQ ,VP WKHYHUE .DOLPDK 


†
DQGWKHSDUWLFOH $GDK 7KHFRPSRXQGH[SUHVVLRQLVRIWZRNLQGV

†
  &RPSOHWH 7DPP ,WLVWKDWIRUZKLFKVLOHQFHLVDSSURSULDWHDIWHULWLQWKHPHDQLQJWKDW
LI D SHUVRQ VSHDNV WKLV FRPSOHWH H[SUHVVLRQ RQO\ DQG WKHQ LV VLOHQW DQG GRHV QRW VD\
DQ\WKLQJ DIWHUZDUG KLV VSHHFK LV QRW GHIHFWLYH 7KLV &RPSOHWH ([SUHVVLRQ  LV RI WZR
NLQGV

D ,WLVHLWKHU ,QIRUPDWLYH .KDEDU ,WLVWKDWZKLFKLVSURSHUWRVD\DERXWLW WKDWLWLV 


WUXHRUIDOVH)RUH[DPSOH=DLGLVVWDQGLQJ,WLVSURSHUWRVD\DERXWLWWKLVLVWUXHDQG
LWLVSURSHUWRVD\DERXWLWWKDWWKLVLVIDOVH,WLVDOVRFDOOHGDSURSRVLWLRQ DO4DGL\DK 
Š
7KLVLVWKHSULPDU\FRQVLGHUDWLRQLQ$IILUPDWLRQV 7DVGHHTDW 
Š †

†–
E 2ULWLV &UHDWLYH ,QVKD ,WLVWKDWZKLFKLVQRWSURSHUWREHVDLGWREH WUXH QRUIDOVH
)RUH[DPSOH <RXVWULNH ,GULE ,WLVQRWSURSHUWKDWLWLVVDLGDERXWLW
Š WKLVLVWUXHRU
WKDW LW LV VDLG WKLV LV IDOVH EHFDXVH WKDW ZKLFK DUULYHV DW WUXWK RU IDOVHKRRG LV
LQIRUPDWLRQDERXWVRPHWKLQJDQGWKHQDUUDWLRQRIVRPHWKLQJ5HJDUGLQJDFRPPDQG
†–
LWLVQRWDVVXFK,QVKDLVRIWZRW\SHV

D  (LWKHU LW VLJQLILHV D UHTXHVW ZLWK FODULW\ OLNH WKH &RPPDQG 9HUE $PU  WKH
3URKLELWLYH&RPPDQG9HUE 1DKL\ RUWKH,QWHUURJDWLYH ,VWLIKDP 7KHQ † <RXVWULNH
,GULE LWVPHDQLQJLVWKHUHTXHVWLQJRIVWULNLQJZLWKFODULW\
Š 'RQ
WVWULNH /D7DGULE 
Š
LWV PHDQLQJ LV UHTXHVWLQJ WKH ODFN RI VWULNLQJ ZLWK FODULW\ $UH \RX VWULNLQJ" +DO
7DGULE" 
Š LWV PHDQLQJ LV VHHNLQJ WKH XQGHUVWDQGLQJ WKDW \RX VWUXFN RU QRW ZLWK
FODULW\

E (LWKHULWVLJQLILHVVHHNLQJKRZHYHULWLVQRWZLWKFODULW\OLNH ZLVKLQJ 7DPDQQL 


KRSLQJ  7DUDMML  VXUSULVH 7D
DMMXE  DQG FDOOLQJ RU VXPPRQLQJ 1LGD  †– 7KHQ
VD\LQJ  , ZLVK , ZHUH D ELUG PHDQV WR VHHN WR EH D ELUG KRZHYHU LW LV ZLWKRXW
FODULW\ 2UVD\LQJ 3HUKDSV,ZDVDVFKRODULWVPHDQLQJLVVHHNLQJWREHDVFKRODU
ZLWKRXWFODULW\ 2UVD\LQJ :KDWDORWRIZDWHULWVPHDQLQJLVVHHNLQJWKHVXUSULVH
RI WKH OLVWHQHU DW WKH DEXQGDQFH RI ZDWHU KRZHYHU WKH VHHNLQJ LV XQFOHDU 2U
VD\LQJ 2=DLGLWVPHDQLQJLVVHHNLQJ=DLGKRZHYHULWLVXQFOHDU

26
† Š
  'HIHFWLYH 1DTLV ,WLVWKDWZKLFKVLOHQFHLVQRWSURSHUDIWHULWLQWKHPHDQLQJWKDWLID
SHUVRQ VSRNH ZLWK WKLV GHIHFWLYH H[SUHVVLRQ RQO\ WKHQ EHFDPH VLOHQW DQG GLG QRW VD\
DQ\WKLQJDIWHULWKLVVSHHFKZRXOGEHGHIHFWLYH7KLVLVRIWZRW\SHV

D (LWKHUD%RXQG&RPSRXQG 0XUDNNDE7DT\HHGL ,WLVWKDWZKLFKLVDFRPSRXQGRI


WZR SDUWV DQG LWV VHFRQG SDUW LV ERXQG WR WKH ILUVW SDUW ZKHUHDV WKH LQWHQWLRQ LV QRW
XQGHUVWRRGIURPWKHILUVWSDUWH[FHSWZKHQWKHVHFRQGSDUWLVZLWKLW6RPHWLPHVWKLV
ELQGLQJLVIURPWKHSHUVSHFWLYHRIDWWDFKLQJWKHILUVWSDUWWRWKHVHFRQGSDUW/LNH7KH
+RXVHRI=DLG:KHUHDVWKH+RXVHLVDQQH[HGWR=DLGDQGWKHLQWHQWRIWKH+RXVHLV
QRW NQRZQ H[FHSW ZKHQ =DLG LV PHQWLRQHG DORQJ ZLWK LW 6RPHWLPHV WKH ELQGLQJ LV
IURPWKHSHUVSHFWLYHWKDWWKHVHFRQGSDUWLVDQDGMHFWLYH 6LIDK IRUWKHILUVWSDUWOLNH
Š
† DO1DWLT 
WKH UDWLRQDO DQLPDO DO+D\DZDQ
Š †Š 7KHQ UDWLRQDO LV DQ DGMHFWLYH IRU DQLPDO
:KHQ RQO\ DQLPDO LV PHQWLRQHG LW LV QRW NQRZQ WKDW WKH LQWHQW RI LW LV WKH KXPDQ
H[FHSW ZKHQ UDWLRQDO LV
 PHQWLRQHG ZLWK LW 7KLV W\SH LV WKH SLOODU LQ WKH VHFWLRQ RI
$SSUHKHQVLRQ 7DVDZZXU 
Š
E (LWKHUWKH&RPSRXQGLVXQERXQG *KDLUX7DT\HHGL DQGLWLVWKDWZKLFKWKHVHFRQG
SDUWLVQRWERXQGWRWKHILUVWSDUWLQWKDWWKHILUVWSDUW
VPHDQLQJLVXQGHUVWRRGZKHWKHU
WKH VHFRQG SDUW LV ZLWK LW RU LW LV DORQH )RU H[DPSOH )LIWHHQ  .KDPVDK

$VKDUD 
7KHQ)LYH .KDPVDK LWVPHDQLQJLVNQRZQZKHWKHUWHQLV PHQWLRQHG ZLWKLWRUQRW

   Y’
%«Ÿšµ±¹%U¦Å$µ¢%1ž$3%-šM£ž$®µY–%§ž$3%-šM£ž$®´HM“£ž$‰%“žÁ$²¦%‹¢$LH*
Ê Ê
%—°IY0¶£Q°µ°M-Ež$µ¢%1ž$3%-šM£ž$‰%“žÁ$²¦%‹¢$LH*®$L¯Y0¶£Q°

6(&7,216,;7((1

,Q FRPSUHKHQVLRQ RI WKH PHDQLQJV RI VLQJXODU H[SUHVVLRQV 0XIUDG  'HIHFWLYH
&RPSRXQGV 0XUDNNDEDW † † Š
1DTLVDK  &RPSOHWH 1RQ,QIRUPDWLYH &RPSRXQGV
† †
0XUDNNDEDW7DPPDK ,QVKDL\\DK  DOO RI WKHP DUH FDOOHG$SSUHKHQVLRQ  7DVDZZXU 
Š ,Q
FRPSUHKHQVLRQ RI WKH PHDQLQJV RI &RPSOHWH ,QIRUPDWLYH &RPSRXQGV 0XUDNNDEDW †
†
7DPPDK.KDEDUL\\DK WKH\DUHFDOOHG$IILUPDWLRQ 7DVGHHT 
Š

27
%£«‹,$¯0®²¹O9ž$®²Ÿ›ž$
   Y’
­H$M’&©+’ ©%Q¦Å$  5¢%«‹±£8 £U°´M±5šH$M’&¬ž©%š³Kž$ˆ“Ÿž¡%—° ²Ÿ›ž$ 
©%£Q–¯ª®H$M’Á$œŸ0Œ±£8 £U°©%Q¦Å$ˆ“ž®´M±5š
 5¢¨°®%Q1¢²Ÿ›ž$¶ž*µ-Q§ž%,­H$M’&©%š³Kž$²Ÿ›ž$¯ª®²b$¯1£ž$²Ÿ›ž$
¤Ÿ‹ž$µ±<%¦¨¢¨±“Ÿ1E¢$¯¦%š©&®©%Q¦*¤«‹±£8©&²’©®®%Q1¢­H$M’&©+’ ©%Q¦Å$ 
%£ªM±Ž® «9ž$®
¨°®%Q1¢M±Ž²Ÿ›ž$¶ž*µ-Q§ž%,­H$M’&©%š³Kž$²Ÿ›ž$¯ª®œ›U£ž$²Ÿ›ž$
¨¢œžJM±Ž®M1¢®M1¢®L%1¢& £U°²Ÿš¬¦+’L$I—£ž$ 5¢
L$I—£’L$I—£ž$µ«8¨¢µ“Ÿ1E¢²ª ,µ°®%Q1¢2Q±žH$M’Á$­Kª©&Œ¢M°H%—£ž$
$K›ª®M1¢L$I—¢¨¢ –&M1¢L$I—¢®M1¢L$I—¢¨¢ –&L%1¢&
¿*¶§‹£ž$œžJ™IX¨›£°¿®I<$®¶§‹¢¬ž©%š³Kž$ˆ“Ÿž¡%—° ²—±—=ž$²¹O9ž$ ®
I°N 5¢I<$®HM’¶ŸŠ
Ê
¬Q“¦²’¯ª©%š©&®%±¹O8¬–¯’%£žµ-Q§ž%,©%š³Kž$ˆ“Ÿž¡%—° ²’%\Å$²¹O9ž$ ®
Ê
¬Q“¦²’©%Q¦Å$©&Œ¢¬–¯’³Kž$©$¯±=ž$¶ž*µ-Q§ž%,²¹O8¬¦+’©%Q¦Å$ 5¢%±Ÿš
Ê
´M±5š$H$M’&¬ž©Á²Ÿš
Ê Ê Ê
©%Q¦Å$ ¶ž* µ-Q§ž%, ²¹O8 I°N  5¢ J* %±’%\* %±¹O8 ©¯›° %]°& ²—±—=ž$ ²¹O9ž$
¬§¢M-š&MD(²Ÿš¬–¯’³Kž$²Ÿ›ž$®²—±—=ž$²¹O9ž$©$HM’¬ž²’%\Å$²¹O9ž%’
¨¢I<$®I<$® ›žˆ“Ÿž$\®I–´HI‹1¢©%‹¢¬ž©%š³Kž$ˆ“Ÿž¡%—° M1U£ž$ ®
 S¯P%9ž$  ©$O±£ž$  µ]“ž$  .ªKž$ %ª%§‹¢²1ž$ ¨±Š µ‡“ž 5¢²¦%‹£ž$œŸ0
œžJM±Ž® µ-šMž$ 
28
¶§‹£ž$œžJ¶ŸŠ¡I0µ§°M–H¯8®¨¢I,¿¬±¦%‹¢I<&²’M1U£ž$ˆ“Ÿž$¡%£‹1P*²’®
œžJ¯=¦®µ]“Ÿž¸%]±-ž$¨±‹ž$®.ªKŸž¸$M“Yž$¨±‹ž$¡%—°©'šH¯Y—£ž$
¶§‹¢²’ £‹1Q°I–¬§›ž®I<$®¶§‹¢¬ž©%š³Kž$ˆ“Ÿž¡%—° N%9£ž$®µ—±—=ž$ ®
©$¯±=ž$ ­%§‹¢ ³Kž$ IPÁ$  5¢ ²ŸXÁ$ ­%§‹¢ Œ¢ ²ŠM“ž$ ¶§‹£ž$ œžJ µ-P%§£ž MD(
Œ¢%9Už$ 8Mž$µ-P%§£ž%9Už$ 8Mž$²’ £‹1Q°I–¬§›ž®[¯YE£ž$SM1“£ž$
©*®µ—±—<©%š²ŸXÁ$­%§‹¢²’ˆ“Ÿž$$Kª £‹1P*$J+’´&M9ž$®µŠ%9Už$²’IPÁ$
Ê
$N%9¢©%š²ŠM“ž$­%§‹¢²’ £‹1P*
MU-ž$®©%Q¦Å$ 5¢I<$®¶§‹¢%£«ž¨°KŸž$¨±‡“Ÿž¡%—° ©%’H$M1£ž$ ®
 5¢MDÃ$¶§‹£,„-0M°¿ —1Q¢¶§‹¢%£«§¢ ›ž¨°KŸž$¨±‡“Ÿž¡%—° ©%§°%-1£ž$ ®
M9=ž$®©%Q¦Å$
7+(81,9(56$/$1'',9,6,9(&21&(376
6(&7,216(9(17((1

7KH 8QLYHUVDO &RQFHSW .XOOL  LV VDLG RI WKH H[SUHVVLRQ ZKLFK KDV QXPHURXV PHPEHUV
WKHH[SUHVVLRQ HQFRPSDVVLQJ DOORIWKHPOLNH WKHKXPDQ,WKDVQXPHURXVPHPEHUV
DQGWKHH[SUHVVLRQKXPDQLQFOXGHVDOOWKHVHPHPEHUV7KH8QLYHUVDO&RQFHSWLVRIWZR
NLQGV

  7KH 8QLIRUP 8QLYHUVDO &RQFHSW DO.XOOL DO0XWDZDWL  †Š ,W LV WKH 8QLYHUVDO
&RQFHSWZKRVHPHPEHUVZLWKUHODWLRQWRWKH8QLYHUVDO&RQFHSWDUHHTXDO/LNH
WKH KXPDQ LWV PHPEHUV DUH HTXDO LQ WKDW DOO RI WKHP DUH KXPDQ DOWKRXJK WKH\
GLIIHU IURP WKH YLHZSRLQW RI NQRZOHGJH DQG LJQRUDQFH DQG YLHZSRLQWV RWKHU WKDQ
WKHVHWZR

 7KH 1RQXQLIRUP 8QLYHUVDO &RQFHSW DO.XOOL DO0XVKDNDN  ,W LV WKH 8QLYHUVDO
&RQFHSWZKRVHPHPEHUVZLWKUHODWLRQWRWKH8QLYHUVDO&RQFHSWDUHXQHTXDOOLNH
DPHDVXUHPHQW$8QLYHUVDO&RQFHSWFRXOGFRPSULVHPHWHUVPHWHUVDQG
PHWHUVDQGRWKHUWKDQWKHVHPHDVXUHPHQWVLQWKDWPHPEHUVDUHQRWHTXDO
5DWKHUWKH\DUHGLIIHULQJIURPWKHSHUVSHFWLYHRIPHDVXUHPHQWWKHPHDVXUHPHQW
RIPHWHUVLVOHVVWKDQPHWHUVWKHPHDVXUHPHQWRIPHWHUVLVOHVVWKDQ
PHWHUVDQGVRIRUWK

29
7KH &RQFUHWH'LYLVLYH&RQFHSW DO-X]LDO+DTHHTL LVVDLGRIWKHH[SUHVVLRQZKLFKKDV
Š
RQHPHDQLQJDQGLWLVQRWSRVVLEOHWRDSSO\WKDWPHDQLQJH[FHSWXSRQRQHPHPEHUOLNH
Š†
=DLG7KH$SSHQGHG'LYLVLYH&RQFHSW DO-X]LDO,GDIL LVVDLGRIWKHH[SUHVVLRQZKLFKLV
LQUHODWLRQWRWKDW8QLYHUVDO&RQFHSWDERYHLWD'LYLVLYH&RQFHSW -X]L DOWKRXJKLWLVLQ
†
LWVHOID8QLYHUVDO&RQFHSW .XOOL OLNHWKHKXPDQ ,QVDQ ,WWKHQLVD'LYLVLYH&RQFHSW
Š †
ZLWKUHODWLRQWRDQLPDOV +D\DZDQ ZKLFK DUH DERYHLW LQ WKDW WKHKXPDQLVLQLWVHOIDQ
8QLYHUVDO&RQFHSWEHFDXVHLWVPHPEHUVDUHQXPHURXV

7KH &RQFUHWH 'LYLVLYH &RQFHSW DO-X]L DO+DTHHTL 


Š LV DOVR DQ $
 SSHQGHG 'LYLVLYH
Š†
&RQFHSW DO-X]LDO,GDIL 7KHQIRU H[DPSOH =DLGLVD'LYLVLYH&RQFHSW ZLWKUHODWLRQWR
† 7KH $SSHQGHG 'LYLVLYH &RQFHSW KDV WZR PHPEHUV WKH &RQFUHWH
WKH KXPDQ ,QVDQ 
'LYLVLYH &RQFHSW DQG WKH 8QLYHUVDO &RQFHSW ZKLFK LV DERYH LW DV D 8QLYHUVDO &RQFHSW
JUHDWHUWKDQLW

7KH +RPRQ\PRXV &RQFHSW DO0XVKWDUDN  LV VDLG RI WKH RQH H[SUHVVLRQ ZKLFK KDV
QXPHURXVPHDQLQJV7KHH[SUHVVLRQLVIRUPXODWHGIRUWKHVHGLIIHUHQWPHDQLQJVRQHE\
RQH/LNHWKH
$UDELFZRUG
$\QZKRVHPHDQLQJVDUHJROGVLOYHUVFDOHVS\NQHHDQG
PHDQLQJVRWKHUWKDQWKHVH,QXVLQJD+RPRQ\PRXVH[SUHVVLRQLQRQHRILWVPHDQLQJVLW
LVQHFHVVDU\IRUDLQGLFDWLRQ 4DUHHQDK WRH[LVWVLJQLI\LQJWKDWLQWHQGHGPHDQLQJDVLWLV
Š Š † JROGHQ
$\Q  IRU JROG DQG
$\Q DO%D\GD
VDLG
$\Q DV6DIUD Š† ZKLWH
$\Q  IRU VLOYHU DQG
VLPLODUWRWKDW

†
&RQFUHWH DO+DTHHTDK DQG$EVWUDFW DO0DMD] LVVDLGRIWKHH[SUHVVLRQZKLFKKDVRQH
Š
PHDQLQJKRZHYHULWLVVRPHWLPHVXVHGLQDQRWKHUPHDQLQJGXHWKHDSSURSULDWHQHVVRI
WKDWVHFRQGDU\PHDQLQJZLWKWKHRULJLQDOPHDQLQJ)RUH[DPSOHWKHOLRQZKRVHPHDQLQJ
LVWKHSDUWLFXODUFDUQLYRURXVDQLPDO+RZHYHUVRPHWLPHVLWLVXVHGIRUWKHEUDYHPDQGXH
WR WKH UHODWLRQVKLS RI OLNHQHVV EHWZHHQ  WKH EUDYH PDQ DQG WKH OLRQ LQ EUDYHU\ DQG
EROGQHVV,IWKLVH[SUHVVLRQLVXVHGLQLWVRULJLQDOPHDQLQJLWLV&RQFUHWH DO+DTHHTDK ,I
Š
†
LWLVXVHGLQLWVVHFRQGDU\PHDQLQJLWLV$EVWUDFW DO0DMD] 

†
6\QRQ\PRXV&RQFHSWV DO0XWDUDGLI LVVDLGRIWZRH[SUHVVLRQZKLFKKDYHRQHPHDQLQJ
†
V\QRQ\PV OLNH+XPDQ ,QVDQ DQGPDQ %DVKDU  'LVVLPLODU&RQFHSWV DO0XWDED\LQ 
LVVDLGRIWZRH[SUHVVLRQVHDFKRIZKLFKKDYHLQGHSHQGHQWPHDQLQJVQRWFRQQHFWHGZLWK
WKHRWKHUPHDQLQJOLNHWKH+XPDQDQGWKH5RFN

30
Œ,LÁ$.Q§ž$
   Y’
Ê
%£«’MD(²ŸšŒ¢%±Ÿš%§Q°%–$J*
®©%Q¦Å$ 5¢MDÃ$H$M’&Œ±£8R“¦%£ªI<&H$M’&Œ±£8©¯›°©',©%°®%Q1¢%¢*
®˜b%§ž$H$M’&Œ±£8¤«Q“¦©%Q¦Å$H$M’&Œ±£8©&J*©%°®%Q1¢©%±Ÿš%£«’˜b%§ž$
Ê Ê
˜b%¦ š®˜b%¦©%Q¦* š À5¢¡¯—1’%±ŸšMDÃ$¶ŸŠ%£«§¢ š £<N$¯8¬Ô,%\
 ©%Q¦*
Ê
®©%Q¦Å$ 5¢MDÃ$2=0%8LI§¢%£ªI<&¨¢HM’©¯›°¿©',©%§°%-1¢%¢*®
™IY°¿®M9=ž$H$M’&¨¢¸²T¶ŸŠ©%Q¦Å$™IY°¿¨›ž®©%±Ÿš%£«¦+’M9=ž$
Ê
MDÃ$¨Š%±Ÿš%£«§¢I<$® š²“¦N$¯8¬Ô,%\®©%Q¦Å$H$M’&¨¢¸²T¶ŸŠM9=ž$
Ê
 ©%Q¦+,M9=ž$¨¢¸²T¿®M9=,©%Q¦Å$¨¢¸²T¿ À5¢¡¯—1’
Ê Ê
œžJ©¯›°¿®MDÃ$H$M’&Œ±£9žÀ¢%T%£ªI<&©¯›°©',%—ŸÔ¢ZD&®¤Š&%¢*®
Ê
Œ±£9ž ¢%T©$¯±=ž$©+’©%Q¦Å$®©$¯±=ž$ 5¢¡®Á$H$M’&_‹-ž¿*À¢%TMDÃ$
©%Q¦Å$ ¨¢ ¤Š& ©$¯±=ž%’ ©$¯±=ž$ H$M’& _‹, ¿* R±ž ©%Q¦Å$ ¨›ž ® ©%Q¦Å$ H$M’&
Ê Ê Ê Ê
%£¹H³&%—ŸÔ¢©$¯±=ž$¨¢ZD&©%Q¦Å$®%£¹$H³&%—ŸÔ¢
Ê
®MDÃ$H$M’&¨¢_‹-žÀ¢%T%£«§¢I<$® š©¯›°©',¬8®¨¢ZD&®¤Š&%¢*®
Ê Ê
MD(¬8®¨¢MDÃ$¨¢%YD&®¬8®¨¢MDÃ$¨¢%£Š&%£«§¢I<$® š©¯›±’­M±Ž
M±Ž®_±,Á$ £U°¬¦Á¬8®¨¢_±,Á$¨¢¤Š&©%Q¦Å%’_±,Á$®©%Q¦Å$ 5¢
Ê
¨¢¤Š&%]°&_±,Á$®©¯Ÿž$H¯PÁ$ZEUž$®©¯Ÿž$_±,Á$ZEUž%š_±,Á$
 £U°®_±,Á$©%Q¦Å$ £U°¬¦+’©%Q¦Å$M±Ž®©%Q¦Å$ £U°¬¦Áµ«8¨¢©%Q¦Å$
¶ŸŠ ¬ž¯£T µ«8 ¨¢ _±,Á$ ¨¢ ¤Š& ©%Q¦Å%’ ©J* ©%Q¦+, R±ž ³Kž$ _±,Á$ ™L¯ž$
31
M±Ž®©%Q¦Æž_±,Á$¡¯£Tµ«8¨¢_±,Á$¨¢ZD&¬§›ž®_±,Á$M±Ž®_±,Á$
¬§›ž®­M±Ž® ©%Q¦Å$ ¶ŸŠ¬ž¯£Tµ«8¨¢ ©%Q¦Å$ ¨¢¤Š& _±,Á$ ®©%Q¦Å$
_±,Á$M±Ž®_±,ž ©%Q¦Å$ ¡¯£Tµ«8¨¢ ©%Q¦Å$ ¨¢ZD&
HM’²’MDÃ$¨Š%£«§¢I<$® š™M1“°®HM’¶ŸŠ©%±Ÿ›ž$™IY°©&¬Ô,%\®
¬ž¡%—°® ©%Q¦*$Kª ¬ž¡%—±’_±,Á$ZEUž$¶ŸŠ©%–IY° _±,Á$®©%Q¦Å$ B’
 _±,&$Kª 
 ©%Q¦*$Kª ¬ž¡%—±’_±,Á$©®HH¯PÁ$ZEUž$¶ŸŠ™IY°­I<® ©%Q¦Å$ ¨›ž®
©®H _±,Á$ ™L¯ž$ ¶ŸŠ ™IY° ­I<® _±,Á$  $Kš ®  _±,& $Kª  ¬ž ¡%—° ¿ ®
.Q§ž$ ¶£Q0µ‹,LÁ$$Kª® ©%Q¦*$Kª ¬ž¡%—°¿® _±,&$Kª ¬ž¡%—±’©%Q¦Å$
 Œ,LÁ$
7+()2855(/$7,216+,36 $11,6$%$/$5%$


6(&7,21(,*+7((1

:KHQ ZH FRPSDUH RQH 8QLYHUVDO &RQFHSW DO.XOOL  ZLWK DQRWKHU 8QLYHUVDO &RQFHSW
ERWKDUH
 (LWKHU (TXLYDOHQW DO0XWDVDDZL LQWKDWDOORIWKHPHPEHUVRIRQHRIWKHWZR
† DQG UDWLRQDO EHLQJV
DUH DOO RI WKH PHPEHUV RI WKH RWKHU OLNH WKH KXPDQ ,QVDQ 
†Š %RWK DUH HTXLYDOHQW ZKHQ DOO RI WKH PHPEHUV RI WKH KXPDQV ,QVDQ 
1DWLT  † DUH
WKHPVHOYHV DOO WKH PHPEHUV RI WKH 5DWLRQDO EHLQJV 1DWLT  †Š ,WV UXOH LW LV
SHUPLVVLEOHWRDWWULEXWHHDFKRIWKHWZRZLWK WKHFKDUDFWHULVWLFV RIWKHRWKHUDVDQ
8QLYHUVDO &RQFHSW<RX VD\ WKHQ IRU H[DPSOH (YHU\ KXPDQ LV D UDWLRQDO EHLQJ
DQG(YHU\UDWLRQDOEHLQJLVKXPDQ

†
 (LWKHU 1RQ(TXLYDOHQW DO0XWDED\LQ LQWKDWWKHUHLVQRPHPEHURIRQHRIWKH
WZRLQVWDJHVXQGHUWKHRWKHU/LNHWKHKXPDQDQGWKHVWRQH%RWKDUH8QLYHUVDO
† FDQQRW EHDSSOLHGWR DQ\ RI
&RQFHSWV KRZHYHU WKH DWWULEXWH RI  KXPDQ  ,QVDQ 
WKH PHPEHUV RI VWRQH DQG VWRQH FDQQRW EH DSSOLHG WR DQ\ RI WKH PHPEHUV RI
KXPDQ,WVUXOHLWLVSHUPLVVLEOHWRQHJDWHHDFKRQHDVD8QLYHUVDO&RQFHSWIRUWKH
RWKHU<RXVD\IRUH[DPSOHQRKXPDQLVDVWRQHDQGQRVWRQHLVKXPDQ

32
 (LWKHU0RUH*HQHUDODQG0RUH6SHFLILFZLWKRXWH[FHSWLRQ $
DPPZD$NKDVV ŠŠ
0XWODTDQ 
Š LQ WKDW RQH RI WKH 8QLYHUVDO&RQFHSWV  LQFOXGH DOORI WKH PHPEHUV RI
WKHRWKHUDQGWKDWRWKHU .XOOL LVLQFOXGLQJVRPHRIWKHPHPEHUVRIWKHILUVW)RU
H[DPSOH DQLPDO +D\DZDQ 
Š † DQG KXPDQ ,QVDQ 
† $QLPDO LQFOXGHV DOO RI WKH
PHPEHUVRIWKHKXPDQKRZHYHUWKHKXPDQRQO\LQFOXGHVVRPHRIWKHPHPEHUV
RIWKHDQLPDOV7KHUHIRUHWKHDQLPDOV DVD8QLYHUVDO&RQFHSW DUHPRUHJHQHUDO
$
DPP  WKDQ WKH KXPDQ ZLWKRXW H[FHSWLRQ LQ RWKHU ZRUGV DOZD\V7KH KXPDQ
DV D 8QLYHUVDO &RQFHSW  LV PRUH SDUWLFXODU $NKDVV 
ŠŠ WKDQ WKH DQLPDO ZLWKRXW
H[FHSWLRQLQRWKHUZRUGVDOZD\V

 (LWKHU 0RUH*HQHUDODQG0RUH6SHFLILFIURPDSHUVSHFWLYH $
DPPZD$NKDVV ŠŠ
PLQ:DMK LQWKDWHDFKRQHRI WKHWZR8QLYHUVDO&RQFHSWV LQFOXGHVRPHRIWKH
PHPEHUV RI WKH RWKHU DQG RWKHUV DV ZHOO  (DFK RQH LV PRUH JHQHUDO WKDQ WKH
RWKHUIURPDSHUVSHFWLYHDQGPRUHVSHFLILF $NKDVV WKDQWKHRWKHUIURPDQRWKHU
ŠŠ
SHUVSHFWLYH )RU H[DPSOH WKH KXPDQ DQG ZKLWH 7KH KXPDQ WKHQ LV PRUH
JHQHUDO $
DPP  WKDQ ZKLWH EHFDXVH LW LQFOXGHV ZKLWH DQG RWKHU WKDQ ZKLWH OLNH
WKH SHUVRQ ZKLWH LQ FRORU DQG WKH SHUVRQ EODFN LQ FRORU :KLWH DOVR LV PRUH
JHQHUDO WKDW WKH KXPDQ IURP D SHUVSHFWLYH EHFDXVH LW LQFOXGHV WKH KXPDQ DQG
QRQKXPDQV,W ZKLWH LQFOXGHVZKLWHKXPDQVDQGLWLQFOXGHVZKLWHSDSHUZKLFKLV
QRWKXPDQ7KHUHIRUHWKHKXPDQLVPRUHJHQHUDOWKDQZKLWHIURPWKHSHUVSHFWLYH
RI LWV LQFOXGLQJ ZKLWH DQG QRQZKLWH KRZHYHU LW LV PRUH VSHFLILF WKDQ ZKLWH IURP
WKH SHUVSHFWLYH LQFOXGLQJ ZKLWH IURP WKH KXPDQ DQG WKH QRQKXPDQ :KLWH LV
PRUHJHQHUDOWKDQWKHKXPDQIURPWKHSHUVSHFWLYHRILWVLQFOXGLQJWKHKXPDQDQG
RWKHUV KRZHYHU LW LV PRUH VSHFLILF WKDQ WKH KXPDQ IURP WKH SHUVSHFWLYH RI
LQFOXGLQJWKHKXPDQIRU EHLQJ ZKLWHDQGQRQZKLWH

