Учебник по Английскому Языку. Economy and Finance (2курс, 1 семестр). Учебник по Английскому Языку. Economy and Finance (2курс, 1 семе. Министерство экономического развития и торговли Российской Федерации Российский Государственный ТорговоЭкономический Университет
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Unit 6 The Stock Exchange, SharesAs you know, shares sold by public limited companies can be listed on the stock exchange. The stock exchange is the centre of the stock market, where large quantities of capital are raised for companies and the government. This capital is raised in two ways: by selling shares to investors, which means that the investors become part-owners of the public limited company and by obtaining loans from investors. These shares and loans are collectively known as securities. The stock exchange itself doesn’t own any securities; it is simply the market where securities are bought and sold. There are stock exchanges in most capital cities. The principal Stock Exchange in Britain is located in the City if London; the New York Stock Exchange is located in and is known as Wall Street. The economic importance of stock exchanges is that they facilitate saving and investment, first, through making it possible for investors to dispose of securities quickly if they wish to do so, in channeling savings into productive investments. Successful work of stock exchanges requires that information should be available on existing securities and that should be both a legal framework and market rules to prevent fraud. The stock exchange itself isn’t open to ordinary investors; instead, they have to buy shares via a stockbroker. Many banks and financial institutions offer this in return for a commission. Newer and smaller companies trade on over-the-counter markets, such as the Unlisted Securities Market in London. Over-the-counter market is a network of security dealers who buy and sell securities from each other, either for their own account or for their retail clients. This market is conducted by telephone and computer reporting price quotations between brokerage firms. Successful companies can apply to have their shares traded on the major stock exchanges, but in order to be quoted (GB) or listed (US) there, they have to fulfill a large number of requirements. One of these is to send their shareholders independently audited annual reports, including the year’s trading results and a statement of a company’s financial position. Buying a share gives its holder part of ownership of a company. Shares generally entitle their owners to vote at company’s General Meetings, to elect company directors, to receive dividends. They can be sold at any time on the secondary market, but the market price of a share – the price quoted at any given time on the stock exchange, which reflects how well or badly the company is doing – may differ radically from its nominal value. The stock market of each country has one or more share indexes. A share index is a group of shares chosen as a barometer of the movement of the market as a whole. This is useful for investors wishing to see how well their shares are doing compared with the rest of the market. Examples of the share indexes are: The Financial Times Stock Exchange 100 Share Index (known as “Footsie”) - the 100 largest companies listed on the British stock exchange. The most important US index is the Dow Jones Industrial Average - consists of 30 leading industrial companies in the USA. At the London Stock Exchange, share transactions do not have to be settled until the account day or settlement day at the end of a two-week accounting period. This allows speculators to buy shares hoping to resell them at a higher price before they actually pay for them, or to sell shares, hoping to buy them back at a lower price. Words and expressionslist (v) - регистрировать на бирже (допускать к торговле на бирже – котировке) to list shares on the stock exchange - регистрировать акции на бирже listedcompany - компания, акции которой котируются на фондовой бирже listing- допуск, котировка stock exchange - фондовая биржа to have a membership (a seat) on an exchange - быть членом биржи to trade (sell, buy) on an exchange - проводить операции на бирже torunanexchange - руководить деятельностью биржи securities (n), pl. - ценные бумаги gilt-edgedsecurities (aboutbonds) - «золотообрезные» - первоклассные, особо надежные ценные бумаги (об облигациях) bluechips (aboutshares) - «голубые фишки» - надежные акции off-boardsecurities - ценные бумаги, не зарегистрированные на бирже facilitate (v) - облегчать, способствовать dispose of smth.(v) - избавляться от чего-либо legal framework - правовые рамки fraud (n) - обман, жульничество over-the-counter market - внебиржевой рынок (рынок, где сделка заключается за пределами фондовой биржи. На таких рынках обращаются меньшие объемы акций и облигаций, они не столь надежно гарантируют права инвесторов) Unlisted Securities Market - рынок не котируемых ценных бумаг retail client - мелкий клиент conduct (v) - управлять, руководить secondary market - вторичный рынок nominal value - номинальная стоимость to value - оценивать, производить оценку, устанавливать цену (в денежном эквиваленте) to value a painting at five thousand pounds - оценить картину в пять тысяч фунтов to be valued at … - оцениваться в … share index - индекс акции share transactions have to be settled - сделки с акциями должны быть урегулированы, по ним должны окончательно рассчитаться account day or settlement day - день окончательных расчетов accounting period or an account - операционный период (биржевой цикл) на фондовой бирже tostarttheaccount - начать операционный период (биржевой цикл) end of the account - конец операционного периода Exercises 1. Answer the questions. 1) What is the stock exchange? 2) How is capital raised by companies and the government? 3) Why are stock exchanges important? 4) What does successful work of stock exchanges require? 5) Can investors themselves buy shares? 6) How do smaller and newer companies trade? 7) What do successful companies do to be quoted on the Stock Exchange? 8) What rights do shares entitle their owners? 9) What does the market price of a share reflect? 10) How long is the accounting period at the London Stock Exchange? 11) What does this allow speculators? 2. Translate into English. 