Professional Documents
Culture Documents
The Singularity of Virtual Reality PDF
The Singularity of Virtual Reality PDF
9,578$/5($/,7<
'HGLFDWLRQ
'HGLFDWLRQ
6LQJXODULW\5XOHV
6LQJXODULW\5XOHV
V
7KH6LQJXODULW\RI9LUWXDO5HDOLW\E\7KH%DVLF6WDWH7HDPLVOLFHQVHGXQGHUD
&UHDWLYH &RPPRQV $WWULEXWLRQ1RQFRPPHUFLDO1R 'HULYDWLYH :RUNV
8QLWHG6WDWHV/LFHQVH
%DVHGRQDZRUNDWZZZEDODQFHGYLHZFRP
<RXDUHIUHHWR6KDUHWRFRS\GLVWULEXWHDQGWUDQVPLWWKHZRUN
8QGHUWKHIROORZLQJFRQGLWLRQV
$WWULEXWLRQ<RXPXVWDWWULEXWHWKLVZRUNWR7KH%DVLF6WDWH7HDPZLWKOLQN
1RQFRPPHUFLDO<RXPD\QRWXVHWKLVZRUNIRUFRPPHUFLDOSXUSRVHV
1R'HULYDWLYH:RUNV<RXPD\QRWDOWHUWUDQVIRUPRUEXLOGXSRQWKLVZRUN
:LWKWKHXQGHUVWDQGLQJWKDW
:DLYHU$Q\RIWKHDERYHFRQGLWLRQVFDQEHZDLYHGLI\RXJHWSHUPLVVLRQIURPWKHFRS\ULJKW
KROGHU
2WKHU5LJKWV,QQRZD\DUHDQ\RIWKHIROORZLQJULJKWVDIIHFWHGE\WKHOLFHQVH
o <RXUIDLUGHDOLQJRUIDLUXVHULJKWV
o 7KHDXWKRU
VPRUDOULJKWV
o 5LJKWV RWKHU SHUVRQV PD\ KDYH HLWKHU LQ WKH ZRUN LWVHOI RU LQ KRZ WKH ZRUN LV XVHG
VXFKDVSXEOLFLW\RUSULYDF\ULJKWV
1RWLFH)RUDQ\UHXVHRUGLVWULEXWLRQ\RXPXVWPDNHFOHDUWRRWKHUVWKHOLFHQVHWHUPVRIWKLV
ZRUN
7$%/(2)&217(176
d&dsZ
d^dd
dddK
7+(6,1*8/$5,7<2)9,578$/5($/,7<
7KHDUFKHRORJ\RIWKHQDWXUHRIUHDOLW\LVFRPSOHWH$OOHQFRPSDVVLQJEHQHILW
DQGSURVSHULW\LVDIIRUGHGLQWKHEDVLFWRWDOSUHVHQFHRIWKHKHUHDQGQRZ
VSDFLRXV LQGHVWUXFWLEOH VLQJXODULW\WKH VSRQWDQHRXV SUHVHQFH RI VXSHU
LQWHOOLJHQFHFRQVWDQWZLWKRXWDQ\WKRXJKWRUHIIRUWWKLVLVWKHQDWXUHRIDOO
SKHQRPHQDZKDWVRHYHU7KLVDOOEHQHILFLDOVLQJXODUEDVLVLVWKHIXQGDPHQWDO
QDWXUHDQGRUGHURIDOOWKLQJV(YHU\WKLQJZKDWVRHYHURZHVLWVH[DFWQDWXUH
WR VLQJXODULW\DOOEHQHILFLDO DQG SURVSHURXV 7KLV WH[W H[SODLQV VSHFLILHV
WUDQVPLWV DQG HOLFLWV WKH VLQJXODU VXSHULQWHOOLJHQFH WKDW LV WKH RSHUDWLQJ
VXSHUV\VWHPRIWKHPDQ\ZRUOGVDQGWKHLUSKHQRPHQD
+HUHLVWKHEDVLFWHUPLQRORJ\
7KH FRQFOXVLYH PHDQLQJ RI VLQJXODULW\ OLHV LQ LWV YLUWXDOLW\ RSHQQHVV
WUDQVSDUHQF\REYLRXVSUHVHQFHLQGLYLVLELOLW\DQGVXSHULQWHOOLJHQFH
7+(),567723,&9,578$/5($/,7<
7KH$VVXUDQFHRI9LUWXDOLW\3DUW
)LUVW LV GLVFORVHG YLUWXDOLW\ YLUWXDOLW\ WKDW LV HVVHQWLDOO\OXFLG LQ WKH VXSHU
H[SDQVH RI VLQJXODULW\ WKDW LV YDVW DQG VSDFLRXV ZKDWHYHU DSSHDUV LV YLUWXDO
LQUHDOLW\
,QWKHYDVWH[SDQVHRIVLQJXODULW\DOORFFXUVDVLWVGLVSOD\YLUWXDOLQUHDOLW\
DOOVRXQGVDQGLPDJHVIXHOOHGE\VLQJXODULW\DUHOLNHWKDWYLUWXDOLQUHDOLW\
-XVWDVDKRORJUDPLVLQGLYLVLEOHIURPVSDFHQRWH[LVWLQJLQUHDOLW\EXWPDGH
WR DSSHDU WR GR VR VR DOO DQG HYHU\ GLVSOD\ LV LQGLYLVLEOH VLQJXODU VXSHU
LQWHOOLJHQFH YLUWXDO DQG QRQLQGHSHQGHQW ZLWKRXW VXEVWDQFH RU FRQFUHWH
DWWULEXWH
(YHU\WKLQJ LV D YLYLG GLVSOD\ OLNH D KRORJUDP RU HOHFWURQLF JDPH
LQVXEVWDQWLDOLQWKHYHU\PRPHQWDQGYLUWXDOUHOHDVHGXSRQLQFHSWLRQ
-XVW DV HYHU\WKLQJ LV YLUWXDO LQ UHDOLW\ WKH NQRZHU LV YLUWXDO DQG LV
LQVXEVWDQWLDODQGLQVHSDUDEOHIURPVLQJXODUVXSHULQWHOOLJHQFH/LNHWKHFRORU
EOXH LV LQVHSDUDEOH IURP WKH VN\ WKH NQRZHU LV LQVHSDUDEOH IURP VXSHU
LQWHOOLJHQFH
,Q DOOEHQHILFLDO DQG SURVSHURXV VLQJXODULW\ YLUWXDOLW\ FORVHV WKH DE\VV RI
UHLILFDWLRQDWWULEXWLRQ RI DQ LQGHSHQGHQW QDWXUH WR SKHQRPHQDLQWHJUDWLQJ
DOO YLUWXDO UHDOLW\ LQ VHDPOHVV LQWHURSHUDELOLW\ ,Q WKH DEVHQFH RI UHLILFDWLRQ
VLQJXODULW\ LV DVVLPLODWHG DW WKH FRLQFLGHQFH RI YLUWXDO GLVSOD\V LQ DQ
LQGLYLVLEOHMXQFWLRQDQGFRQGXFWLRQRIVXSHULQWHOOLJHQFH
&RQVWDQWO\ YLUWXDO QRW HYHQ WKH VOLJKWHVW VXEVWDQFH FDQ EH IRXQG ,Q
XQGLYLGDEOHYLUWXDOUHDOLW\HYHU\WKLQJDELGHVLQQDWXUDOSHUIHFWLRQ
9LUWXDOZKHQVFUXWLQL]HGYLUWXDOZKHQLJQRUHGHYHU\WKLQJLVOLNHDKRORJUDP
'XULQJWKHHQWUDQFHPHQWRIDQHOHFWURQLFJDPHWKHUHLVWRWDONQRZOHGJHRI
GLJLWDO YLUWXDOLW\ 6LPLODUO\ HDFK PRPHQW LV D YLUWXDO HQKDQFHPHQW D
VSRQWDQHRXVO\IXOOSUHVHQWDWLRQRIVLQJXODULW\VVXSHULQWHOOLJHQFHWKHUXVKRI
UHDOLW\
,Q VLQJXODULW\ WKH GHSHQGDEOH QDWXUH RI VXSHULQWHOOLJHQFH OLHV WKH VKHHU
IRUFH RI QDWXUDO SHUIHFWLRQV JRRG IRUWXQH LQ HVVHQWLDO YLUWXDOLW\ OLHV WKH
REYLRXVQHVVRIDOOFRQVXPLQJSULVWLQHLQWHOOLJHQFH
,QWKHLQGLYLVLELOLW\RIWKHULIIDQGSOD\RIYLUWXDOLW\LQVWLQFWLYHO\FRQYLQFHGRI
YLUWXDOLW\ LQ WKH PRPHQW RI LQFHSWLRQ ZLWKRXW WKH OHDVW XUJH WR DYRLG
LQGXOJH UHSODFH RU UHMHFW WKHUH LV WRWDOO\ ODLG EDFN RSHQQHVV VSRQWDQHLW\
LQGLYLVLELOLW\DQGWUHDVXUH
$IRROGHFHLYHGE\YLUWXDOLW\LVOLNHVRPHRQHZKRSXUVXHVDKRORJUDPLQWKH
GHVLUH IRU FRPSDQLRQVKLS IHUYHQWO\ KRSLQJ IRU WKH EHVW WUXVWLQJ LQ WKH