,WVUXOHLVWKDWWKHWZR8QLYHUVDO&RQFHSWV .XOOL FDQEHDSSOLHGWRDPHPEHUDQG


HDFK RQHLV GLIIHUHQW IURPWKHRWKHU LQPHPEHUV7KH KXPDQDQG ZKLWHERWK DUH
DSSOLHG WR WKH ZKLWH SHUVRQ 7KHQ LW LV VDLG WKLV LV D KXPDQ DQG WKLV LV ZKLWH
+RZHYHU WKH KXPDQ DORQH LV DSSOLFDEOH XSRQ WKH EODFN SHUVRQ QRW VRPHWKLQJ
HOVHZKLFKLV ZKLWH,WLVWKHQVDLG WKLVLVDKXPDQDQGLWLVQRWVDLGWKLVLVZKLWH
/LNHZLVHZKLWHDORQHLVDSSOLFDEOHWRZKLWHSDSHUQRWWKHKXPDQ7KHQLWLVVDLG
WKLVLVZKLWHDQGLWLVQRWVDLGWKLVLVDKXPDQ7KHVHIRXU UHODWLRQVKLSV DUHFDOOHG
WKH)RXU5HODWLRQV DQ1LVDEDO$UED


33
µQ£Ež$3%±Ÿ›ž$
   Y’
¥%Q–&µQ£D¶ŸŠ²Ÿ›ž$
µ—±—<¥%£0¯ª©%š®µ—±—=ž$²’µ—“1¢­H$M’&2¦%š³Kž$²Ÿ›ž$¯ª® ¯§ž$ ¡®Á$
¤«1—±—<©+’¤ªM±Ž® ™H%X®²ŸŠ®M–%,®²—0 ­H$M’&³Kž$ ©%Q¦Å$  5¢­H$M’&
3%’À1D*²ª%£¦*%ªM±Ž®©¯Ÿž$®MY—ž$®¡¯Ôž$²’¤«§±,´H¯8¯£ž$3%’À1DÅ$®´I<$®
H¯PÁ$3$J®©¯Ÿž$_±,Á$3$J®M±Y—ž$3$J® °¯Ôž$3$K’µ±0$J¿µ±\L%Š
%«±’•À1D*¿ ©%Q¦Å$ %«Ÿš
Ê
µ—±—=ž$¸O8©%š®%«—¹%—<²’µ“Ÿ1E¢­H$M’&2¦%š³Kž$²Ÿ›ž$¯ª® R§9ž$ ²¦%5ž$
¤«—¹%—< ©+’ %ªM±Ž ® M—-ž$ ® SM“ž$ ® ©%Q¦Å$  ­H$M’& ³Kž$ ©$¯±=ž$   5¢ ­H$M’&
M±Ž SM“ž$  µ—±—< œžKš ® 3%¦$¯±=ž$ µ±—, ˜¹%—< M±Ž ©%Q¦Å$  µ—±—=’ µ“Ÿ1E¢
µ“Ÿ1E£ž$˜¹%—=ž$­KªŒ±£9ž¸O8µ±¦$¯±=ž$©&¿*%£ªM±Ž$K›ª®3%¦$¯±=ž$µ±—,˜¹%—<
µ—±—<¸O8¯ª©%š®µ—±—=ž$²’µ—“1¢­H$M’&2¦%š³Kž$²Ÿ›ž$¯ª®  Y“ž$ 6ž%5ž$
µ—±—=ž$²’µ—“1¢­H$M’&©%Q¦Å$® ©%Q¦Å$ µ—±—<¸O8¯ª³Kž$ ˜b%§ž$  5¢­H$M’&
Ê Ê
¨Š %8L%D ® ´I<$® µ—±—=, %Y1E¢ ©%š ³Kž$ ²Ÿ›ž$ ¯ª ® [%Ež$ aM‹ž$  Œ,$Mž$
©%Q¦Å$M±ŽR±žJ*©%Q¦Å$µ—±—=,Z1E¢²Ÿš¯ª³Kž$ œ<%]ž$  5¢µ—±—=ž$
Ê Ê Ê
¬0$Kž$¸O8®©%Q¦Å$µ—±—<²’ÀD$HR±ž¬¦&Œ¢%›<%\
Ê
%8L%D©%š®´I<$®µ—±—=,Z1E¢M±Ž©%š³Kž$²Ÿ›ž$¯ª® ¥%‹ž$aM‹ž$ R¢%Ež$
%ªM±Ž® M—-ž$ ® SM“ž$ ® ©%Q¦Å$  £U°²Ÿš¯ª³Kž$ ²T%£ž$  5¢µ—±—=ž$¨Š
Ê Ê
%«0$Kž$¸O8¿®%«1—±—<²’ÀD$HR±ž¯ª®µ“Ÿ1E¢%«—¹%—<©&Œ¢
34
7+(),9(81,9(56$/&21&(376
†
$/.8//,<$7$/.+$06$+ 

6(&7,211,1(7((1

7KH8QLYHUVDO&RQFHSWKDVILYHW\SHV

)LUVW 6SHFLHV  1DX


 ,W LV WKH 8QLYHUVDO &RQFHSW ZKRVH PHPEHUV DUH DNLQ LQ WKHLU
HVVHQFH +DTHHTDK  DQG LW LV WKH FRPSOHWH HVVHQFH RI DOO RI LWV PHPEHUV OLNH WKH
+XPDQ ZKRVH PHPEHUV DUH7DTL %DTLU † Š †

$OL DQG 6DGLT DQG RWKHUV7KHLU UHDOLW\ LV RQH
7KH GLIIHUHQFHV H[LVWLQJ EHWZHHQ WKHP LQ KHLJKW VKRUWQHVV FRORU DQG RWKHU WKLQJV DUH
RQO\ DFFLGHQWDO RU QRQHVVHQWLDO GLIIHUHQFHV QRW GLIIHUHQFHV LQ WKHLU  UHDOLW\ 7KH
SRVVHVVRU RI KHLJKW VKRUWQHVV ZKLWHQHVV EODFNQHVV DUH DOO KXPDQ QRW KDYLQJ DQ\
GLIIHUHQFHVLQWKDWUHJDUG

6HFRQG *HQXV -LQV  ,WLV WKH8QLYHUVDO &RQFHSWZKRVH PHPEHUV GLIIHU LQWKHLUUHDOLW\


DQGWKHGLIIHUHQFHLVDSDUWRIWKHUHDOLW\RILWVPHPEHUV/LNHWKH$QLPDOZKRVHPHPEHUV
DUH WKH +XPDQ WKH KRUVH WKH FRZ DQG RWKHUV 7KHLU UHDOLW\ LV GLYHUVH 7KH UHDOLW\
+DTHHTDK 
Š RI PDQ LV GLIIHUHQW WKDQ WKH UHDOLW\ RI WKH UHPDLQLQJ DQLPDOV /LNHZLVH WKH
UHDOLW\ RI WKH KRUVH LV QRW WKH UHDOLW\ RI WKH UHPDLQLQJ DQLPDOV DQG VR IRUWK H[FHSW WKDW
EHLQJDQDQLPDOLVSDUWRIDOORIWKHVHGLYHUVHUHDOLWLHV

7KLUG 'LIIHUHQWLD )DVO 


 Š ,W LV WKH 8QLYHUVDO &RQFHSW ZKRVH PHPEHUV DUH DNLQ LQ UHDOLW\
†Š
DQG WKHLU VLPLODULW\ LV SDUW RI WKH UHDOLW\ RI LWV PHPEHUV /LNH EHLQJ UDWLRQDO DO1DWLT 
ZKLFK LV SDUW RI WKH UHDOLW\ RI WKH KXPDQ DQG WKH PHPEHUV RI WKH KXPDQ DUH DNLQ LQ
UHDOLW\

)RXUWK 3DUWLFXODU $FFLGHQW DO


$UGŠ DO.KDVV 
ŠŠ ,W LV WKH 8QLYHUVDO &RQFHSW ZKLFK LV
SHFXOLDU LQ RQH UHDOLW\ DQG RXWVLGH WKH PDLQ  UHDOLW\ OLNH ODXJKLQJ ZKLFK LV D 8QLYHUVDO
&RQFHSW SDUWLFXODU WR WKH UHDOLW\ RI WKH KXPDQ 7KH QRQKXPDQ WKHQ GRHV QRW ODXJK
ZKLOHODXJKLQJGRHVQRWHQWHULQWRWKHUHDOLW\RIPDQQRULVLWSDUWRIKLVHVVHQFH

)LIWK &RPPRQ $FFLGHQW DO


$UG †
Š DO
$PP  ,W LV WKH 8QLYHUVDO &RQFHSW ZKLFK LV QRW
SHFXOLDUWRRQHUHDOLW\DQGLVRXWVLGH WKHPDLQ UHDOLW\OLNHZDONLQJZKLFKLVD8QLYHUVDO
&RQFHSW LQFOXGLQJ WKH KXPDQ WKH KRUVH WKH FRZ DQG RWKHUV LQ WKDW WKHLU UHDOLW\ LV
GLIIHUHQW,WGRHVQRWHQWHULQWRWKHLUUHDOLW\QRULVDSDUWRIWKHLUHVVHQFH

35
   Y’
 5¢%«—¹%—<”Ÿ1E0%£¢­M±Ž®R§9ž$$Kª £U°¬–¯’MD(R§8R§9Ÿž©¯›°I–
%£ª ® M9Už$  ® ©$¯±=ž$   £U° ¬¦Á ©$¯±=Ÿž R§8 ¯ª ³Kž$ ²¢%§ž$ ¤Q9ž$ 
²¢%¦¤Q8%£ªÀš®%£«1—±—<²’©%“Ÿ1E¢
%£ª® M9=ž$ ® M9Už$  £U°¬¦Á²¢%§ž$¤Q9ŸžR§8¯ª³Kž$ ˜ŸÔ£ž$¤Q9ž$ ®
˜ŸÔ¢¤Q8%£ªÀš®%£«1—±—<²’©%“1E¢
©%“Ÿ1E¢%£ª® C®Mž$ ® M9=ž$  £U°¬¦Á˜ŸÔ£ž$¤Q9ŸžR§8¯ª³Kž$ Mª¯9ž$ ®
%£¢­M±Ž £U°®¬Ÿ£U°MD(R§8 Mª¯9ž$ ™¯’R±ž®Mª¯8%£ªÀš®%£«1—±—<²’
Ê
œžJ²’ ¢'0¶ŸŠÀ5¢%«—¹%—<”Ÿ1E0
 ©$¯±=Ÿž  ¡%—° ® ©$¯±=ž$  ­M±Ž  £U° ® ¬Ÿ£U° MD( R§8 ©$¯±=ž$  2=0 R±ž ®
²ž%‹ž$R§9ž$ Mª¯9Ÿž ® ’%Qž$R§9ž$
6(&7,217:(17<

6RPHWLPHV IRU RQH*HQXV -LQV  WKHUHLVDQRWKHU*HQXVDERYHLW LQFOXGLQJ WKLV*HQXV


DQGRWKHUVRIWKRVHZKRVHUHDOLW\LVGLYHUVH)RUH[DPSOHDJURZLQJVXEVWDQFH DO-LVP
†
DQ1DPL  ZKLFK LV WKH *HQXV IRU DQLPDOV EHFDXVH LW LQFOXGHV DQLPDOV DQG WUHHV DQG
RWKHUV 7KH\ DUH ERWK GLIIHULQJ LQ WKHLU UHDOLW\ ZKLOH ERWK DUH JURZLQJ VXLEVWDQFHV 7KH
JHQHUDOVXEVWDQFH DO-LVPDO0XWODT LVWKDWZKLFKLVWKH*HQXVIRUDJURZLQJVXEVWDQFH
Š
EHFDXVHLWLQFOXGHVWUHHVDQGVWRQHVDQGWKH\DUHERWKGLIIHULQJLQWKHLUUHDOLW\ZKLOHERWK
DUHJHQHUDOVXEVWDQFHV
7KH IXQGDPHQWDO VXEVWDQFH DO-DXKDU  LV WKDW ZKLFK LV D *HQXV IRU WKH JHQHUDO
VXEVWDQFHEHFDXVHLWLQFOXGHVWKHVWRQHDQG PDQ
V VRXODQGERWKDUHGLIIHULQJLQWKHLU
UHDOLW\ ZKLOH ERWK DUH IXQGDPHQWDO VXEVWDQFHV 7KHUH LV QR RWKHU *HQXV DERYH D
IXQGDPHQWDOVXEVWDQFHZKLFKLQFOXGHVLWDQGRWKHUWKDQLWXSRQH[DPLQDWLRQRIWKDWIURP
WKRVHZKRVHUHDOLW\LVGLYHUVH%HORZWKHDQLPDOWKHUHLVQRRWKHU*HQXVLQFOXGLQJLWDQG
†
LQFOXGLQJ RWKHUV ,W LV VDLG RI WKH DQLPDO LW LV WKH /RZHU *HQXV DO-LQV DV6DILO 
5HJDUGLQJ WKHIXQGDPHQWDOVXEWDQFH DO-DXKDU LWLVWKH+LJK †
JKHU*HQXV DO-LQVDO
$OL 

36
   Y’
R§9ž$ œžKž ¯¦¬¦& L%-1Š+, MD( R§8 ¬–¯’ ³Kž$ R§9Ÿž ²’%\Å$ ¯§ž$  ¡%—° I–
¤Q9Ÿž ¡%—° ® ²¢%§ž$ ¤Q9ž$  ¶ž* µ-Q§ž%, ²’%\Å$ ¯§ž$ ©$¯±=Ÿž ¡%—±’ ¶ŸŠÁ$
¯§ž$ ˜ŸÔ£ž$ ¤Q9Ÿž ¡%—° ®  ˜ŸÔ£ž$ ¤Q9ž$  ¶ž* µ-Q§ž%, ²’%\Å$ ¯§ž$ ²¢%§ž$
 Mª¯9ž$ ¶ž*µ-Q§ž%,²’%\Å$

6(&7,217:(17<21(

Š†
6RPHWLPHV$SSHQGHG6SHFLHV DQ1DX
DO,GDIL LVVDLGRIWKH*HQXVZKLFKKDVDQRWKHU
*HQXV DERYH LW ZLWK FRQVLGHUDWLRQ WKDW LW LV WKH 6SHFLHV IRU WKDW +LJKHU *HQXV DO-LQV
DO$
DOD 7KHUHIRUHLWLVVDLGRIWKHDQLPDOLWLVDQ$SSHQGHG6SHFLHVZLWKUHODWLRQWRWKH
†
WKH JURZLQJ VXEVWDQFH DO-LVP DQ1DPL  ,W LV VDLG RI WKH JURZLQJ VXEVWDQFH DO-LVP
†
DQ1DPL  WKDW LW LV DQ$SSHQGHG 6SHFLHV LQ UHODWLRQ WR WKH JHQHUDO VXEVWDQFH DO-LVP
DO0XWODT ,WLVVDLGRIWKHJHQHUDOVXEVWDQFHLWLVDQ$SSHQGHG6SHFLHVZLWKUHODWLRQWR
Š
WKHIXQGDPHQWDOVXEVWDQFH DO-DXKDU 

   Y’
Ê Ê
¤Q9ž%š $I±‹, ©¯›° I– ® ©%Q¦Å$ ¶ž* µ-Q§ž%, ©$¯±=ž%š %-°M– ©¯›° I– R§9ž$ 
µ-0M£,I±‹, ²¢%§ž$¤Q9ž$ ®©%Q¦Å$¶ž*µ-Q§ž%,Mª¯9ž$®˜ŸÔ£ž$¤Q9ž$®²¢%§ž$
.0$M¢7À5,I±‹, Mª¯9ž$ ®¨±1-0M£,I±‹, ˜ŸÔ£ž$¤Q9ž$ ®´I<$®
Ê Ê
$I±‹, ©¯›° I– ® ©%Q¦Å$ ¶ž* µ-Q§ž%, ˜b%§ž%š %-°M– ©¯›° I–  Y“ž$  œžKš ®
©%Q¦Å$¶ž*µ-Q§ž%-’©$¯±=Ÿž Y’¯ª S%Q=ž$ J*©%Q¦Å$¶ž*µ-Q§ž%, S%Q=ž%š 
Ê Ê Ê
µ“Ÿ1E¢.0$M¢%]°& Y“Ÿž®$I±‹,ÀY’©¯›°

37
6(&7,217:(17<7:2

7KH*HQXV DO-LQV LVVRPHWLPHVQHDU DO-LQVDO4DUHHE OLNHWKHDQLPDOLQUHODWLRQWR


WKH KXPDQ 6RPHWLPHV LW LV UHPRWH DO-LQV DO%D
HHG  OLNH WKH JURZLQJ VXEVWDQFH WKH
DEVROXWH VXEVWDQFH DQG WKH IXQGDPHQWDO VXEVWDQFH LQ UHODWLRQ WR WKH KXPDQ 7KH
†
JURZLQJ VXEVWDQFH DO-LVP DQ1DPL  LV UHPRWH E\ RQH VWDJH WKH DEVROXWH VXEVWDQFH
DO-LVPDO0XWODTLVUHPRWH E\WZRVWDJHVDQGWKHIXQGDPHQWDOVXEVWDQFH DO-DXKDU 
Š
LVUHPRWHE\WKUHHVWDJHV

38
/LNHZLVH WKH 'LIIHUHQWLD DO)DVO 
Š LV VRPHWLPHV QHDU DO)DVO
Š DO4DUHHE  OLNH EHLQJ
†Š Š †
UDWLRQDO 1DWLT ZLWKUHODWLRQWRWKHKXPDQDQGVRPHWLPHVUHPRWHOLNHVHQVRU\ DO+LVDV 
ZLWKUHODWLRQWRWKHKXPDQ7KHQVHQVRU\LVWKH'LIIHUHQWLDRIWKHDQLPDO:LWKUHODWLRQWR
WKHKXPDQLWLVDUHPRWH'LIIHUHQWLD DO)DVODO%D
HHG )RUWKH'LIIHUHQWLDWKHUHDUHDOVR
Š
GLIIHUHQWVWDJHV

•M‹£ž$
   Y’
Ê
 "¯ª %¢ ©%Q¦Å$  À5¢  ±—’  "¯ª %¢  µ£Ÿ›, ¬§Š  ºP $J* ¡¯«9£ž$ ¸²Už$
¥%Q–&µ‹,L&¶ŸŠ¯ª® •M‹£ž$ ¶£Q°¬§Š/$¯9ž%’
Ê
$J+’.°M—ž$ Y“ž$®.°M—ž$R§9ž$¨¢%-šM¢©%š³Kž$/$¯9ž$¯ª®¥%1ž$I=ž$
Ê Ê
%¢%0$I</$¯9ž$$Kª²£P ˜b%¦©$¯±< 2Ÿ—’ "¯ª%¢©%Q¦Å$  ±–
Ê
$J+’.°M—ž$ Y“ž$®I±‹-ž$R§9ž$¨¢%-šM¢©%š³Kž$/$¯9ž$¯ª®Z–%§ž$I=ž$
2Ÿ– ®&  ˜b%¦ ¤Q8  2Ÿ– ®&  ˜b%¦ ²¢%¦ ¤Q8  2Ÿ—’  "¯ª %¢ ©%Q¦Å$   ±–
Ê Ê
%Y–%¦$I</$¯9ž$$Kª²£P ˜b%¦Mª¯8 
Ê
 ±–$J+’[%Ež$aM‹ž$®.°M—ž$R§9ž$¨¢%-šM¢©%š$Kž$¯ª®¥%1ž$¤PMž$
Ê Ê
%¢%0%£PL/$¯9ž$$Kª²£P œ<%\©$¯±< 2Ÿ—’ "¯ª%¢©%Q¦Å$ 
Ê
[%Ež$aM‹ž$®I±‹-ž$R§9ž$¨¢%-šM¢©%š³Kž$/$¯9ž$¯ª®Z–%§ž$¤PMž$
®& œ<%\¤Q8 2Ÿ–®& œ<%\²¢%¦¤Q8 2Ÿ—’ "¯ª%¢©%Q¦Å$ 2Ÿ–$J+’
Ê Ê
%Y–%¦%£PL/$¯9ž$$Kª²£P œ<%\Mª¯8 2Ÿ–

39
7+('(),1,(1 $/08
$55,) 

6(&7,217:(17<7+5((
:KHQWKHXQNQRZQWKLQJLVLQTXLUHGDERXWZLWKWKHZRUGV:KDWLVLW":KHQLWLVVDLGIRU
H[DPSOH7KHKXPDQZKDWLVLW"7KHUHVSRQVHWRLWLVFDOOHGWKH'HILQLHQ DO0X
DUULI DQG
LWKDVIRXUNLQGV
   7KH &RPSOHWH 7HUP DO+DGG
Š †
DW7DPP  ,W LV WKH UHSO\ ZKLFK LV D FRPSRXQG RI WKH
1HDU*HQXV DO-LQVDO4DUHHE DQGWKH1HDU'LIIHUHQWLD DO)DVODO4DUHHE :KHQLWLV
Š
†
VDLGWKHQ7KHKXPDQZKDWLVLW"<RXVD\$UDWLRQDODQLPDO DO+D\DZDQDQ1DWLT 
Š †Š
  7KH 'HILFLHQW 7HUP DO+DGG
Š † Š ,W LV WKH UHSO\ ZKLFK LV D FRPSRXQG RI WKH
DQ1DTLV 
5HPRWH *HQXV DO-LQV DO%D
HHG  DQG WKH 1HDU 'LIIHUHQWLD DO)DVO Š DO4DUHHE  7KHQ
ZKHQLWLVVDLG 7KHKXPDQZKDWLVLW"<RXVD\ 7KHUDWLRQDOJURZLQJVXEVWDQFHRU\RX
VD\ 7KH UDWLRQDO VXEVWDQFH RU \RX VD\ 7KH UDWLRQDO IXQGDPHQWDO VXEVWDQFH 7KLV
UHVSRQVHLVFDOOHGWKH'HILFLHQW7HUP
†
  7KH&RPSOHWH'HVFULSWLRQ DU5DVPDW7DPP ,WLVWKDWUHSO\ZKLFKLVDFRPSRXQGRI
WKH1HDU*HQXV DO-LQVDO4DUHHE DQGWKH3DUWLFXODU$FFLGHQW DO
$UGDO.KDVV :KHQ
Š ŠŠ
LWLV VDLG 7KHKXPDQ ZKDWLVLW"<RXVD\ 7KHODXJKLQJDQLPDO7KLVUHSO\LVFDOOHGWKH
&RPSOHWH'HVFULSWLRQ
† Š
  7KH'HILFLHQW'HVFULSWLRQ DU5DVPDQ1DTLV ,WLVWKHUHSO\ZKLFKLVDFRPSRXQGRI
WKH 5HPRWH *HQXV DO-LQV DO%D
HHG  DQG WKH 3DUWLFXODU $FFLGHQW DO
$UG
Š DO.KDVV 
ŠŠ
:KHQ LW LVVDLG 7KH KXPDQZKDW LV LW"<RXVD\ $ODXJKLQJJURZLQJVXEVWDQFH -LVP
† Š †Š
1DPL'DKLN RU\RXVD\ Š †Š
$ODXJKLQJVXEVWDQFH -LVP'DKLN RU\RXVD\ $IXQGDPHQWDO
Š †Š
ODXJKLQJVXEVWDQFH -DXKDU'DKLN 7KLVUHSO\LVFDOOHGWKH'HILFLHQW'HVFULSWLRQ

40
   Y’
2¦%š$J* ¿*µ°N%9£ž$‰%“žÁ$¿® µšM1U£ž$‰%“žÁ$ ¡%£‹1P*3%“°M‹1ž$²’?Y°¿
H¯Y—£ž$?\¯0µ§°M–%§ª

6(&7,217:(17<)285

†Š
,WLVQRWFRUUHFWLQGHILQLWLRQVWRXWLOL]HV\QRQ\PV $OID]0XVKWDUDN QRUILJXUDWLYHZRUGV
†Š †
$OID]0DMD]L H[FHSWZKHQDQLQGLFDWRUH[LVWVFODULI\LQJWKHLQWHQW

µ±]—ž$¥%Q–&
   Y’
µŸY1¢µ±bMT®µ±Ÿ£<¥%Q–&µ4À4¶ŸŠ   Y“ž$²’˜-P³Kž$M-Ež$³&µ±]—ž$
µŸY“§¢µ±bMT®
¶ž*¸²T¥IŠ%«±’.Q¦®&MD(¸²T¶ž*¸²TH¯8®%«±’.Q¦²1ž$²ª µ±Ÿ£=ž$ 
 ¤¹%—,R±žI°N ® ¤¹%–I°N  5¢MD(¸²T
¶ŸŠ ¡I° ³Kž$ ¸²UŸž ®  ¡¯£=¢  ¤¹%– Bž ® ¯\¯¢  ¡%5£ž$ ²’ I°N Bž ¡%—° ®
µ±,M‹ž$²’ ¯ª  5¢®µ±PL%“ž$²’ 2P&  5¢¡¯£=£ž$¨±,®¯\¯£ž$¨±,µ-Q§ž$
 µÔ,$L ¬ž¡%—° ¤¹%—ž$¯ªI°N ¡%—°%£§±<
¶ŸŠ·MD&µ±]–®µ±]–¨±,µ-Q§ž$H¯8¯,%«±’¤›<²1ž$²ª µŸY1£ž$µ±bMUž$ ®
R£Už$2¦%š ©*   5¢¡%Y0Å$ ¯=¦¶ŸŠ%£«§±, µ-Q§ž$ H¯8® ¥I‹, ®& ¡%Y0Å$ ¯=¦
Ê
 $H¯8¯¢ ±Ÿž$©%š µ‹ž%bR£Už$2¦%š$J*œžKšR±ž ® H¯8¯¢L%«§ž%’ µ‹ž%b

41
¶ŸŠ·MD&µ±]–®µ±]–¨±,µ-Q§ž$H¯8¯,%«±’¤›<²1ž$²ª µŸY“§£ž$µ±bMUž$ ®
HI‹ž$  5¢ X%“¦Å$¯=¦¶ŸŠ%£«§±,µ-Q§ž$H¯8®¥I‹,®&IŠ%-1ž$®¡%Y“¦Å$¯=¦
Ê Ê
¶ž* %£Q—§¢ %¢* ® %8®N %¢* HI‹ž$ ©¯›° ©& œžKš R±ž ® HM’ %¢* ® ;®N %¢*
 ¨±°®%Q1¢
%«ž ¡%—° µ±¦%5ž$ µ±]—ž$ ® ¥I—¢  %«ž ¡%—° µŸY1£ž$ ® µŸY“§£ž$ ²’ ¶ž®Á$ µ±]—ž$
 ²ž%0 
7+(',9,6,2162)7+(352326,7,21
6(&7,217:(17<),9(

7KH3URSRVLWLRQ DO4DGL\DK LQRWKHUZRUGVWKHLQIRUPDWLYHH[SUHVVLRQ DO.KDEDU WKH


Š
GLVFXVVLRQ RI ZKLFK SUHFHGHG LQ 6HFWLRQ )LIWHHQ LV RI WKUHH NLQGV $ WWULEXWLYH
+DPDOL\\DK 
Š &RQMXQFWLYH &RQGLWLRQDO  6KDUWL\\DK
Š 0XWWDVLODK 
Š DQG 'LVMXQFWLYH

&RQGLWLRQDO 6KDUWL\\DK0XQIDVLODK 
Š Š
7KH $WWULEXWLYH 3URSRVLWLRQ +DPDOL\\DK 
Š LV WKDW SURSRVLWLRQ ZKLFK DWWULEXWHV LQ LW WKH
H[LVWHQFHRIRQHWKLQJWRVRPHWKLQJHOVH2ULWDWWULEXWHVWKHQRQH[LVWHQFHRIVRPHWKLQJWR
VRPHWKLQJHOVH)RUH[DPSOH=DLGLVVWDQGLQJDQG=DLGLVQRWVWDQGLQJ,WLVVDLGRI=DLG
Š† DQG LW LV VDLG RI 6WDQGLQJ WKDW LW LV WKH
LQ WKH H[DPSOH WKDW LW LV WKH 6XEMHFW 0DXGX

Š †
$WWULEXWH 0DKPXO 7KHWKLQJ ZKLFKLQGLFDWHVWKH UHODWLRQVKLSEHWZHHQWKH6XEMHFWDQG
$WWULEXWHOLNH $VW LQ)DUVLDQG +XZD LQ
$UDELFZKHQLWLVVDLG=DLGKHLVVWDQGLQJLWLV
† Š
VDLGWREHWKH/LQNDJH 5DELWDK 
&RQMXQFWLYH &RQGLWLRQDO 3URSRVLWLRQ 6KDUWL\\DK
Š 0XWWDVLODK 
Š LV WKDW SURSRVLWLRQ ZKLFK
GHWHUPLQHVLQLWWKHH[LVWHQFHRIDUHODWLRQVKLSEHWZHHQRQHSURSRVLWLRQ DO4DGL\DK DQG
Š
DQRWKHU SURSRVLWLRQ ZLWK UHVSHFW WR FRQQHFWLRQ RU WKH ODFN RI WKH H[LVWHQFH RI D
Š†
UHODWLRQVKLSEHWZHHQWKHWZRZLWKUHVSHFWWRFRQQHFWLRQ ,WWLVDO )RUH[DPSOH ,IWKHVXQ
LVULVLQJ WKHGD\H[LVWVDQG,ILWLVQRWDVVXFKZKHQWKHVXQLVULVLQJ WKHQLJKWH[LVWV
'LVMXQFWLYH &RQGLWLRQ 6KDUWL\\DK
Š 0XQIDVLODK 
Š LV WKDW SURSRVLWLRQ ZKLFK GHWHUPLQHV LQ LW
WKH H[LVWHQFH RI WKH UHODWLRQVKLS EHWZHHQ RQHSURSRVLWLRQ DQG DQRWKHU SURSRVLWLRQ ZLWK
Š† DQG UHPRWHQHVV 7DED
XG 
UHVSHFW WR GLVMXQFWLRQ ,QILVDO  † RU WKH ODFN RI H[LVWHQFH RI
UHODWLRQVKLSEHWZHHQWKHPZLWKUHVSHFWWRGLVMXQFWLRQ/LNH1XPEHUVDUHHLWKHUHYHQRU
RGGDQG,WLVQRWDVVXFKWKDWQXPEHUVDUHHLWKHUHYHQRUGLYLGHGWRWZRHTXDOV7KHILUVW
SURSRVLWLRQ LQ WKH 'LVMXQFWLYH DQG &RQMXQFWLYH LV VDLG WR EH 7KH )RUPHU 0XTDGGDP 
† 
DQGWKHVHFRQGLVVDLGWREH7KH/DWWHU 7DOL 

42
µ±Ÿ£=ž$µ±]“Ÿž3%£±Q—0
   Y’
I°N  5¢MD(¸²Už¸²T3¯-5,%«±’¤›<²1ž$²ª®µ-8¯¢%¢* µ±Ÿ£=ž$µ±]—ž$ 
R±žI°N  5¢MD(¸²Už¸²T3¯-4¥I‹,%«±’¤›<²1ž$²ª®µ-ž%P%¢*® ¤¹%–
 ¤¹%—,
',9,6,2162)$775,%87,9(352326,7,21
$/4$',<$+$/+$0$/,<<$+ 
Š Š 
6(&7,217:(17<6,;

7KH$WWULEXWLYH3URSRVLWLRQ DO4DGL\DK$O+DPDOL\\DK LVHLWKHU


Š Š
3RVLWLYH 0XMLEDK ,WLVWKDWZKLFKLVGHWHUPLQHGLQWKHSURSRVLWLRQE\WKHHVWDEOLVKPHQWRI
RQHWKLQJIRUVRPHWKLQJHOVHIRUH[DPSOH=DLGLVVWDQGLQJ

1HJD †
HJDWLYH  6DOLEDK  DQG LW LV WKDW ZKLFK LV GHWHUPLQHG LQ WKH SURSRVLWLRQ E\ WKH ODFN RI
HVWDEOLVKPHQWRIRQHWKLQJIRUDQRWKHUWKLQJOLNH=DLGLVQRWVWDQGLQJ

