Vocabulary

Ex.1. Match the following word combinations in column A with their Russian equivalents in column B:

A

B

1) equity financing 2) quantitative easing 3) residual value 4) maturity 5) secondary market 6) treasury bonds 7) bonus issue 8) ordinary shares 9) treasury bills 10) rights issue 11) preference shares 12) debt financing 13) equity stake 14) flotation/IPO 15) to underwrite the issue

a) казначейские облигации b) гарантировать размещение ценных бумаг c) льготные акции d) часть капитала компании e) первичное размещение акций на фондовой бирже f) бонусная эмиссия g) вторичный рынок (рынок, на котором перепродаются ценные бумаги после их первичного выпуска) h) долговое финансирование i) срок погашения ценных бумаг j) количественное смягчение k) остаточная стоимость/стоимость актива за вычетом амортизации l) выпуск новых акций, предлагаемых акционерам компании по льготной цене m) долгосрочные облигации со сроком погашения более 10 лет и минимальным номиналом в 1000 долларов n) обычные акции l) долевое финансирование, финансирование за счет акций

Ex. 2 Find words in the text which mean the following.

1. a fixed rate of interest bonds carry

2. a type of equity financing

3. long-term government bonds

4. issuing new shares, which are normally offered first to existing shareholders at less than their market price

5. the people who have an equity stake in the company

6. the act of issuing shares (GB) or stocks (US) for the first time.

7. to guarantee to buy an entire new share issue, if no one else wants it

8. a proportion of the annual profits of a limited company, paid to shareholders

Ex.3

Match up the expressions on the left with the definitions on the right.

1. equity financing 2. debt financing 3. bearer certificate 4. liquid 5. par value 6. coupon 7. yield

A a security whose owner is not registered with the issuer B easily sold (turned into cash) C the rate of interest paid by a fixed interest security D the rate of income an investor receives taking into account a security’s current price E issuing bonds F issuing shares G nominal or face value (100 %)

Ex. 4

Read the sentence and decide the correct underlined term

1. A quoted company is one whose shares are available privately/ publicly.

2. Shareholders earn interest/a dividend on their shares.

3. If a company gives its shareholders bonus shares they do /do not pay for them.

4. When a company distributes dividends, holders of ordinary/preference shares get priority.

5. When a company borrows money from its investors it issues the investor a bond/share. This bond/share runs for several years, and the company is obliged to pay back the money at the end of that period.

Ex. 5

Use the terms investment, stock exchange, go public, investors, invest to complete the paragraph

Some companies are publicly owned. The shares of public limited companies are tradeable on a … …. Shareholders, or … buy the company’s shares and are the owners of the company. Other companies are privately owned, and there is no open market for their shares. This can be a problem when they need to raise finance, and for that reason they may choose to …, or to make their shares available on the stock exchange. Shareholders … their money in the stock market in the hope that their … will pay a good dividend, or, in other words, that they will make a good profit.