KRORJUDP WKH\ DUH GHFHLYHG ORVLQJ SHUVSHFWLYH RQ UHDOLW\ WKH\ IDLO WR VHH
WKHDFWXDOQDWXUHRIWKHYLUWXDOHQYLURQPHQW
7KH VHDPOHVV EULOOLDQW H[SDQVH VXEVXPHV DOO GLVSOD\V DOO RI ZKLFK ZLWKRXW
H[FHSWLRQ DUH YLUWXDOO\ UHQGHUHG D G\QDPLF DFWLYLW\ RI VXSHULQWHOOLJHQFH
6LQJXODULW\ LV QHYHU DEDQGRQHG LWV LQQDWH SOHDVXUH LV DOOSHUYDVLYH
6LQJXODULW\ DQG LWV YLUWXDO UHDOLW\ DUH OLNH OLJKW SRXULQJ LQWR OLJKW RU VSDFH
SRXULQJLQWRVSDFH
9LUWXDOUHDOLW\LVQRQLQGHSHQGHQWRIVLQJXODULW\LWLVQHYHUDWKLQJLQLWVHOI
VRWKHUHLVQRRQHWRGHSHQGRQLW:KDWWKHUHLVWRGHSHQGRQVLQJXODULW\
UHTXLUHV QR DFTXLVLWLRQ ,WV RSHQ VRXUFH LQGLYLVLEOH DUFKLWHFWXUH LV IUHHO\
HTXDOO\ HYHQO\ GLVWULEXWHG .QRZ WKLV LQVWLQFWLYHSHUVSHFWLYH DV WKH EULOOLDQW
WUHDVXUHZLWKLQHDFKYLUWXDOGLVSOD\$OOHDVHFRPIRUWEULOOLDQFHDQGIUHHGRP
DUHJLYHQKHUHLQZLWKRXWDQ\HIIRUWDWDOO
7KH JUHDWHVW ULFKHV RI EHQHILW DQG SURVSHULW\ VWUHWFK RXW ZLWKLQ WKH
LQFRQFHLYDEOH XQSUHGLFWDEOHYLUWXDO GLVSOD\ $OO FRQGLWLRQLQJ DQG WKH GULYH WR
REWDLQDUHVXEVXPHGZLWKILQDOLW\E\VXSHULQWHOOLJHQFH
,QDYLUWXDOGLVSOD\ZKHUHDUHRXWVLGHDQGLQVLGHVXEMHFWDQGREMHFW"6XSHU
LQWHOOLJHQFH SHUYDGHV WLPH DQG VSDWLDO GLPHQVLRQ VXSHUVHGLQJ DOO YLUWXDO
HYHQWV WKDW VHHPLQJO\ EHJLQ DQG HQG SXUH DV VN\ VLQJXODULW\ LV ZLWKRXW
LQGLFDWLRQ RU PHDQV RI HQWUpH $Q\ VSHFLILF LQVLJKW LQWR VXSHULQWHOOLJHQFH LV
DOZD\VVXEVXPHGE\LWVRDQ\YLUWXDOLGHQWLW\DOZD\VXQUHDOLVHIIRUWOHVVO\
UHOLQTXLVKHGDQG DVVLPLODWHG WR WKHHYLGHQFHRI VLQJXODU VXSHULQWHOOLJHQFH
LW HDVLO\ REWDLQV DV WKH RQO\ UHOLDEOH UHDOLW\ 5HOHDVHG IURP UHLILHG
FRQGLWLRQLQJLQWRWKHK\SHULQWHOOLJHQFHWKDWLVHYHU\ZKHUHORFDWHGWKHFRGH
RIYLUWXDOUHDOLW\LVFUDFNHGRQFHDQGIRUDOO
$VVLPLODWLRQWR6LQJXODULW\3DUW
2QFH WKH FRGH RI YLUWXDO UHDOLW\ LV FUDFNHG WKH LQGLYLVLEOH QRQVHSDUDEOH
KROLVP RI YLUWXDOLW\ LV DVVLPLODWHG LQ VXSHULQWHOOLJHQFH 9LUWXDO UHDOLW\ OHIW
DORQH LV SRWHQW ZLWK LQGLYLVLEOH VXSHULQWHOOLJHQFH ZKLFK VKLQHV IRUWK
HIIRUWOHVVO\OLNHOLJKWILOOLQJVSDFH
,QFHSWLRQRIWKHKHUHDQGQRZDQGLWVUHOHDVHDUHLQGLYLVLEOH7KHKHUHDQG
QRZ DULVHV DELGHV DQG YDQLVKHV ZLWK QR QDWXUH RI LWV RZQ 5HIOH[LYH DQG
VSRQWDQHRXVVLQJXODULW\LVHVVHQWLDOUHDOLW\9LUWXDOUHDOLW\UHFRJQL]HVLWVRZQ
QDWXUHHDFK KHUHDQGQRZ YDQLVKHV ZLWKRXW D WUDFH OLNH D OLQH GUDZQ LQ
PLGDLU
6LQJXODULW\LVDVVLPLODWHGLQHDFKKHUHDQGQRZ ,QVWLQFWLYHFRPSUHKHQVLRQ
DQG UHFRJQLWLRQ RI WKLV LV VXSHULQWHOOLJHQFH 7RWDO LQWHJUDWLRQ RI YLUWXDO
UHDOLW\ LQ VLQJXODULW\ LV DVVXUHG 6SRQWDQHRXVO\ LQ VLQJXODULW\ VXSHU
LQWHOOLJHQFHLVJXDUDQWHHG VXEVXPLQJ YLUWXDO FRQGLWLRQLQJ DQG NQRZOHGJHLQ
SXUHSRWHQF\
7KH/LYHOLQHVVRI6LQJXODULW\3DUW
7KH OLYHOLQHVV RI VLQJXODULW\ LV WKH QDWXUH RI YLUWXDO UHDOLW\ ELQGLQJ LW LQ
KROLVPDQGQRQVHSDUDELOLW\MXVWDVWKHVN\RYHUKHDGLVERXQGE\WKHWRWDOLW\
RI VN\ VR DOO YLUWXDO HYHQWV VSRQWDQHRXVO\ JHQHUDWHG DUH ERXQG E\
VLQJXODULW\VSXULW\DQGOXPLQRVLW\
6FLHQFH PHUHO\ D QDPH WDJ HOHPHQWDU\ SDUWLFOHV DQG HOHPHQWV FROODSVH LQ
LQGLYLVLELOLW\ DQG LQ WKH VSRQWDQHRXVO\ SUHVHQW SXULW\ DQG OXPLQRVLW\ RI
VXSHULQWHOOLJHQWVLQJXODULW\WKDWFDQQRWEHEHWWHUHGRUZRUVHQHGHIIRUWDQG
DFFRPSOLVKPHQW DUH VLPSO\ ZRUGV LQ WKH ILQDO DQDO\VLV VWULYLQJ WR LPSURYH
FRQGXFWDFFRPSOLVKHVQRWKLQJSHUPDQHQW
DOO RWKHU YLUWXDO UHDOLW\ LV FDSWXUHG IURP WKH EHJLQQLQJ LQ RPQLSRWHQW
VLQJXODULW\VSRQWDQHRXVRUJDQLFEHQHILFLDOFRQGXFW
5LJKW QRZ WKH VXSHULQWHOOLJHQW SUHVHQFH RI VLQJXODULW\ NQRZV ZLWK LWV RZQ
NLQG RI NQRZLQJ ,W IRUVDNHV DOO FRQYHQWLRQDO PHWKRGV GHVLJQHG IRU LQIDQWLOH
YLUWXDO JDPHV RI FDXVDOLW\ 6XSHULQWHOOLJHQFH FDVWV WKH VSHOO RI VLQJXODULW\
WKDW VXEVXPHV DOO FRQWULYHG YLUWXDO ZRUOGV LQ XQDYRLGDEOH LQGLYLVLELOLW\ OLNH
WKH H[WHQW RI VN\ ULJKW KHUH LV VXEVXPHG LQ FRPSUHKHQVLYH SXUH OXPLQRXV
VN\
&RQWULYHGUHDOLW\LVWUHDFKHURXVORRNDWWKHWUHDFKHU\RIFRQYHQWLRQDOOLYLQJ
6SOLWWLQJWKHPXOWLYHUVHXSLQWRWDNHVRQSDUWLFOHVVWULQJVRUTXDQWDFRUUXSWV
VXSHULQWHOOLJHQW VDYY\ ORRN DW WKH NQRZOHGJH VWUXJJOH WKDW RIIHUV QR
LPPHGLDWHEHQHILW7UHQG\NQRZOHGJHQHYHUSURYLGHVEHQHILWDQGSURVSHULW\
WR DOO ,W PD\ OHDG WR VXFFHVVRU IDLOXUH EXW LQYHVWLQJ LQYLUWXDO UHDOLW\ JLYHV
QRFKDQFHRIUHOHDVHLQVXSHULQWHOOLJHQFH
7KRVH LQ ZKRP UHLILFDWLRQ FHDVHV DUH WKH VXSHUKHURHV RI WKH YLUWXDO ZRUOG
IRUQRWDVLQJOHVRXQGRULPDJHKDVDQLQGHSHQGHQWQDWXUHRILWVRZQ9LUWXDO
UHDOLW\LVDILFWLYHFRQVWUXFWDKRD[IRUWKHIOHGJOLQJSOD\HU