   Y’
¥%Q–&µ‹,L&¶ŸŠµ±Ÿ£=ž$µ±]—ž$²’¯\¯£ž$
 µ±YET ¶£Q0µ±]–$K›ª® ¤¹%–I°N  5¢²—±—<²¹O8%¢*
¥%£1ž¬±’¤›=ž$©&¨±-°¤ž¨›ž®¬Q“§ž¿²Ÿ›ž$H$M’Á¤›=ž$©%š®²Ÿš%¢*
 µŸ£«¢ µ±]–$K›ª¶£Q0® .0%š©%Q¦Å$  5¢¬]‹-ž®&­H$M’&
 R§8©$¯±=ž$ ® ¯¦©%Q¦Å$  5¢­H$M’Á¿²Ÿ›ž$R“§ž¤›<©%š®²Ÿš%¢*®
 µ±‹±-b ¶£Q0µ±]’$K›ª®  Y’˜b%§ž$ ®
43
® ©$¯±<©%Q¦* š  5¢%«]‹-ž®&H$M’Á$¥%£1ž¤›=ž$©&¬±’¨±,²Ÿš%¢*®
 ´L¯Y=¢ ¶£Q0µ±]–$K›ª® ©%Q¦*©$¯±=ž$_‹, 
®%«ž$®Ož3%±¹O9ž$µ’M‹¢²’¡%£š¿J*¥¯Ÿ‹ž$²’´M-1‹¢M±Ž µ±YET %°%]—ž$¨›ž
²Ÿš  H¯8® ¥I‹ž ¥¯Ÿ‹ž$ ²’ %«§Š 6=-° ¿ µ±‹±-Ԟ$  œžKš ® %«0¯-4 ¥IŠ
Ê
²’ ©%Q¦Å$ ¨¢H¯8¯£ž$®„—’²§ªKž$H¯8¯ž$¬ž%£¦*®;L%Ež$²’À5¢ ©%Q¦Å$
LI—ž$%«¦Áµ±¹O9ž$¤›<²’ µŸ£«£ž$ µ±]—ž$®²Ÿ›ž$R“¦¿­H$M’&¯ª%£¦*;L%Ež$
%«§¢¨—±1£ž$
®µ±¹O8®&µ±Ÿš%¢*²ª®´L¯Y=£ž$µ±]—ž%,¥¯Ÿ‹ž$²’%°%]—ž$¨¢´M-1‹£ž$3MY=¦%’
²’%°%]—ž$¨¢´M-1‹£ž$²ª©¯›0µ‹,LÁ$­K«’µ-ž%P®&µ-8¯¢%¢*%£«§¢I<$® š
¥¯Ÿ‹ž$

6(&7,217:(17<6(9(1

7KHVXEMHFWLQWKH$WWULEXWLYH3URSRVLWLRQLVRIIRXUNLQGV

  (LWKHU D &RQFUHWH 'LYLVLYH &RQFHSW DO-X]L DO+DTHHTL 


Š OLNH =DLG LV 6WDQGLQJ DV
VXFKWKHSURSRVLWLRQLVFDOOHG,QGLYLGXDO 6KDNKVL\\DK 
Š
 (LWKHUD8QLYHUVDO&RQFHSW DO.XOOL DQGWKHGHWHUPLQDWLRQ +XNP LVIRUWKHPHPEHUV
Š
RIWKH8QLYHUVDO&RQFHSWQRWIRULWVHOIKRZHYHULWLVQRWFOHDUWKDWWKHGHWHUPLQDWLRQLQ
WKH SURSRVLWLRQ  LV IRU DOO RI LWV PHPEHUV RU VRPH RI WKHP OLNH 7KH KXPDQ LV D ZULWHU
6XFKDSURSRVLWLRQLVFDOOHGLQGHWHUPLQDWH 0XKPDODK 

 (LWKHUD8QLYHUVDO&RQFHSW DO.XOOL DQGWKHGHWHUPLQDWLRQ +XNP LVIRUWKH8QLYHUVDO


Š
&RQFHSWLWVHOIQRWLWVPHPEHUVOLNHWKHKXPDQLVDVSHFLHVRU7KHDQLPDOLVD*HQXVRU
† Š
5DWLRQDOLW\ 1DWLT LVD'LIIHUHQWLD
6XFKDSURSRVLWLRQLVFDOOHGQDWXUDO 7DEHH
L\\DK 

 (LWKHUD8QLYHUVDO&RQFHSW DO.XOOL H[SODLQLQJLQLWWKDWWKHGHWHUPLQDWLRQ +XNP LVŠ


 YHU\ KXPDQ LV DQ DQLPDO DQG VRPH
IRU DOO RI WKH PHPEHUV RU IRU SDUW RI WKHP OLNH (
DQLPDOVDUHKXPDQ6XFKDSURSRVLWLRQLVFDOOHGUHVWULFWHG 0DKVXUDK  ŠŠ†

44
Š† † DVK6KDNKVL\\DK 
+RZHYHU LQGLYLGXDO SURSRVLWLRQV DO4DGD\D Š DUH QRW FRQVLGHUHG LQ
VFLHQFH RI/RJLF ZKHQWKHUHLVQRSHUIHFWLRQLQWKHNQRZOHGJHRIWKH'LYLVLYH&RQFHSWV
† GXH WR LWV UHPRYDO IURP WKH 8QLYHUVDO &RQFHSW  RU GXH WR LWV ODFN RI
DO-X]LDW 
HVWDEOLVKPHQW /LNHZLVH LV WKH QDWXUDO SURSRVLWLRQ 7DEHH
L\\DK  WKHUH LV QR GLVFXVVLRQ
UHJDUGLQJ LW LQ VFLHQFH GXH WR WKH ODFN RI WKH H[LVWHQFH RI WKH 8QLYHUVDO &RQFHSW
†
,QVDQWKHKXPDQ LQUHDOLW\LWLVRQO\LWVPHPEHUVQRWWKH8QLYHUVDO&RQFHSWLWVHOIZKLFK
H[LVW7KHLQGHWHUPLQHQWSURSRVLWLRQ 0XKPDODK LVLQWKHUXOLQJRIWKH'LYLVLYH&RQFHSW
EHFDXVHLWKDVDFHUWDLQTXDQWLW\LQLW

7KHQWKHFRQVLGHUDWLRQRISURSRVLWLRQVLQVFLHQFHLVOLPLWHGWRWKHUHVWULFWHGSURSRVLWLRQ,W
LVHLWKHUD8QLYHUVDO&RQFHSW DO.XOOL RUD'LYLVLYH&RQFHSW DO-X]L (DFKRQHLVHLWKHU
†
SRVLWLYH 0XMLEDK RUQHJDWLYH 6DOLEDK 7KHVHIRXUWKHQDUHWKHPDWWHURIFRQVLGHUDWLRQ
LQSURSRVLWLRQVLQWKHVFLHQFH RI/RJLF 

   Y’
Ê
 5¢  µ±§ªJ  2±£P „—’ ¨ªKž$ ²’ $H¯8¯¢ %«Š¯\¯¢ ©%š ©* µ±Ÿ£=ž$ µ±]—ž$ 
L¯Y1ž$ ²’ ¿* I8¯° ¿ ¨°I]ž$ %£18*  ¯ª ® ¯\¯£ž%’  ¡%=¢ ¨°I]ž$ %£18* 
;L%Ež$²’¨°I]ž$%£18*¨›£°¿J*²§ªKž$
Ê
­$M0I9Q¢ š  5¢ µ±8L%D 2±£P„—’;L%Ež$²’$H¯8¯¢%«Š¯\¯¢©%š©*®
¯žJ*;L%Ež$²’¿*I8¯°¿ ­$M0I9Q¢ š ¯ª®¯\¯£ž%’ I°N­%§,I—’IŸ-ž$
Ê
¬±¦%,I°N¨›°¤žI°N­%§,%¢M±Ž$I9Q¢3L¯Y0
µ±]—ž$ 2±£P ¯\¯£ž$ H$M’& ¨¢ H¯8¯¢ M±Ž ® H¯8¯¢  ›ž %«±’ ¤›=ž$ ©%š ©* ®
H$M’ž ¢%T ©%Q¦* š ¯ª®¯\¯£ž%’ ¤Ÿ‹Ÿž ,%–©%Q¦* š  5¢ µ±—±—< 
Ê
µ±Ÿ,%–¤«žŒ±£9ž$©Á©%Q¦Å$H$M’&¨¢¨°H¯8¯£ž$M±ž%]°& ¢%T®¨°H¯8¯£ž$
¤Ÿ‹ž$

45
6(&7,217:(17<(,*+7

7KH$WWULEXWLYH 3URSRVLWLRQ DO4DGL\DK


Š DO+DPDOL\\DK 
Š LI LWV VXEMHFW H[LVWV LQ WKH PLQG
RQO\ LW LV FDOOHG ,QWHOOHFWXDO =KLQL\\DK  OLNH 7
 KH FRPELQDWLRQ RI WZR RSSRVLWHV LV
LPSRVVLEOH 7KH VXEMHFW WKHQ LV 7KH FRPELQDWLRQ RI WZR RSSRVLWHV ,W GRHV QRW H[LVW
H[FHSW LQ WKH LPDJH RI WKH PLQG $W WKH VDPH WLPH LW LV QRW SRVVLEOH WR FRPELQH WZR
RSSRVLWHVLQUHDOLW\

†
,ILWVVXEMHFWH[LVWVLQUHDOLW\RQO\LWVLVFDOOHG([WHUQDO .KDULML\\DK OLNH
(YHU\PRVTXH
\RXVHHLQWKHFRXQWU\LWVEXLOGHULV=DLG7KHVXEMHFW (YHU\PRVTXH\RXVHHGRHVQRW
H[LVWH[FHSWH[WHUQDOO\7KHQZKHQ\RXLPDJLQHDPRVTXHRWKHUWKDQWKDWZKRVHEXLOGHU
LV=DLG=DLGLVQRWWKHEXLOGHU

,IWKHGHWHUPLQDWLRQ +XNP LVIRUHYHU\H[LVWLQJDQGQRQH[LVWLQJWKLQJIURPWKHPHPEHUV


Š
RI WKH VXEMHFW LW LV FDOOHG /LWHUDO +DTHHTL\\DK 
Š OLNH (
 YHU\ KXPDQ LV GLVSRVHG WR
NQRZOHGJH 7KH VXEMHFW WKHQ (YHU\ KXPDQ LQFOXGHV WKH H[LVWLQJ PHPEHUV DQG LW
LQFOXGHV WKH QRQH[LVWLQJ PHPEHUV DOVR RI WKH PHPEHUV RI WKH KXPDQ EHFDXVH DOO DUH
SUHGLVSRVHGWRNQRZOHGJH

   Y’
Ê Ê
¶£Q0%«±’¡¯£=£Ÿž$¸O8¿®¯\¯£Ÿž$¸O8.ŸQž$•M<¨›°¤ž©* µ±Ÿ£=ž$µ±]—ž$ 
Ê
©%š¥& ¤¹%–I°N  5¢ÀX&.ŸP•M<%«±’¨›°¤ž®µ-8¯¢2¦%š¸$¯P µŸY=¢ 
Ê
¯\¯¢ I°N B’ ¤¹%—,R±žI°N  5¢%«±’Mb¨¢I<Á$¸O8¨›°¤ž.ŸP•M<%«±’
¡¯£=£Ÿž¸O8¿®¯\¯£Ÿž¸O8¿.ŸP•M< R±ž ®¡¯£=¢ ¤¹%– ®
Ê Ê
¯\¯£Ÿž$¸O8.ŸQž$•M<©%š©+’ µž®I‹¢ ¶£Q1’$¸O8.ŸQž$•M<%«±’©%š©*®
Ê Ì
2±£P ¡¯£=£Ÿž $¸O8 ©%š ©* ®  ™¯ŸE¢ ¬Ÿž$ M±Ž   5¢  ¯\¯£ž$ µž®I‹¢  2±£P
Ê Ì
¯\¯£Ÿž ® ¡¯£=£Ÿž $¸O8 ©%š ©* ®  ™¯ŸE¢ M±Ž ¬Ÿž$   5¢  µž¯£=£ž$ µž®I‹¢ 
Ì Ê
 ²žN&M±Ž¬Ÿž$M±Ž  5¢ ¨±’MԞ$µž®I‹¢ 2±£P%‹¢

46
6(&7,217:(17<1,1(

7KH$WWULEXWLYH3URSRVLWLRQ DO4DGL\DKDO+DPDOL\\DK LIWKH3DUWLFOHRI1HJDWLRQLVQRW


Š Š
Š† QRU SDUW RI WKDW DWWULEXWHG LQ WKH SURSRVLWLRQ LW LV FDOOHG
SDUW RI WKH 6XEMHFW 0DXGX

0XKDVVDODK
Š ŠŠ ZKHWKHU LW EH SRVLWLYH 0XMLEDK  DQG GRHV QRW RULJLQDOO\ KDYH D 3DUWLFOH RI
1HJDWLRQ OLNH =DLG LV VWDQGLQJ 2U WKH SURSRVLWLRQ KDV D 3DUWLFOH RI 1HJDWLRQ LQ LW QRW
EHLQJSDUWRIDQ\RQHRIWKHWZRVLGHVOLNH=DLGLVQRWVWDQGLQJ7KHQ=DLGLVWKHVXEMHFW
Š†
0DXGX
DQGVWDQGLQJLVWKHWKLQJDWWULEXWHG 0DKPXO DQGŠ † ,VQRW /DLVD LVWKH3DUWLFOH
RI1HJDWLRQ,WLVQRWSDUWRIWKH6XEMHFWQRUSDUWRIWKDWZKLFKLVDWWULEXWHG WRLW 

,I WKHUH LV D 3DUWLFOH RI 1HJDWLRQ LQ WKH SURSRVLWLRQ DV D FRPSRQHQW WKHQ LW LV FDOOHG
†
2EYHUWHG DO0D
GXODK ,IWKH3DUWLFOHRI1HJDWLRQLVSDUWRIWKH6XEMHFWLWLVFDOOHG7KH
†
2EYHUWHG6XEMHFW DO0D
GXODKDO0DXGX
OLNHŠ† $Q\WKLQJRWKHUWKDQ$OODKLVFUHDWHG,ILWLV
SDUW RI WKDW ZKLFK LV DWWULEXWHG DO0DKPXO Š † LW LV FDOOHG 7KH 2EYHUWHG $WWULEXWH
† Š †
DO0D
GXODKDO0DKPXO OLNH $OODKLVQRQFUHDWHG,ILWLVSDUWRIWKDWDWWULEXWHGDQGWKH
6XEMHFW WRJHWKHU LW LV FDOOHG 2EYHUWHG IURP WZR VLGHV DO0D
GXODK† DW7DUDIDLQ 
Š OLNH
$Q\WKLQJRWKHUWKDQ$OODKLVQRQHYHUODVWLQJ

3%«8¯£ž$3%±Ÿ£=ž$
   Y’
 µ—ŸÔ¢  ¶£Q0¯\¯£ž$ ¶ž*¡¯£=£ž$µ-Q¦ µ«8 %«±’ ¨±-° ¤ž ©* µ±Ÿ£=ž$µ±]—ž$ 
_‹,²’®&·I,&©%Q¦Æžµ±¦$¯±=ž$3¯-4©&%«±’¨±-°¤ž6±< ©$¯±<©%Q¦Å$  5¢
µ±¦%£4%«¢%Q–&¤ª&® µ«8¯¢ 2±£Pµ-Q§ž$µ«8%«±’¨±,©*®œžJM±Ž®&3%–®Á$
Ê
3$J ¥$H %¢ ¯\¯£Ÿž %°L®M\ %«±’ ¡¯£=£ž$ ©%š ²1ž$ ²ª ® µ—ŸÔ£ž$ µ°L®M]ž$  
©$¯±<¯«’I8®%£«¢©%Q¦Å$©+’ ´L®M]ž%,©$¯±<©%Q¦* š  5¢´H¯8¯¢¯\¯£ž$
Ê Ê
%¢ ,%£¹$H¿¯\¯£Ÿž%°L®M\%«±’¡¯£=£ž$©%š²1ž$²ª® µ¢%‹ž$µb®MU£ž$ 
Ê Ê
M=0©+’ %-0%š¥$H%¢´L®M]ž%,Œ,%XÁ$M=1¢©%Q¦* š  5¢$H¯8¯¢”X¯ž$¥$H
©%Q¦Æž³L®M\µ,%1›ž$”X®¡%<Œ,%XÁ$

47
Ê
¨±‹¢2–®²’¯\¯£Ÿž%°L®M\%«±’¡¯£=£ž$©%š²1ž$²ª® µ—ŸÔ£ž$µ±1–¯ž$ 
µ°L®M\M£<&¬8¯ž$´L®M±X©+’ .]ž$2–®´L®M]ž%,¬8¯ž$M£=¢©%Q¦* š  5¢
.]ž$¡%<²’©%Q¦Æž
Ê
M±Ž2–®²’¯\¯£Ÿž%°L®M\%«±’¡¯£=£ž$©%š²1ž$²ª® µ—ŸÔ£ž$´MU1§£ž$ 
Ê
M±Ž 2–® ²’ ©%Q¦Å$ R“§0 ©+’  %¢ %1–® ´L®M]ž%, R“§1¢ ©%Q¦*  š   5¢ ¨±‹¢
©%Q¦Æž³L®M\¨±‹¢
Ê
´H¯8¯¢¯\¯£ž$3$J¥$H%¢%£¹$H%«±’¡¯£=£ž$©%š²1ž$²ª® µ—ŸÔ£ž$µ£¹$Iž$ 
¨±,® ´L®M]ž$ ¨±,™M“ž$®œŸ“Ÿž²£¹$HM=1ž$©+’ ¥$®Iž%,M=1¢œŸ’ š  5¢
Ê
H¯8®¨›£°¿À5£’¯\¯£ž$H¯8®Œ¢¬¢IŠ¨›£°¿³L®M]ž$¡¯£=£ž$©& ¥$®Iž$ 
Ê
¡¯£=£ž$%¢&$K›ª®Œ,%XÁ$M=0¥IŠŒ¢µ,%1›ž$H¯8®®&%¦$¯±<¬¦¯š¥IŠŒ¢©%Q¦*
¿œŸ“ž%’Œ—°¨ž®Œ–$®M±ŽœžJ©%š©*®¯\¯£ž$H¯8®Œ¢¬¢IŠ¨›£±’²£¹Iž$
Ê
M=1°¤ž®”–®$J*%›Ÿ’¬¦¯š¨Š;ME°
Ê Ê
”X¯ž$¥$H%¢%£¹$H¯\¯£Ÿž%1,%4%«±’¡¯£=£ž$©%š²1ž$²ª® µ¢%‹ž$µ±’MŠ 
Ê
¥$H%¢©%Q¦Æž2,%4¥Iž$M=0¥$®I’ %±<¥$H%¢¥$®Iž%,¥Iž$M=1¢©%Q¦* š  5¢
Ê
$H¯8¯¢´%±=ž$”X®
Ê
·I<*²’³& ‹“ž%,¯\¯£Ÿž%1,%4%«±’¡¯£=£ž$©%š²1ž$²ª® µ¢%‹ž$µ—Ô£ž$ 
²’³&  ‹“ž%,W%¢©%Q¦* š  5¢  -—1Q£ž$®¡%=ž$®²\%£ž$ 7À5ž$µ§¢NÁ$
7À5ž$µ§¢NÁ$·I<*
³L®M\M±Žµ±]—Ÿž ,%—£ž$•MԞ$©&¶ŸŠµž$H2¦%š²1ž$²ª® µ¢%‹ž$µ§›££ž$ 
 ,%—£ž$ •MԞ$ ¯ª ® µ,%1›ž$ ¥IŠ ©& ²§‹° ¥%‹ž$ ©%›¢Å%, .0%š ©%Q¦*  š   5¢
Ê
©%Q¦Æž%°L®M\R±žµ,%1›Ÿž

48
49
',5(&7('$775,%87(6
† † 
$/+$0$/,<<$7$/08:$--$+$7 
Š
6(&7,217+,57<

7KH$WWULEXWLYH3URSRVLWLRQLILWGRHVQRWPDNHWKHSHUVSHFWLYHRIWKHUHODWLRQVKLSFOHDURI
WKDWZKLFKLVDWWULEXWHGWRWKH6XEMHFWLWLVFDOOHG $EVROXWH 0XWODTDK OLNH
Š 7KHKXPDQ
LV DQ DQLPDO :KHUHDV LW GRHV QRW FODULI\ LQ LW WKDW WKH HVWDEOLVKPHQW RI WKH DQLPDO
FKDUDFWHULVWLF IRU WKH KXPDQ LV SHUPDQHQW RU SHUPDQHQW  LQ VRPH WLPHV RU RWKHU WKDQ
WKDW,IWKHSHUVSHFWLYHRIWKHUHODWLRQLVFODULILHGLWLVFDOOHG'LUHFWHG 0XZDMMDK DQGWKH
PRVWLPSRUWDQWRILWVW\SHVDUHHLJKW

Š Š †
 $EVROXWH,PSHUDWLYH DG'DUXUL\\DKDO0XWODTDK ,WLVWKDWLQZKLFKWKH$WWULEXWHLQWKH
Š
Š † IRU WKH 6XEMHFW DV ORQJ DV WKH UHDOLW\ RI WKH 6XEMHFW
SURSRVLWLRQ LV D QHFHVVLW\ 'DUXUL 
H[LVWVOLNH (YHU\KXPDQLVDQDQLPDOE\QHFHVVLW\:KHUHYHU\RXILQGWKHKXPDQWKHQ
KHLVDQDQLPDO

† †
  $EVROXWH&RQGLWLRQ DVK6KXUXWDO
$PPDK ,WLVWKDWZKLFKKDVWKH$WWULEXWHLQLWDVD
QHFHVVLW\IRUWKH6XEMHFWQRWSHUPDQHQWO\UDWKHUDVORQJDVWKHGHVFULSWLRQH[LVWVOLNH
(YHU\KXPDQPRYHVWKHILQJHUVZLWKQHFHVVLW\DVORQJDVKHLVDZULWHU7KHPRYLQJRI
WKHILQJHUVLVWKHFRQGLWLRQRIGHVFULELQJZULWLQJDVDQHFHVVLW\IRUWKHKXPDQ

  $EVROXWH 7HPSRUDO DO:DTWL\\DK DO0XWODTDK 


Š ,W WKDW LQ ZKLFK WKH $WWULEXWH LV D
QHFHVVLW\IRUDVSHFLILHGWLPHOLNH(YHU\KXPDQLVUHGLQWKHIDFHE\QHFHVVLW\DWWKHWLPH
RIDQJHU7KHQHFHVVLW\RIWKHIDFHEHLQJUHGLVDQHFHVVLW\IRUPDQLQWKHVWDWHRIDQJHU

 $EVROXWH([WHQGHG DO0XQWDVKDUDKDO0XWODTDK ,WLVWKDWZKLFKKDVWKH$WWULEXWHLQLW


Š
DVDQHFHVVLW\IRUWKH6XEMHFWLQDQXQVSHFLILHGWLPHOLNH(YHU\KXPDQLVEUHDWKLQJZLWK
QHFHVVLW\ DW ZKDWHYHU WLPH 7KH EUHDWKLQJ RI WKH KXPDQ LQ DQ XQVSHFLILHG WLPH LV
QHFHVVLW\IRUWKHKXPDQ

  $EVROXWH 3HUPDQHQW DG'DLPDK† DO0XWODTDK 


Š ,W LV WKDW SURSRVLWLRQ ZKLFK KDV WKH
$WWULEXWHLQLWFRQWLQXRXVO\DVORQJDVWKH6XEMHFWVLWVHOIH[LVWVOLNH(YHU\FHOHVWLDOERG\
PRYHV FRQWLQXRXVO\ 7KH GLIIHUHQFH EHWZHHQ QHFHVVLW\ 'DUXUDK  Š † DQG FRQWLQXLW\
†
'DZDP  Š † DG'DUXUL 
LV WKDW WKH QHFHVVDU\ DWWULEXWH
V DO0DKPXO Š Š † QRQH[LVWHQFH LV QRW
SRVVLEOHZLWKWKHH[LVWHQFHRIWKH6XEMHFW7KHQIRUH[DPSOHWKHH[LVWHQFHRIWKHKXPDQ
LV QRWSRVVLEOH ZLWK WKHODFNRIKLVEHLQJDQDQLPDO2UWKHH[LVWHQFHRI ZULWLQJZLWKWKH
QRQH[LVWHQFH RI PRYHPHQW RI WKH ILQJHUV $V VXFK UHJDUGLQJ WKH FRQWLQXDO $WWULEXWH
DO0DKPXO †
Š † DG'DLPL  LWV QRQH[LVWHQFH LV SRVVLEOH ZLWK WKH H[LVWHQFH RI WKH 6XEMHFW
DOWKRXJKLWGRHVQRWRFFXUDQGZLOOQHYHURFFXU7KHFHOHVWLDOERG\GRHVQRWHPHUJHIURP

50
LWVUHDOLW\DVDFHOHVWLDOERG\ZKHQLWVWRSVDQGGRHVQRWPRYH
†
  $EVROXWH+DELWXDO DO
8UIL\\DKDO
$PPDK ,WLVWKDWSURSRVLWLRQLQZKLFKWKH$WWULEXWH
LVHVWDEOLVKHGIRUWKH6XEMHFWFRQWLQXRXVO\IRUWKHGXUDWLRQRIWKHGHVFULSWLRQOLNH(YHU\
PDQKDVFRQWLQXRXVO\PRYLQJEORRGDVORQJDVKHLVDOLYH7KHFRQWLQXLW\RIPRYLQJEORRG
LVSHUPDQHQWIRUPDQDVORQJDVWKHFKDUDFWHULVWLFRIOLIHH[LVWV
†
  $EVROXWH*HQHUDO DO0XWODTDKDO
$PPDK ,WLVWKDWSURSRVLWLRQLQZKLFKWKH$WWULEXWH
Š
LVHVWDEOLVKHGIRUWKH6XEMHFWE\ZKLFKHYHUDFWLRQLQRQHRIWKHWKUHHWHQVHRIWLPH LH
WKHSDVWSUHVHQWDQGIXWXUH OLNH (YHU\KXPDQZDONVLQDFWXDOLW\LQRWKHUZRUGV ZLWK
DQDFWLRQ LQRQHRIWKHWKUHHWHQVHVRIWLPH
†
  *HQHUDO &RQFHLYDEOH DO0XPNLQDK DO
$PPDK  ,W LV WKDW ZKLFK LQGLFDWHV XSRQ WKH
RSSRVLWHRIWKHSURSRVLWLRQ DVEHLQJD QRQQHFHVVLW\OLNH(YHU\KXPDQLVDZULWHUE\
JHQHUDO DELOLW\ PHDQLQJ WKDW WKH ODFN RI ZULWLQJ WKH RSSRVLWH VLGH RI ZULWLQJ LV QRW D
QHFHVVLW\IRUWKHKXPDQ

   ]’
µ±]– ® µ±]– ¨±, µ-Q§ž$ H¯8¯, %«±’ ¤›< ²1ž$ ²ª ®  µŸY1£ž$ µ±bMUž$  µ±]—ž$
®&µ-Q§ž$2¦%š©*¡%Y0Å$¯=¦¶ŸŠ%£«§±,µ-Q§ž$.ŸQ,®&¡%Y0Å$¯=¦¶ŸŠ·MD&
R±ž ® H¯8¯¢L%«§ž%’R£Už$2‹Ÿb©*  5¢ µ±¢®Ož 2±£Pµ°L®M\µ-Q§ž$.ŸP
Ê
%£«§±,µ-Q§ž$L%«§ž$H¯8®®R£Už$¯ŸÔ’ $H¯8¯¢ ±Ÿž$©%šR£Už$2‹Ÿb©*œžKš
µ-Q§ž$.ŸP ±Ÿž$H¯8®®R£Už$¯Ÿb®MDÃ$¨Š%£ªI<&œ“§°¿6±=,µ°L®M\
Ê
$H¯8¯¢ ±Ÿž$©¯›°®R£Už$ŒŸÔ0©',%£«Š%£18*¨›£°¿J*³L®M\%£«§±,
©*  5¢ µ±–%“0* µ±]—ž$2±£P³L®M\M±Žµ-Q§ž$.ŸP®&µ-Q§ž$H¯8®©%š©*®
¸²9¢¨±,µ-Q§ž%’ M“‹8¸
 ²9°©&I°N¸%8$J*œžKšR±ž ®& ®M£Š¸%8I°N¸%8
¯ª%£¦*®MDÃ$¨Š%£ªI<&œ“§°©&¨›£°¿6±=,µ°L®M\2Q±ž®M£Š¸²9¢®I°N
¨›£°¿6±=,µ°L®M\2Q±žM“‹8¸²9¢®I°N¸²9¢¨±,µ-Q§ž$¥IŠœžKš®™%—0*
¸²9°®&®M£Š©®HI°N¸
 ²9°©&¡%=£ž$M±Ž¨›££ž$¨£’™%“0*¯ª%£¦*®%‹£19°©&
Ê
%‹¢M“‹8®I°N¸²9°©&¡%=£ž$M±Ž¨›££ž$¨¢©&%£šI°N©®H®M£Š
®µ±]–¨±,IŠ%-1ž$µ-Q¦H¯8¯,%«±’¤›<²1ž$²ª® µŸY“§£ž$µ±bMUž$ µ±]—ž$

51
IŠ%-1ž$µ-Q¦.ŸP®&IŠ%-1ž$µ-Q¦2¦%š©*%£«§±,IŠ%-1ž$µ-Q¦.ŸQ,®&·MD&µ±]–
©&œžKšR±ž ® M“‹8%¢*®I°N%¢*L$Iž$²’  5¢ µ±–%“0* 2±£P™%“0Å$/%,¨¢
Ê
®²–%“0*L$Iž$²’%‹¢M“‹8®I°N%£18*¥I‹’ ®M£Š®&I°N%¢*L$Iž$²’©¯›°
Ê
M“‹8®I°N%£18*¡%=£ž$¨¢R±žJ*™%“0Å$/%,¨¢%]°&®M£Š®I°N™$M1’*¥IŠ
Ê
%«-ŸP®&¨±1±]—ž$¨±,IŠ%-1ž$µ-Q¦2¦%š©*®®M£Š¨ŠI°N™$M1’*¿%=¢R±ž%£š
$¯¦&µ4À4­Kª® µ°H%§Š µ±]—ž$2±£PœžJM±ŽŒ§1£°6±=,µ°L®M\
¿6±=,¥I‹ž$®H¯8¯ž$²’%«±’¡%Y“¦Å$©%š²1ž$µŸY“§£ž$²ª® µ±—±—=ž$ ¡®Á$
Ê Ê
©¯›°©&¨›£°¿6±< HM’%¢*®;®N%¢*HI‹ž$  5¢%‹¢©%¢I‹°¿®%‹¢©$I8¯°
Ê Ê Ê Ê
%£ªI<&©¯›°©&I,¿ ,$HM’¿®%8®N©¯›°¿©&¨›£°¿®$HM’®%8®N
²§‹°„—’H¯8¯ž$²’%«±’¡%Y“¦Å$©%š²1ž$µŸY“§£ž$²ª® Œ£9ž$µ‹¦%¢ ²¦%5ž$
 M9<®&M9T%¢*¸²Už$$Kª  5¢%£«¢$I‹¦*¨›¢&¨›ž®%£«Š%£18*¡%=£ž$¨¢©%š
Ê Ê Ê Ê
©¯›°©',$M9<¿®$M9T©¯›°¿©&¨›£°¨›ž®$M9<®$M9T©¯›°©&¨›£°¿6±<
Ê Ê
À5¢%¦%Q¦*
©%š²§‹°„—’¥I‹ž$²’%«±’¡%Y“¦Å$©%š²1ž$µŸY“§£ž$²ª® ¯ŸEž$µ‹¦%¢ 6ž%5ž$
Ê
 ™M°¿©&%¢*®¸%£ž$²’%¢*I°N  5¢%£«Š%‹£18*¨›¢&¨›ž®¿%=¢%£«¢$I‹¦*
¨›ž®¸%£ž$M±Ž²’ZEUž$™M°¿J*™M°®¸%£ž$²’I°N©¯›°¿©&¨›£°¿6±<
µ<%-Qž%,¬£Ÿ‹ž™M°¿®¸%£ž$²’I°N©¯›°©',%£«Š%£18*¨›£°