1) Мы хотим изучить годовой отчет компании, прежде чем покупать акции. 2) Где расположена лондонская фондовая биржа? 3) Давайте свяжемся с брокером и выясним, как выгодно продать акции на внебиржевом рынке. 4) Стоимость этих ценных бумаг намного выше номинальной, это значит, что дела кампании идут хорошо. 5) Индекс акций опубликован в сегодняшней газете. 6) Он собирается купить акции, надеясь перепродать их по более высокой цене и получить прибыль. 3. Match these types of shares to their definitions. There are a number of different types of shares: 1. Ordinary Shares or Equities - (a) These shares have a fixed dividend which(обычные акции без фиксированного must be paid before the ordinary dividend, дивиденда) which guarantees a return on investment as long as the company is making a profit. However, if the company doesn’t make a profit, the preference shareholder won’t be paid his dividend either. Unlike the ordinary shareholder, the preference shareholder is not entitled to vote in company matters. 2. Cumulative Preference Shares - (b) These are the most common shares. The (накопительные привилегированные ordinary shareholders bear the largest part of акции) the risk, but the returns can be much higher than with other forms of investment. Ordinary shareholders are entitled to one vote per share, which gives them more say in the running of the company; but the amount of dividend they receive (if any) is determined by the company depending on how much profit has been made. 3. Preference Shares - (c) This is another type of preference share which (привилегированные акции) pays a fixed rate of interest until a certain time. After this time it is converted into an ordinary share on which the holder receives a dividend rather than interest. 4. Convertible Preference Shares - (d) This is a special class of preference share (конвертируемые привилегированные which offers a safer return of investment. акции) This is because if the company cannot pay the dividend one year, the outstanding amount is carried over to the following years. That means that rather than losing his dividend in a year where the company runs at a loss, the shareholder can expect to receive it one or more years later along with the dividend from the following year. 4. Read the information and complete the text using the words: Bull (n) - «бык», покупатель ценной бумаги, играющий на повышение Bear (n) - «медведь», продавец ценной бумаги, играющий на понижение Stag (n) - спекулянт, покупающий новые ценные бумаги при объявлении подписки в надежде продать их с прибылью после начала торговли на вторичном рынке fall, rise, stock market, profit, accounting period, forecast, sell, buy, price, shares, speculators Bulls, Bears and Stags The buying of something cheap at one time for the purpose of selling the same thing dearer at another time is speculation. People active in buying and selling shares on the 1) … are known as 2) … and fall into three categories: “bulls”, “bears” and “stags”. A speculator may buy 3) …, for which he cannot or doesn’t wish to pay at the time, in the hope that during the 4) …, i.e. before the date of payment, the 5) … will have risen and he can then sell them at a profit. A buyer who buys like this in the hope of a 6) … in prices is a bull. Bears expect a fall in share prices. They sell any shares they have now, and even shares they don’t have, because, as prices 7) … as expected, the shares will be available in a few hours or a few days at lower prices than at present. In both cases the success of the speculation depends both on a correct 8) …of the security price movement and on a rather long time interval before payment must be made. Stags are speculators who 9) … newly issued shares in the expectation that prices will rise, then 10) … them in the hope of making a quick 11) … . The activities of such speculators have been greatly reduced in recent years. 5. Chose the correct words to complete each sentence: 1) People who buy securities expecting their price to rise so they can resell them before the next settlement day are known as … . a) bears b) bulls 2) People who sell shares hoping to buy them back at a lower price before the next settlement day are called … . a) bears b) bulls 3) People who buy new share issues, hoping to resell them at a profit are known as … . a) stags b) bears 4) Shareholders place their orders with, and sometimes seek advice from … , who are members of the Stock Exchange. a) stockbrokers b) bankers 5) Another name for shares is … , because all shares of a company have an equal nominal value. a) blue chips b) equities 6) … are often the only kind of shares with voting rights. a) ordinary shares b) preference shares 7) … , as their name suggests, usually receive a fixed dividend, which must be paid in full before any dividend is paid on other shares. a) ordinary shares b) preference shares 6. Read the text and translate it into Russian. How to Make Money on the Stock Market The surest way to earn money from investing is to create a portfolio of securities, to succeed in it investors need good sources of information. A lot of information is supplied by stockbrokers. They study market reports and get information about financial activity of companies. But brokers charge fees for their services. Some investors prefer to avoid high brokerage fees. They implement their own investment strategy. Serious investors carefully study the stock market and become real experts. A simpler investment strategy is to choose some reliable blue chip shares and stick to them. This strategy is safe and can earn money for a long period. Investors should avoid making common mistakes which are: paying too much for shares which would not go up; not knowing when to sell shares going down; paying too much attention to rumors. There are also several techniques of predicting the stock prices. Most investors begin with fundamental analysis, which is the process of comparing a company’s current financial position and future prospects with those of other firms in the same or different industries. Some investors try to identify a specific stock’s behavior charting (изображая в виде графика) it over time and then predicting its future price movement. Other investors believe that prices are random (случайные, беспорядочные) and future stock prices are independent of past stock prices. 7. Summarize the information of the unit and speak on the topic: |