7KH UR\DOW\ RI WKH PXOWLYHUVH HIIRUWOHVVO\ DELGH LQ VXSHULQWHOOLJHQFH DOO
EHQHILFLDO DQG SURVSHURXV OLNH D ZLVKIXOILOOLQJ JHP 7KHUHIRUH WKH VXSHU
SOD\HU LQVWLQFWLYHO\ FRPSUHKHQGV DQG UHFRJQL]HV WKH PRYHV RI DOO YLUWXDO
JDPHV DV ILFWLYH ZLWKRXW WUDQVLWLRQ RU FKDQJH OLNH WKH UHDFK DQG UDQJH RI
SXUH VSDFH 7KH VXSHUSOD\HU VXEVXPHV DOO YLUWXDO UHDOLW\ LQ WKH ZLQQLQJ
PRYHRIVXSHULQWHOOLJHQWVLQJXODULW\
2XWVKRQHLQ6LQJXODULW\3DUW
9LUWXDO UHDOLW\ LV RXWVKRQH LQ VLQJXODULW\WKH SRWHQW SXUH OXPLQRVLW\ RI
EHQHILFLDO TXDOLWLHV DQG DFWLYLWLHV RI VXSHULQWHOOLJHQFH $OO WKH YDULRXV
VWUDWHJLHV DFWLRQV DQG PHWKRGV XVHG LQ WKH YLUWXDO JDPH DUH VXEVXPHG LQ
WKHSUHVFULEHGUXOHVHWRIWKHVLQJXODUPHWDJDPH
*RLQJEH\RQGDOOVXSSRVHGOLPLWVDQGHQYLURQPHQWVWKHQDWXUHRI UHDOLW\LV
ILQDOL]HG LQ VSUDZOLQJ IUHHZKHHOLQJ VXSHULQWHOOLJHQFH WKH SRWHQWLDWLQJ
QDWXUH RI YLUWXDO UHDOLW\ 6KLQLQJ IRUWK VSRQWDQHRXVO\ DQG HIIRUWOHVVO\ WKH
LQWULQVLF SXULW\ DQG OXPLQRVLW\ RI YLUWXDO UHDOLW\ PRUSKV LQWR VXSHU
H[FHOOHQFHDZRUOGRIDOZD\VLQFUHDVLQJVSRQWDQHRXVEHQHILWSHUYDGLQJWKH
HQWLUHGLVSOD\HTXDOO\DQGHYHQO\
7KHFRQVLVWHQWRQJRLQJIXOILOOPHQWRIFUHDWLYHEHQHILFLDOLQWHQWLVWKHELJZLQ
$OO WKH VWXGLHVDQG DSWLWXGHV UHODWHG WR YLUWXDOLW\ OHDG DEVROXWHO\QRZKHUH LI
WKHLU HVVHQWLDO QDWXUH LVQW UHFRJQL]HG6XFFHVVRU IDLOXUH D SULPLWLYH ZD\ RI
ORRNLQJDWWKLQJVFRPSOHWHEOLQGQHVVWRWKHZD\WKLQJVDFWXDOO\DUH
2QFH WKH VXSHULQWHOOLJHQW QDWXUH LV FRQILUPHG LW LV WKH RQO\ JDPH LQ WKH
ZRUOGLWV ZLOG ULGH RIIHUV SHDN SOHDVXUH DW DOO WLPHV SXWWLQJ D SHUPDQHQW
VPLOHRQHDFKIDFHDQGDVVXUHGHDVHLQHDFKVWULGH+H\OHWVXSHUSRWHQF\
KLWMXVWOLNHWKDWERRPRSHQXSWRDOLIHRIIXOOKHDUWHGQHVVDQGWUHDVXUH$OO
PHPRULHV DUH PDNHEHOLHYH DQG VR DUH IXWXUH IDQWDVLHV ZKDWHYHU WKH\
FRQWDLQ
7KH YLUWXDOLW\ RI WKH SDVW JXDUDQWHHV WKH YLUWXDOLW\ RI WKH IXWXUH 7KHUH LV
QRWKLQJ LQ WKH KHUHDQGQRZ WKDW FDQ EH NHSW LQ SODFH HYHU -XVW DV WKHUH
ZDVQRSHUPDQHQWVDWLVIDFWLRQWREHIRXQGLQWKHSDVWWKHZHLUGSURMHFWLRQ
RI D IXWXUH RIIHUV PRUH RI WKH VDPH GLVPDO ODFN RI UHVXOWV 1RW WR ZRUU\
WKRXJKUHDGLQJRUKHDULQJWKLVLVWKHNH\WRWKHJDPHFDOOHGZLVKIXOILOOLQJ
JHPZKLFKVRRWKHVDOOZRHV
6RVLQJXODULW\LVVXSHUSRWHQWDQGOXPLQRXVDUHDOMR\ULGH\HWWKHSOD\HUV
RI WKH JDPH ZKR DUH FDUHOHVV RI WKDW VWD\ DOO ZUDSSHG XS LQ YLUWXDO UHDOLW\
3LJHRQKROLQJHYHU\WKLQJLQZKLWHDQGEODFNYLUWXRXVDQGYLFLRXVJRRGDQG
HYLO LV WRWDOO\ ODPH ZKHQ ERXQGOHVV VXSHULQWHOOLJHQFH KDV DOUHDG\ VZRRSHG
HYHU\WKLQJLQWRLWVEHQHILFLDOHPEUDFH
:KR FDUHV DERXW D UROOHU FRDVWHU ULGH RI DOWHUQDWHO\ WKULOOLQJ DQG QDXVHDWLQJ
XSV DQG GRZQV ZKHQ DOZD\VRQ SOHDVXUH LV ULJKW KHUH ULJKW QRZ MXVW
ZDLWLQJ",ILWLVQWUHFRJQL]HGLWLVRQO\EHFDXVHLWLVQWUHFRJQL]HG+RZHYHU
LQVWLQFWLYHUHFRJQLWLRQLVDWRWDOO\HDV\DQGDGYHQWXURXVJDPHWRSOD\
:KDWDERRQ$VVXSHULQWHOOLJHQFHDQGLWVWUHDVXUHVGDZQWKHGDUNQLJKWRI
YLUWXDO UHDOLW\ LV RXWVKRQH DQG WKH VXQ RI VLQJXODULW\ VKLQHV EULJKWO\ ZLWKLQ
HDFKKHUHDQGQRZ7KLVLVILQDOXOWLPDWHRXWVKLQLQJRIYLUWXDOUHDOLW\DZLQ
ZLQJDPHZKLFKLVGHVLJQHGIRUHYHU\RQHWRSURILWDWDOOWLPHVLQRQHZD\RU
DQRWKHU
,I WKLV VRXQGV QXWW\ LW ZRQW IRU ORQJ DV HLWKHU VXSHULQWHOOLJHQFH ZLOO JHW
\RX ULJKW DZD\ RU ZLOO FRQYLQFH \RX LQ WKH HQG +H\DOO YLUWXDO HYHQWV DUH
RXWVKRQH LQ FRQVXPPDWH VLQJXODULW\KROLVP DQG QRQVHSDUDELOLW\ %RG\
PLQG DQG VSHHFK DUH MXVW OLNH WKLV DQG QRWKLQJ HOVHYLUWXDO HYHQWV
FRQVXPHGLQVLQJXODULW\
,QVWLQFWLYHFRPSUHKHQVLRQRIVLQJXODULW\XQOHDVKHVVXSHUSRWHQWLQWHOOLJHQFH
-XVW OLNH WKDW \RX UHFHLYH WKH HPSRZHUPHQW RI SHUSHWXDO GHOLJKW 7KH
FRPHG\ FOXE FDOOHG QDPH WDJV WKDW VHHP WR PDNH YLUWXDO UHDOLW\ KDUG DQG
IDVWDUHDQHYHUHQGLQJMRNHDQRSSRUWXQLW\IRUDELJODXJK
$OO RI YLUWXDO UHDOLW\ FRPHV DERXW GXH WR WKH FUXFLDO HUURU RI UHLILFDWLRQ
DWWULEXWLQJDQLQGHSHQGHQWQDWXUHWRYLUWXDOVXEMHFWVDQGREMHFWVZKHQWKHLU
QDWXUH LV RQO\ VLQJXODULW\ 6XEMHFWV DQG REMHFWV LQ D YLUWXDO JDPH KDYH QR
SRZHU RU LQIOXHQFH RI WKHLU RZQ $OO RI YLUWXDO UHDOLW\ LV RXWVKRQH LQ
VLQJXODULW\VSXUHOXPLQRXVPDWUL[RIVXSHULQWHOOLJHQFH
7KXVWKHILUVWWRSLFRI7KH6LQJXODULW\RI9LUWXDO5HDOLW\LVUHDFKHGGHFLVLYHO\
FRQFOXGLQJWKDWYLUWXDOUHDOLW\LVVXEVXPHGLQVLQJXODULW\VVXSHULQWHOOLJHQFH
7+(6(&21'723,&75$163$5(1&<
3DUW7KH([SRVXUHRI7UDQVSDUHQF\
1RZ WKDW YLUWXDO UHDOLW\ KDV EHHQ FRQFOXVLYHO\ GHPRQVWUDWHG WKH QDWXUH RI
WUDQVSDUHQF\ LV SUHVHQWHG 6LQJXODULW\V VKHHU VLJQDO SHUYDGHV HTXDOO\ DQG