52
6(&7,217+,57<21(

7KH&RQMXQFWLYH&RQGLWLRQDO3URSRVLWLRQ DVK6KDUWL\\DKDO0XWWDVLODK LVWKDWZKLFKKDV


Š Š
DGHWHUPLQDWLRQ +XNP LQLWE\WKHH[LVWHQFHRIWKHUHODWLRQEHWZHHQRQHSURSRVLWLRQDQG
Š
DQRWKHUSURSRVLWLRQLQWKHPDQQHURIFRQWLQXLW\2UWKHQHJDWLRQRIWKHUHODWLRQEHWZHHQ
WKHPLQWKHPDQQHURIFRQWLQXLW\,IWKHUHODWLRQ 1LVEDK RUWKHQHJDWLRQRIWKHUHODWLRQLVD
Š †
QHFHVVLW\ 'DUXUL\\DK  LW LV FDOOHG 0DQGDWRU\ †
\  /X]XPL\\DK 
 OLNH ,I
 WKH VXQ ULVHV WKH
GD\H[LVWVDQG,WLVQRWVXFKWKDWLIWKHVXQULVHVWKHQLJKWH[LVWV7KHULVLQJRIWKHVXQDQG
WKHH[LVWHQFHRIWKHGD\DQGWKHUHODWLRQEHWZHHQWKHPLVQHFHVVDU\ZKHUHDVRQHRIWKH
WZR LV QRW VHSDUDWH IURP WKH RWKHU7KHULVLQJ RI WKH VXQDQGWKH H[LVWHQFHRI WKH QLJKW
QHJDWHV WKH UHODWLRQ EHWZHHQ WKHP DV D QHFHVVLW\ 7KHQ LW LV QRW SRVVLEOH WR FRPELQH
WKHPERWKLQWKDWWKHVXQULVHVDQGWKHQLJKWH[LVWV

,I WKH H[LVWHQFH RI WKH UHODWLRQ RU WKH QHJDWLRQ RI WKH UHODWLRQ LV QRQHVVHQWLDO WKH
†
SURSRVLWLRQLVFDOOHG&RLQFLGHQWDO ,WWLIDTL\\DK OLNH ,I=DLGFDPH$PU&DPHRU,WLVQRW
DVVXFKZKHQ=DLGFDPH-D
IDUFRPHV7KHUHODWLRQEHWZHHQWKHFRPLQJRI=DLGDQGWKH
FRPLQJRI
$PULV QRQHVVHQWLDOLQWKDWLWLVQRWSRVVLEOH IRURQHWREH VHSDUDWHIURPWKH
RWKHU7KH\ RQO\ FRLQFLGH DQG DV VXFK WKH ODFN RI UHODWLRQ EHWZHHQ WKH FRPLQJ RI =DLG
DQGWKHFRPLQJRI-D
IDULVQRQHVVHQWLDOLQWKDWLWLVQRWSRVVLEOHWRFRPELQHERWKDQGLW
RQO\FRLQFLGHV,WLVSRVVLEOHQRWLPSRVVLEOHWKDW=DLGFRPHVDQGQRW$PURUWKDW
$PU
FRPHVDQGQRW=DLGDVLWLVSRVVLEOHQRWLPSRVVLEOHWKDW=DLGDQG-D
IDUFRPHWRJHWKHU

53
7KH'LVMXQFWLYH&RQGLWLRQDO3URSRVLWLRQ DVK6KDUWL\\DKDO0XQIDVLODK LVWKDWZKLFKKDV
Š Š
D GHWHUPLQDWLRQ +XNP 
Š LQ LW E\ WKH H[LVWHQFH RI WKH UHPRWH UHODWLRQ EHWZHHQ RQH
SURSRVLWLRQ DQG DQRWKHU SURSRVLWLRQ RU WKH QHJDWLRQ RI WKH UHPRWH UHODWLRQ EHWZHHQ WKH
WZR,IWKHUHODWLRQRIUHPRWHQHVVRUWKHQHJDWLRQRIWKHUHODWLRQRIUHPRWHQHVVLVIURPWKH
† †
FDWHJRU\RIFRLQFLGHQFH ,WWLIDT LWLVFDOOHG,WWLIDTL\\DKOLNH ,QWKHKRXVHLVHLWKHU=DLGRU
-D
IDURU ,WLVRWKHUWKDQWKDWLQWKHKRXVHLVHLWKHU=DLGRU
$PU7KHODFNRIFRPELQLQJ
=DLGDQG-D
IDUWRJHWKHULQWKHKRXVHLVFRLQFLGHQWDO7KHODFNRIVHSDUDWLRQRI=DLGDQG

$PULVDOVRIURPWKHFDWHJRU\RIFRLQFLGHQFHZKHQLWLVQRWLPSRVVLEOHWRFRPELQH=DLG
DQG -D
IDU MXVW DV LW LV QRW LPSRVVLEOH WR VHSDUDWH =DLG IURP
$PU ,I WKH UHODWLRQ RI
UHPRWHQHVVLVEHWZHHQWZRSURSRVLWLRQVRUWKHLUQHJDWLRQLVHVVHQWLDOLQWKDWRWKHUWKDQ
†
WKDWLVQRWDOORZHGWKHSURSRVLWLRQLVFDOOHG5HVLVWLYH DO
$QDGL\\DK DQGWKLVLVRIWKUHH
NLQGV

)LUVW 7UXH $O+DTHHTL\\DK ,WLVWKHLQGHSHQGHQWFRQGLWLRQZKRVHLQGHSHQGHQFHLQWKH


Š
SURSRVLWLRQ LV LQ WKH H[LVWHQFH DQG QRQ H[LVWHQFH LQ WKDW WKH\ DUH QRW ERWK H[LVWLQJ
WRJHWKHUQRUERWKQRWH[LVWLQJWRJHWKHUOLNH1XPEHUVDUHHLWKHUHYHQRURGG:KHUHDVLW
LVQRWSRVVLEOHWKDWQXPEHUVFDQEHHYHQDQGRGG DWWKHVDPHWLPH DQGQRWSRVVLEOHWR
EHQHLWKHUHYHQQRURGGUDWKHULWPXVWEHRQHRIWKHWZR

6HFRQG 1RQ&RPELQLQJ †
QJ 0DQL
DK DO-DP
 ,W LV WKH LQGHSHQGHQW FRQGLWLRQ ZKRVH
LQGHSHQGHQFHLQWKHSURSRVLWLRQLVLQH[LVWHQFHRQO\PHDQLQJLWLVLPSRVVLEOHWRFRPELQH
ERWKEXWLWLVSRVVLEOHIRUERWKWREHQRQH[LVWHQWOLNH7KLVWKLQJLVHLWKHUDWUHHRUDURFN
LQWKDWLWLVQRWSRVVLEOHWREHDWUHHDQGDURFNEXWLWLVSRVVLEOHWREHQHLWKHUDWUHHQRUD
URFNLQWKDWIRUH[DPSOHLWFDQEHDPDQ

7KLUG 1RQ'HYRLG 0DQL


DK† DO.KXOX  ,W LV WKH LQGHSHQGHQW FRQGLWLRQ ZKRVH
LQGHSHQGHQFH LQ WKH SURSRVLWLRQ LV LQ QRQH[LVWHQFH RQO\ PHDQLQJ WKDW WKH ODFN RI
H[LVWHQFH RI ERWK LV LPSRVVLEOH KRZHYHU LW LV SRVVLEOH WR FRPELQH ERWK WRJHWKHU OLNH
=DLGLVHLWKHULQWKHZDWHURUHLWKHUKHLVQRWGURZQLQJZKHUHDVLWLVQRWSRVVLEOHWKDW=DLG
LV QRW LQ WKH ZDWHU DQG GURZQLQJ ZKHQ D SHUVRQ GRHV QRW GURZQ LQ RWKHU WKDQ ZDWHU
+RZHYHULWLVSRVVLEOHWRFRPELQHERWKLQWKDW=DLGFDQEHLQWKHZDWHUDQGQRWGURZQLQJ
GXHWRKLVNQRZOHGJHRIVZLPPLQJ

54
³¯1Q£ž$R›‹ž$
   Y’
Ê Ê
%Š¯\¯¢¡¯£=£ž$®¿¯£=¢¯\¯£ž$ ‹9,µ±]—ž$²’Mb °I-0¯ª ³¯1Q£ž$R›‹ž$ 
µ±Ÿ£=ž$µ±]—ž$²’
 XÁ$©%š©+’/K›ž$®™IYž$®.ŸQž$/%9°Å$²’ XÁ%šR›‹ž$©¯›°©&…M1U°®
Ê Ê Ê Ê
¬Ÿ5¢R›‹ž$©¯š¥Ož%,Kš©%š®&%–IX©%š®&%-ž%P©%š®&%-8¯¢
¬Q›Š ©$¯±< ©%Q¦*  š   5£’ µ±¹O8 µ-8¯¢ ©¯›° µ±Ÿ›ž$ µ-8¯£ž$ R›Š ©+’ $Kž®
Ê
©$¯±< š M±Y°¬¦Á%,Kš©%šµ±Ÿšµ-8¯¢R›‹ž$©%š¯žJ* ©%Q¦*©$¯±=ž$_‹, 
/Kš$Kª® ©%Q¦*
¬Q›Š _±,& ©%Q¦Å$ _‹,   5£’ µ±¹O8 µ-8¯¢ ©¯›° µ±¹O9ž$ µ-8¯£ž$ R›Š ®
 ©%Q¦*_±,Á$_‹, 
¿ ¬Q›Š M9=,©%Q¦Å$¨¢¸²T¿  5£’µ±Ÿšµ-ž%P©¯›°µ±Ÿ›ž$µ-ž%Qž$R›Š®
 ©%Q¦+,M9=ž$¨¢¸²T
R±ž %§Ÿ–¯ž ©%Q¦+,©$¯±=ž$_‹,R±ž R›Š²’J*%«žR›Š¿µ±¹O9ž$µ-ž%Qž$®
Ê
µŸ£=ž$%°%]—ž$R›Š²’$Kª%,KšR›‹ž$©%š ©$¯±=,©%Q¦Å$_‹,
Ê Ê Ê
6±=,%¢I—¢²ž%1ž$®%±ž%0¥I—£ž$ ‹9,œžKš%]°&¯«’µ±bMUž$%°%]—ŸžR›‹ž$%¢&
/K›ž$®™IYž$®.ŸQž$®/%9°Å$²’ XÁ$ 5¢R›‹ž$©¯›°

55
%§1’M’ µ‹ž%b R£Už$ 2¦%š %£Ÿš   5£’ µ±¹O8 µ-8¯¢ ¬Q›Š ©¯›° µ±Ÿ›ž$ µ-8¯£ž%’
¯žJ* µ‹ž%bR£Už$©¯›0µº±]¢%§1’MŽ©¯š3%–®&_‹,²’ ¬Q›Š©¯›° µº±]¢
Ê
R£Už%’ µº±Y¢ %§1’MŽ 2¦%š %£Ÿš  M±Y° ¬¦Á %,J%š ©%š µ±Ÿš µ-8¯¢ R›‹ž$ ©%š
R£Už$©&Œ¢ ±Ÿž$²’¸%,M«›ž%,µº±]¢µ’Mž$©¯›0I–J*?±=XM±Ž$Kª® µ‹ž%b
µ‹ž%bM±Ž
Ê
%¦%Q¦* ¸²Už$ ©¯š 3%–®& _‹,   5£’ µ±¹O8 µ-8¯¢©¯›° µ±¹O9ž$ µ-8¯£ž$ R›Š ®
Ê
 %¦%Q¦*©¯›°_±,&¸²Už$©¯š3%–®&_‹, ¬Q›Š _±,&©¯›°
Ê
 M9=,R±Ÿ’%¦%Q¦*¸²Už$©%š%£Ÿš  5£’µ±Ÿšµ-ž%P©¯›°µ±Ÿ›ž$µ-ž%Qž$R›Š®
Ê
 ©%Q¦+,R±Ÿ’$M9<¸²Už$©%š%£Ÿš ¬Q›Š
R£Už$µº±]¢µ’Mž$©¯š3%–®&_‹,R±ž  5¢J*%«žR›Š¿µ±¹O9ž$µ-ž%Qž$®
Ê
%,KšR›‹ž$©%š µ‹ž%b
µŸY“£ž$.1›ž$¶ž*¬§Š¥À›ž$¸²8M§’µ«8¯£ž$3%±Ÿ£=ŸžR›‹ž$%¢&®
7+((48,9$/(17&219(56,21
6(&7,217+,57<7:2

7KH (TXLYDOHQW&RQYHUVLRQ DO


$NVDO0XVWDZL LVWKHH[FKDQJHRIWKHWZRVLGHVRIWKH
SURSRVLWLRQ E\ PDNLQJ WKH 6XEMHFW DQ $WWULEXWH DQG WKH $WWULEXWH D 6XEMHFW LQ DQ
$WWULEXWLYH 3URSRVLWLRQ DO4DGL\DK$O+DPDOL\\DK 
Š Š ,W LV D FRQGLWLRQ WKDW WKH FRQYHUVLRQ
DO
$NV  LV OLNH WKH RULJLQDO DO$VO 
Š LQ EHLQJ SRVLWLYH DQG QHJDWLYH DQG WUXH DQG IDOVH
7KHUHIRUHLIWKHRULJLQDOZDVSRVLWLYHRUQHJDWLYHRULWZDVWUXHRUIDOVHWKHFRQYHUVLRQLV
UHTXLUHGWREHWKHVDPHDVWKHRULJLQDO
7KH FRQYHUVLRQ RI D SRVLWLYH 8QLYHUVDO &RQFHSW DO.XOOL  LV D SRVLWLYH 'LYLVLYH &RQFHSW
DO-X]L 7KHQIRUH[DPSOH (YHU\KXPDQLVDQDQLPDO,WVFRQYHUVLRQLV6RPHDQLPDOV
DUHKXPDQ7KHQLIWKHFRQYHUVLRQLVDSRVLWLYH8QLYHUVDO&RQFHSWLWLVIDOVHEHFDXVHLW
EHFRPHV (YHU\DQLPDOLVKXPDQDQGWKLVLVIDOVH7KHFRQYHUVLRQRIDSRVLWLYH'LYLVLYH
&RQFHSW LV D SRVLWLYH 'LYLVLYH &RQFHSW )RU H[DPSOH 6RPH KXPDQV DUH ZKLWH ,WV
FRQYHUVLRQLV6RPHZKLWHVDUHKXPDQ
7KHFRQYHUVLRQRIWKHQHJDWLYH8QLYHUVDO&RQFHSWLVDQHJDWLYH8QLYHUVDO&RQFHSW)RU
56
H[DPSOH 1R KXPDQ LV D VWRQH ,WV FRQYHUVLRQ LV 1R VWRQH LV +XPDQ 7KH QHJDWLYH
'LYLVLYH &RQFHSW KDV QR FRQYHUVLRQ 7KHUHIRUH LQ WKH FRQYHUVLRQ RI WKH SURSRVLWLRQ 
6RPHDQLPDOVDUHQRW+XPDQLIZHVD\ 6RPHKXPDQVDUHQRWDQLPDOVLWVFRQYHUVLRQ
LVIDOVH7KLVLVLQWKHFRQYHUVLRQRIWKH$WWULEXWLYH3URSRVLWLRQV
5HJDUGLQJ WKH FRQYHUVLRQ RI WKH &RQGLWLRQDO 3URSRVLWLRQV LW LV DOVR DV VXFK E\ PDNLQJ
WKH IRUPHU WKH ODWWHU DQG WKH ODWWHU WKH IRUPHU LQ WKDW WKH FRQYHUVLRQ LV VLPLODU WR WKH
RULJLQDO LQ SRVLWLYH DQG QHJDWLYH WUXWK DQG IDOVHKRRG 7KH SRVLWLYH 8QLYHUVDO &RQFHSW
WKHQLWVFRQYHUVLRQLVWKHSRVLWLYH'LYLVLYH&RQFHSW)RUH[DPSOH:KHQHYHUWKHVXQKDV
ULVHQ RXU URRP LV LOOXPLQDWHG ,WV FRQYHUVLRQ LV ,Q VRPH RI WKH WLPHV RXU URRP LV
LOOXPLQDWHG WKH VXQ KDV ULVHQ 7KHUHIRUH LI WKH FRQYHUVLRQ ZDV D SRVLWLYH 8QLYHUVDO
&RQFHSWLWZRXOGEHIDOVHEHFDXVHLWEHFRPHV:KHQHYHURXUURRPZDVLOOXPLQDWHGWKH
VXQ KDV ULVHQ 7KLV LV LQFRUUHFW WKHQ VLQFH VRPHWLPHV WKH URRP LV LOOXPLQDWHG E\
HOHFWULFLW\LQWKHQLJKWZLWKWKHVXQQRWULVLQJ

7KH FRQYHUVLRQ RI WKH SRVLWLYH 'LYLVLYH &RQFHSW LV D SRVLWLYH 'LYLVLYH &RQFHSW )RU
H[DPSOH 6RPH RI WKH  WLPH WKH UHDOLW\ RIVRPHWKLQJ KXPDQ LVZKLWH ,WVFRQYHUVLRQ LV
6RPHRIWKHWLPHWKHUHDOLW\RIVRPHWKLQJZKLWHLVKXPDQ

7KHFRQYHUVLRQRIWKHQHJDWLYH8QLYHUVDO&RQFHSWLVDQHJDWLYH8QLYHUVDO&RQFHSW)RU
H[DPSOH :KHQHYHUVRPHWKLQJLVKXPDQLWLVQRWDVWRQH,WVFRQYHUVLRQLV:KHQHYHU
VRPHWKLQJLVDVWRQHLWLVQRWKXPDQ7KHQHJDWLYH'LYLVLYH&RQFHSWKDVQRFRQYHUVLRQ
IRUH[DPSOH6RPHRIWKHWLPHWKHURRPLVQRWLOOXPLQDWHGWKHVXQKDVULVHQ,IZHVD\LQ
LWV FRQYHUVLRQ 6RPH RI WKH WLPH WKH VXQ KDV QRW ULVHQ WKH URRP LV LOOXPLQDWHG LWV
FRQYHUVLRQLVIDOVH

5HJDUGLQJWKHFRQYHUVLRQRIWKH*XLGHG$WWULEXWHVWKHGLVFXVVLRQUHJDUGLQJLWLVGHIHUUHG
WRGHWDLOHGERRNV

57
_–%§1ž$
   Y’
¿²§‹°·MDÁ$/Kš%£ª$I<*™IX¨¢¥OŸ°6±=,¨±1±]“ž$•À1D*¯ª _–%§1ž$ 
¬ž®µ,J%š·MDÁ$®µ–H%X%£ª$I<*©¯›0 ,¨±1,J%š©%¦¯›0¿®¨±1–H%X©%¦¯›0
©%bMT
L¯¢&µ±¦%£4²’¨±0I=1¢©%1±]—ž$©¯›0©&¡®Á$…MUž$
Ê Ê
SM“ž$ Œ¢ ˜b%¦©%Q¦Å$  5£’$I<$®%º±T%£«±’¯\¯£ž$©¯›°©', ¯\¯£ž$ 
Ê
® SM“ž$ ·MDÁ$²’® ©%Q¦Å$ %£ª$I<*²’¯\¯£ž$J*%]–%§0R±ž ˜b%§,R±ž
I<$®¸²T¿©%º±T%£ª
Ê Ê
©%Q¦Å$ Œ¢ ˜b%¦©%Q¦Å$  5£’$I<$®%º±T%£«±’¡¯£=£ž$©¯›°©', ¡¯£=£ž$ 
Ê
®  ª%X ·MDÁ$²’® ˜b%¦ %£ª$I<*²’¡¯£=£ž$J*%]–%§0R±ž  ª%Y,R±ž
I<$®¸²T¿©%º±T%£ª
Ê
Œ¢ µž¯Ÿ±=ž$2–®”QE§¢M£—ž$  5£’$I<$®%£«±’©%¢Ož$©¯›°©', ©%¢Ož$ 
Ê Ê
$I<$®R±ž%£«±’©%¢Ož$J*%]–%§0R±ž Œ±,M1ž$2–®”QE§£,M£—ž$R±ž 
Ê
R±žI°N Œ¢ L$Iž$²’¤¹%–I°N  5£’$I<$®%£«±’©%›£ž$©¯›°©', ©%›£ž$ 
Ê Ê
$I<$®R±ž%£«±’©%›£ž$J*%]–%§0R±ž ™¯Qž$²’¤¹%—,
Ê
¿I°N Œ¢ ¸%8©*¬¢$Mš*.9°I°N  5£’$I<$®%£«±’…MUž$©¯›°©', …MUž$ 
Ê Ê
$I<$®R±ž%£«±’…MUž$J*%]–%§0R±ž ¸²9°¤ž©*¬¢$Mš*.9°

58
 ª& ¤ŸŠ& I°N   5£’ ´I<$® %£«±’ µ-Q§ž$ ©¯›0 ©', µ-Q§ž$ ²§‹°  µ’%\Å$  
Ê
®´I<$®2Q±ž%£«±’µ’%\Å$©Á%]–%§0R±ž ¨£±ž$ ª&¤ŸŠ&R±žI°N Œ¢ ™$M‹ž$
® µ-Q§ž%, µ±¦%5ž$ ²’ ® ™$M‹ž$  ª& ¶ž* µ’%\Å$ ® µ-Q§ž%, ¶ž®Á$ ²’ µ±£ŸŠÁ$ %£¦*
¨£±ž$ ª&¶ž*µ’%\Å$
©¯›°©&¿¸O9ž$¶ŸŠ%¢*® ›ž$¶ŸŠ%¢*%£«±’¤›=ž$©¯›°©', ¸O9ž$® ›ž$ 
Œ¢ ¬¦%§P&_±,&I°N  5£’¸O9ž$¶ŸŠ·MDÁ$²’® ›ž$¶ŸŠ%£ª$I<*²’¤›=ž$
Ê
%]–%§0R±ž ¬Ÿš_±,',R±žI°N 
©&¿ ‹“ž%,%£«±’¤›=ž$©¯›°®&´¯—ž%,%£«±’¤›=ž$©¯›°©',  ‹“ž$®´¯—ž$ 
I°N Œ¢ ´¯—ž%,¤ž%ŠI°N  5£’ ‹“ž%,·MDÁ$²’®´¯—ž%,%£ª$I<*²’¤›=ž$©¯›°
Ê
´¯—ž%,·MDÁ$²’® ‹“ž%,%£ª$I<*²’¤›=ž$J*%]–%§0R±ž  ‹“ž%,¤ž%‹,R±ž
L¯¢&µ4À4¨¢¨±1“Ÿ1E¢©%1±]—ž$©¯›0©&²¦%5ž$…MUž$
Ê
 5¢%‹¢%£«,Kš¨›¢&œžJ²’%—“0*¯žJ*µ±¹O9ž$®µ±Ÿ›ž$²§‹° ¤›ž$ ²’%ªI<&
²’J*¨±1]–%§1¢%1Q±ž%£«¦+’ ©%Q¦+,©$¯±=ž$¨¢¸²T¿ Œ¢ ©%Q¦*©$¯±< š 
·MDÁ$/KšŒ¢%£ª$I<*™IX.9°_–%§1ž$
·MDÁ$® µ-8¯¢¨±1±]—ž$·I<*©¯›0©',.ŸQž$ ®/%9°Å$³& ”±›ž$ ²’%«±¦%4
Ê Ê
¨±1-ž%P%‹¢%1¦%š®&¨±1-8¯¢%‹¢%1¦%š¯žJ* _–%§1ž$ ™IY°¶1<µ-ž%P
Ê Ê
·MDÁ$/Kš®%£ª$I<*™IX.9°_–%§1ž$²’®%‹¢%£«,Kš®&%‹¢%£«–IX¨›¢&
Ê
¡%5¢® ©$¯±<©%Q¦Å$_‹, ® ©$¯±<©%Q¦* š %‹¢¨±1–H%Yž$¨±1-8¯£ž$¡%5¢
Ê
 M9<©%Q¦Å$_‹, ® M9<©%Q¦* š %‹¢¨±1,J%›ž$¨±1-8¯£ž$

59
Ê
©%Q¦Å$_‹,R±ž ® M9=,©%Q¦Å$¨¢¸²T¿ %‹¢¨±1–H%Yž$¨±1-ž%Qž$¡%5¢®
Ê Ê
_‹,R±ž ® ©$¯±=,©%Q¦Å$¨¢¸²T¿ %‹¢¨±1,J%›ž$¨±1-ž%Qž$¡%5¢® $M9<
Ê
 %¦$¯±<©%Q¦Å$
Ê
$K«,˜±Ÿ°¿À±Y“0©%±-ž$©&6±<®¨±1«8¯¢©%1±]—ž$2¦%š$J* µ«9ž$ ²’%«5ž%4
µŸY“£ž$.1›ž$¶ž*œžJ¸²8M¦MY1E£ž$
_‹, R±ž  Œ¢ ©$¯±< ©%Q¦*  š   5¢ µ±¹O8 µ-ž%P %«]±—¦ µ±Ÿ›ž$ µ-8¯£ž%’ ©J*
Œ¢ ©%Q¦*©$¯±=ž$_‹,  5¢µ±Ÿšµ-ž%P%«]±—¦µ±¹O9ž$µ-8¯£ž$® ©$¯±=,©%Q¦Å$
 ©%Q¦+,©$¯±=ž$¨¢¸²T¿ 
_‹,  Œ¢ M9=, ©%Q¦Å$ ¨¢ ¸²T ¿   5¢ µ±¹O8 µ-8¯¢ %«]±—¦ µ±Ÿ›ž$ µ-ž%Qž$
 ©%Q¦+,©$¯±=ž$_‹,R±ž  5¢µ±Ÿšµ-8¯¢%«]±—¦µ±¹O9ž$µ-ž%Qž$® M9<©%Q¦Å$
 ©%Q¦*©$¯±< š Œ¢

60
&2175$',&725<23326,7,21
6(&7,217+,57<7+5((

&RQWUDGLFWRU\ † Š LV WKH GLIIHUHQFH LQ WZR SURSRVLWLRQV ZKHUHDV WKH


\ 2SSRVLWLRQ 7DQDTXG 
WUXWKRIRQHRIWKHWZRUHTXLUHVWKHIDOVHKRRGRIWKHRWKHU,WPHDQVERWKFDQQRWEHWUXH
DQGERWKFDQQRWEHIDOVHUDWKHURQHLVWUXHDQGWKHRWKHULVIDOVH,WKDVWZRFRQGLWLRQV

)LUVWWKDWWKHWZRSURSRVLWLRQVEHXQLWHGLQHLJKWPDWWHUV

Š† LQ WKDW WKH VXEMHFW LQ WKH WZR SURSRVLWLRQV DUH RQH
  7KH 6XEMHFW DO0DXGX

WKLQJIRUH[DPSOH7KHKXPDQLVUDWLRQDOZLWK7KHKRUVHLVQRWUDWLRQDO,WLVQRWD
FRQWUDGLFWRU\RSSRVLWLRQZKHQWKHVXEMHFWLQRQHRIWKHWZR WKHKXPDQ DQGWKH
RWKHU WKHKRUVH DUHWZRWKLQJVQRWRQH

Š †
 7KH$WWULEXWH DO0DKPXO LQ WKDW WKH DWWULEXWH LQ WKHWZRSURSRVLWLRQVDUH RQH
WKLQJ )RU H[DPSOH 7KH KXPDQ LV UDWLRQDO ZLWK 7KH KXPDQ LV QRW D QLJKLQJ
DQLPDO ,WLVQRWFRQWUDGLFWRU\RSSRVLWLRQZKHQWKHDWWULEXWHLV UDWLRQDO LQRQHRI
WKHWZRDQGLQWKHRWKHU QLJKLQJ DQGWKH\DUHWZRWKLQJVQRWRQH
†
 7KHWLPH D]=DPDQ LQWKDWWKHWLPHLQWKHWZRSURSRVLWLRQVDUHRQH/LNH 7KH
PRRQZDVHFOLSVHGDWWKHWLPHRIZLWKGUDZDOZLWK7KHPRRQZDVQRWHFOLSVHGDW
WKHWLPHRIWKH OXQDU TXDUWHU,WLVQRWDFRQWUDGLFWRU\RSSRVLWLRQZKHQWKHWLPHLQ
WKHWZRSURSRVLWLRQVDUHQRWRQH
†
  7KH SODFH DO0DNDQ  LQ WKDW WKH SODFH LQ ERWK SURSRVLWLRQV DUH RQH )RU
H[DPSOH=DLGLVVWDQGLQJLQWKHKRXVHZLWK=DLGLVQRWVWDQGLQJLQWKHPDUNHW,WLV
QRWDFRQWUDGLFWRU\RSSRVLWLRQZKHQWKHSODFHLQWKHWZRSURSRVLWLRQVDUHQRWRQH
  7KH FRQGLWLRQ DVK6KDUW 
Š LQ WKDW WKH FRQGLWLRQ LQ ERWK DUH RQH OLNH ,W LV
REOLJDWRU\WRKRQRU=DLGLIKHFRPHVZLWK,WLVQRWREOLJDWRU\WRKRQRU=DLGLIKH
GRHV QRWFRPH,WLVQRWDFRQWUDGLFWRU\RSSRVLWLRQZKHQWKHFRQGLWLRQLQWKHWZR
DUHQRWRQH

Š†
  7KH DSSRVLWLRQ ,GDIDK  PHDQLQJ UHODWLRQ LQ WKDW WKH UHODWLRQ LQ WKH WZR
SURSRVLWLRQVDUHRQH/LNH=DLGLVWKHPRVWOHDUQHGRIWKHSHRSOHRI,UDTZLWK=DLG
LVQRWWKHPRVWOHDUQHGRIWKHSHRSOHRI<HPDQ,WLVQRWDFRQWUDGLFWRU\RSSRVLWLRQ
EHFDXVH WKH DSSRVLWLRQ LQ WKHWZRSURSRVLWLRQV DUHQRW RQH.QRZOHGJHH[LVWVLQ
WKHILUVWSURSRVLWLRQZLWKUHODWLRQWRDQGDSSRVLWLRQZLWKWKHSHRSOHRI,UDT,QWKH
VHFRQGSURSRVLWLRQZLWKUHODWLRQWRDQGDSSRVLWLRQZLWKWKHSHRSOHRI<HPDQ

61
 7KHZKROH DO.XOO DQGWKHSDUW DO-X] LQWKDWWKHGHWHUPLQDWLRQ +XNP LQWKH
Š
WZR SURSRVLWLRQV DUH HLWKHU UHJDUGLQJ WKH ZKROH DO.XOO  RU WKH SDUW DO-X]  ,W LV
QRWWKDWWKHGHWHUPLQDWLRQLQRQHRIWKHWZRLVDERXWWKHZKROHDQGWKHRWKHUDERXW
WKHSDUW)RUH[DPSOH=DLGLVZKLWHLQ UHJDUGWR KLVWHHWKZLWK=DLGLVQRWZKLWHLQ
KLVHQWLUHW\,WLVQRWDFRQWUDGLFWRU\RSSRVLWLRQ

  &DSDELOLW\ 4XZD  DQG UHDOLW\ )L


O  LQ WKDW WKH GHWHUPLQDWLRQ LQ WKH WZR
SURSRVLWLRQVDUHLQFDSDELOLW\RUWKHGHWHUPLQDWLRQLQERWKDUHLQUHDOLW\QRWWKDWWKH
GHWHUPLQDWLRQLQRQHRIWKHWZRLVLQFDSDELOLW\DQGWKHRWKHULQUHDOLW\/LNH=DLGLV
DVFKRODULQFDSDELOLW\ZLWK =DLGLVQRWDVFKRODULQUHDOLW\,WLVQRWDFRQWUDGLFWRU\
RSSRVLWLRQ ZKHQWKHGHWHUPLQDWLRQ LQ RQHRI WKHWZRLV LQUHDOLW\DQGWKH RWKHULQ
FDSDELOLW\

