Unit 26

PRIMARY AND SECONDARY MARKETS

(ПЕРВИЧНЫЙ И ВТОРИЧНЫЙ РЫНКИ)

Fixed-interest securities and ordinary shares are the main stock-in-trade of the securities markets and the Stock Exchange is the main securities market in the UK (and the New York Stock Exchange is the largest in the USA). By buying one or the other, investors are helping - directly or indirectly - to provide the finance that government or industry needs. Why "directly or indirectly"? Because the stockmarket is two markets in one: a primary market anda secondary market.

A primary market is one in which the government, companies or other bodies can sell new securities to investors to raise cash.

A secondary market is a market in which the investors can buy and sell these securities among each other. The buying and the selling in the secondary market does not directly affect the finances of government and companies. But if investors did not know they could buy and sell securities in the secondary market they might well be reluctant to put up cash for the government or companies by buying securities in the primary market when they were first issued. And the prices established by the buying and selling by investors in the secondary market help to determine the price that government and companies will have to pay next time they need to issue further securities for cash in the primary market. A reasonably liquid secondary market is nonnally considered vital for a healthy primary market.

VOCABULARY NOTES

stock-in-trade товарная наличность; товар

the Stock Exchange Лондонская фондовая биржа

to be reluctant to do smth неохотно делать что-либо

Assignments

I. Suggest the Russian equivalents

sell securities to raise cash; might be reluctant to put up cash for the government; to issue further securities for cash

II. Replace the parts in italics by synonyms

might be reluctant to put up cash for the government; directly affect the finances; are helping to provide the finance; is considered vital

III. Fill in the gaps with the words and expressions from the text

1. By buying__ and____________ investors are helping to that government or industry needs.

2. The stockmarket is two markets in one: a market and market.

3. A primary market is a market in which the government, companies or other bodies can sell_______ to investors to.

4. A secondary market is a market in which can buy and sell these

securities.

5. If investors did not know they could trade securities in they might

to pm»P cash for the government or companies by buying securities _

when they were.

6. The prices established by investors in the secondary market help to _
the price that government and companies will have to pay next time they need to further securities________ in__.

7. A_______________________ secondary market is normally considered for a.

IV. Find in the text English equivalents for the following

рынок ценных бумаг; фондовая биржа; первичный рынок; вторичный рынок

V. Answer the questions

1. What is a primary market?

2. What is a secondary market?

3. How are they interconnected?

VI. Translate into English using all the active possible

Все рынки взаимосвязаны: процентные ставки влияют на цены обли­гаций и акций на фондовом рынке; цены акций и облигаций влияют на состояние финансов компаний и правительства, что меняет ситуацию на денежном рынке. Это, в свою очередь, имеет огромное значение для со­стояния экономики в целом и поднимает или понижает стоимость на­циональной валюты на внешнем валютном рынке (the foreign exchange market).