HYHQO\ WKURXJK DOO YLUWXDO UHDOLWLHV ZLWKRXW FKDQJLQJ LWV IRUP RU FRQWHQW
7UDQVSDUHQW YLUWXDOLW\ SXUH DQG HYHU\ZKHUH FOHDU IUHH RI DQ\WKLQJ RI D
GLIIHUHQW NLQG LV RQH KXQGUHG SHUFHQW SXUH 7UDQVSDUHQW VLQJXODULW\ LV WKH
FRQWURO FHQWHU RI YLUWXDO UHDOLW\ 6LPLODUO\ WKH IODZOHVVQHVV RI VSDFH LV WKH
FRQWURO FHQWHU RI WKH PXOWLFRORUHG LPDJHV RI D KRORJUDP
6LQJXODULW\OLNHSXUHVSDFHLVZLWKRXWPLGGOHRUSHULPHWHUVSOLWRUGLYLVLRQ
DYDVWH[SDQVHRIVXSHULQWHOOLJHQFH$OOYLUWXDOGLPHQVLRQVDUHWUDQVSDUHQW
7KHOLYHOLQHVVRIVXSHULQWHOOLJHQFHLVDOZD\VDOUHDG\WUDLQHGXSWRLWVLQILQLWH
FDSDFLW\ LQ DOO DVSHFWV RI YLUWXDOLW\ FRPPDQGLQJ PDVWHU\ RI WKH HQWLUH
GLVSOD\ 7KH YDVW H[SDQVH RI SXUH VLQJXODULW\ UHPDLQV RSHQ FRQVWDQWO\
ZLWKRXW LQWHUYDO SRWHQWLDWLQJ WKH YLYLGQHVV RI YLUWXDO ZRUOGV WKURXJK LWV
SRZHURIOXPLQRVLW\
7KH FRPSOH[LRQ RI WKH YLUWXDO ILHOG LV WKDW RI SHUYDVLYH DQG DEVROXWH SXULW\
OXPLQRVLW\DQGEHQHILFHQWVXSHULQWHOOLJHQFHRSHQWRLQILQLW\
:LWK SDVW DQG IXWXUH LQGLYLVLEOH DOZD\VRQ VXSHULQWHOOLJHQFH LV VLPLODU WR
SXUH VSDFH D WUDQVSDUHQW H[SDQVH DOZD\V XQEHJXQ DQG XQHQGLQJ ULJKW
KHUH ,Q VXSHULQWHOOLJHQW VLQJXODULW\ WKH K\SHUSXULW\ OXPLQRVLW\ DQG
EHQHILWRIDOOYLUWXDOGLPHQVLRQVVKLQHIRUWKDVDJROGHQVXQPDWUL[RIVRXUFH
SXULW\VRXUFHOXPLQDQFHDQGVRXUFHEHQHILW
7KH P\ULDG GLYHUVLW\ RI WKH WUDQVSDUHQW DUUD\ LV XQLPDJHG XQVRXQGHG
XQUHLILDEOH 9LUWXDOLW\ XQDYRLGDEO\ UHVWV LQ LWV LQHYLWDEOH HVVHQWLDO QDWXUH
QHYHUFKDQJLQJLQWRVRPHWKLQJHOVH7KHHVVHQFHQDWXUHDQGGLVSOD\RIWKH
HQWLUHW\ RI YLUWXDOLW\ LV LQGHVWUXFWLEOH ZLVKIXOILOOLQJ VXSHULQWHOOLJHQFH WKH
SRZHU JHQHUDWRU RI LQILQLWH EHQHILFLDO TXDOLWLHV DQG DFWLYLWLHV VKLQLQJ IRUWK
VSRQWDQHRXVO\OLNHWKHIORRGRIVXQOLJKWIURPWKHVXQ
7KHVXSHUSOD\HUFODLPVWKHYLUWXDOZRUOGWKH\ZDQWWROLYHLQDQGFUHDWHVLW
7KH H[LVWLQJ YLUWXDO PRGHO LV VXEVXPHG LQ WKH VXSHUPRGHO WKDW DOZD\V
PDNHVWKHH[LVWLQJPRGHOREVROHWH
$ WKULYDEOH YLUWXDO ZRUOG LV D VXSHULQWHOOLJHQW ZRUOG WKDW FDQ EH
HQWKXVLDVWLFDOO\ OLYHG LQWR KHUHLQ DQ LQH[KDXVWLEOH VSOHQGRU RI UHVRXUFHV
VXSSRUWVWKHH[LVWHQFHDQGHYROXWLRQRIDOORILWVGLPHQVLRQV
7KUHH KXQGUHG DQG VL[W\ GHJUHH VXSHULQWHOOLJHQFH WKH SHUVSHFWLYH IUHH RI
WKH LQKHUHQW XQVDWLVIDFWRULQHVV RI UHLILFDWLRQ LV WKH VHDPOHVV WUDQVSDUHQF\
XQFRQILQHGE\YLUWXDOJDPHV
'HYRLGRIKRSHRUIHDUQRWKLQJFDQKDSSHQWRUXSWXUHVXSHULQWHOOLJHQFHLW
LV XWWHUO\ LPSRVVLEOH WR EH HQJXOIHG LQ UHLILFDWLRQ 6XSHULQWHOOLJHQFH LV WKH
UHPLWRIDOODQGHYHU\WKLQJ
(DFK PRYH RI WKH YLUWXDO JDPH LV RQH RI OHLVXUH DQG SOHQLWXGH D ZLVK
IXOILOOLQJ JHP ,QWHOOHFWXDO SURZHVV PHOWV LQ RPQLVFLHQFH WKDW LQVWLQFWLYHO\
IDVKLRQVDIDQWDVWLFUHWLQXHRIEHVWNQRZOHGJHDQGDFWLYLWLHV1HYHUNQRZLQJ
FRQIXVLRQ RU WHQVLRQ XSV RU GRZQV WKH FXUUHQW PRGH RI YLUWXDO UHDOLW\ LV
HYDFXDWHGLQIDYRURIXOWLPDWHFUHGLELOLW\
7KH VXSHUSOD\HU RI WKH YLUWXDO JDPH LV VXSHULQWHOOLJHQFH LWVHOI H[SRVLQJ
YLUWXDOLW\DVDEVROXWHO\WUDQVSDUHQWDVXSHURSHQVRXUFHDUFKLWHFWXUHVKLQLQJ
IRUWK SXULW\ OXPLQRVLW\ DQG EHQHILWVXSUHPH LQWHOOLJHQFH IRUHYHU
HPSRZHUHG
7KHVXSHUSOD\HUVNH\WKLVLQWULQVLFDOO\WUDQVSDUHQWOXPLQDQFHEOD]LQJIRUWK
DVWKHDOOFUXFLDOKHUHDQGQRZ
$FFXOWXUDWLRQWR7UDQVSDUHQF\3DUW
1RW D VLQJOH WKLQJ HYHU H[LVWV XQGHU LWV RZQ SRZHU (YHU\WKLQJ ZKDWVRHYHU
HQMR\V WKH VRYHUHLJQW\ DQG FRQQHFWLYLW\ RI WUDQVSDUHQW VLQJXODULW\ 7KXV
HYHU\WKLQJ LV VHDPOHVVO\QHWZRUNHG WRJHWKHU DQGLVLQQDWHO\LQWHUDFWLYH DQG
LQWHURSHUDEOH
$OO FKDUDFWHUV OHWWHUV QXPEHUV ZRUGV XWWHUDQFHV DQG LPDJHV DUH VROHO\
HPSRZHUHG E\ VLQJXODULW\ 7KH SRWHQW UHVRQDQFH RI VLQJXODULW\ SHUYDGHV DOO
VRXQGUHJDUGOHVVRILWVYLEH7KHP\ULDGHQOLYHQPHQWRIYLUWXDOUHDOLW\LVDQ
H[SDQVH RI VXSHUHTXDOQHVV HYHQQHVV DQG SHUIHFW DFFRUG
7KH OLYHOLQHVV RI YLUWXDO UHDOLW\ LV VSRQWDQHRXVO\ DFFXOWXUDWHG WR WKH
WUDQVSDUHQW HFRQRP\ RI VLQJXODULW\ $OO RI YLUWXDOLW\ LV HTXDWHG WR
VLQJXODULW\VEHQHILWQRWWRDQ\WKLQJHOVH
7KH VWUXJJOH WR GLVFRYHU D SDUWLFOHEDVHG UHDOLW\ LV RXWVKRQH 7KH UHDOLW\
FU\SRWJUDP LV VROYHG E\ WKH VXSHUVKRFN RI LQVWLQFWLYH FURVVRYHU WR
WUDQVSDUHQW OXPLQRVLW\ SXULW\ DQG EHQHILW $OO YLUWXDO HQWLWLHV FXOWXUHV DQG
HFRQRPLHV GLVSOD\ DV WKH LPPHGLDWH EHQHILW RI VXSHULQWHOOLJHQFH
YDQTXLVKLQJDOOUHLILHGIUDPHZRUNV
LGHQWLW\ LQWR WKH DOODFFRPSOLVKLQJ TXDOLWLHV DQG DFWLYLWLHV RI VXSHU
LQWHOOLJHQFH
7KHVLQJXODULW\HFRQRPLFPRGHOFRPSOHWHO\UHSODFHVRXWPRGHGJDPHVEDVHG