7KHVHFRQGFRQGLWLRQLVWKDWWKHWZRSURSRVLWLRQVDUHGLIIHUHQWLQWKUHHPDWWHUV

)LUVW LQ TXDQWLW\ DO.DP  PHDQLQJ LQ 8QLYHUVDO &RQFHSW DQG 'LYLVLYH &RQFHSW
7KHQ LI WKH\ ERWK DJUHH LQ WKDW LW LV SRVVLEOH IRU ERWK WR EH IDOVH WRJHWKHU OLNH
(YHU\DQLPDOLVKXPDQZLWK 1RWKLQJIURPDQLPDOVDUHKXPDQ7KH\DUHQRWWZR
FRQWUDGLFWRU\ RSSRVLWLRQV 7KHUHIRUH LQ WKH FRQWUDGLFWRU\ RSSRVLWLRQ WKH
WUXWKIXOQHVVRIRQHLVUHTXLUHGZLWKWKHIDOVHKRRGRIWKHRWKHU

6HFRQGLQPHWKRG DO.DLI LQRWKHUZRUGVWKHSRVLWLYHDQGQHJDWLYHLQWKDWRQH


RI WKH WZR SURSRVLWLRQV LV SRVLWLYH DQG WKH RWKHU LV QHJDWLYH XQWLO FRQILUPLQJ WKH
FRQWUDGLFWRU\ RSSRVLWLRQ 7KHQ LI WKH\ DUH ERWK SRVLWLYH RU ERWK QHJDWLYH LW LV
SRVVLEOH IRU ERWK WR EH WUXWKIXO WRJHWKHU RU ERWK IDOVH WRJHWKHU ,Q FRQWUDGLFWRU\
RSSRVLWLRQWKHWUXWKIXOQHVVRIRQHRIWKHWZRLVUHTXLUHGZLWKWKHIDOVHKRRGRIWKH
RWKHU$QH[DPSOHRIWZRSRVLWLYHWUXWKVWRJHWKHU (YHU\KXPDQLVDQDQLPDODQG
6RPH KXPDQV DUH DQLPDOV $Q H[DPSOH RI WZR QHJDWLYH IDOVHKRRGV WRJHWKHU
(YHU\KXPDQLVDURFNDQG 6RPHKXPDQVDUHURFNV$QH[DPSOHRIWZRQHJDWLYH
WUXWKVWRJHWKHU 1RWKLQJRIWKHKXPDQLVDURFNDQG6RPHRIWKHKXPDQVDUHQRW
URFNV$QH[DPSOHRIWZRQHJDWLYHIDOVHKRRGVWRJHWKHU1RWKLQJRIWKHKXPDQLV
DQDQLPDODQG6RPHRIWKHKXPDQVDUHQRWDQLPDOV

7KLUGLQYLHZSRLQW DO-LKDK :KHQWKHWZRSURSRVLWLRQDUHRIWZRYLHZSRLQWV,Q


WKDWPDWWHUWKHH[SODQDWLRQLVGHWDLOHGDQGQRWDSSURSULDWHIRUWKLVVXPPDU\:H
GHIHUWKDWPDWWHUWRGHWDLOHGERRNV

62
7KHUHIRUH WKH SRVLWLYH 8QLYHUVDO &RQFHSW .XOOL  LWV FRQWUDGLFWRU\ RSSRVLWLRQ LV WKH
QHJDWLYH'LYLVLYH&RQFHSW -X]L OLNH(YHU\KXPDQLVDQDQLPDOZLWK6RPHKXPDQVDUH
QRW DQLPDOV 7KH SRVLWLYH 'LYLVLYH &RQFHSW LWV FRQWUDGLFWRU\ RSSRVLWLRQ LV WKH QHJDWLYH
8QLYHUVDO &RQFHSW OLNH 6RPH DQLPDOV DUH KXPDQ ZLWK 1RWKLQJ
 RI WKH DQLPDOV DUH
KXPDQ 7KH QHJDWLYH 8QLYHUVDO &RQFHSW LWV FRQWUDGLFWRU\ RSSRVLWLRQ LV WKH SRVLWLYH
'LYLVLYH&RQFHSWOLNH 1RWKLQJIURPWKHKXPDQLVDURFNZLWK 6RPHKXPDQVDUHURFNV
7KH QHJDWLYH 'LYLVLYH &RQFHSW LWV FRQWUDGLFWRU\ RSSRVLWLRQ LV WKH SRVLWLYH 8QLYHUVDO
&RQFHSWOLNH6RPHDQLPDOVDUHQRWKXPDQZLWK(YHU\DQLPDOLVDKXPDQ

   Y’
%°%]—ž$²’©%š%¢ 5£,©¯›° µŸY“§£ž$ ®& µŸY1£ž$ µ±bMUž$%°%]—ž$²’_–%§1ž$
²’%£«’À1D*®L¯¢&µ±¦%£4²’¨±1]–%§1£ž$¨±1±]—ž$H%=0*¬±’…M1U±’ µ±Ÿ£=ž$ 
 H¯8¯¢ L%«§ž%’ µ‹ž%b R£Už$ 2¦%š %£Ÿš   5£’ µŸY1£ž$ µ±bMUž$ %¢& L¯¢& µ4À4
Ê
µ±bMUž$%¢&® $H¯8¯¢L%«§ž$µ‹ž%bR£Už$©¯š3%–®&_‹,²’R±ž  5£ž_±—¦
Ê
R±ž  5£ž_±—¦ HM’%¢*®;®N%¢*¯«’$HIŠ¸²Už$©%š%£Ÿš  5£’µŸY“§£ž$
Ê Ê Ê
 $HM’%¢*®%8®N%¢*©¯›°©&$HIŠ¸²Už$©¯š3%–®&_‹,

6(&7,217+,57<)285

† Š LQ WKH FRQGLWLRQDO SURSRVLWLRQV 'LVMXQFWLYH RU


7KH FRQWUDGLFWRU\ RSSRVLWLRQ 7DQDTXG 
&RQMXQFWLYHDUHVLPLODUWRWKDWRIWKH$WWULEXWLYH3URSRVLWLRQ7KHFRQGLWLRQWKHQXQLWHV
WKH WZR FRQWUDGLFWRU\ SURSRVLWLRQV LQ HLJKW PDWWHUV DQG WKH\ GLIIHU LQ WKUHH PDWWHUV
5HJDUGLQJWKH&RQMXQFWLYH&RQGLWLRQDO3URSRVLWLRQIRUH[DPSOH:KHQHYHUWKHVXQKDV
ULVHQWKHGD\H[LVWVWKHRSSRVLWHRIWKHH[DPSOHLV,QVRPHRIWKHWLPHWKHVXQKDVQRW
ULVHQWKHGD\H[LVWV5HJDUGLQJWKH'LVMXQFWLYH&RQGLWLRQDO3URSRVLWLRQWKHH[DPSOHLV
:KHQHYHUVRPHWKLQJLVDQXPEHULWLVHLWKHUHYHQRURGGWKHRSSRVLWHRIWKHH[DPSOHLV
6RPHWLPHVWKHUHDOLW\RIVRPHWKLQJLVQRWDQXPEHUWKDWLWLVHLWKHUHYHQRURGG

63
_±—§ž$R›Š
   Y’
©%›¢ ²’ ¡¯£=£ž$ _±—¦  ‹8 ¯ª ¨±±—Ô§£ž$ ¸%¢I– ­MQ’ %£š  _±—§ž$ R›Š 
Œ¢ _±—§ž$R›Š ˜’$¯°6±=,¡¯£=£ž$©%›¢²’¯\¯£ž$_±—¦ ‹8®¯\¯£ž$
.ŸQž$®/%9°Å$²’®/K›ž$®™IYž$²’  XÁ$ 
Ê
³Kž$ ©$¯±<¿ B’ ©%Q¦*¿©$¯±<¿ š ¬]±—¦R›Š©¯›° ©$¯±<©%Q¦* š À5£’
Ê
¯\¯£ž$_±—¦¯ª³Kž$ ©%Q¦*¿ ®%Š¯\¯¢­%§Ÿ‹8  XÁ$ ²’¡¯£=£ž$_±—¦¯ª
Ê
¿¯£=¢­%§Ÿ‹8  XÁ$ ²’
Ê
%±ž%0¥I—£ž$_±—¦ ‹9,©¯›°¯«’µ±bMUž$%°%]—Ÿž _±—§ž$R›Š ²’¡%=ž$$K›ª®
Ê
R›Š©¯›° H¯8¯¢L%«§ž%’µ‹ž%bR£Už$2¦%š%£Ÿš  5£’%¢I—¢²ž%1ž$_±—¦®
Ê Ê
 $H¯8¯¢L%«§ž$¨›°¤ž B’ µ‹ž%bR£Už$¨›0¤ž$H¯8¯¢L%«§ž$¨›°¤ž%£Ÿš ¬]±—¦
Ê
³Kž$ µ‹ž%bR£Už$¨›0¤ž ®%¢I—¢%§ª­%§Ÿ‹8  XÁ$ ²’²ž%1ž$_±—¦¯ª³Kž$
Ê
%±ž%0%§ª­%§Ÿ‹8  XÁ$²’ ¥I—£ž$_±—¦¯ª

5(9(56(&2175$',&7,21
6(&7,217+,57<),9(

5HYHUVH &RQWUDGLFWLRQ
$NV DQ1DTHHG 
Š DV H[SODLQHG E\ WKH HDUO\ ORJLFLDQV LV SXWWLQJ
Š † Š†
WKHFRQWUDGLFWLRQRIWKH$WWULEXWH DO0DKPXO LQWKHSODFHRIWKH6XEMHFW DO0DXGX
DQG
SXWWLQJWKHFRQWUDGLFWLRQRIWKH6XEMHFWLQWKHSODFHRIWKH$WWULEXWHZKHUHDVWKHUHYHUVH
FRQWUDGLFWLRQFRQIRUPVWRWKHRULJLQDO DO$VO LQWUXWKIDOVHKRRGSRVLWLYHDQGQHJDWLYH

)RU H[DPSOH (YHU\ KXPDQ LV DQ DQLPDO LWV FRQWUDGLFWRU\ FRQYHUVLRQ LV (YHU\
QRQDQLPDO LV QRQKXPDQ 7KHQ WKH QRQDQLPDO ZKLFK LV WKH FRQWUDGLFWLRQ RI WKH
$WWULEXWH LQ WKH RULJLQDO ZH SXW LW DV WKH 6XEMHFW 7KH QRQKXPDQ ZKLFK ZDV WKH
FRQWUDGLFWLRQRIWKH6XEMHFWLQWKHRULJLQDOZHSXWLVDVWKH$WWULEXWH

64
6XFK LV WKH FRQGLWLRQ LQ WKH FRQWUDGLFWRU\ FRQYHUVLRQ IRU FRQGLWLRQDO SURSRVLWLRQV E\
PDNLQJWKHIRUPHUFRQWUDGLFWLRQWKHODWWHUDQGPDNLQJWKHODWWHUFRQWUDGLFWLRQWKHIRUPHU
)RUH[DPSOH:KHQHYHUWKHVXQKDVULVHQWKHGD\H[LVWV7KHUHYHUVHRILWVFRQWUDGLFWLRQ
LV :KHQHYHUWKHGD\GLGQ
WH[LVWWKHVXQGLGQRWULVH7KHQ 7KHGD\GLGQ
WH[LVWLVWKDW
ZKLFKWKHFRQWUDGLFWLRQZDVWKHODWWHULQWKHRULJLQDOZHPDGHLWKHUHWKHIRUPHU7KHVXQ
GLGQRWULVH LVWKDWZKLFKLVWKHFRQWUDGLFWLRQRIWKHIRUPHULQWKHRULJLQDOZHPDGHLWKHUH
WKHODWWHU

µ9=ž$¥%Q–&
   Y’
 Y“ž$²’M¢%£š¡¯«9¢˜°IY0¶ž* X¯0²1ž$µ¢¯Ÿ‹£ž$3%—°IY1ž$¯ª® µ9=ž$ 
 S%±—ž$ ®  ±5£1ž$ ®¸ $M—1PÅ$ ¥%Q–&µ4À4¶ŸŠ  
²’Z=“1°©&¶§‹£,²Ÿ›ž$¡%<¶ŸŠ3%±¹O9ž$¡%=ž$¨¢¡¿I1PÅ$¯ª ¸$M—1PÅ$ 
$Kª ¬±’ ²Ÿ›ž$  ©& ¶ŸŠ œžJ ¨¢ ¡I1Q±’ [¯YE¢ ¸²T %«Ÿš ²’ ·M±’ 3%±¹O9ž$
Ê
%º±T©®M-›°®©¯£§°¤ª%§°&M’ ©%Q¦Å$ H$M’&%§Y=“0¯ž%¢ 5¢[¯YE£ž$¸²Už$
Ê
²¢%¦²Ÿ›ž$ ©%Q¦Å$ ©&¶ŸŠœžJ¨¢¡I1Q§’%º±U’
 ¡À<·M9ž$  5¢MD( ²¹O8 ¡%<¨¢ ²¹O9ž$ ¡%<¶ŸŠ¡¿I1PÅ$¯ª  ±5£1ž$ 
¡À<œ£Qž$®œ£Qž$ 5¢¬¦Á
 5¢ ²¹O9ž$ ¡%<¶ŸŠ ²Ÿ›ž$ ¡%<¨¢¡¿I1PÅ$¯ª˜Ô§£ž$ ª&I§Š S%±—ž$ 
˜b%¦©$¯±<©%Q¦Å$®©%Q¦Æž²¹O8¬¦Á ˜b%¦©$¯±<I°N 
',9,6,2162)(9,'(1&(
6(&7,217+,57<6,;

(YLGHQFH  DO+XMMDK 
Š LV WKH NQRZQ $IILUPDWLRQV DW7DVGHHTDW 
Š † ZKLFK OHDGV WR WKH
†–
XQNQRZQ $IILUPDWLRQV DV KDV SDVVHG LQ 6HFWLRQ )LYH LW LV RI WKUHH W\SHV DO,VWLTUD
†
DW7DPWKHHODQGDO4L\DV

65
†– †
 ,QGXFWLRQ DO,VWLTUD LVGHGXFLQJIURPWKHVWDWHRIWKH'LYLVLYH&RQFHSWV DO-X]LDW WKH
VWDWH RI WKH 8QLYHUVDO &RQFHSW LQ WKH PHDQLQJ WKDW VWXG\ RI WKH 'LYLVLYH &RQFHSWV ZLOO
VKRZ VRPHWKLQJ SDUWLFXODU LQ LWV 8QLYHUVDO &RQFHSW 7KHQ LW  FDQ EH GHGXFHG WKDW WKH
8QLYHUVDO&RQFHSWKDVLQLWWKLVSDUWLFXODUWKLQJ)RUH[DPSOHLIZHVWXG\WKHPHPEHUVRI
WKH KXPDQ ZH VHH WKHP JURZLQJ DQG EHFRPLQJ  ELJJHU OLWWOH E\ OLWWOH :H FDQ GHGXFH
IURPWKDWWKDWWKH8QLYHUVDO&RQFHSW WKHKXPDQ LVJURZLQJ 1DPL  †

  $QDORJ
RJ\
\ DW7DPWKHHO LVGHGXFLQJIURPWKHVWDWHRIWKH'LYLVLYH&RQFHSWWKHVWDWHRI
RWKHU'LYLVLYH&RQFHSWV)RUH[DPSOH7KH-DUD DW\SHRIILVK LVODZIXOEHFDXVHLWLVOLNH
ILVKDQGILVKDUHODZIXO

  6\OORJ † ZLWK WKH VFKRODUV RI ORJLF LV GHGXFLQJ IURP WKH VWDWH RI WKH
RJLVP  DO4L\DV 
8QLYHUVDO &RQFHSW WKH VWDWH RI WKH 'LYLVLYH &RQFHSW OLNH =DLG LV D UDWLRQDO DQLPDO
EHFDXVHKHLVD'LYLVLYH&RQFHSW RUVXEVHW RIWKHKXPDQDQGWKHKXPDQLVDUDWLRQDO
DQLPDO

¸$M—1PÅ$
   Y’
¨±£Q–¶ŸŠ ¸$M—1PÅ$ 
®ŒÔ—ž$I±“°$Kª®¸%§51P*À,3%±¹O9ž$Œ±£8¡%<Z=“0¯ª®¥%1ž$¸$M—1PÅ$¡®Á$
©',¤Ÿ‹ž$%§ž Y=±’¯£§0%ª%§°&M’ ©%Q¦Å$ H$M’&Œ±£8¡%<%§Y=“0¯ž%£š¨±—±ž$
²¢%¦ ©%Q¦Å$ 
µ°%Ž ,ŒÔ—ž$I±“°¿$Kª®3%±¹O9ž$_‹,¡%<Z=“0¯ª®Z–%§ž$¸$M—1PÅ$²¦%5ž$
®µ°M=-ž$®µ°M-ž$3%¦$¯±=ž$H$M’&¨¢M±5š¡%<%§Y=“0¯ž%£š¨‡ž$I±“°¬¦&¨›£°%¢
Œ±£8©',¨‡ž$ Y=±’„—’ “PÁ$%«›’M=0 šÁ$¡%<%ª%§°&M’%ªM±Ž®L¯±Ôž$
Ê
©+’ ¡%5£ž$ $Kª ²’ %£š %=±=X ©¯›° ¿ I–  ›ž$ ¶ŸŠ ¤›=ž$ ©Á œžKš 3%¦$¯±=ž$
 šÁ$¡%<²’„—’¶ŸŠÁ$¬›’M=°³M=,©$¯±<¯ª® C%Q£1ž$ 

66
†– 
,1'8&7,21 ,67,45$ 
6(&7,217+,57<6(9(1

,QGXFWLRQLVRIWZRNLQGV

)LUVW &RPSOHWH ,QGXFWLRQ DO,VWLTUD †– DW7DPP 


† ,W LV H[SORULQJ WKH VWDWH RI DOO RI WKH
'HYLVLYH&RQFHSWV RUVXEVHWV ZLWKRXWH[FHSWLRQWKLVJLYHVVXUHW\DQGFHUWDLQW\-XVWDV
LI ZH H[SORUHG WKH VWDWH RI DOO RI WKH PHPEHUV RI WKH KXPDQ WKHQ ZH VHH WKDW DUH
JURZLQJ7KHQZHREWDLQWKHNQRZOHGJHWKDWWKHKXPDQLVJURZLQJ 1DPL  †

†– DQ1DTLV 
6HFRQG 'HIHFWLYH ,QGXFWLRQ DO,VWLTUD † Š ,W LV H[SORULQJ WKH VWDWH RI VRPH WKH
'LYLVLYH&RQFHSWV7KLVGRHVQRWEULQJVXUHW\UDWKHUWKHXWPRVWRIWKDWZKLFKLVSRVVLEOH
WKDW LW FDQ SURGXFH LV DQ DVVXPSWLRQ =DQQ 
Š DV LI ZH H[SORUH WKH VWDWH RI PDQ\ RI WKH
PHPEHUVRIWKHWHUUHVWULDOVHDDQGDLUDQLPDOVDQGRWKHUV:HVHHWKHPLQWKHVWDWHRI
HDWLQJPRYLQJWKHLUORZHUMDZRQO\:HFDQUHDFKDQDVVXPSWLRQWKDWDOODQLPDOVDUHDV
VXFK 6RPHWLPHV WKH GHWHUPLQDWLRQ +XNP 
Š XSRQ WKH ZKROH LV LQFRUUHFW DV LW LV LQ WKLV
H[DPSOH7KHFURFRGLOHLVDVHDDQLPDORQO\PRYLQJKLVXSSHUMDZLQWKHVWDWHRIHDWLQJ

 ±5£1ž$
   Y’
©%šL&µ‹,L&¬ž  ±5£1ž$ 
 ¤›=ž$  Œ¢%9ž$  M“ž$   XÁ$ 
²’ H¯8¯¢ ¯ª ® L%›PÅ$ ¯ª M£Ež$ µ¢M< µŸŠ ® ¥$M< M£Ež$ ©Á ¥$M< K±-§ž$  5¢
 µ¢M=ž ®Œ¢%9ž$¯ª L%›PÅ$ ®M“ž$¯ª K±-§ž$ ® XÁ$¯ª M£Ež$ B’ K±-§ž$
¤›=ž$¯ª
Ê
¤ŸŠ® XÁ$²’¤›=ž$µŸŠ¤ŸŠ%£±’M“ž$²’¤›=ž$3%-4Å%--P©¯›°%£¦* ±5£1ž$®
¬ž XÁ$¤›<3¯-4¨ŠM“ž$²’Œ¦%£ž$¥IŠ¤ŸŠ®M“ž$µŸ‹ž$œŸ0H¯8®

67
Ê
¤ž®& XÁ$²’¤›=ž$µŸŠ¤Ÿ‹°¤ž©',$H¯—“¢µ4À5ž$…®MUž$­KªI<&©%š$J*%¢&
¬ž XÁ$¤›<3¯-4¨ŠM“ž$²’Œ¦%£ž$¥IŠ¤Ÿ‹°¤ž®&M“ž$²’µŸ‹ž$œŸ0H¯8®¤Ÿ‹°
Ê Ê
²’²£P®M“ž$¶ž* XÁ$¨¢¤›=ž$·I‹1ž%--P©¯›°¿®%=±=X ±5£1ž$R±Ÿ’
Ê Ê
µ±¢ÀPÅ$µ‹°MUž$²’%¢M=¢%P%±– ¡¯XÁ$ ® ¬—“ž$ 

$1$/2*< 7$07+((/  
6(&7,217+,57<(,*+7

$QDORJ\ 7DPWKHHO KDVIRXUSLOODUV

 7KHURRW DO$VO
Š  7KHEUDQFK DO)DU


†
 7KHFRQMXQFWLRQ DO-DPL
 7KHGHWHUPLQDWLRQ DO+XNP 
Š
([DPSOH 1  DEHH]K LV SURKLELWHG EHFDXVH ZLQH LV SURKLELWHG 7KH UHDVRQ RI WKH
SURKLELWLRQRIZLQHLVLQWR[LFDWLRQDQGLW LQWR[LFDWLRQ H[LVWVLQ1DEHH]

:LQH WKHQ LV WKH URRW DO$VO 


Š 1DEHH]K LV WKH EUDQFK DO)DU
 ,QWR[LFDWLRQ LV WKH
†
FRQMXQFWLRQ DO-DPL
DQGSURKLELWLRQLVWKHGHWHUPLQDWLRQRUUXOLQJ DO+XNP 
Š
7KH DQDORJ\ LV D UHDVRQ IRU WKH HVWDEOLVKPHQW RI WKH UXOLQJ LQ WKH EUDQFK LQ WKDW WKH
UHDVRQZDVNQRZQLQWKHURRWDQGWKHH[LVWHQFHRIWKLVUHDVRQLQWKHEUDQFKLVNQRZQDQG
WKHODFNRIDQLPSHGLPHQWIRUWKHEUDQFKDJDLQVWHVWDEOLVKLQJWKHUXOLQJRIWKHURRWLVQRW
NQRZQ

5HJDUGLQJ ZKHQ RQH RI WKHVH WKUHH FRQGLWLRQV DUH QRW IRXQG LQ WKDW WKH UHDVRQ RI WKH
UXOLQJLQWKHURRWLVQRWNQRZQRUWKHH[LVWHQFHRIWKDWUHDVRQLVQRWNQRZQIRUWKHEUDQFK
RUWKHODFNRIDQLPSHGLPHQWLQWKHEUDQFKDJDLQVWWKHHVWDEOLVKPHQWRIWKHUXOLQJIRUWKH
URRWLVQRWNQRZQWKHQWKHDQDORJ\LVQRWFRUUHFWDQGWKHUHLVQRFDXVHIRUFRQYH\LQJWKH
UXOLQJRI WKHURRWWRWKHEUDQFK,WLVFDOOHGLQ,VODPLF-XULVSUXGHQFH DO)LTK DQGLQWKH
Š† †
3ULQFLSOHVRI-XULVSUXGHQFH DO8VXO DSURKLELWHGV\OORJLVP 4L\DV0XKDUUDP 
Š

68
S%±—ž$¥%Q–&
   Y’
¥%Q–&µ4À4¶ŸŠ S%±—ž$ 
µ9±1§ž$_±—¦®&µ9±1§ž$R“¦¬0%¢I—¢²’MšJ³Kž$¯ª®²¹%§51PÅ$S%±—ž$¡®Á$
 5¢%«-ŸP³&
Ê
%¦%Q¦*$Kª©%š©*
©$¯±<¯«’
©%Q¦*¬§›ž
©$¯±<¯«’µ9±1§ž$
 Bžµ¢I—£ž$²’%«Q“§,CMXI–µ9±1§ž%’
 5¢®
Ê
%¦%Q¦*$Kª©%š©*
©$¯±<¯«’
©$¯±=,R±ž¬§›ž
©%Q¦+,R±ž¯«’µ9±1§ž$
$Kª²£P%£¦*®  Bžµ¢I—£ž$²’  ©%Q¦*$Kª  ¯ª ® %«]±—¦ CMX I– µ9±1§ž%’
 ¨›ž ²ª®¸%§51PÅ$´$H&¶ŸŠ¬ž%£1TÅ ²¹%§51PÅ$ B,S%±—ž$

69
%«]±—¦¿®µ9±1§ž$R“¦¬0%¢I—¢²’MšK°¤ž³Kž$¯ª®²¦$M1–Å$S%±—ž$²¦%5ž$
 5¢
©%Q¦*$Kª
¤Q8©%Q¦* š®
¤Q8$K«’µ9±1§ž$
 ²¦$M1–* Bž%,S%±—ž$$Kª²£P%£¦*®¨±1¢I—£ž$²’%«]±—¦¿®²ªMšK0¤žµ9±1§ž%’
¨±1¢I—£ž$¨±,Œ£9ž$ ®$® ¶ŸŠ¬ž%£1TÅ
²’®%Q¢®M£Š ® ®M£‹ž¡¯Ôž$²’®%Q¢I°N  5¢¯ª®´$®%Q£ž$S%±–6ž%5ž$
¿*R±ž ´$®%Q£ž$S%±– µ±£Q0® M–%-ž¡¯Ôž$²’®%Q¢I°N :1§° M–%-ž¡¯Ôž$
Ê
%]°&³®%Q1ž$M±Ž²’³M9°¯«’¿*® ®%Q¢ ˆ“ž¬±’©%š®¬ž 5¢¡%5¢¡®',µ±£Q0
   Y“ž$²’²0'±P%£š

',9,6,2162)7+(6<//2*,60
6(&7,217+,57<1,1(

7KHV\OORJLVPLVRIWKUHHNLQGV

)LUVW 7KH ([FOXVLRQDU\


\ 6\OORJLVP DO4L\DV †– ,W LV WKDW ZKLFK PHQWLRQV LQ LWV
† DO,VWLWKQDL 
SUHPLVH WKH UHVXOW LWVHOI RU WKH RSSRVLWH 1DTHHG Š RI WKH UHVXOW LQ RWKHU ZRUGV LWV
QHJDWLRQ)RUH[DPSOH

,IWKLVLVDKXPDQ

7KHQLWLVDQDQLPDO

+RZHYHULWLVDKXPDQ

7KHUHVXOW 1DWHHMDK ,WLVDQDQLPDO

70
7KHUHVXOW 1DWHHMDK FODULILHVLWVHOILQSUHPLVHQXPEHUWZR

([DPSOH

,IWKLVLVDKXPDQ
7KHQLWLVDQDQLPDO
+RZHYHULWLVQRWDQDQLPDO
7KHUHVXOW 1DWHHMDK 7KHQLWLVQRWDKXPDQ

7KHUHVXOWFODULILHVLWVRSSRVLWHDQGLWLV WKLVKXPDQLQSUHPLVHQXPEHU7KLVV\OORJLVP
†
LVFDOOHGH[FOXVLRQDU\GXHWRLWVLQFOXVLRQRIWKHSDUWLFOHRIH[FHSWLRQLHEXW /DNLQ 
† †
6HFRQG 7KH&RXSOHG6\OORJLVP DO4L\DVDO,TWLUDQL ,WLVWKDWV\OORJLVPZKLFKGRHVQRW
PHQWLRQWKHUHVXOWLQLWVSUHPLVHQRULWVRSSRVLWH)RUH[DPSOH

7KLVLVDKXPDQ
$QGHYHU\KXPDQLVDERG\
7KHUHVXOW 1DWHHMDK 7KHQWKLVLVDERG\
7KHUHVXOWLVQRWPHQWLRQHGQRULWVRSSRVLWHLQWKHWZRSUHPLVHV7KLVV\OORJLVPLVFDOOHG
†
&RXSOHG ,TWLUDQL  GXH WR LWV LQFOXVLRQ RI WKH FRQMXQFWLRQ  DQG FRPELQLQJ WKH WZR
SUHPLVHV

† † †
7KLUG7KH(TXDWLRQDO6\OORJLVP DO4L\DVDO0XVDZDK 

,WLVIRUH[DPSOH

=DLGLVHTXDOLQKHLJKWWR
$PU

†
$PULVHTXDOLQKHLJKWWR%DTLU

†
7KHUHVXOW=DLGLVHTXDOLQKHLJKWWR%DTLU

7KHQDPLQJRI(TXDWLRQDO6\OORJLVPLVRQO\GXHWKHILUVWH[DPSOHKDYLQJDVLPLODULW\DQG
KDYLQJWKHZRUGHTXDOLQLW2WKHUZLVHLWZRXOGDSSO\WRWKHXQHTXDODVZHOODVZLOOFRPH
LQ6HFWLRQ)RUW\6HYHQ

71
²¦$M1–Å$S%±—ž$
   Y’
¨±£Q–¶ŸŠ²¦$M1–Å$S%±—ž$
„—’µ±Ÿ£=ž$%°%]—ž$¨¢.šM£ž$¯ª®²Ÿ£=ž$
L%Y1DÅ$ 8Á®µ±Ÿ£=ž$®µ±bMUž$®&µ±bMUž$%°%]—ž$¨¢.šM£ž$¯ª®²bMUž$
„—’ ²Ÿ£=ž$ MšK,MY1—¦·I1-£ž$¨ªJ¨Š ²bMUž$ I‹,®
 5¢²Ÿ£=ž$²¦$M1–Å$S%±—ž$®

¨±1¢I—¢¶ŸŠ £1U¢S%±—ž$$K«’
·MYž$ ¶£Q0©%Q¦*$Kª²ª®¶ž®Á$
·M-›ž$ ¶£Q0¤Q8©%Q¦* š²ª®²¦%5ž$
 ©%Q¦* ® $Kª ²ª® H®I=ž$ ¶£Q03%£Ÿš7À4¶ŸŠ©%1Ÿ£1U¢©%1¢I—£ž$©%0%ª®
 ¤Q8 ®
 MXÁ$ ¶£Q0 $Kª ²§Š&„—’¶ž®Á$µ¢I—£ž$²’²1ž$µ£Ÿ›ž%’
 M-šÁ$ ¶£Q0 ¤Q8 ³&„—’µ±¦%5ž$µ¢I—£ž$²’²1ž$µ£Ÿ›ž$
72
 „P®Á$ ¶£Q0 ©%Q¦* ³&¨±1¢I—£ž$²’3LM›0²1ž$µ£Ÿ›ž$
Ê Ê
¿¯£=¢ M-šÁ$ ®%Š¯\¯¢ MXÁ$ M±Y°® „P®Á$ „—Q°S%±—ž$ µ9±1¦ ²’®
%£¦*®©%Q¦Å$¯ª® „P®Á$ ¬±’R±ž ¤Q8$Kª µ9±1§ž$©+’˜,%Qž$¡%5£ž$²’%£š
 M-š& ²¦%5ž$® MX& ¡®Á$® ¤Q8 ® $Kª ¬±’