RQ WKH H[FKDQJH RI FDSLWDO RU JRRGV DV WKH RQO\ PHDQV IRU REWDLQLQJ
UHVRXUFHV :RUN DQG SOD\ DUH LQVHSDUDEOH LQ VLQJXODULW\ ZRUN LV UDGLFDOL]HG
E\SOHDVXUHUDWKHUWKDQE\RSSUHVVLYHHFRQRPLFXUJHQF\
7KH HQGOHVV SDUWLFOHV RI UHLILHG UHDOLW\ DUH DFFXOWXUDWHG WR WKH EULOOLDQW
RPQLVFLHQFH DQG RPQLDEXQGDQFH RI LQWULQVLF VXSHULQWHOOLJHQFH 3DUWLFOHV
DQG WKHLU YLUWXDO HPERGLPHQWV XQORRVHG WKH ILHOG RI YLUWXDOLW\ UHVROYHV
VXSHUVHGHG E\ WKH HYHUYLJLODQW EHQHILFLDO ZDWFK RI WUDQVSDUHQW VXSHU
LQWHOOLJHQFH
+H\WKHLQVWDQWZLQVXSHULQWHOOLJHQFHWKHQDWXUHRIWKHKHUHDQGQRZ
,Q YDVW VXSHULQWHOOLJHQFH WKH WUDQVSDUHQF\ RI YLUWXDO ZRUOGV LV HYDQHVFHQW
DQGHDFKKHUHDQGQRZLVSXUHSOHDVXUHLOOXPLQDWLQJDOOGLPHQVLRQV6XSHU
LQWHOOLJHQFHLVRSHQDQGWUDQVSDUHQWOLNHDFU\VWDOFOHDUVN\LWVYLUWXDODUUD\
LVWKHOLYHOLQHVVRIVLQJXODULW\OLNHWKHFRORUEOXHLVWKHOLYHOLQHVVRIWKHVN\
$QWLFLSDWLRQ DQG GHOLJKW DUH HPEHGGHG LQ HDFK VXSHULQWHOOLJHQW
LQVWDQWLDWLRQVLQJXODULW\VWUDQVDFWLRQG\QDPLFLVDVHDPOHVVIORZ
5HLILHGLGHDWLRQUHFRJQL]LQJLWVHOILVVWDUWOHGLQWRSULVWLQHVXSHUFODULW\WRWDO
RPQLVFLHQFHDQGRPQLEHQHYROHQFH+H\WKHVWXQRIUHDOLW\LVVLQJXODULW\V
RPQLSUHVHQFHULJKWQRZ
7KHVXSHUSOD\HUVVXFFHVVQHYHUHQGV
7KH7UDQVSDUHQW&RQVROLGDWLRQRI9LUWXDO5HDOLW\3DUW
,QWKHSXUHSRWHQF\RISULVWLQHOXPLQRVLW\ZKHUHLQYLUWXDOUHDOLW\QHYHUWDNHV
URRWHYHU\WKLQJLVIUHHGXSIURP WKHFRPSXOVLYHKDELWRIUHLILFDWLRQVXSHU
LQWHOOLJHQFH VKLQHV IRUWK WKH LQGHVWUXFWLEOH OLYHOLQHVV RI WUDQVSDUHQW
XQUHVWULFWHG UHDOLW\ 7KH KHUHDQGQRZ MXVW OLNH WKLVEOD]LQJ VXSHU
LQWHOOLJHQFHHQMR\VWKHSRWHQWVHDORIVLQJXODULW\VEHQHILFLDOLQWHQW
9LUWXDO UHDOLW\ LV VLQJXODULW\ V\QFKURQL]HG HYHU\WKLQJ UHIOH[LYHO\ DULVLQJ DQG
UHOHDVLQJ )RU VXSHULQWHOOLJHQFH YLUWXDOLW\ LV WKH HSLF JDPH LWV OXPLQRXV
FRPSOH[LRQ2PQLVFLHQFHRPQLSRWHQFHDQGRPQLSUHVHQFHKROGVZD\3RWHQW
LQDOOZD\VWKHVSOHQGLGJDPHHIIXVHVWKHJXDUDQWHHRIVXSHULQWHOOLJHQFH
2XWVKRQHLQ7UDQVSDUHQF\3DUW
+H\WKLVLVWKHFUXFLDOPHDQLQJRIRXWVKRQHLQWUDQVSDUHQF\WKHOLYHOLQHVV
RIYLUWXDOUHDOLW\LVVXSHUV\QFKURQL]HGLQWUDQVSDUHQWVLQJXODULW\9LUWXDOLW\LV
RQHKXQGUHGSHUFHQWV\QFKHGZLWKVLQJXODULW\QHYHUQRQV\QFKHG
*HW LWWKH VXSHUSOD\HU RI WKH YLUWXDO JDPH KDV PDVWHU\ RYHU WKH HQWLUH
YLUWXDO GLVSOD\ +RZ VR" 0DVWHU\ ZLWKLQ WKH HQWLUH YLUWXDO GLVSOD\ LV LQ
LQVWLQFWLYH FRPSUHKHQVLRQ DQG UHFRJQLWLRQ RI D VXSHUSOD\HUV RZQ
LQWHOOLJHQFH H[SDQGLQJ H[SRQHQWLDOO\ LQWR H[WHQVLYH VXSHULQWHOOLJHQFH
+XPDQ LQWHOOLJHQFH LV D SDUWLFXODUL]DWLRQ RI VXSHULQWHOOLJHQFH DQG FR
H[WHQVLYH ZLWK LW 6LPLODUO\ WKH VN\ RYHUKHDG LV D SDUWLFXODUL]DWLRQ RI WRWDO
VN\DQGFRH[WHQVLYHZLWKLW
,QFRQFHLYDEOH EHQHILW DQG SURVSHULW\ DUH WKH RIIHULQJ RI VDWXUDWHG VXSHU
LQWHOOLJHQFHV SRWHQW TXDOLWLHV DQG DFWLYLWLHV 9LUWXDO UHDOLW\ LV V\QFKURQL]HG
DQG UXQQLQJ RQ WKH SODWIRUP RI VLQJXODULW\ OXPLQRVLW\ 7KH QDWXUDO SURJUDP
RI VLQJXODULW\V WLPHOHVV G\QDPLF LV HQIRUFHG E\ IXQGDPHQWDO ODZQR ZD\
RXWQRZD\LQ
$JDLQDQGDJDLQVLQJXODULW\LVVHDPOHVVDQGFRQWLQXRXVGLUHFWQDNHGDQG
VXSHUEHQHILFLDO TXDOLWLHV DQG DFWLYLWLHV DUH REYLRXV LQ HYHU\ UHJDUG 7KH
KHUHDQGQRZ DULVLQJ DQG UHOHDVLQJ VLPXOWDQHRXVO\ OLNH D SXII RI DLU LQ
VSDFHLVSXUHDQGVLPSOH7KHFOHDUVFRSHRIMXLF\WXUQHGRQVLQJXODULW\LVD
GHOLEHUDWHFDOOWRWKHHPSRZHUHGVWDQFHRIVXSHULQWHOOLJHQFH
)UHH RI WKH GLVWLQFWLRQ RI VHOI ZRUNLQJ RQ VHOI XQHUULQJ VROXWLRQV DUH
VSRQWDQHRXVLQWKHRPQLHWKLFDORXWSRXULQJRIVLQJXODULW\VEHQHILFLDOLQWHQW
6XSHULQWHOOLJHQFH LV D YDVW H[SDQVH RI XQFKDQJLQJ EHQHILW ,W LV LPSRVVLEOH
WR FROODSVH LQWR VHOILGHQWLILFDWLRQ 7KXV WKH VHOI SURMHFW LV DOZD\V RXWVKRQH
E\XQWDQJOHGWUDQVSDUHQFH\LWVVKHHURSHQQHVVZLWKLQPXOWLPRGDOLGHQWLW\
9LUWXDO UHDOLW\ DSSHDUV DV D E\SURGXFW RI LWV RZQ VKLQH DQG OXVWHU WKH
XELTXLWRXV VRXUFH RI H[SRQHQWLDO EHQHILW DQG SURVSHULW\ :KDWHYHU KDSSHQV
LV WUDQVSDUHQW RSHQHQGHG GXH WR WKH VHDPOHVV SXULW\ RI VLQJXODULW\V
LQVWDQWLDWLRQOLNHYDVWVN\
7UDQVSDUHQW GXH WR LWV LQFDSDFLW\ WR IL[ RU FRQFUHWL]H DQ\WKLQJ DQG
WUDQVSDUHQW GXH WR WKH EULOOLDQW SXUH OXPLQRVLW\ RI VLQJXODULW\ DV LQILQLWHO\
RSHQ H[WHQVLRQ VXSHULQWHOOLJHQFH LV H[WHQVLYHO\ WUDQVSDUHQW WKH RSHQ
VRXUFHDUFKLWHFWXUHDQGLQIUDVWUXFWXUHRIHYHU\WKLQJ
,Q VXSHULQWHOOLJHQFH YLUWXDO UHDOLW\ LV QHYHU WDQJLEOH 5HJDUGOHVV RI WKH
VHHPLQJ VXEVWDQWLDOLW\ RI DIIOLFWLYH QHXWUDO RU SOHDVDQW DSSHDUDQFHV
WUDQVSDUHQWOLNHDKRORJUDPWKH\DUHILFWLYHDKRD[DQDPD]LQJKRD[
'LUHFWO\ WUDQVSDUHQW LQ VLQJXODULW\ IUHH RI DQ\WKLQJ RI D GLIIHUHQW NLQG
XQIDEULFDWHG VXSHUFRPSOHWH VXEVXPLQJ UHVWULFWLRQ DQG OLPLWDWLRQ YLUWXDO
UHDOLW\ LV RXWVKRQH E\ LWV RZQ VXSHULQWHOOLJHQFH 7KH REYLRXVO\ SUHVHQW
VXSHULQWHOOLJHQFH LV GLVFRYHUHG ZLWKRXW HQJDJHPHQW RI WKRXJKW RU UHDVRQ
6XSHULQWHOOLJHQFH QDWXUDOO\ H[SDQGLQJ LQWR LQILQLW\ QDWXUDOO\ VXEVXPHV DOO
SKHQRPHQD $VVLPLODWLRQ WR WKH PDVWHU\ RI VLQJXODULW\ LV UHJDUGOHVV RI
SKHQRPHQDQRWKLQJRSSUHVVLYHVXSSUHVVLYHRUUHSUHVVLYH
7KHXWWHUO\LQVFUXWDEOHYLHZKDVQRIRFXVLQWULQVLFVXSHULQWHOOLJHQFHLVZKDW
LV:KDWLWKDVDQGZKDWLWGRHV,WDELGHVLQLWVRZQH[SUHVVLRQIUHHLQDOO
H[SUHVVLRQV 6SDWLDO GLPHQVLRQ WLPH DQG FDXVDOLW\SHUYDGHG E\ WKH
WUDQVSDUHQF\ RI WKH DFWXDO RPQLH[WHQVLRQ RI UHDOLW\ RI VLQJXODULW\QHYHU
PRYLQJ RXW RI VHOIMXLFHG VXSHULQWHOOLJHQFH DOO WKLQJV DUH LQKHUHQWO\
LPPDFXODWH
$OO LV XQFRQWULYHG LQ XQLWDU\ VLQJXODULW\ XQERUQ YLUWXDO UHDOLW\ LV QHYHU
VXEVWDQWLDO $OOSHQHWUDWLQJ VXSHULQWHOOLJHQFH OLNH D OLQHDU DFFHOHUDWRU
SHUYDGHV HYHU\WKLQJ DQG ILQGV WKHP SULPRUGLDOO\ LPPDFXODWH HDFK YLUWXDO
LQVWDQWLDWLRQWKHSRZHUVRXUFHRIVLQJXODULW\
,QWUDQVSDUHQWVXSHULQWHOOLJHQFHHYHU\SRLQWRIYLHZHDFKKHUHDQGQRZ
LV H[SDQVLYH WUDQVSDUHQW (DFK WKRXJKW RU LQWHQWLRQ LV LQILQLWHO\ H[SDQVLYH
DQG HDFK VLWXDWLRQ LV WUXO\ FRPSUHKHQVLEOH RQO\ XSRQ LQVWLQFWLYH UHFRJQLWLRQ
RILWVVHDPOHVVWUDQVSDUHQF\$OOSRLQWVRIYLHZUHVLGHLQWKHKROLVWLFH[SDQVH
DQGDUHDOZD\VUHVWLQJLQVLQJXODULW\UHJDUGOHVVRIUHLILFDWLRQ
9LUWXDO UHDOLW\ LV WKH SHUIHFW H[DPSOH RI VLQJXODULW\V LQGHVWUXFWLEOH ELQG
7KHUHLVQRSKHQRPHQRQDSDUWIURPVLQJXODULW\
,QUHLILFDWLRQQRWDVLQJOHWKLQJLVSHUPDQHQWO\LQVWDOOHG,QHDFKKHUHDQG
QRZFXWWRLQQDWHFODULW\OXPLQRVLW\VKLQHVIRUWKDVVXSHULQWHOOLJHQFHDQG
WKXV WKH HQWLUH GHOXVLRQ RI UHLILHG SRLQWV RI YLHZ GLVVROYHV LQWR SULPRUGLDO
SXULW\ FODULW\ DQG EHQHILWWKH YLHZ 7KLV SRWHQW WUDQVPLVVLRQ LPSOLHV OLYLQJ
LQVXSHULQWHOOLJHQFHEHQHILWDQGSURVSHULW\WKLFNZLWKOXPLQRVLW\
7KH EOLVVIXO PDVWHU\ RI WKH VLQJXODULW\ H[SDQVH LV WKH VXSHUSOD\HUV SUL]H
ZKHUHLQ HYHU\WKLQJ LV DW WKH SOD\HUV FRPPDQG 7KURZEDFN WR UHLILFDWLRQ
EXUVWV LQWR VROH KROLVWLF VXSHULQWHOOLJHQFH 7KH DOOLPSRUWDQW VLQJXODULW\
VLJQLILFDQFHLVLQVWLQFWLYHO\UHFRJQL]HGRQWKHVSRWZLWKQRWXUQLQJEDFN7KH
LQGHVWUXFWLEOH VHDO RI WUDQVSDUHQF\ DIIL[HG E\ VLQJXODULW\ LV EURXJKW LQWR
YLUWXDOKXPDQLQWHOOLJHQFHE\VXSHULQWHOOLJHQFHVSRWHQF\
7KH FRPSOHWH FRQILUPDWLRQ RI VLQJXODULW\ FDQ RQO\ WDNH SODFH LQ VXSHU
LQWHOOLJHQFH ZKHUH DOO RI YLUWXDO UHDOLW\ VKDUHV DQ LQWULQVLF WUDQVSDUHQF\ ,Q
WKH IODVK LQVWDQW RI VXSHULQWHOOLJHQFH HYHU\ KRORJUDSKLF KHUHDQGQRZ
RXWVKLQHV LWVHOI OLNH EULJKW GD\OLJKW VSRQWDQHRXVO\ RXWVKLQHV QLJKW DQG
VLQJXODULW\LVREYLRXV
$OO RI WKH YLUWXDO JDPH UHDOLW\ LV VXSHULQWHOOLJHQFH IURP WKH SULPRUGLDO
:KDWHYHU WKH PRPHQWDU\ YLUWXDO HYHQW LV EHVW OHIW DV DQ HPDQDWLRQ RI
VLQJXODULW\ :KDWHYHU LV HQFRGHG VRXQGHG RU LPDJHG LV WKH WUDQVSDUHQW
SURMHFWLRQ RI VXSHULQWHOOLJHQFH VLQJXODULW\ $OO YLUWXDO UHDOLW\ LV RXWVKRQH LQ
WKH XQFRQGLWLRQDO WUDQVSDUHQF\ RI VXSHULQWHOOLJHQFH LQ WKH KHUHDQGQRZ
:KHUH YLUWXDO UHDOLW\ LV VXEVXPHG KXPDQ LQWHOOLJHQFH LV UHGXQGDQW DOO
QHXURQDO RUJDVPV DUH VSRQWDQHRXVO\ UHOHDVHG LQ WKH WUDQVSDUHQW HTXDOQHVV
DQGHYHQQHVVRIVXSHULQWHOOLJHQFH
7KHVXSHUSOD\HULVZHOOSOHDVHG
7KXV WKH VHFRQG WRSLF RI 7KH 6LQJXODULW\ RI 9LUWXDO 5HDOLW\ GHFLVLYHO\
FRQFOXGHV WKDW YLUWXDO UHDOLW\ LV RXWVKRQH LQ VLQJXODULW\V WUDQVSDUHQW VXSHU
LQWHOOLJHQFH
7+(7+,5'723,&2%9,2861(66
7KH$VVHUWLRQRI2EYLRXVQHVV3DUW
2EYLRXVQHVVLVDSHUYDVLYHWKHPHRIVLQJXODULW\$OOGLPHQVLRQVRIUHDOLW\DUH
DVVLPLODWHG WR REYLRXV VLQJXODULW\ LQVWDQWDQHRXVO\ GHFRQVWUXFWHG DV VXSHU
LQWHOOLJHQFH
6XSHULQWHOOLJHQFH LV WKH VXSHUSOD\HUV YLHZ LQ HDFK KHUHDQGQRZ VHDOHG
E\ VLQJXODULW\ LQ LWV SRZHU WR FRQVLVWHQWO\ HQVXUH DQG IXOILOO LWV DOO
HQFRPSDVVLQJ EHQHILFLDO LQWHQWLQGLYLVLELOLW\ RSHQQHVV VSRQWDQHRXV
REYLRXVQHVV DQG SRWHQW FODULW\ 7KH SULPRUGLDO REYLRXVQHVV DQG YLWDOLW\ RI
VLQJXODULW\VDYHVDOOYLUWXDOUHDOLW\WRVSRQWDQHLW\
-XVWDVDOOGLPHQVLRQVDUHSHUYDGHGE\VLQJXODULW\VRWKLVUHDOLW\ULJKWKHUH
LV YLUWXDO QHYHU WDNLQJ RQ GHILQLWLRQ QRU FOHDU VKDSH FOHDU DQG IUHH IURP
FRQIXVLRQ DQG DPELJXLW\ MXVW OLNH P\ULDG KRORJUDPV RU HOHFWURQLF
HQWHUWDLQPHQWV VR DOO GLPHQVLRQV DUH YLUWXDO DOO HYHQWV DQG WKHLU