7+(&283/('6<//2*,60
† † 
$/4,<$6$/,47,5$1, 
6(&7,21)257<

7KHFRXSOHGV\OORJLVPLVRIWZRNLQGV

$WWULEXWLYH DO+DPDOL LWLVFRPSRVHGRI$WWULEXWLYH3URSRVLWLRQVRQO\


Š
&RQGLWLRQDO DVK6KDUWL 
Š LW LV FRPSRVHG RI &RQGLWLRQDO 3URSRVLWLRQV RU
&RQGLWLRQDODQG$WWULEXWLYHSURSRVLWLRQV

)RUWKHVDNHRIFRQFLVHQHVVLQWKHPLQGRIWKHEHJLQQHUDIWHUPHQWLRQLQJWKH&RQGLWLRQDO
6\OORJLVP DVK6KDUWL ZHZLOOOLPLWPHQWLRQWRRQO\WKH$WWULEXWLYH6\OORJLVP
Š
7KH$WWULEXWLYH&RXSOHG6\OORJLVP

7KH3UHPLVHV
 7KLVLVDKXPDQ
 $QGHYHU\KXPDQLVDERG\
7KHUHVXOW7KLVWKHQLVDERG\
7KLVV\OORJLVPLQFOXGHVWZRSUHPLVHV

)LUVW7KLVLVDKXPDQ,WLVFDOOHGWKH0LQRU3UHPLVH DV6XJKUD 
Š Š
6HFRQG(YHU\KXPDQLVDERG\,WLVFDOOHGWKH0DMRU3UHPLVH DO.XEUD 
Š †
7KHVHWZRSUHPLVHVLQFOXGHWKUHHZRUGVFDOOHGWKH7HUPV DO+XGXG DQGWKH\DUH 7KLV
KXPDQ DQG ERG\ 7KH ZRUG ZKLFK LV LQ WKH ILUVW SUHPLVH RQO\ PHDQLQJ 7KLV LV FDOOHG
7KH0RUH0LQRU3UHPLVH DO$VJKDU 
Š

73
7KHZRUGZKLFKLVRQO\LQWKHVHFRQGSUHPLVHLQRWKHUZRUGV ERG\LVFDOOHGWKH0RUH
0DMRU 3UHPLVH DO$NEDU  7KH ZRUG ZKLFK LV UHSHDWHG LQ WKH WZR SUHPLVHV LQ RWKHU
ZRUGV KXPDQLVFDOOHGWKH0HGLDQ DO$XVDW ,QWKHUHVXOWWKH0HGLDQLVGURSSHG7KH
Š
0RUH 0LQRU 3UHPLVH EHFRPHV WKH 6XEMHFW 0DXGX
 Š† DQG WKH 0RUH 0DMRU 3UHPLVH
Š †
EHFRPHV WKH$WWULEXWH 0DKPXO $VLQWKH SUHFHGLQJH[DPSOHWKHFRQFOXVLRQWKLVLVD
ERG\GRHVQRWKDYHLQLWWKH0HGLDQ KXPDQ ,WRQO\KDV WKLV DQG ERG\7KHILUVWLVWKH
0RUH0LQRU3UHPLVHDQGWKHVHFRQGWKH0RUH0DMRU3UHPLVH

µ‹,LÁ$¡%›TÁ$
   Y’
©%›T&µ‹,L&¶ŸŠ²Ÿ£=ž$²¦$M1–Å$
Ê Ê
%Š¯\¯¢® ·MYž$ ¶ž®Á$µ¢I—£ž$²’¿¯£=¢ „P®Á$ M±Y°©&¡®Á$ ›Už$
 5¢ ·M-›ž$ µ±¦%5ž$µ¢I—£ž$²’
·MX ©%Q¦*$Kª
·M-š ¤Q8©%Q¦* š®
µ9±1¦ ¤Q8$K«’
Ê Ê
 ·M-›ž$ ²’%Š¯\¯¢® ·MYž$ ²’¿¯£=¢L%X „P®Á$ ¯ª³Kž$©%Q¦Å%’
Ê
 5¢¨±1¢I—£ž$%1Ÿš²’¿¯£=¢ „P®Á$ M±Y°©&²¦%5ž$ ›Už$
·MX ©$¯±<©%Q¦* š
·M-š ©$¯±=,M9=ž$¨¢¸²T¿®
µ9±1¦ M9=,©%Q¦Å$¨¢¸²TÀ’

74
Ê
¨±1¢I—£ž$%1Ÿš²’¿¯£=¢L%X „P®Á$ ¯ª³Kž$©$¯±=ž%’
Ê
 5¢¨±1¢I—£ž$%1Ÿš²’%Š¯\¯¢ „P®Á$ M±Y°©&6ž%5ž$ ›Už$
·MX ©$¯±<©%Q¦* š
·M-š ˜b%¦©%Q¦* š®
µ9±1¦ ˜b%¦©$¯±=ž$_-’
Ê
¨±1¢I—£ž$%1Ÿš²’%Š¯\¯¢L%X „P®Á$ ¯ª³Kž$©%Q¦Å%’
Ê Ê
¿¯£=¢® ·MYž$ ¶ž®Á$µ¢I—£ž$²’%Š¯\¯¢ „P®Á$ M±Y°©&Œ,$Mž$ ›Už$
 5¢ ·M-›ž$ µ±¦%5ž$µ¢I—£ž$²’
·MX ©$¯±<©%Q¦* š
·M-š ©%Q¦*˜b%¦ š®
µ9±1¦ ˜b%¦©$¯±=ž$_‹-’
Ê Ê
µ±¦%5ž$²’¿¯£=¢®¶ž®Á$µ¢I—£ž$²’%Š¯\¯¢L%X „P®Á$ ¯ª³Kž$©%Q¦Å%’
†
7+()285),*85(6 $/$6+.$/$/$5%$


6(&7,21)257<21(

7KH$WWULEXWLYH&RXSOHG6\OORJLVPDUHRIIRXUIRUPVRUILJXUHV

)LJX
JXUH 2QH WKDW WKH 0HGLDQ DO$XVDW 
Š EHFRPHV WKH $WWULEXWH LQ WKH ILUVW SUHPLVH
Š†
DV6XJKUD DQGWKH6XEMHFW 0DXGX
LQWKHVHFRQGSUHPLVH DO.XEUD ([DPSOH
Š Š
7KLVLVDKXPDQ 0LQRU3UHPLVH 
$QGHYHU\KXPDQLVDERG\ 0DMRU3UHPLVH 
7KHQWKLVLVDERG\ &RQFOXVLRQ 

75
7KHUHIRUHWKHKXPDQZKLFKLVWKH0HGLDQEHFRPHVWKH$WWULEXWHLQWKH0LQRU3UHPLVH
DQGWKH6XEMHFWLQWKH0DMRU3UHPLVH

JXUH7ZRWKDWWKH0HGLDQEHFRPHVWKH$WWULEXWHLQERWKSUHPLVHVIRUH[DPSOH
)LJX

(YHU\KXPDQLVDQDQLPDO 0LQRU3UHPLVH 
$QGQRURFNLVDQDQLPDO 0DMRU3UHPLVH 
7KHQ1RKXPDQLVDURFN &RQFOXVLRQ 
7KHDQLPDOWKHQLVWKDWZKLFKLVWKH0HDQLWEHFRPHVWKH$WWULEXWHLQERWKSUHPLVHV

)LJX
JXUH7KUHHWKDWWKH0HGLDQEHFRPHVWKH6XEMHFWLQERWKSUHPLVHVIRUH[DPSOH

(YHU\KXPDQLVDQDQLPDO 0LQRU3UHPLVH 
$QGHYHU\KXPDQLVUDWLRQDO 0DMRU3UHPLVH 
7KHQVRPHDQLPDOVDUHUDWLRQDO &RQFOXVLRQ 

7KHQWKHKXPDQLVWKDWZKLFKLVWKH0HDQLWEHFRPHVWKH6XEMHFWLQERWKSUHPLVHV

)LJX
JXUH)RXUWKDWWKH0HGLDQEHFRPHVWKH6XEMHFWLQWKHILUVWSUHPLVHDQGWKH$WWULEXWHLQ
WKHVHFRQG3UHPLVHIRUH[DPSOH

(YHU\KXPDQLVDQDQLPDO 0LQRU3UHPLVH 

$QGHYHU\UDWLRQDOEHLQJLVDKXPDQ 0DMRU3UHPLVH 

7KHQVRPHDQLPDOVDUHUDWLRQDO &RQFOXVLRQ 

7KHKXPDQWKHQLVWKDWZKLFKLVWKH0HGLDQLWEHFRPHVWKH6XEMHFWLQWKHILUVWSUHPLVH
DQGWKH$WWULEXWHLQWKHVHFRQGSUHPLVH

76
¡®Á$ ›UŸž…®MT
   Y’
® µ=±=X µ9±1§ž$  ©¯›0 ¶1< ²Š$M0 ©& .9° …®MT µ‹,LÁ$ ¡%›TÁ$ ­Kª ¨¢  ›ž
µ–H%X
Ê
® ·MX  ¶ž®Á$ µ¢I—£ž$ ²’ ¿¯£=¢ ¬±’ „P®Á$  ©%š ³Kž$ ¡®Á$  ›Už%’
Ê
 ·M-›ž$ µ±¦%5ž$µ¢I—£ž$²’%Š¯\¯¢
µ±¹O8 ®& µ±Ÿš 2¦%š ¸$¯P µ-8¯¢ ·MYž$  ¶ž®Á$ µ¢I—£ž$ ©¯›0 ©& ¬±’ …M1U°
µ-ž%P¥&µ-8¯¢2¦%š¸$¯Pµ±Ÿš ·M-›ž$ µ±¦%5ž$µ¢I—£ž$
µ‹,L&µ=±=Yž$¬¢%Q–'’
 5¢µ±Ÿšµ-8¯¢µ9±1§ž$©¯›1’¨±1±Ÿš¨±1-8¯¢¨±1¢I—£ž$©¯š
·MX ©$¯±<©%Q¦* š
·M-š S%Q<©$¯±< š®
µ9±1¦ S%Q<©%Q¦* ›’
µ±Ÿšµ-8¯¢ ·M-›ž$ µ±¦%5ž$µ¢I—£ž$µ±¹O8µ-8¯¢ ·MYž$ ¶ž®Á$µ¢I—£ž$©¯š
 5¢µ±¹O8µ-8¯¢µ9±1§ž$©¯›1’
·MX ©%Q¦*©$¯±=ž$_‹,
·M-š ˜b%¦©%Q¦* š®
µ9±1¦ ˜b%¦©$¯±=ž$_-’
77
µ±Ÿšµ-ž%P ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±Ÿšµ-8¯¢ ·MX ¶ž®Á$µ¢I—£ž$©¯š
 5¢µ±Ÿšµ-ž%Pµ9±1§ž$©¯›1’
·MX ©$¯±<©%Q¦* š
·M-š M9=,©$¯±=ž$¨¢¸²T¿®
µ9±1¦ M9=,©%Q¦Å$¨¢¸²TÀ’
µ±Ÿšµ-ž%P ·M-›ž$ µ±¦%5ž$µ¢I—£ž$µ±¹O8µ-8¯¢ ·MYž$ ¶ž®Á$µ¢I—£ž$©¯š
 5¢µ±¹O8µ-ž%Pµ9-1§ž$©¯›1’
·MX ©%Q¦*©$¯±=ž$_‹,
·M-š SM“,©%Q¦Å$¨¢¸²T¿®
Ê
µ9±1¦ %PM’©$¯±=ž$_‹,R±Ÿ’
® µ±¹O9ž$µ-8¯£ž$ ® µ±Ÿ›ž$µ-8¯£ž$ Œ,LÁ$3$L¯Y=£ž$:1§° ¡®Á$ ›Už$ B’©J*
 µ±¹O9ž$µ-ž%Qž$ ® µ±Ÿ›ž$µ-ž%Qž$ 
&21',7,2162)7+(),567),*85(
6(&7,21)257<7:2

)RUHDFKRIWKHVH)RXU)LJXUHVDUHFRQGLWLRQVWKDWPXVWEHREVHUYHGXQWLOWKHFRQFOXVLRQ
LVFRUUHFWDQGWUXH

7KH )LUVW )LJXUH WKDW ZKLFK WKH 0HGLDQ LQ LW LV DQ$WWULEXWH LQ WKH ILUVW SUHPLVH DQG WKH
6XEMHFW LQ WKH VHFRQG SUHPLVH ,W LV FRQGLWLRQDO LQ LW WKDW WKH ILUVW SUHPLVH LV SRVLWLYH
ZKHWKHU LW EH D 8QLYHUVDO &RQFHSW RU 'LYLVLYH &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
8QLYHUVDO&RQFHSWZKHWKHULWEHSRVLWLYHRUQHJDWLYH,WVSURSHUW\SHVDUHIRXU

  7KH UHDOLW\ RI WKH WZR SUHPLVHV DUH SRVLWLYH 8QLYHUVDO &RQFHSWV 7KH &RQFOXVLRQ
WKHQLVDSRVLWLYH8QLYHUVDO&RQFHSWIRUH[DPSOH

78
(YHU\KXPDQLVDQDQLPDO 0LQRU3UHPLVH 

$QGHYHU\DQLPDOLVVHQVXRXV 0DMRU3UHPLVH 

7KHQHYHU\KXPDQLVVHQVXRXV &RQFOXVLRQ 

 7KHUHDOLW\RIWKHILUVWSUHPLVHLVDSRVLWLYH'LYLVLYH&RQFHSWDQGWKHVHFRQGSUHPLVHLV
D SRVLWLYH 8QLYHUVDO &RQFHSW7KHQ WKH &RQFOXVLRQ LV D SRVLWLYH 'LYLVLYH &RQFHSW )RU
H[DPSOH

6RPHDQLPDOVDUHKXPDQ 0LQRU3UHPLVH 

$QGHYHU\KXPDQLVUDWLRQDO 0DMRU3UHPLVH 

7KHQVRPHDQLPDOVDUHUDWLRQDO &RQFOXVLRQ 

 7KHUHDOLW\RIWKHILUVWSUHPLVHLVDSRVLWLYH8QLYHUVDO&RQFHSWDQGWKHVHFRQGSUHPLVH
LVDQHJDWLYH8QLYHUVDO&RQFHSWWKHQWKH&RQFOXVLRQLVDQHJDWLYH8QLYHUVDO&RQFHSW
IRUH[DPSOH

(YHU\KXPDQLVDQDQLPDO 0LQRU3UHPLVH 

$QGQRDQLPDOLVDURFN 0DMRU3UHPLVH 

7KHQQRKXPDQLVDURFN &RQFOXVLRQ 

 7KHUHDOLW\RIWKHILUVWSUHPLVHLVDSRVLWLYH'LYLVLYH&RQFHSWDQGWKHVHFRQGSUHPLVH
LVDQHJDWLYH8QLYHUVDO&RQFHSWWKHQWKH&RQFOXVLRQLVDQHJDWLYH'LYLVLYH&RQFHSWIRU
H[DPSOH

6RPHDQLPDOVDUHKXPDQ 0LQRU3UHPLVH 

$QGQRKXPDQLVDKRUVH 0DMRU3UHPLVH 

7KHQVRPHDQLPDOVDUHQRWKRUVHV &RQFOXVLRQ 

ŠŠ† † DO$UED
 7KH
7KHUHIRUH WKH )LUVW )LJXUH UHVXOWV LQ WKH )RXU 4XDQWLILHUV DO0DKVXUDW
SRVLWLYH 8QLYHUVDO &RQFHSW WKH SRVLWLYH 'LYLVLYH &RQFHSW WKH QHJDWLYH 8QLYHUVDO
&RQFHSWDQGWKHQHJDWLYH'LYLVLYH&RQFHSW

79
²¦%5ž$ ›UŸž…®MT
   Y’
Ê
©¯›0©&¨±1¢I—£ž$²’ ¿¯£=¢ ¬±’ „P®Á$  Œ—° ³Kž$ ²¦%5ž$ ›Už$ ²’ …M1U°
²’©%1¢I—£ž$”Ÿ1E0©&®µ-ž%P¥&µ-8¯¢2¦%š¸$¯Pµ±Ÿš ·M-›ž$ µ±¦%5ž$µ¢I—£ž$
$K«ž µ=±=Yž$ ¥%Q–Á$ ® ¨±1-8¯¢ ¿ ® ¨±1-ž%P ©%¦¯›0 ¿ ©', .ŸQž$ ® /%9°Å$
Ê
µ‹,L&%]°& ›Už$
µ±Ÿšµ-ž%P ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±Ÿšµ-8¯¢ ·MYž$ ¶ž®Á$µ¢I—£ž$©¯š
 5¢µ±Ÿšµ-ž%Pµ9±1§ž$©¯›1’
·MX ©$¯±<©%Q¦* š
·M-š ©$¯±=,M9=ž$¨¢¸²T¿®
µ9±1¦ M9=,©%Q¦Å$¨¢¸²TÀ’
µ±Ÿšµ-8¯¢ ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±Ÿšµ-ž%P ·MYž$ ¶ž®Á$µ¢I—£ž$©¯š
Ê
 5¢µ±Ÿšµ-ž%P%]°&µ9±1§ž$©¯›1’
·MX ©$¯±=,M9=ž$¨¢¸²T¿
·M-š ©$¯±<©%Q¦* š®
µ9±1¦ M9=,©%Q¦Å$¨¢¸²TÀ’

80
µ-ž%P ·M-›ž$  µ±¦%5ž$ µ¢I—£ž$ µ±¹O8 µ-8¯¢ ·MX  ¶ž®Á$ µ¢I—£ž$ ©¯›0 ©& 
 5¢µ±¹O8µ-ž%Pµ9±1§ž$©¯›1’µ±Ÿš
·MX ©%Q¦*©$¯±=ž$_‹,
·M-š ©%Q¦+,SM“ž$¨¢¸²T¿®
µ9±1¦ SM“,©$¯±=ž$_‹,R±Ÿ’
µ-8¯¢ ·M-›ž$  µ±¦%5ž$ µ¢I—£ž$ µ±¹O8 µ-ž%P ·MX  ¶ž®Á$ µ¢I—£ž$ ©¯›0 ©& 
 5¢µ±¹O8µ-ž%Pµ9±1§ž$©¯›1’µ±Ÿš
·MX ©%Q¦+,©$¯±=ž$_‹,R±ž
·M-š ©%Q¦*˜b%¦ š®
 µ9±1¦ ˜b%§,©$¯±=ž$_‹,R±Ÿ’
Ê
$I,&µ-8¯¢¬19±1¦©¯›0¿®µ±¹O8®&µ±Ÿšµ-ž%Qž$:1§°²¦%5ž$ ›Už%’©J*

&21',7,2162)7+(6(&21'),*85(
6(&7,21)257<7+5((

&RQGLWLRQDOLQWKH6HFRQG)LJXUHWKDWZKLFKRFFXUVDVWKH0HGLDQLQWKHV\OORJLVPLVWKH
$WWULEXWHLQWKHWZRSUHPLVHVWKDWWKHVHFRQGSUHPLVHLVD8QLYHUVDO&RQFHSWZKHWKHULW
EHSRVLWLYHRUQHJDWLYHWKDWWKHWZRSUHPLVHVGLIIHULQSRVLWLYLW\DQGQHJDWLYLW\LQWKDWERWK
FDQQRWEHQHJDWLYHQRUERWKSRVLWLYH7KHSURSHUGLYLVLRQVRIWKLV)LJXUHDUHDOVRIRXU

  7KH UHDOLW\ RI WKH ILUVW SUHPLVH DV6XJKUD 


Š LV D SRVLWLYH 8QLYHUVDO &RQFHSW DQG WKH
VHFRQG SUHPLVH DO.XEUD  LV D QHJDWLYH 8QLYHUVDO &RQFHSW7KH FRQFOXVLRQ WKHQ LV D
QHJDWLYH8QLYHUVDO&RQFHSWIRUH[DPSOH

(YHU\KXPDQLVDQDQLPDO 0LQRU3UHPLVH 

81
$QGQRURFNLVDQDQLPDO 0DMRU3UHPLVH 

7KHQQRKXPDQLVDURFN &RQFOXVLRQ 

  7KH UHDOLW\ RI WKH ILUVW SUHPLVH LV D QHJDWLYH 8QLYHUVDO &RQFHSW DQG WKH VHFRQG
SUHPLVH LV D SRVLWLYH 8QLYHUVDO &RQFHSW 7KH FRQFOXVLRQ LV DOVR D QHJDWLYH 8QLYHUVDO
&RQFHSWIRUH[DPSOH

1RURFNLVKXPDQ 0LQRU3UHPLVH 

$QGHYHU\KXPDQLVDQDQLPDO 0DMRU 

7KHQQRKXPDQLVDURFN &RQFOXVLRQ 

   7KDW WKH ILUVW SUHPLVH LV D SRVLWLYH 'LYLVLYH &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
QHJDWLYH8QLYHUVDO&RQFHSW7KHFRQFOXVLRQLVDQHJDWLYH'LYLVLYH&RQFHSWOLNH

6RPHDQLPDOVDUHKXPDQ 0LQRU3UHPLVH 

$QGQRKRUVHLVKXPDQ 0DMRU3UHPLVH 

7KHQVRPHDQLPDOVDUHQRWKRUVHV &RQFOXVLRQ 

  7KDW WKH ILUVW SUHPLVH LV D QHJDWLYH 'LYLVLYH &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
SRVLWLYH8QLYHUVDO&RQFHSW7KHFRQFOXVLRQZLOOEHDQHJDWLYH'LYLVLYH&RQFHSWOLNH

6RPHDQLPDOVDUHQRWKXPDQ 0LQRU3UHPLVH 

$QGHYHU\UDWLRQDOEHLQJLVDKXPDQ 0DMRU3UHPLVH 

7KHQVRPHDQLPDOVDUHQRWUDWLRQDO &RQFOXVLRQ 

7KHUHIRUH WKH VHFRQG ILJXUH FRQFOXGHV LQ WKH QHJDWLYH EH LW  8QLYHUVDO &RQFHSW RU
'LYLVLYH&RQFHSW,WVFRQFOXVLRQLVQHYHUSRVLWLYH

82
6ž%5ž$ ›UŸž…®MT
   Y’
Ê
µ¢I—£ž$©¯›0©&¬bMT¨±1¢I—£ž$²’%Š¯\¯¢¬±’ „P®Á$ Œ—°³Kž$6ž%5ž$ ›Už$
µ-8¯¢µ±Ÿš¨±1¢I—¢·I<*©¯›°®µ±¹O8¥&µ±Ÿš2¦%š¸$¯Pµ-8¯¢ ·MX ¶ž®Á$
:1§0µ4À4®µ±¹O8µ-8¯¢:1§0µ4À4µ1P ›Už$$K«žµ=±=Yž$¥%Q–Á$®µ-ž%P¥&
µ±¹O8µ-ž%P
 5¢µ±¹O8µ-8¯¢µ9±1§ž$©¯›1’¨±1±Ÿš¨±1-8¯¢©%1¢I—£ž$©¯›0©&
·MX ©$¯±<©%Q¦* š
·M-š ˜b%¦©%Q¦* š®
µ9±1¦ ˜b%¦©$¯±=ž$_‹-’
µ-8¯¢ ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±¹O8µ-8¯¢ ·MYž$ ¶ž®Á$µ¢I—£ž$©¯›0©&
Ê
 5¢µ±¹O8µ-8¯¢%]°&µ9±1¦©¯›1’µ±Ÿš
·MX _±,&©%Q¦Å$_‹,
·M-š ©$¯±<©%Q¦* š®
µ9±1¦ ©$¯±<_±,Á$_‹-’
µ-8¯¢ ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±Ÿšµ-8¯¢ ·MYž$ ¶ž®Á$µ¢I—ž$©¯›0©&
Ê
 5¢µ±¹O8µ-8¯¢%]°&µ9±1§ž$©¯›1’µ±¹O8
·MX S%Q<©$¯±< š
·M-š ©%Q¦*©$¯±=ž$_‹,®
µ-9±1¦ ©%Q¦*S%Q=ž$_‹-’

83
µ-ž%P ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±Ÿšµ-8¯¢ ·MYž$ ¶ž®Á$µ¢I—£ž$©¯›0©&
 5¢µ±¹O8µ-ž%Pµ9±1§ž$©¯›1’µ±Ÿš
·MX ©$¯±<©%Q¦* š
·M-š SM“,©%Q¦Å$¨¢¸²T¿®
µ9±1¦ SM“,©$¯±=ž$_‹,R±Ÿ’
µ-ž%P ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±¹O8µ-8¯¢ ·MYž$ ¶ž®Á$µ¢I—£ž$©¯›0©&
Ê
 5¢µ±¹O8µ-ž%P%]°&µ9±1§ž$©¯›1’µ±Ÿš
·MX _±,&©%Q¦Å$_‹,
·M-š M9=,©%Q¦Å$¨¢¸²T¿®
µ9±1¦ M9=,_±,Á$_‹,R±Ÿ’
µ-ž%P ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±Ÿšµ-8¯¢ ·MYž$ ¶ž®Á$µ¢I—£ž$©¯›0©&
Ê
 5¢µ±¹O8µ-ž%P%]°&µ9±1§ž$©¯›1’µ±¹O8
·MX S%Q<©$¯±< š
·M-š SM“,©$¯±=ž$_‹,R±ž®
µ9±1¦ SM“,S%Q=ž$_‹,R±Ÿ’
Ê
$I,&µ±ŸšM±Y0¿®µ-ž%P®µ-8¯¢µ±¹O8¬19±1¦©¯›06ž%5ž$ ›Už%’©J*

84
&21',7,216)257+(7+,5'),*85(
6(&7,21)257<)285

Š†
7KH7KLUG)LJXUHLVWKDWLQZKLFKWKH0HGLDQRFFXUVDVWKH6XEMHFW 0DXGX
LQWKHILUVW
WZRSUHPLVHV,WVFRQGLWLRQLVWKDWWKHILUVWSUHPLVHEHSRVLWLYHZKHWKHULWEHD8QLYHUVDO
&RQFHSW RU 'LYLVLYH &RQFHSW DQG WKDW RQH RILWV WZR SUHPLVHV EH D 8QLYHUVDO &RQFHSW
SRVLWLYH RU QHJDWLYH 7KH SURSHU GLYLVLRQV RI WKLV )LJXUH DUH VL[ WKUHH FRQFOXGLQJ LQ D
SRVLWLYH'LYLVLYH&RQFHSWDQGWKUHHFRQFOXGLQJLQDQHJDWLYH'LYLVLYH&RQFHSW

  7KDW WKH WZR SUHPLVHV DUH SRVLWLYH 8QLYHUVDO &RQFHSW 7KH FRQFOXVLRQ LV D SRVLWLYH
'LYLVLYH&RQFHSWOLNH

(YHU\KXPDQLVDQDQLPDO 0LQRU3UHPLVH 

$QGHYHU\KXPDQLVUDWLRQDO 0DMRU3UHPLVH 

7KHQVRPHDQLPDOVDUHUDWLRQDO &RQFOXVLRQ 

  7KDW WKH ILUVW SUHPLVH LV D SRVLWLYH 'LYLVLYH &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
SRVLWLYH8QLYHUVDO&RQFHSW7KHFRQFOXVLRQZLOOEHDSRVLWLYH'LYLVLYH&RQFHSWDOVR)RU
H[DPSOH

6RPHKXPDQVDUHZKLWH 0LQRU3UHPLVH 

$QGHYHU\KXPDQLVDQDQLPDO 0DMRU3UHPLVH 

7KHQVRPHZKLWHWKLQJVDUHDQLPDOV &RQFOXVLRQ 

  7KDW WKH ILUVW SUHPLVH LV D SRVLWLYH 8QLYHUVDO &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
SRVLWLYH'LYLVLYH&RQFHSWWKHFRQFOXVLRQWKHQZLOOEHDSRVLWLYH'LYLVLYH&RQFHSWOLNH

(YHU\DQLPDOLVVHQVXRXV 0LQRU3UHPLVH 

$QGVRPHDQLPDOVDUHKXPDQ 0DMRU3UHPLVH 

7KHQVRPHVHQVXRXVEHLQJVDUHKXPDQ &RQFOXVLRQ 

  7KDW WKH ILUVW SUHPLVH LV D SRVLWLYH 8QLYHUVDO &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
QHJDWLYH8QLYHUVDO&RQFHSW7KHFRQFOXVLRQZLOOEHDQHJDWLYH'LYLVLYH&RQFHSWOLNH

85
(YHU\KXPDQLVDQDQLPDO 0LQRU3UHPLVH 

1RKXPDQLVDKRUVH 0DMRU3UHPLVH 

7KHQVRPHDQLPDOVDUHQRWDKRUVH &RQFOXVLRQ 

  7KDW WKH ILUVW SUHPLVH LV D SRVLWLYH 'LYLVLYH &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
QHJDWLYH 8QLYHUVDO &RQFHSW7KH FRQFOXVLRQ WKHQ LV D QHJDWLYH 'LYLVLYH &RQFHSW DOVR
/LNH

6RPHKXPDQVDUHZKLWH 0LQRU3UHPLVH 

$QGQRKXPDQLVDURFN 0DMRU3UHPLVH 

7KHQVRPHZKLWHVDUHQRWURFNV &RQFOXVLRQ 

   7KDW WKH ILUVW SUHPLVH LV D SRVLWLYH 8QLYHUVDO &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
QHJDWLYH 'LYLVLYH &RQFHSW 7KH FRQFOXVLRQ WKHQ ZLOO EH D QHJDWLYH 'LYLVLYH &RQFHSW
DOVR)RUH[DPSOH

(YHU\DQLPDOLVVHQVXRXV 0LQRU3UHPLVH 

$QGVRPHDQLPDOVDUHQRWDKRUVH 0DMRU3UHPLVH 

7KHQVHQVXRXVEHLQJVDUHDKRUVH &RQFOXVLRQ 

7KH7KLUG)LJXUH
VFRQFOXVLRQWKHUHIRUHLVD'LYLVLYH&RQFHSWSRVLWLYHDQGQHJDWLYH,W
GRHVQ
WHYHUEHFRPHDQ8QLYHUVDO&RQFHSW

86
Œ,$Mž$ ›UŸž…®MT
   Y’
Ê
® ·MYž$ ¶ž®Á$µ¢I—£ž$²’%Š¯\¯¢¬±’ „P®Á$ ©%š³Kž$¯ª®Œ,$Mž$ ›Už$
Ê
µ9±1¦ :1§° ¶1< ¨±bMT ¨¢ I<$® ¬±’ ¥OŸ°  ·M-›ž$  µ±¦%5ž$ µ¢I—£ž$ ²’ ¿¯£=¢
µ=±=X
2¦%š ¸$¯P µ±Ÿš ·MYž$  ¶ž®Á$ µ¢I—£ž$ ® ¨±1-8¯¢ ©%1¢I—£ž$ ©¯›0 ©& ¡®Á$
Ê
µ±¹O8¥&µ±Ÿš%]°&·MDÁ$
Ê
%£«’À1D*®¿¥&µ±Ÿš%]°&·MDÁ$2¦%š¸$¯Pµ±Ÿš¨±1¢I—£ž$·I<*©¯›0©&²¦%5ž$
.ŸQž$®/%9°Å$²’
Ê
µ±¦%£4 ›Už$$K«žµ=±=Yž$¥%Q–Á$2¦%š$H¯8¯¢¨±bMUž$¨°KªI<&©%š$J+’
 5¢µ±¹O8µ-8¯¢µ9±1§ž$©¯›1’¨±1±Ÿš¨±1-8¯¢©%1¢I—£ž$©¯›0©&
·MX ©$¯±<©%Q¦* š
·M-š ©%Q¦*˜b%¦ š®
µ9±1¦ ˜b%¦©$¯±=ž$_‹-’
µ-8¯¢ ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±Ÿšµ-8¯¢ ·MYž$ ¶ž®Á$µ¢I—£ž$©¯›0©&
Ê
 5¢µ±¹O8µ-8¯¢%]°&µ9±1§ž$©¯›1’µ±¹O8