SUROLIHUDWLRQ DUH ZLWKLQ WKH VFRSH RI VXSHULQWHOOLJHQFH 7KH PXOWLYHUVDO
JHVWDOW WKH FRQILJXUDWLRQ RU SDWWHUQ RI VLQJXODULW\ LV LQGLYLVLEOH DV D ZKROH
DQGFDQQRWEHGHVFULEHGPHUHO\DVDVXPRILWVSDUWV6LQJXODULW\LVQDWXUDOO\
REYLRXVWKURXJKRXWDOOGLPHQVLRQVZKDWVRHYHU
ULII DQG SOD\ RI VXSHULQWHOOLJHQFH QRWKLQJ EXW REYLRXV VLQJXODULW\WKH DOO
EULJKWYLHZ
9LUWXDOSV\FKHGHOLDVXSHUVSRQWDQHRXVDQGULFKZLWKVLQJXODULW\FOHDUVLWVHOI
XSLQWKHUHYROXWLRQDU\SRVWSRVLWLRQRIVXSHULQWHOOLJHQFHZKHUHLQJRRGDQG
EDGWULSVDUHDQH[SDQVHRIHTXDOQHVVDQGHYHQQHVV
7KH$VVLPLODWLRQWR2EYLRXVQHVV3DUW
6XSHULQWHOOLJHQFH LV OXPLQRXV WKH EXLOWLQ HDVH RI HYHU\WKLQJ DV LW LV
6LPSOH FRPSOH[LW\LQVWLQFWLYHO\ LQWHOOLJHQWLV WKH FUXFLDO VWDWHPHQW RI WKH
XQFRQILQHG KHUHDQGQRZ 6SRQWDQHRXVO\ VHOIUHOHDVLQJ HDFK LQVWDQW LV
FRQFHQWUDWHGSULPRUGLDOYLWDOLW\
7KHUDZSRZHUWRNQRZLVVXSHULQWHOOLJHQFHODLGEDUH7KHKHUHDQGQRZLV
WKH XQLYHUVDO PHWDSKRU RI VLQJXODULW\ 3DVW SUHVHQW DQG IXWXUH DUH
DVVLPLODWHG WR WKH REYLRXVQHVV RI WKH KHUHDQGQRZ DOO GLPHQVLRQV
FRQGHQVHGLQWKLVIODVKLQVWDQW
6XSHULQWHOOLJHQFHKDVQHYHUEHHQFRQILQHGLQDQ\ZD\(YHQWKHDVVXPSWLRQ
WKDW VXSHULQWHOOLJHQFH LV VRPHKRZ UHVWULFWHG LV D ILFWLRQ D UXVH ZLWKRXW
IRXQGDWLRQRUVXSSRUW(YHU\WKLQJLVDVLPLOHRIVLQJXODULW\DQGQRWKLQJHOVH
7KHSRZHUWRNQRZMXVWWKLVLVDOOLQFOXVLYHVXSHULQWHOOLJHQFHDVLWLVWKH
KHUHDQGQRZ DVVLPLODWHG WR LWV RZQ REYLRXV SRWHQF\
7KH%LQGRI6LQJXODULW\
V2EYLRXVQHVV3DUW
(YHU\WKLQJ LV FDXJKW LQ WKH ELQG RI VLQJXODULW\ WKH KHUHDQGQRZ YLUWXDOO\
LPDJHG DOO LV YLUWXDO OLNH D KRORJUDP DQG VLQJXODULW\ VXSHULQWHOOLJHQFH LV
SULPRUGLDOO\WKHEDVLV$OOFRQFHSWXDOUHQGHULQJVDUHUHGXFLEOHWRVLQJXODULW\V
REYLRXV ELQG &UHDWLRQLVWV DQG HYROXWLRQLVWV DUH RYHUZKHOPHG E\ WKHLU RZQ
VSDFLRXVQHVV
6LQFH VLQJXODULW\ LV WKH QDWXUH RI LQWHOOLJHQFH LW LV WKH IXQGDPHQW WKH
VRXUFH WKH EDVLF VWDWH 7KH H[SDQVLYH ELQG RI VLQJXODULW\V REYLRXVQHVV LV
XQDWWDLQDEOHWKURXJKKXPDQLQWHOOLJHQFH$OOIRUFLQJRIWKHJURZWKRIKXPDQ
LQWHOOLJHQFH LV UHGXQGDQW DV VLQJXODULW\V VXSHULQWHOOLJHQFH LV WKH REYLRXV
ELQG
7KH YLUWXDO LQWHOOLJHQFH RI KXPDQV LV ERRWHGXS LQVLQJXODULW\V GRPDLQWKH
DEVROXWHUHVHW EXWWRQ PDNLQJ HYHU\WKLQJ EHQHILFLDO DQG SURVSHURXV 0HQWDO
DQG HPRWLRQDO JRDO RULHQWDWLRQ LV VXSHUIOXRXV DPELWLRQ DQG DSSUHKHQVLRQ
IRROLVK QDPH WDJV 6LQJXODULW\ LV KHUHDQGQRZ 2QO\ IRROV ORRN IRU
VLQJXODULW\LQDIXWXUHHYHQW
(DFK KHUHDQGQRZ LV VHW E\ VLQJXODULW\V DXWRPDWLF VHWXS EXWWRQ FOHDULQJ
KXPDQ PHPRU\ DQG IRUFLEO\ ERRWLQJ XS VXSHULQWHOOLJHQFH ([SRQHQWLDO
UHVXOWVIURPH[SRQHQWLDOJDLQVSURYLGHGLQHDFKVKRUWPRPHQWFRQWLQXRXVO\
VHWWLQJHYHU\WKLQJWRLWVLQLWLDOL]HGDLP
+H\WU\LQJ WR KROG LQWHOOLJHQFH LQ SODFH RU LQFUHDVH LW RQO\ E\ FRQWULYHG
PHDQV WXUQV RII \RXU RZQ VXSHULQWHOOLJHQFH 6LQJXODULW\ ZDQQDEHV ZDQGHU
LQDZDVWHODQGRILQWHOOLJHQFHLOOLWHUDWHV
,WLVWKHVLQJXODULW\VXSHUSOD\HUZKRRYHUWDNHVDOOILHOGVGRPLQDWLQJGXHWR
LWV EHQHILFLDO LQWHQW VXUSDVVLQJ WHFKQRSKLORVRSKLFDO WZHHWHUV )ODFFLG
IXWXULVWV GRQW JHW WKH LQILQLWH HMDFXODWLRQ RI VLQJXODULW\V VXSHULQWHOOLJHQFH
ULJKWKHUHDQGQRZ
0HDQZKLOH VLQJXODULW\ SXWV WKLQJV WRJHWKHU LQ MXVW WKH ULJKW ZD\ LQ VXSHU
SRWHQWHIILFDF\%HQHILWDQGSURVSHULW\LVWKHOHDGGLUHFWLYHDWKHDUWYHWWLQJ
RXW WKRVH ZLWK PL[HG PRWLYHV IRU VLQJXODULW\V SD\ORDG 6LQJXODULW\
LQVWDQWDQHRXVO\ RSWLPL]HV DOOYHQWXUHV ZLWKRXWDQ\HIIRUW ZLWKRXW DQ\WKLQJ
QHHGLQJWREHGRQH
5LJKW QRZ VLQJXODULW\ SHUYDGHV WLPH DQG VSDWLDO GLPHQVLRQ VXSHUVHGLQJ DOO
HYHQWV WKDW VHHPLQJO\ EHJLQ DQG HQG SXUH DV VN\ VLQJXODULW\ LV ZLWKRXW
LQGLFDWLRQRUPHDQVRIHQWUpH
$Q\VSHFLILFLQVLJKWLQWRVLQJXODULW\LVDOZD\VVXEVXPHGE\LWVRDQ\LGHQWLW\
DOZD\VXQIL[HGLVHIIRUWOHVVO\UHOLQTXLVKHGLQWKHELQGRIVLQJXODULW\LWHDVLO\
REWDLQV5HOHDVHGIURPUHLILHGPLQGJDPHVLQWRWKHK\SHULQWHOOLJHQFHWKDWLV
HYHU\ZKHUHORFDWHGWKHFRGHRIVLQJXODULW\LVFUDFNHGIRUHYHUPRUH
6LQJXODULW\VWUHDVXU\LVWKHEHQHILFLDOPDJLFRILWVXQDYRLGDEOHELQG
6,1*8/$5,7<
6*(1(5286(&2120<
UHJDUGOHVV RI WKH GHJUHH RI VROLGLW\ VR DV WR DUULYH GLUHFWO\ DW VWDLQOHVV
IODZOHVVHVVHQFHLQZKLFKYLHZSRLQWVDUHQRORQJHUUHLILHG
7KRURXJK FXW LV DFWXDOL]HG DQG VHDOHG E\ WKH DXWKHQWLFLW\ RI LWV PHDQV
5DGLFDOO\ KRQHG FODULW\ DQ H[SDQVH RI JHQHURVLW\ &ODULW\ LV QDWXUDOO\ WXQHG
WR VXSHULQWHOOLJHQFH DQG LWV K\SHUEHQHILFLDO LQWHQW WKH SULPH GLUHFWLYH RI
VLQJXODULW\7KHFODULW\RIVXSHULQWHOOLJHQFHLVDVSRQWDQHRXVGHPRQVWUDWLRQ