87
·MYž$ ©$¯±<©%Q¦* š
·M-š ©%Q¦*_±,Á$_‹,®
µ9±1¦ _±,&©$¯±=ž$_‹-’
¡®Á$…MUž$2=0©ÀD$H©%£Q—ž$©$Kª®
µ-8¯¢ ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±Ÿšµ-ž%P ·MYž$ ¶ž®Á$µ¢I—£ž$©¯›0©&
 5¢µ±Ÿšµ-ž%Pµ9±1§ž$©¯›1’µ±Ÿš
·MX M9=,©$¯±=ž$¨¢¸²T¿
·M-š ©$¯±<©%Q¦* š®
µ9±1¦ M9=,©%Q¦Å$¨¢¸²TÀ’
µ±Ÿšµ-ž%P ·M-š µ±¦%5ž$µ¢I—£ž$®µ±Ÿšµ-8¯¢ ·MX ¶ž®Á$µ¢I—£ž$©¯›0©&
 5¢µ±¹O8µ-ž%Pµ9±1§ž$©¯›1’
·MX ©$¯±<©%Q¦* š
·M-š ©%Q¦+,SM“ž$¨¢¸²T¿®
µ9±1¦ SM“,©$¯±=ž$_,R±Ÿ’
µ-ž%P ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±¹O8µ-8¯¢ ·MYž$ ¶ž®Á$µ¢I—£ž$©¯›0©&
Ê
 5¢µ±¹O8µ-ž%P%]°&µ9±1§ž$©¯›1’µ±Ÿš

88
·MX _±,&©$¯±=ž$_‹,
·M-š ©$¯±=,M9=ž$¨¢¸²T¿®
µ9±1¦ M9=,_±,Á$_‹,R±Ÿ’
µ-8¯¢ ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±¹O8µ-ž%P ·MYž$ ¶ž®Á$µ¢I—£ž$©¯›0©&
Ê
 5¢µ±¹O8µ-ž%P%]°&µ9±1§ž$©¯›1’µ±Ÿš
·MX _±,',©%Q¦Å$_‹,R±ž
·M-š ©%Q¦*˜b%¦ š®
µ9±1¦ ˜b%§,_±,Á$_‹,R±Ÿ’
µ-ž%P ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±Ÿšµ-8¯¢ ·MYž$ ¶ž®Á$µ¢I—£ž$©¯›0©&
Ê
 5¢µ±¹O8µ-ž%P%]°&µ9±1§ž$©¯›1’µ±¹O8
·MX ©$¯±<©%Q¦* š
·M-š ©%Q¦+,_±,Á$_‹,R±ž®
µ9±1¦ ©$¯±=,_±,Á$_‹,R±Ÿ’
µ-8¯¢ ·M-›ž$ µ±¦%5ž$µ¢I—£ž$®µ±Ÿšµ-ž%P ·MYž$ ¶ž®Á$µ¢I—£ž$©¯›0©&
Ê
 5¢µ±¹O8µ-ž%P%]°&µ9±1§ž$©¯›1’µ±¹O8
·MX M9=,©%Q¦Å$¨¢¸²T¿
·M-š ©%Q¦*_±,Á$_‹,®
µ9±1¦ ©%Q¦+,_±,Á$_‹,R±Ÿ’
89
©%1“Ÿ1E¢©%1¢I—£ž$%«§¢ š²“’²¦%5ž$…MUž$2=0µŸD$H´M±DÁ$µ1Qž$¥%Q–Á$­Kª®
µ±Ÿš%£ª$I<*®.ŸQž$®/%9°Å%,

&21',7,2162)7+()2857+),*85(
6(&7,21)257<),9(

,WLVWKDWV\OORJLVPZKRVH0HGLDQLQLWLVWKH6XEMHFWLQWKHILUVWSUHPLVHDQGWKH$WWULEXWH
LQWKHVHFRQGSUHPLVH2QHRIWZRFRQGLWLRQVDUHUHTXLUHGXQWLOLWVFRQFOXVLRQVLVSURSHU

)LUVW 7KDW WKH WZR SUHPLVHV DUH SRVLWLYH WKH ILUVW SUHPLVH LV D 8QLYHUVDO &RQFHSW
ZKHWKHUWKHRWKHULVD8QLYHUVDO&RQFHSWDOVRRUD'LYLVLYH&RQFHSW

6HFRQG7KDW RQHRIWKH WZR SUHPLVHV DUH D8QLYHUVDO &RQFHSWZKHWKHU WKH RWKHULV D
8QLYHUVDO&RQFHSWRUQRWDQGWKH\ERWKGLIIHULQEHLQJSRVLWLYHDQGQHJDWLYH7KHQZKHQ
RQHRIWKHVHWZRFRQGLWLRQVDUHIRXQGWKHSURSHUGLYLVLRQVIRUWKLV)LJXUHDUHHLJKW

  7KDW WKH WZR SUHPLVHV DUH SRVLWLYH 8QLYHUVDO &RQFHSWV DQG WKH FRQFOXVLRQ ZLOO EH
SRVLWLYH'LYLVLYH&RQFHSWOLNH

(YHU\KXPDQLVDQDQLPDO 0LQRU3UHPLVH 

$QGHYHU\UDWLRQDOEHLQJLVDKXPDQ 0DMRU3UHPLVH 

7KHQVRPHDQLPDOVDUHUDWLRQDO &RQFOXVLRQ 

   7KDW WKH ILUVW SUHPLVH LV D SRVLWLYH 8QLYHUVDO &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
SRVLWLYH'LYLVLYH&RQFHSW7KHFRQFOXVLRQZLOODOVREHDSRVLWLYH'LYLVLYH&RQFHSWOLNH

(YHU\KXPDQLVDQDQLPDO 0LQRU3UHPLVH 

$QGVRPHZKLWHVDUHKXPDQ 0DMRU3UHPLVH 

7KHQVRPHDQLPDOVDUHZKLWH &RQFOXVLRQ 

  7KDW WKH ILUVW SUHPLVH LV DQHJDWLYH 8QLYHUVDO &RQFHSW DQGWKHVHFRQG SUHPLVHLV D
SRVLWLYH 8QLYHUVDO &RQFHSW 7KH FRQFOXVLRQ LV D QHJDWLYH 8QLYHUVDO &RQFHSW )RU
H[DPSOH

1RKXPDQLVDURFN 0LQRU3UHPLVH 

90
$QGHYHU\KXPDQLVDQDQLPDO 0DMRU3UHPLVH 

7KHQQRKXPDQLVDURFN &RQFOXVLRQ 

   7KDW WKH ILUVW SUHPLVH LV D SRVLWLYH 8QLYHUVDO &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
QHJDWLYH 8QLYHUVDO &RQFHSW WKH FRQFOXVLRQ WKHQ ZLOO EH D QHJDWLYH 'LYLVLYH &RQFHSW
OLNH

(YHU\KXPDQLVDQDQLPDO 0LQRU3UHPLVH 

$QGQRKRUVHLVDKXPDQ 0DMRU3UHPLVH 

7KHQVRPHDQLPDOVDUHQRWDKRUVH &RQFOXVLRQ 

   7KDW WKH ILUVW SUHPLVH LV D SRVLWLYH 'LYLVLYH &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
QHJDWLYH 8QLYHUVDO &RQFHSW WKH FRQFOXVLRQ WKHQ ZLOO EH D QHJDWLYH 'LYLVLYH &RQFHSW
DOVR)RUH[DPSOH

6RPHDQLPDOVDUHZKLWH 0LQRU3UHPLVH 

$QGQRURFNLVDQDQLPDO 0DMRU3UHPLVH 

7KHQVRPHZKLWHWKLQJVDUHQRWDURFN &RQFOXVLRQ 

   7KDW WKH ILUVW SUHPLVH LV D QHJDWLYH 'LYLVLYH &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
SRVLWLYH 8QLYHUVDO &RQFHSW WKH FRQFOXVLRQ DOVR ZLOO EH D QHJDWLYH 'LYLVLYH &RQFHSW
OLNH

6RPHKXPDQVDUHQRWZKLWH 0LQRU3UHPLVH 

$QGHYHU\UDWLRQDOEHLQJLVDKXPDQ 0DMRU3UHPLVH 

7KHQVRPHZKLWH WKLQJV DUHQRWUDWLRQDO &RQFOXVLRQ 

 7KDWWKHILUVWSUHPLVHEHDSRVLWLYH8QLYHUVDO&RQFHSWDQGWKHVHFRQGSUHPLVHEHD
QHJDWLYH 'LYLVLYH &RQFHSW 7KH FRQFOXVLRQ WKHQ ZLOO EH D QHJDWLYH 'LYLVLYH &RQFHSW
OLNH

91
(YHU\KXPDQLVDQDQLPDO 0LQRU3UHPLVH 

6RPHZKLWHWKLQJVDUHQRWKXPDQ 0DMRU3UHPLVH 

7KHQVRPHZKLWHWKLQJVDUHQRWDQDQLPDO &RQFOXVLRQ 

   7KH WKH ILUVW SUHPLVH LV D QHJDWLYH 8QLYHUVDO &RQFHSW DQG WKH VHFRQG SUHPLVH LV D
SRVLWLYH'LYLVLYH&RQFHSWWKHQWKHFRQFOXVLRQZLOOEHQHJDWLYH'LYLVLYH&RQFHSWOLNH

1RKXPDQLVDURFN 0LQRU3UHPLVH 

$QGVRPHZKLWHWKLQJVDUHKXPDQ 0DMRU3UHPLVH 

7KHQVRPHZKLWHWKLQJVDUHQRWDKXPDQ &RQFOXVLRQ 

7KHVH ODVW VL[ VHFWLRQV HQWHU XQGHU WKH VHFRQG FRQGLWLRQ ,Q HDFK RI WKH WZR SUHPLVHV
WKH\GLIIHULQEHLQJSRVLWLYHDQGQHJDWLYHDQGRQHRIWKHWZRLVD8QLYHUVDO&RQFHSW

92
¬¢%Q–&®²¹%§51PÅ$S%±—ž$
   Y’
¨±£Q–¶ŸŠ   Y“ž$²’­%§‹¢¶]¢I–®²¹%§51PÅ$S%±—ž$
R“¦¶§51P*$J+’µ±¢®OžµŸY1¢µ±bMUž$µ¢I—£ž$¬±’©%š³Kž$¯ª®²ž%Y0Å$¡®Á$
 5¢ ²ž%1ž$ R“¦µ9±1§ž$2¦%š ¥I—£ž$ 
Ê
¥I—£ž$ %¦%Q¦*$Kª©%š©*
Ê
²ž%1ž$ %¦$¯±<©%š
¥I—£ž$R“¦¸%§51P*Œ\® ©%Q¦*¬§›ž
µ9±1§ž$ ©$¯±<¯«’
 5¢ ¥I—£ž$ _±—¦µ9±1§ž$2¦%š ²ž%1ž$ _±—¦¶§51P*$J*®
Ê
¥I—£ž$ %¦%Q¦*$Kª©%š©*
Ê
²ž%1ž$ %¦$¯±<©%š
²ž%1ž$_±—¦¸%§51P* ©$¯±=,R±ž¬§›ž
µ9±1§ž$ ©%Q¦+,R±ž¯«’
Ê
 5£’%º±T:1§°À’ ¥I—£ž$ _±—¦¸%§51P*%¢&
Ê
¥I—£ž$ %¦%Q¦*$Kª©%š©*
Ê
²ž%1ž$ %¦$¯±<©%š
93
²’ ¡%—° ©& ?Y° ¿ ¬¦Á ¬ž µ9±1¦ ¿ ¥I—£ž$ _±—¦ ¸%§51P*  ©%Q¦+, R±ž ¬§›ž
Ê Ê
SM“ž%š%¦$¯±<©¯›°®%¦%Q¦*¸²Už$©¯›°¿I–¬¦Á ©$¯±=,R±ž¯«’ µ9±1§ž$
Ê
 5£’%º±T:1§°¿ ²ž%1ž$ R“¦¸%§51P*œžKš®
Ê
¥I—£ž$ %¦%Q¦*$Kª©%š©*
Ê
²ž%1ž$ %¦$¯±<©%š
²ž%1ž$R“¦¸%§51P* ©$¯±<¬§›ž
Ê
¬¦&2-5°¿%¦$¯±<¬¦¯š©Á ©%Q¦*¯«’ ¬19±1¦²’¡%—°©&?Y°¿J*¬žµ9±1¦¿
SM’¬Ÿ‹Ÿ’©%Q¦*
¶ŸŠ²ª®µŸY“§¢µ±bMUž$µ±]—ž$¬±’©%š³Kž$¯ª® ²ž%Y“¦Å$ ²¦%5ž$¤Q—ž$
$¯¦&µ4À4
® MDÃ$ _±—¦ :1§° ¨±’MԞ$ I<& R“¦ ¸%§51P+’  µ±—±—<  µ±bMUž$ ©¯›0 ©& ¡®Á$
 5¢µ‹,L&¬9¹%1§’MDÃ$R—¦:1§°¨±’MԞ$I<&_±—¦¸%§51P*

¥I—£ž$R“¦¸%§51P* ;®N¬§›ž
²ž%1ž$_±—¦²ª®µ9±1§ž$ HM“,R±Ÿ’

94
²ž%1ž$R“¦¸%§51P* HM’¬§›ž
¥I—£ž$_±—¦²ª®µ9±1§ž$ ;®O,R±Ÿ’
¥I—£ž$_±—¦¸%§51P* ;®O,R±ž¬§›ž
²ž%1ž$R“¦²ª®µ9±1§ž$ HM’¯«’
²ž%1ž$_±—¦¸%§51P* HM“,R±ž¬§›ž
¥I—£ž$R“¦²ª®µ9±1§ž$ ;®N¯«’
•MԞ$_±—¦:1§°¨±’MԞ$I<&R“¦¸%§51P+’ Œ£9ž$µ‹¦%¢ µ±bMUž$©¯›0©&²¦%5ž$
 5¢©%§4*¬9¹%1§’MDÃ$

²ž%1ž$R“¦¸%§51P* M9<¬§›ž
¥I—£ž$_±—¦²ª®µ9±1§ž$ M9U,R±Ÿ’
MDÃ$•MԞ$R“¦:1§°À’¨±’MԞ$I<&_±—¦¸%§51P*%¢&
Ê Ê
$M9<¿®$M9T©¯›°¿I–J* M9<¯«’ ¶ŸŠ¡I°¿M9U,R±ž¬§›ž ±–¯Ÿ’
%§Ÿ–%£ž M9T¯«’¶ŸŠ¡I°¿ M9=,R±ž¬§›ž ±–¯ž®
•MԞ$R“¦:1§°¨±’MԞ$I<&_±—¦¸%§51P+’ ¯ŸEž$µ‹¦%¢ µ±bMUž$©¯›0©&6ž%5ž$
Ê
 5¢©%§4*%]°&¬9¹%1§’MDÃ$
¥I—£ž$ ¸%£ž$²’I°N%¢*
²ž%1ž$ ™M°¿©$%¢*®
¥I—£ž$_±—¦¸%§51P* ¸%£ž$²’R±ž¬§›ž
²ž%1ž$R“¦²ª®µ9±1§ž$ ™M°À’
²ž%1ž$_±—¦¸%§51P* ™M°¬§›ž
¥I—£ž$R“¦²ª®µ9±1§ž$ ¸%£ž$²’¯«’
95
Ê
¬¦&¶ŸŠ¡I°À’ ¸%£ž$²’¬§›ž  ±–¯Ÿ’%º±T:1§°À’¨±’MԞ$I<&¸%§51P*%¢&
¸%£ž$²’¬¦&¶ŸŠ¡I°À’ ™M°¿¬§›ž  ±–¯žœžKš®µ9±1¦À’™M°¿®&™M°
Ê
%]°&µ9±1¦À’¸%£ž$;L%D²’®&

(;&/86,21$5<6<//2*,60$1',76',9,6,216
6(&7,21)257<6,;

7KH H[FOXVLRQDU\ V\OORJLVP LWV PHDQLQJ KDV SDVVHG LQ 6HFWLRQ 7KLUW\ 1LQH LV RI WZR
W\SHV

Š† ,W LV WKDW V\OORJLVP ZKLFK KDV LQ WKH FRQGLWLRQDO SUHPLVH D
)LUVW &RQMXQFWLYH DO,WWLVDOL 
PDQGDWRU\FRQMXQFWLRQ:KHQWKHH[FOXVLRQLWVHOILVWKH SUHPLVH LWVHOIWKH&RQFOXVLRQLV
†
LWVHOIWKH&RQVHTXHQW DW7DOL OLNH

96
,IWKLVLVDKXPDQ 7KH3UHPLVH 

,WLVDQDQLPDO 7KH&RQVHTXHQW 

+RZHYHULWLVDKXPDQ 7KHH[FOXVLRQLVSODFHGDVWKHSUHPLVHLWVHOI 

7KHQLWLVDQDQLPDO 7KHFRQFOXVLRQ 

:KHQ WKH H[FOXVLRQ LV WKH RSSRVLWH 1DTHHG 


Š RI WKH &RQVHTXHQW WKH &RQFOXVLRQ LV
RSSRVLWHRIWKHSUHPLVHOLNH

,IWKLVLVDKXPDQ 7KH3UHPLVH 

,WLVDQDQLPDO 7KH&RQVHTXHQW 

+RZHYHULWLVQRWDQDQLPDO 7KHH[FOXVLRQLVWKHRSSRVLWHRIWKH&RQVHTXHQW 

7KHQLWLVQRWKXPDQ 7KH&RQFOXVLRQ 

5HJDUGLQJWKHH[FOXVLRQRIWKHRSSRVLWH RIWKH3UHPLVHWKHQQRWKLQJLVFRQFOXGHGIRU
H[DPSOH

,IWKLVLVDKXPDQ 7KH3UHPLVH 

,WLVDQDQLPDO 7KH&RQVHTXHQW 

+RZHYHULWLVQRWKXPDQ ([FOXVLRQRIWKH3UHPLVH 

7KHUHLVQRFRQFOXVLRQIRULWEHFDXVHLWLVQRWSURSHULQWKHFRQFOXVLRQWREHVDLG7KHQLW
LVQRWDQDQLPDOEHFDXVHVRPHWLPHVVRPHWKLQJLVQRWKXPDQDQGLWLVDQDQLPDOOLNHD
KRUVH /LNHZLVH LV WKH H[FOXVLRQ RI WKH &RQVHTXHQW LWVHOI FRQFOXGHV LQ QRWKLQJ IRU
H[DPSOH

,IWKLVLVDKXPDQ 7KH3UHPLVH 

,WLVDQDQLPDO WKH&RQVHTXHQW 

+RZHYHULWLVDQDQLPDO ([FOXVLRQRIWKH&RQVHTXHQWLWVHOI 

7KHUH LV QR FRQFOXVLRQ IRU LW ZKHQ LW LV QRW SURSHU WR VD\ LQ LWV FRQFOXVLRQ 7
 KHQ LW LV D
KXPDQEHFDXVHRILWVEHLQJDQDQLPDOLWLVQRWHVWDEOLVKHGWKDWLVDKXPDQSHUKDSVLWLV
DKRUVH

97
Š†
6HFRQG ,QGHSHQGHQW DO,QILVDOL  ,W LV WKDW V\OORJLVP ZKLFK KDV DQ LQGHSHQGHQW
FRQGLWLRQDOSURSRVLWLRQLQLW,WLVRIWKUHHW\SHV

)LUVW7KDWWKHFRQGLWLRQ DVK6KDUW LVWUXH +DTHHTL\\DK WKHQWKHH[FOXVLRQRIRQH


Š Š
RIWKHWZRVLGHVFRQFOXGHVLQWKHRSSRVLWHRIWKHRWKHU7KHH[FOXVLRQRIWKHRSSRVLWH
RIRQHRIWKHWZRVLGHVFRQFOXGHVLQWKHRSSRVLWHRIWKHRWKHU,WVFRQFOXVLRQVDUHIRXU
IRUH[DPSOH

(LWKHUWKLVQXPEHULVHYHQ 7KH3UHPLVH6LGHRQH 

(LWKHULWLVRGG 7KH&RQVHTXHQW6LGHWZR 

 +RZHYHULWLVHYHQ ([FOXVLRQRIWKH3UHPLVHLWVHOI 

7KHQLWLVQRWRGG 7KH&RQFOXVLRQ,WLVWKHRSSRVLWHRIWKH&RQVHTXHQW 

 +RZHYHULWLVRGG 7KH([FOXVLRQRIWKH&RQVHTXHQWLWVHOI 

7KHQLWLVQRWHYHQ 7KH&RQFOXVLRQ,WLVWKHRSSRVLWHRIWKH3UHPLVH 

 +RZHYHULWLVQRWHYHQ ([FOXVLRQRIWKHRSSRVLWHRIWKH3UHPLVH 

7KHQLWLVRGG 7KH&RQFOXVLRQ,WLVWKH&RQVHTXHQWLWVHOI 

 +RZHYHULWLVQRWRGG ([FOXVLRQRIWKHRSSRVLWHRIWKH&RQVHTXHQW 

7KHQLWLVHYHQ 7KH&RQFOXVLRQLVWKH3UHPLVHLWVHOI 

6HFRQG7KDWWKHFRQGLWLRQLVDQREVWDFOHWRMRLQLQJ7KH([FOXVLRQWKHQLVRQHRIWKH
WZRVLGHVFRQFOXGLQJLQWKHRSSRVLWHRIWKHRWKHUVLGH,WVFRQFOXVLRQVWKHQDUHWZR)RU
H[DPSOH
(LWKHUWKLVWKLQJLVDWUHH 7KH3UHPLVH6LGHRQH 
(LWKHULWLVDVWRQH 7KH&RQVHTXHQW6LGHWZR 
 +RZHYHULWLVDWUHH ([FOXVLRQRIWKH3UHPLVHLWVHOI 
7KHQLWLVQRWDVWRQH 7KH&RQFOXVLRQ,WLVWKHRSSRVLWHRIWKH
&RQVHTXHQW 
 +RZHYHULWLVDVWRQH ([FOXVLRQRIWKH&RQVHTXHQWLWVHOI 
7KHQLWLVQRWDWUHH 7KH&RQFOXVLRQ,WLVWKHRSSRVLWHRIWKH3UHPLVH 

5HJDUGLQJWKH([FOXVLRQRIWKHRSSRVLWHRIRQHRIWKHWZRVLGHVLWGRHVQRWFRQFOXGHLQ
WKHRWKHUVLGHLWVHOI,ILWLVVDLG+RZHYHULWLVQRWDWUHHLWGRHVQRWLQGLFDWH7KHQLWLVD
98
VWRQHZKHQVRPHWLPHVLWLVDWUHHDQGQRWDVWRQH,ILWLVVDLG+RZHYHULWLVQRWDVWRQH
LWGRHVQRWLQGLFDWHWKDW7KHQLWLVDWUHHDVZHKDYHVDLG

7KLUG7KDW WKH FRQGLWLRQ EH DQ REVWDFOH RI YRLG7KHQ WKH ([FOXVLRQ RI RQH RI WKH WZR
VLGHVFRQFOXGHVLQWKHRWKHUVLGHLWVHOI,WVFRQFOXVLRQVWKHQDUHDOVRWZR

(LWKHU=DLGLVLQWKHZDWHU 7KH3UHPLVH 

(LWKHUKHLVQRWGURZQLQJ 7KH&RQVHTXHQW 

 +RZHYHUKHLVQRWLQWKHZDWHU ([FOXVLRQRIWKH3UHPLVHLWVHOI 

7KHQKHLVQRWGURZQLQJ 7KH&RQFOXVLRQ,WLVWKH&RQVHTXHQWLWVHOI 

 +RZHYHUKHLVGURZQLQJ ([FOXVLRQRIWKH&RQVHTXHQW 

7KHQKHLVLQWKHZDWHU 7KH&RQFOXVLRQ,WLVWKH3UHPLVHLWVHOI 

5HJDUGLQJWKH([FOXVLRQRIRQHRIWKHWZRVLGHVLWGRHVQRWFRQFOXGHLQDQ\WKLQJ,ILWLV
VDLG +RZHYHUKHLVLQWKHZDWHUWKHQLWGRHVQRWLQGLFDWHWKDWKHLVGURZQLQJRUWKDWKH
LVQRWGURZQLQJ7KHUHIRUHWKHUHLVQRFRQFOXVLRQ/LNHZLVHLILWLVVDLG+RZHYHUKHLV
QRW GURZQLQJ WKHQ LW GRHV QRW LQGLFDWH WKDW KH LV LQ WKH ZDWHU RU RXWVLGH WKH ZDWHU
7KHUHIRUHLWDOVRGRHVQRWFRQFOXGHDQ\WKLQJ

99
´$®%Q£ž$S%±–
   Y’
 5¢6ž%4Œ¢%£«°®%Q1ž¨°M¢&³®%Q0©%±,¬,H¯Y—£ž$©¯›°%£¦*´$®%Q£ž$S%±–

Œ¢ ¡¯Ôž$ ²’ %£«°®%Q1ž ¡¯Ôž$ ²’ M–%, ® I°N ³®%Q0 ©%±, S%±—ž$ $K«, H¯Y—£ž%’
®M£Š
 5¢œžJM±Ž©¯›°I–® ³®%Q1ž$ ´H%¢¨±-ž$²’©¯›°I—’

µ¢I—¢™IX ¶ŸŠ „Ÿž$¨¢¬±’ µ9±1§ž$ µ¢ÀP® ´$®%Q£ž$ S%±–  µ=X”–¯1° ®


¸O8 ²¦%5ž$¡%5£ž$²’® ®%Q¢³®%Q£ž$®%Q¢ ¡®Á$¡%5£ž$²ª®µ’®K=¢µ±8L%D
µ£±ŸP¨±P%±—ž$²’µ9±1§ž$©%1–H%X%£ª%1Ÿš® ¸O8¸O9ž$
 5¢µ9±1§ž$?Y0À’µ’®K=£ž$µ±8L%Ež$µ¢I—£ž$™IY0¤ž$J*¥&

$Kž®Œ,L”Y§ž$”Y¦©Áµ,J%š­Kª® ”Y¦”Y§ž$”Y¦ ²ªµ±8L%Ež$µ¢I—£ž$


 5¢®'ÔD µ±¦%£5ž$”Y¦©%§4Å%’ ²ª®µ9±1§ž%’

100
Ê
®I‹ž$®IŠ©Áµ,J%š%]°&­Kª® ®IŠ®I‹ž$®IŠ ²ªµ’®K=£ž$µ±8L%Ež$µ¢I—£ž$
Ê
'ÔD M“‹8®IŠI°O’ ²ª®µ9±1§ž%’$Kž®%—°IX©¯›°I–
µ¢I—£ž$ 2–IX $J+’ %«–IX ¨¢ Iš'1ž$ ® µ±8L%Ež$ µ¢I—£ž$ ¨Š Z=“1ž$ .9±’
®S%±—ž$IQ’µ,J%šµ±8L%E£ž$µ¢I—£ž$2¦%š$J*®µ9±1§ž$2–IXS%±—ž$Œ¢µ±8L%Ež$
µ9±1§ž$2,Kš

(48$7,21$/6<//2*,60
† † † 
$/4,<$6$/0$6$:$+ 
6(&7,21)257<6(9(1

(TXDWLRQDOV\OORJLVP
VRQO\DLPLVWKHH[SODQDWLRQRIWKHHTXLYDOHQFHRIWZRPDWWHUVGXH
WRWKHLUEHLQJHTXLYDOHQWZLWKDWKLUGIRUH[DPSOH

=DLGLVHTXDOWR
$PULQKHLJKW 3UHPLVH 

†
$PULVHTXDOWR%DTLULQKHLJKW 3UHPLVH 

†
=DLGLVHTXDOWR%DTLULQKHLJKW 7KH&RQFOXVLRQ 

† LQ
7KH LQWHQW RI WKLV V\OORJLVP LV WKH H[SODQDWLRQ RI WKH HTXLYDOHQFH RI =DLG DQG %DTLU
KHLJKW GXH WR WKHLU HTXLYDOHQFH LQ KHLJKW ZLWK
$PU 6RPHWLPHV WKH H[SODQDWLRQ LV LQ
UHJDUGV WKH PDWWHU RI HTXLYDOHQFH DQG DW WLPHV LW LV UHJDUGLQJ RWKHU WKDQ WKDW IRU
H[DPSOH

7KHERG\LVDSDUWRIWKHDQLPDO 3UHPLVH 

7KHDQLPDOLVSDUWRIWKHKXPDQ 3UHPLVH 

7KHQWKHDQLPDOLVDSDUWRIWKHKXPDQ 7KH&RQFOXVLRQ 

101
7KHFRUUHFWQHVVRIWKH(TXDWLRQDO6\OORJLVPDQGWKHVRXQGQHVVRIWKHFRQFOXVLRQIURP
HUURUGHSHQGVXSRQWKHYHUDFLW\RIWKHH[WHUQDOO\RPLWWHGSUHPLVH,QWKHILUVWH[DPSOHLW
LVWKHHTXDORIDQHTXDOLVHTXDO,QWKHVHFRQGH[DPSOHLWLVSDUWRIDSDUWLVDSDUW%RWK
DUHWUXWKV7KHUHIRUHWKHFRQFOXVLRQVLQWKHWZRV\OORJLVPVDUHVRXQG

5HJDUGLQJ ZKHQ WKH H[WHUQDO RPLWWHG SUHPLVH LV QRW WUXH WKHQ WKH FRQFOXVLRQ LV QRW
FRUUHFW)RUH[DPSOH

7ZRLVKDOIRIIRXU 3UHPLVH 
$QGIRXULVKDOIRIHLJKW 3UHPLVH 
7KHQWZRLVKDOIRIHLJKW 7KH&RQFOXVLRQ 
7KHH[WHUQDOSUHPLVHKDOIRIDKDOILVKDOILVIDOVHEHFDXVHKDOIRIWKHKDOILVDTXDUWHU
'XHWRWKDWWKH&RQFOXVLRQWKHQWKDWWZRLVKDOIRIHLJKWLVDPLVWDNH

=DLGLVDQHQHP\RI
$PU 3UHPLVH 
$PULVDQHQHP\RI-D
IDU 3UHPLVH 
7KHUH=DLGLVDQHQHP\RI-D
IDU 7KH&RQFOXVLRQ 
7KHH[WHUQDOO\RPLWWHGSUHPLVHLV DQHQHP\RIDQHQHP\LVDQHQHP\WKLVLVDOVRIDOVH
EHFDXVH WKH HQHP\ RI DQ HQHP\ LV VRPHWLPHV D IULHQG 'XH WR WKDW WKHQ WKH UHVXOW
ZKLFKLV=DLGLVDQHQHP\RI-D
IDULVDPLVWDNH

7KHUHIRUH LW LV REOLJDWRU\ WR LQYHVWLJDWH WKH H[WHUQDO SUHPLVH DQG WKH DVVXUDQFH RI LWV
WUXWKIXOQHVV :KHQ WKH H[WHUQDO SUHPLVH LV WUXH LQ WKH V\OORJLVP WKH FRQFOXVLRQ LV WUXH
:KHQWKHH[WHUQDOSUHPLVHLVIDOVHWKHV\OORJLVPLVFRUUXSWHGDQGWKHFRQFOXVLRQLVIDOVH

102
R£Ež$3%Š%§Yž$
   Y’
® µÔž%£ž$ ® M‹Už$ ® µ,%ÔEž$ ® ¡I9ž$ ® ©%ªM-ž$ ²ªR£Ež$3%Š%§Yž$
S%±—ž$ 3%¢I—£’ ¬0%¢I—¢ ²§‹° S%±—ž$  ´H%¢ %«§¢ ”ž'10 ²1ž$ ²ª µQ£Ež$ ­Kª
·M1P%£šµQ£Ež$¸%£PÁ$­KªI<&%«±ŸŠ˜ŸÔ°
† †
7+(),9(6.,//6 $66$1$
$7$/.+$06 

6(&7,21)257<(,*+7

† GLVSXWDWLRQ -DGO  RUDWLRQ .KDWDEDK 


7KH ILYH VNLOOV DUH SURRI %XUKDQ  †  SURYRFDWLRQ
†
6KL
U  DQG IDOODF\ 0XJKDODWDK  7KHVH ILYH DUH WKDW ZKLFK DUH  WKH  VXEVWDQFH RI WKH
V\OORJLVP PHDQLQJ LWV SUHPLVHV7KH SUHPLVHV RI WKH V\OORJLVP WKHQ FDQ KDYH RQH RI
WKHVHILYHQDPHVDSSOLHGXSRQLWDV\RXZLOOVHH

©%ªM-ž$
   Y’
3%-4*¬,IY—°®µ±§±—±ž$%°%]—ž$¨¢2“ž'0²1ž$²§±—±ž$S%±—ž$3%¢I—£ž¡%—°©%ªM-ž$
$¯¦&µ1P²ª®˜=ž$
¨¢¤‡Š& ›ž$  5¢%ªL¯Y0HM9£,%«, —‹ž$¥O9°²1ž$%°%]—ž$²ª®3%±ž®Á$
 ¸O9ž$
R£Už$   5¢ ³Mª%‡ž$ R=ž%, ©%Q¦Å$ %«£Ÿ‹° ²1ž$ %°%]—ž$ ²ª ® 3%P¯Q=£ž$ 
 VԊ®¯8%§ž  5¢²§b%-ž$R=ž%,®& µº±]¢
_¢%=ž$©¯£±Ÿž$¸%¢  5¢µ,M91ž%,©%Q¦Å$%«£ŸŠ²1ž$%°%]—ž$²ª®3%±,M91ž$
 ¸$M“YŸžŒb%–
103
M£—ž$ L¯¦   5¢ ·¯—ž%, SI=ž$ ©%Q¦Å$ %«£ŸŠ ²1ž$ %°%]—ž$ ²ª ® 3%±PI=ž$ 
¡%5£ž$²’©%›T*¶ŸŠ R£Už$L¯¦¨¢.Q1›¢
Ê
¶ŸŠ¤«–%“0*¥I‹,%‹Ô–¤Ÿ‹°6±=,µŠ%£8%«,M-D&²1ž$%°%]—ž$²ª®3$M0$¯1£ž$
Ê
%ªM°¤ž¨£ž ´H¯8¯¢µ›¢  5¢%,KšM-Ež$$Kª —¦
 ;®Nµ‹,LÁ$  5¢¬0Mԓ,©%Q¦Å$%«’M‹°²1ž$%°%]—ž$²ª®3%°Mԓž$
† 
3522) $/%85+$1 
6(&7,21)257<1,1(

†
3URRI DO%XUKDQ LVVDLGRIWKHFHUWDLQSUHPLVHVRIWKHV\OORJLVPZKLFKDUHFRPSRVHGRI
FHUWDLQSURSRVLWLRQVDQGWKHLQWHQWRILWLVWRHVWDEOLVKWKHWUXWK,WLVRIVL[W\SHV

†
 )XQGDPHQWDO DO$ZZDOL\DW ,WLVWKHSURSRVLWLRQZKLFKJLYHVVXUHW\WRUHDVRQLQJE\
PHUHLPDJLQDWLRQRILWIRUH[DPSOH7KHZKROHLVWKHJUHDWHUWKDQWKHSDUW

Š † † ,W LV WKH SURSRVLWLRQ ZKLFK WKH KXPDQ NQRZV WKURXJK


  6HQVXDO DO0DKVXVDW 
H[WHUQDO VHQVHV OLNH 7KH VXQ LV LOOXPLQDWLQJ RU WKURXJK LQWHUQDO VHQVHV OLNH :H
KDYHKXQJHUDQGWKLUVW

†
 (PSLULFDO DW7DMULEL\\DW ,WLVWKHSURSRVLWLRQZKLFKPDQNQRZVE\H[SHULHQFHIRU
H[DPSOH7KHIOXLGRIWKHOHPRQLVVRXUXQPLVWDNDEO\\HOORZ

† ,W LV WKDW SURSRVLWLRQ PDQ NQRZV E\ WKH FDSDELOLW\ RI
  &RQMHFWXUDO DO+DGVL\\DW 
Š
FRQMHFWXUH +DGV IRUH[DPSOH
Š 7KHOLJKWRIWKHPRRQLVREWDLQHGIURPWKHOLJKWRIWKH
VXQZLWKWKHYDJXHQHVVRIWKHH[DPSOH

† †
 8QLQWHUUXSWHG DO0XWDZDWLUDW ,WLVWKHSURSRVLWLRQZKLFKDJURXSKDVQDUUDWHGLQ
VXFKDPDQQHUWKDWLVGHILQLWHO\NQRZQE\WKHODFNRI WKHJURXS
V DJUHHPHQWWKDWWKH
WUDQVPLVVLRQRIWKLVQDUUDWLRQLVIDOVHOLNH0DNNDKH[LVWVIRUKHZKRKDVQRWVHHQLW

Š †
 ,QVWLQFWLYH DO)LWUL\\DW ,WLVWKHSURSRVLWLRQZKLFKPDQLVDZDUHRIE\KLVLQWXLWLRQ
OLNH)RXULVHYHQ

104
¡I9ž$
   Y’
©%š.ŸÔ¢³&¶ŸŠµ9=ž$µ¢%–ÅZEUž$%«,²0'°²1ž$S%±—ž$3%¢I—£ž¡%—°¡I9ž$
¤YEž$¥$OžÅ b%,®&˜<
¨°M¢&¨¢¬0%¢I—¢”ž'10®
 ¨Q<©%Q<Å$  5¢Œ±£9ž$¸$L(%«±ŸŠ˜“0*²1ž$%°%]—ž$²ª®3$L¯«U£ž$
I§«ž$ ª&_‹,I§Š ?±-–©$¯±=ž$?,J  5¢µX%Dµ“¹%b¸$L(%«±ŸŠ˜“0*®&
µ=±=X¨›0¤ž©*®%«Ÿ-—°®¤YEž$%«ž¤ŸQ°²1ž$%°%]—ž$²ª®3%£ŸQ£ž$
®¡¯XÁ$¸%£ŸŠ_‹,¬ž¤ŸQ°³Kž$ /¯8¯ž$²’µ—±—<M¢Á$  5¢¡I1Q£ž$I§Š
²žI8¡I9ž$²’.±9£ž$® ¹%Qž$¨¢ š¶£Q°

',6387$7,21 $/-$'/ 

6(&7,21),)7<

'LVSXWDWLRQ DO-DGO LVVDLGRIWKHSUHPLVHRIWKHV\OORJLVPZKLFKDSHUVRQSURGXFHVWR


HVWDEOLVKSURRIIRUZKLFKHYHUWRSLFLVWUXHRUSURRIRIIDOVHKRRGLQRUGHUWRQHFHVVLWDWHD
GHEDWH7KHSUHPLVHVRIWKH'LVSXWDWLRQDUHFRPSRVHGRIWZRPDWWHUV

† †
 7KHZHOONQRZQSUHPLVH DO0DVKKXUDW ,WLVWKHSURSRVLWLRQVZKLFKFRLQFLGHVZLWK
WKHRSLQLRQRIWKHPDMRULW\IRUH[DPSOH 'RLQJJRRGLVJRRG2ULWFRLQFLGHVZLWKWKH
RSLQLRQRIDSDUWLFXODUJURXSOLNH6ODXJKWHULQJDQLPDOVLVDERPLQDEOHWRVRPHRIWKH
SHRSOHRI,QGLD

  7KH DFFHSWDEOH SUHPLVHV DO0XVDOODPDW  † ,W LV WKH SURSRVLWLRQV ZKLFK DUH
DFFHSWDEOH IRU WKH RSSRQHQW ,W LV DFFHSWHG DOWKRXJK LW LV QRW FRUUHFW ZLWK WKH RQH
VHHNLQJHYLGHQFH 0XVWDGLOO OLNH 7KH&RPPDQG9HUELVDSURRIRIREOLJDWLRQ 7KLV
† DFFHSW (DFK SHUVRQ WKH 3HWLWLRQHU
LV D SURSRVLWLRQ ZKLFK VRPH VFKRODUV RI 8VXO
–
†
DV6DLO DQGWKH5HVSRQGHQW DO0XMHHE DUHFDOOHG'LVSXWDQWV -DGOL 

105
µ,%ÔEž$
   Y’
Ê
6±<%-ž%Žµ±¹O9ž$L¯¢Á$²’¤YEž$%§–*I±“0²1ž$µ±£Ÿ‹ž$µŠ%§YŸž¡%—0µ,%ÔEž$
¨°M¢&¨¢”ž'10®¡I9ž$®©%ªM-ž%,¶0¾°¶1<3%±Ÿ›ž$LHµ±Ÿ,%–¬ž©¯›°¿
®  ¸%±-¦Á%š¬,S%§ž$I—1‹°ZET¨Š3KD&²1ž$%°%]—ž$²ª®3¿¯-—£ž$
¥¯°²’µŠ%“Už$ ® µ-8$®R£Ež$3$¯ŸYž$  5¢¸%£›=ž$®¸%±ž®Á$®  µ£¹Á$
%£ª¯=¦® µ1,%4µ¢%±—ž$
Ê Ê Ê Ê
%¢N%8%£›<¿%=8$L%£›<%«±’ —‹ž$¤›=°²1ž$%°%]—ž$²ª®3%¦¯§‡£ž$
 ®IŠ¯«’¸$IŠÁ$Œ¢RŸ9°I°N  5¢
%£«Ÿ‹“° %£š L%]£ž$ ¨Š ¤«1’%D* ® Œ’%§£ž%, S%§ž$ .±ŽM0 µ,%ÔEž$ ¨¢ aMž$ ®
‰%Š¯ž$®¸%-ÔEž$
†
25$7,21 $/.+$7$%$+ 

6(&7,21),)7<21(

†
2UDWLRQ DO.KDWDEDK LVVDLGRIWKHLQWHOOHFWXDOVNLOOZKLFKSURGXFHVWKHFRQWHQWPHQWRI
WKH GLVSXWDQW LQ SDUWLFXODU PDWWHUV PRVWO\ ZKHUHDV KH GRHV QRW KDYH WKH FDSDFLW\ WR
SHUFHLYH WKH 8QLYHUVDO &RQFHSWV .XOOL\DW † XQWLO 3URRI DO%XUKDQ 
† DQG 'LVSXWDWLRQ
DO-DGO DUHSURGXFHG,WLVFRPSRVHGRIWZRPDWWHUV
† † ,W LV WKH SURSRVLWLRQV ZKLFK DUH WDNHQ IURP
   $FFHSWHG SUHPLVHV DO0DTEXODW 
†–
SHUVRQVPHQEHOLHYHLQOLNH3URSKHWV $6 WKH$LPPDK $6 VDLQWV $XOL\D DQGWKH
Š †–
VFKRODUV +XNDPD IRUH[DPSOH 7KHILYHSUD\HUVDUHREOLJDWRU\DQG,QWHUFHVVLRQRQ
WKH'D\RI-XGJPHQWLVHVWDEOLVKHGDQGPDWWHUVVLPLODUWRWKHVH

Š † † ,W LV WKH SURSRVLWLRQV LQ ZKLFK WKH UHDVRQLQJ


  $VVXPHG SUHPLVHV DO0D]QXQDW 
PDNHV SUHSRQGHUDQW GHWHUPLQDWLRQV QRW FHUWDLQ GHWHUPLQDWLRQV )RU H[DPSOH =  DLG
VLWVZLWKWKHHQHP\WKHUHIRUHKHLVDQHQHP\7KHDLPRI2UDWLRQLVWRDWWUDFWPHQE\
EHQHILWDQGIULJKWHQWKHPZLWKKDUPDVVSHDNHUVDQGSUHDFKHUVGR

106
M‹Už$
   Y’
%«,¨ŠK°¿²1ž$µ±“b%‹ž$%°%]—ž$¨¢‘¯Y£ž$¥À›Ÿž¡%—°˜Ô§£ž$ ª&I§ŠM‹Už$
Ê
L¯¢Á$²’%-ž%Ž©¯›°®%«ÔQ,®&R“§ž$_-–.8¯0®R“§ž$²’M4¾0%«§›ž® —‹ž$
¨¢”ž'1°®µ±¹O9ž$
­M›°¨£ž¡%—°%£š.±ŽM1ž%’.±ªM1Ÿž®&.±ŽM1Ÿž¡%±Ež$%«Ž¯Y°²1ž$ 3À±E£ž$ 
R“§ž$„Q-03%£Ÿ›ž$­K«’ %«<M“°®R“§ž$„U§°²0¯–%°¡%±P/$MTM£Ež$ ´M£Ež$
­K«’ µ-bMž$´LK‹ž$©¯ž¬ž¯«¢M¢ Q‹ž$  Q‹ž$.=°¨£ž¡%—°%£š.±ªM1ž$®
R“§ž$_-—03%£Ÿ›ž$
Ê
R“§ž$²’$M±4'0H$HN*µ±’%—ž$®©N¯ž$®&Œ9Qž$œžK,©M–$J*®

35292&$7,21 $6+6+,
5 

6(&7,21),)7<7:2

3URYRFDWLRQ ZLWK WKH /RJLFLDQV LW LV VDLG RI VSHHFK IRUPHG IURP FRPSDVVLRQDWH
SURSRVLWLRQV ZKLFK UHDVRQLQJ GRHV QRW \LHOG WR KRZHYHU LW DIIHFWV WKH VRXO DQG
QHFHVVLWDWHVUHVWULFWLQJWKHVRXORUH[SDQGLQJLW,WLVPRVWO\LQWKHPDWWHUVRIWKH'LYLVLYH
&RQFHSWDQGLVFRPSRVHGRI

†
8QFHUWDLQW\ DO0XNKHHODW 7KDWZKLFKLVIRUPHGIURPLQFLWHGLPDJLQDWLRQRULQWLPLGDWHG
LPDJLQDWLRQ,QFLWHPHQW RIWKHLPDJLQDWLRQ LVVDLGIRUKHZKRLVGLVOLNHVDOFRKRO$OFRKRO
LVDIORZLQJEHYHUDJH2KP\VWUHQJWK(QOLYHQP\VRXODQGKXPRULW7KHVHZRUGVWKHQ
H[SDQGWKHVRXO

,QWLPLGDWLRQ DW7DUKHHE $VLVVDLGWRKHZKRORYHVKRQH\+RQH\SDVVHVWKURZQXSLW


KDVWKHFRORURIPRLVWIHFHV7KHVHZRUGVFRQVWULFWWKHVRXO:KHQDVVRFLDWHGZLWKWKDWLV
UK\PHSDWWHUQDQGWUDFNLQJLWLQFUHDVHVWKHDIIHFWRQWKHVRXO

107
µÔž%£ž$
   Y’
¨¢”ž'10²ª¿¥&¤YEž$%«ž¤ŸQ0¸$¯P¨±—±ž$I±“0¿µ±£ŸŠµŠ%§X²ªµÔž%£ž$
¨°M¢&
µP¯Q=£ž$ M±Ž L¯¢Á$ ²’ ¤ª¯ž$ %«, ¤›=° ²1ž$ µ,J%›ž$ %°%]—ž$ ²ª ® 3%±£ª¯ž$
 2±£ž$¨¢•¯Ež$¥OŸ°  5¢
 5¢²‡“ž­%-1Tŵ–H%Yž$%°%]—ž$¬-U0²1ž$µ,J%›ž$%°%]—ž$²ª®3%«-U£ž$
Ê
 ˜b%¦ ©%Q¦*  š ®  ©%Q¦* $Kª  À5¢ ¡%—±’ ©%Q¦Å$  ¡%5£1ž ©%Q¦* $Kª  ¡¯–
©%Q¦Å%’  R§8 ©$¯±=ž$  ® ©$¯±< ©%Q¦Å$   5¢ ³¯§‹¢ ­%-1TÅ ®& ˜b%¦ $K«’ 
 R§8
M±ŽŒ¢2Ÿ£‹1P*©*® µÔQ“P 2±£P¤±›=ž$ZEUž$Œ¢2Ÿ£‹1P*©*µÔž%£ž$®
 µ-Ž%U¢ 2±£P¤±›=ž$

108
†
)$//$&< $/08*+$/$7$+ 
Š 
)DOODF\ † Š
F\  DO0XJKDODWDK  LV WKH LQWHOOHFWXDO KDQGLZRUN ZKLFK GRHV QRW SURGXFH FHUWDLQW\
ZKHWKHUWKHDGYHUVDU\DFFHSWVLWRUQRW,WLVFRPSRVHGRIWZRPDWWHUV

† ,W LV WKH IDOVH SURSRVLWLRQV ZKLFK WKH LPDJLQDWLRQ


  ,PDJLQDU\ DO:DKPL\\DW 
GHWHUPLQHVLQQRQVHQVXDOPDWWHUVOLNH)HDURIWKHGHDGLVQHFHVVDU\

†
 6LPLOH 0XVKDEELKDW ,WLVWKHIDOVHSURSRVLWLRQVZKLFKUHVHPEOHWUXHSURSRVLWLRQV
GXHWROLWHUDOOLNHQHVV/LNHVD\LQJ 7KLVLVDKXPDQ IRUWKHVWDWXHRIDKXPDQ 7KHQ
LWLVVDLG 7KLVLVDKXPDQDQGHYHU\KXPDQLQUDWLRQDOWKHUHIRUHWKLVLVUDWLRQDO2U
GXHWRDOLNHQHVVRIPHDQLQJIRUH[DPSOH7KHKXPDQLVDQDQLPDO7KHDQLPDOLVD
VSHFLHVWKHUHIRUHWKHKXPDQLVDVSHFLHV

)DOODF\ LI XVHG E\ D ZLVH SHUVRQ LV FDOOHG VRSKLVWU\ 6DIVDWDK 
Š ,I XVHG E\ DQ XQZLVH
†
SHUVRQLWLVFDOOHGTXDUUHOLQJ 0XVKDJKDEDK 

BBBBBBBBBBBBBBB

109
Ì
µ¢%±—ž$¥¯°²ž¬±§°M°©&¡'P&¬Ÿž$® ˜Ô§£ž$²’O8¯£ž$ ¨¢¬1,%1š%¦IY–%¢MD($Kª
 ¤0  ±š¯ž$¤‹¦®²-Q<¯ª®œžJ ª&¬¦+’¬Ÿ]’ŒP$¯,¬Ÿ-—1°®³%§£±,¬±§±0¾°®
µ±UŠ³N$M±Už$²§±Q=ž$³I«£ž$¨,™H%X¤°M›ž$¬,L ]’¶ž*;%1=£ž$¬“ž¾¢I°¶ŸŠ
µPI—£ž$µ°¯-§ž$´M9«ž$¨¢µ±¦%£4®Œ,L&®´'£4À4®”ž&µ§P¥$M=ž$¥M=¢²¦%4R±£Ež$
Ì
 ¨±£ž%‹ž$/L¬ŸžI£=ž$®¨±ŸPM£ž$¶ŸŠ¥ÀP®©¯“Y°%£Š´O‹ž$/Lœ,L©%=-P 
7KLVLVWKHHQGRIZKDWZHLQWHQGHGLQZULWLQJDO0XMD])LO0DQWLTE\$OODK7D
DOD,DVN
Š
WKDWLWSUHYDLOVIRUPHRQWKH'D\RI-XGJPHQWDQGLWVJLYHQWRPHLQP\ULJKWKDQGDQGLV
DFFHSWHGLQWKHYDVWQHVVRI+LV*UDFH+HLVZRUWK\RIWKDWDQG+HLVP\UHFNRQLQJDQG
EHVWRIJXDUGLDQV

Š † †
,WZDVFRPSOHWHGE\WKHKDQGRILWVDXWKRU6DGLT,EQ0DKGLDO+XVDLQLDVK6KLUD]LEHLQJ
Š
LQQHHGRIJUDFHIURPKLV/RUGWKH*HQHURXVRQWKHHYHQLQJRI7KXUVGD\WKHVHFRQGRI
0XKDUUDPLQWKH\HDU+LMUL 0D\ *ORULILHGLV\RXU/RUGWKH/RUGRI0LJKW
Š
DERYHZKDWWKH\DVFULEH3HDFHEHXSRQWKH0HVVHQJHUV$OO3UDLVHLVGXHWR$OODK/RUG
RIWKH:RUOGV

110
$6800$5<2)/2*,&
127(6

 $SSUHKHQVLRQ 7DVDZZXU
Š LV WKH PLQG
V SHUFHSWLRQ RI VRPHWKLQJ YLD RXU VHQVHV RU WKH
UHDOL]DWLRQ RI VRPHWKLQJ YLD RXU UHDVRQLQJ 7KDW SHUFHSWLRQ RU UHDOL]DWLRQ FDQ EH DXWRPDWLF
6LPSOH $SSUHKHQVLRQ  OLNH ZKHQ ZH VHH D IDPLOLDU ODQGPDUN ZH UHDOL]H RXU SUR[LPLW\ WR RXU
GHVWLQDWLRQ $W RWKHU WLPHV ZH QHHG WR WKLQN LQ RUGHU WR SHUFHLYH RU UHDOL]H D PDWWHU &RJQLWLYH
$SSUHKHQVLRQ  /LNH ZKHQ ZH KDYH WR ORRN RQ D PDS DQG FRQVXOW LW
V GLVWDQFH WDEOH LQ RUGHU WR
XQGHUVWDQG RXU SUR[LPLW\ WR RXU GHVWLQDWLRQ
 $IILUPDWLRQ 7DVGHHT
Š LQYROYHV LQIRUPDWLRQ WKDW FRPHV WR RXU PLQG YLD H[SUHVVLRQV QDPHO\
LQIRUPDWLYH H[SUHVVLRQV ZKHUHLQ WKHUH LV WKH DWWULEXWLRQ RI RQH WKLQJ WR DQRWKHU )RU H[DPSOH
ZKHQ VRPHRQH VD\V     
 WKHUH LV WKH DWWULEXWLRQ RI ZLVGRP WR /XTPDQ † 7KH
SHUVRQ IDPLOLDU ZLWK WKH SHUVRQDOLW\ ZLOO DFFHSW WKLV H[SUHVVLRQ WR EH WUXH PHDQLQJ WKH DWWULEXWLRQ
RI ZLVGRP WR /XTPDQ † LV DIILUPHG 7KLV LV 6LPSOH $IILUPDWLRQ 7KH SHUVRQ XQIDPLOLDU ZLWK WKH
SHUVRQDOLW\ KRZHYHU PD\ KDYH WR GR VRPH UHVHDUFK LQ RUGHU WR UHDFK WKH VDPH FRQFOXVLRQ WKLV
LV &RJQLWLYH $IILUPDWLRQ &RQYHUVHO\ D SHUVRQ PD\ GLVDJUHH ZLWK WKH VDPH VWDWHPHQW HLWKHU
LQVWDQWO\ RU DIWHU VRPH UHVHDFK WKLV LV $IILUPDWLRQ DOVR 6LPSOH DQG &RJQLWLYH UHVSHFWLYHO\
$IILUPDWLRQ LV DOVR WKH QHJDWLRQ RI WKH DWWULEXWLRQ RI RQH WKLQJ WR DQRWKHU DV ZKHQ ZH VD\ 
    
 7KHUHIRUH $IILUPDWLRQ LV WKH EHOLHI LQ WKH DWWULEXWLRQ RI RQH WKLQJ WR DQRWKHU WR
EH HLWKHU WUXH RU IDOVH
 7KH 'HILQLHQ DO0X
DUULI LV WKH GHILQLWLRQ RI VRPHWKLQJ ZKHUHE\ ZH FRPH WR NQRZ LWV UHDOLW\
7KLV GHILQLWLRQ KRZHYHU LV VXFK WKDW LW FRQWDLQV WKH FRUH UHDOLW\ RU HVVHQFH RI ZKDWHYHU LV EHLQJ
GHVFULEHG 6HFWLRQ   (YLGHQFH DO+XMMDK
Š DUH WKH NQRZQ $IILUPDWLRQV 7DVGHHTDW
Š † WKURXJK
ZKLFK ZH FDQ FRPH WR NQRZ WKH $IILUPDWLRQV WKDW DUH XQNQRZQ 7KHUH DUH GLIIHUHQW PHWKRGRORJLHV
LQ XWLOL]LQJ (YLGHQFH DV GHWDLOHG LQ 6HFWLRQ 
 )RUPXODWLRQ LV WKH FRLQDJH RI D QDPH RU H[SUHVVLRQ IRU D SHUVRQ SODFH RU WKLQJ 7KH H[DPSOH
XVHV   WKH VRQ RI =DLG 7KHUH PD\ EH PDQ\ LQGLYLGXDOV QDPHG
$OL =DLG KRZHYHU VSHFLILFDOO\
FRLQHG WKLV QDPH IRU KLV VRQ DOWKRXJK LW LV QRW WKH ILUVW XVH RI WKLV QDPH )RUPXODWLRQ WKHQ GRHV
QRW KDYH WR UHSUHVHQW WKH RULJLQDO FRLQDJH RI D ZRUG (YHU\ SHUVRQ ZKR QDPHV KLV VRQ
$OL LV
FRQVLGHUHG WR KDYH FRLQHG WKDW QDPH IRU WKDW VSHFLILF FKLOG
 7KH .XOOL RU 8QLYHUVDO &RQFHSW LV DQ H[SUHVVLRQ ZKLFK FDQ EH DSSOLHG WR D JURXS KDYLQJ
QXPHURXV PHPEHUV OLNH WKH KXPDQ 7KH LQGLYLGXDO KXPDQ OLNH \RX DQG , DUH 'LYLVLYH &RQFHSWV
RU D VXEVHW RI WKH KXPDQ 6RPHWLPHV 'LYLVLYH &RQFHSWV RQO\ H[LVW LQ RXU LPDJLQDWLRQ ,Q (QJOLVK
ZH KDYH WKH WHUP   :H FDQ WKLQN RI JRGV DV D 8QLYHUVDO &RQFHSW KDYLQJ LQGLYLGXDO JRGV DV
PHPEHUV RI WKLV 8QLYHUVDO &RQFHSW ,Q UHDOLW\ WKHUH LV RQO\ RQH *RG DQG RWKHU JRGV DUH PHPEHUV
RI WKLV 8QLYHUVDO &RQFHSW ZKLFK H[LVW RQO\ LQ RXU LPDJLQDWLRQ
 7KHVH ILYH 8QLYHUVDO &RQFHSWV FDQ EH GLYLGHG LQWR WZR W\SHV
 (VVHQWLDO =KDWL 
† 7KH ILUVW DUH WKH 8QLYHUVDO &RQFHSWV ZKLFK DUH FRXQWHG DV WKH
UHDOLW\ RU SDUW RI WKH UHDOLW\ RI VRPHWKLQJ )RU H[DPSOH WKH KXPDQ LV D 8QLYHUVDO
&RQFHSW UHSUHVHQWLQJ DQ LQGHSHQGHQW UHDOLW\ GXH WR EHLQJ UDWLRQDO /LNHZLVH WKH
8QLYHUVDO &RQFHSW RI DQLPDO LV DOVR SDUW RI WKH HVVHQFH RI WKH KXPDQ 7KLV JURXS
LQFOXGHV WKH ILUVW WKUHH W\SHV RI 8QLYHUVDO &RQFHSWV QDPHO\ 6SHFLHV *HQXV DQG
'LIIHUHQWLD
 $FFLGHQWDO RU QRQHVVHQWLDO
$UGL 
Š 7KHVH DUH 8QLYHUVDO &RQFHSWV ZKLFK DUH
GHHPHG DV GHVFULSWLRQV RI QRQHVVHQWLDO RU DFFLGHQWDO TXDOLWLHV RI VRPHWKLQJ )RU
H[DPSOH ZDONLQJ FDQ EH XVHG WR GHVFULEH ERWK WKH KXPDQ DQG DQLPDOV KRZHYHU
LW GRHV QRW UHIHU WR WKH HVVHQWLDO TXDOLWLHV RU WKH UHDOLW\ RI HLWKHU WKH KXPDQ RU
DQLPDO 7KLV JURXS LQFOXGHV WKH 3DUWLFXODU $FFLGHQW DQG WKH *HQHUDO $FFLGHQW
 7KH 'LIIHUHQWLDO )DVO
Š GLVWLQJXLVKHV WKH 6SHFLHV IURP WKH *HQXV 7KH *HQXV E\ LWV QDWXUH LV
FRPSRVHG RI PHPEHUV ZKRVH HVVHQFH RU +DTHHTDK Š DUH GLYHUVH OLNH DQLPDOV 7KH 'LIIHUHQWLDO
GLVWLQJXLVKHV RQH PHPEHU RI WKH *HQXV IURP DQRWKHU PHPEHU RI WKH VDPH *HQXV )RU H[DPSOH
ZH VD\ WKDW WKH KXPDQ LV UDWLRQDO 5DWLRQDOLW\ LV WKH RQH XQLTXH DQG GHILQLWLYH FKDUDFWHULVWLF RI WKH
KXPDQ WKDW GLVWLQJXLVKHV WKH KXPDQ DV D VSHFLHV IURP RWKHU DQLPDOV WKH *HQXV  ,W LV DOVR D
FKDUDFWHULVWLF ZKLFK LV SDUW RI WKH KXPDQ
V UHDOLW\ RU HVVHQFH DV ZHOO 5DWLRQDOLW\ LV QRW DQ
DFFLGHQWDO RU QRQHVVHQWLDO TXDOLW\ OLNH ODXJKLQJ IRU H[DPSOH ZKLFK LV DOVR VSHFLILF WR WKH KXPDQ
EXW LV QRW D SDUW RI WKH KXPDQ
V HVVHVHQFH RU UHDOLW\
 $V PHQWLRQHG LQ 6HFWLRQ  WKH SURSRVLWLRQ LV DVVRFLDWHG ZLWK WKH 7DVGHHTDW
Š † LQ ZKLFK WKHUH LV
WKH DIILUPDWLRQ RI DQ DWWULEXWH RU WKH ODFN RI VXFK DQ DIILUPDWLRQ 7KH SURSRVLWLRQ WKHQ KDV WZR
PDLQ FRPSRQHQWV WKH VXEMHFW 0DXGX
Š † DQG WKH DWWULEXWH 0DKPXO 
Š † $W WLPHV WKH UHODWLRQVKLS
EHWZHHQ WKHP LV D VLPSOH DVFULSWLRQ RI WKH DWWULEXWH WR WKH VXEMHFW RU WKH ODFN RI DVFULSWLRQ RI DQ
DWWULEXWH WR WKH VXEMHFW 7KLV LV WKH $WWULEXWLYH 3URSRVLWLRQ ,Q WKH &RQGLWLRQDO 3URSRVLWLRQ WKHUH DUH
WZR SURSRVLWLRQV DQG WKH DVFULSWLRQ LV FRQFHUQHG ZLWK WKH UHODWLRQVKLS EHWZHHQ WKHVH WZR
SURSRVLWLRQV 7KH FRQGLWLRQDO DVFULSWLRQ FDQ EH FRQMXQFWLYH LQ WKDW WKH DVFULSWLRQ LV FRQQHFWHG DQG
DWWDFKHG 0XWWDVLODK
Š XVXDOO\ ZLWK D FRQMXQFWLYH SDUWLFOH ,W FDQ DOVR EH GLVMXQFWLYH 0XQIDVLO Š LQ
WKDW WKH DVFULSWLRQ LV QRW GLUHFWO\ FRQQHFWHG DQG PRUH UHPRWH DV WKH H[DPSOH VKRZV ,W JLYHV WZR
RSWLRQV 

 



   ,Q WKH &RQGLWLRQDO 3URSRVLWLRQ WKH ILUVW SURSRVLWLRQ LV
UHIHUUHG WR DV WKH )RUPHU DQG WKH VHFRQG SURSRVLWLRQ LV WKH FDOOHG WKH /DWWHU

You might also like