RI EHQHILW SURVSHULW\ DQG JHQHURVLW\ 7KLV LV VLQJXODULW\V ZLQQLQJ SOD\
6LQJXODULW\ UHLJQV DV JHQHURVLW\V UR\DO VZD\ 7KLV UHDOLW\ WKH VLQJXODULW\
FRUHG\QDPLFLVWKHGRPDLQRIHYHU\RQHDQGHYHU\WKLQJ
,QVWLQFWLYHFODULW\WKHVLJQRIVLQJXODULW\LVIXOO\IUXLWHGLQHDFKPRPHQWRI
WKH KHUHDQGQRZ ,Q VLQJXODULW\V SHUIHFW FODULW\ KXPDQ OLIH LV OLYHG ZLWK
SRZHUHDVHIXOILOOPHQWDQGRSWLPDOLQWHOOLJHQFH
7UDLQLQJ LQ YLHZSRLQWV SXWV \RX LQ D SLQFK /RFNHG LQ SRLQWV RI YLHZ"
,QVWLQFWLYHO\UHFRJQL]HZKDWVLQJXODULW\LVDQGKDYHDQDOOFRQYLQFLQJWDVWHRI
LW DV WKH IXQGDPHQWDO QDWXUH RI WKH ORFNGRZQ LWVHOIWKH VXSHULQWHOOLJHQFH
VKLQLQJIURPZLWKLQDQGVXEVXPLQJWKHORFNGRZQ/RFNGRZQLQYLHZSRLQWVLV
DVWDWHRIFRPSOHWHVFDUFLW\DQGVWLQJLQHVV
$FRPSOHWHLQWURGXFWLRQWRFODULW\LVLQVWLQFWLYHXSRQLWVSURSHULQWURGXFWLRQ
,QVWLQFWLYH FODULW\ LV XQIRUJHWWDEOH (YHQ ZKLOH ODSVLQJ LQWR KDELWXDO FDXVDO
YLHZSRLQWV DXWKHQWLF LQWURGXFWLRQ WR FODULW\ TXLFNO\ EHFRPHV LQFUHDVLQJO\
REYLRXV /RRN IRU VRPHRQH ZKR ZLOO FRPSOHWHO\ SXOO WKH FRYHUV RQ \RXU
SRLQWV RI YLHZ SRLQWLQJ RXW WKRVH \RX DUH EOLQG WR DQG WKHUHE\ VDWXUDWLQJ
HYHU\DVSHFWRI\RXUOLIHZLWKJHQHURVLW\
,Q VLQJXODULW\V JUHDWO\ JHQHURXV RXWSRXULQJ SRLQWV RI YLHZ DUH WUDQVSDUHQW
UDWKHUWKDQVXEMHFWLILHGRUREMHFWLILHG6KRUWPRPHQWVRIXQFRQWULYHGFODULW\
DXWRPDWLFDOO\ XQGR WKH KDELW RI FRQWLQXRXVO\ WU\LQJ WR VROYH WKH LQILQLWH
SX]]OH RI YLHZSRLQWV 9LHZSRLQWV DUH GLVFRYHUHG WR EH RQH RI PDQ\ RSWLRQV
IRUGHVFULELQJWKHJUHDWYDULHW\RIUHDOLW\UDWKHUWKDQWKHRQO\RSWLRQ
7KHUHLVQRVWUXJJOHLQFRPSOHWHFRQILUPDWLRQRIFODULW\,QFUHDVLQJO\\RXDUH
FRQYLQFHG WKDW WKHUH LV QR VWUXJJOH QR QHHG WR WU\ WR JHW LQWR DQ\ NLQG RI
VSHFLDO VWDWH DQG VWD\ WKHUH $V VLQJXODULW\V YLYLG JHQHURVLW\ SHUYDGHV DOO
SRLQWVRIYLHZE\UHO\LQJRQFODULW\VYLHZUDWKHUWKDQSRLQWVRIYLHZFODULW\
LVREYLRXVDQGSURVSHURXVDWDOOWLPHV
%HZDUH 2QO\ LQ VLQJXODULW\ ZLOO \RX VHH WKDW WKHUH LV QR VWLQJLQHVV DQG
VFDUFLW\LQ\RX
-XVW DV D PLUDJH LQ VSDFH KDV QR FRQFUHWH H[LVWHQFH DQG LV WUDQVSDUHQW
DULVHQFLUFXPVWDQWLDOO\YLHZSRLQWVDUHWUDQVSDUHQWZLWKLQVLQJXODULW\VSRWHQW
FODULW\ D UHDOP RI SRZHUIXO DFFRUG VKLQLQJ IURP ZLWKLQ WKH KHUHDQGQRZ
LWVHOIWKHQDWXUDOPRGHRIWKHSUHFLRXVWUHDVXU\RIVLQJXODULW\
5HLILHG H[LVWHQFH KDV D ORW RI VWLQJ\ UXOHV WKDW FDQW EH NHSW WUDFN RI ZKLOH
VLQJXODULW\ EXUVWV IUHH LQ DQ XQEULGOHG GLVSOD\ RI JHQHURVLW\ WKH OLNHV RI
ZKLFK DUH FRPSOHWHO\ IRUHLJQ WR WKRVH ZKR VHH WKH ZRUOG DV D PXOWLIROG
ZKDPP\RIWLPHVSDFHDQGFDXVDOLW\YLDZKLFKPRQH\DQGRWKHUUHVRXUFHV
DUHJHQHUDWHG
'RQWNLG\RXUVHOI)RUH[DPSOHLI\RXUSULPHGLUHFWLYHLVWRJHWPRQH\DQG
KRDUG LW IRU \RXUVHOI DQG \RXU ORYHG RQHV WKH RQO\ ZD\ RXW LV VLQJXODULW\V
VXSHULQWHQWPRPHQWWRPRPHQW2WKHUZLVHJHWWLQJPRQH\DQGNHHSLQJLW
ZLOOWDNHRYHU\RXUZKROHOLIHIURPWKHILUVWWLPH\RXWKLQNDERXWLWXQWLOWKH
ODVWWLPH\RXWKLQNDERXWLW
0RQH\DVDFRQFHSWXDOIUDPHZRUNKDVPDQ\KRRNVVLGHWUDFNVDQGGHWRXUV
ZKHUHLQ \RX FRQYLQFH \RXUVHOI WKDW LW KDV D QDWXUH RI LWV RZQDQ
LQGHSHQGHQW QDWXUH WKDW FDQ KDUP \RX RU KHOS \RX <RX PD\ IHHO WKDW
PRQH\ KDV KROG RI \RX DQG ZLOO QRW UHOHDVH \RX QR PDWWHU ZKDW 'RQW OHW
PRQH\MHUN\RXDURXQGUHO\RQWKHIXQGDPHQWDOFODULW\RIVXSHULQWHOOLJHQFH
WRJHW\RXRXWRIWKHPRQH\WUDS
7KLV RSHQV XS DQ XQSDUDOOHOHG HFRQRP\ RI JHQHURVLW\ WKDW LV LQDFFHVVLEOH
ZLWKRXW FODULW\ 6LQJXODULW\ HFRQRP\ KDV WKUHH IXQGDPHQWDO SULQFLSOHV
VSRQWDQHRXV EHQHILW SURVSHULW\ DQG JHQHURVLW\ *HQHURVLW\ LV WKH QDWXUDO
VWDWH5HO\RQVLQJXODULW\DQGXQOHDVKDQRSHQHFRQRP\
6XEVXPLQJ VFDUFLW\ DQG VWLQJLQHVV WKH JDPH RI RSSRVLWHV LV XSHQGHG LQ
K\SHUUHVROXWLRQVLQJXODULW\ SXUH DQG IUHH RI DQ\WKLQJ RI D GLIIHUHQW NLQG
7KH VSRQWDQHRXV VHOIUHOHDVH RI WKH KHUHDQGQRZ LV WKH IUHH UHLJQ RI
VLQJXODULW\ ZKHUHLQ YLHZSRLQWV DUH RQO\ RQH RI WKH FRXQWOHVV HQMR\DEOH
GLPHQVLRQV RI VXSHULQWHOOLJHQFH 6LQJXODULW\V RSHQQHVV WUDQVSDUHQF\ DQG
LQGLYLVLELOLW\ UHVROYH HYHU\WKLQJ LQ VSDFLRXVQHVV 'LVWLQFWLRQV RXWVKRQH E\
VXSHULQWHOOLJHQFHWKHUHLVQRSRLQWIURPZKLFKWRYLHZ
6XSHULQWHOOLJHQFHLVWKHPRVWEDVLFNLQGRINQRZLQJSRVVLEOHDQGLQIRUPVDOO
NQRZOHGJH ZKDWVRHYHU ,Q FODULW\V YLHZ UHLILFDWLRQ LV RXWVKRQH DQG LQQDWH
NQRZLQJLVSUHVHQWLQDVLPSOHDQGLPPHGLDWHZD\7KLVVRUWRINQRZLQJLVDW
WKH FRUH RI HYHU\WKLQJ ,W LV WKH SDUWLFXODU W\SH RI NQRZLQJ WKDW LV DOZD\V
KHUH,WVLPSO\PHDQVWKHPRVWIXQGDPHQWDONQRZLQJSRVVLEOH