Unit 8. Stock exchange and its work

1. The modern economic situation makes it impossible for any person not to be involved in the financial world. So you should have a certain background as to the fundamental notions in this sphere. Read and translate.

 

The American Central Bank, the FED, is the equivalent of the Bank of England in Britain.

The units of ownership of a company, allowing the holder to receive a proportion of the company’s profits, are the shares. The shares can be ordinary, preference, nominal and equity securities. When one company attempts to gain control of another, by buying a majority of its shares, it is making a takeover bid. When one company joins another to form a larger single company, the new company is the result of a merger. When one company buys a majority of the shares of another, and so gains control, it has carried out a takeover. The capital needed to run a business is provided by investment. The shareholders’ investment in a company is the share capital.

If the company is publicly quoted the shares are sold on the Stock Exchange. The exchange brokers (stockjobbers) work here and realize exchange transactions paying attention to exchange fluctuations. They have certain exchange restrictions while working. They use the exchange lists in the everyday work. Sometimes it may occur the exchange lost.

In the UK, a fixed amount of paid-up capital held by a stockholder is a stock.

If the market is thought to be good and prices on the Stock Exchange are thought to be likely to rise, the market is called a bull market.

If the market is thought to be poor and prices on the Stock Exchange are likely to fall, the market is called a bear market.

A promise to pay a sum of money over an agreed time by anyone licensed to do so, such as a government, insurance firm, etc., is a bond.

Certificates of ownership of bonds that can be transferred from seller to buyer without any formalities are bearer bonds.

Something that is owned by an individual or company, has monetary value, and can be sold to pay debts, is an asset. Items which the business expects to keep for a year or more are its fixed assets.

The sum borrowers pay to lenders for the use of their money is determined by the interest rate.

The interest which a bank charges on loans is a rate which is usually higher than its base rate. You can raise a loan in a bank if you are a reliable client. Banks require securities to guarantee a loan.

  Rates

The value of the money of one country compared to that of another is shown by the exchange rate. The rate of the tax added to the price of an article, paid by the buyer to the seller, and by the seller to the government is the VAT rate. The Customs and Excise Department inspect a company’s VAT records, which have to be kept for 6 years.

The rate of interest fixed by a central bank, such as the Bank of England, is the bank rate.

Indexes

The index of share prices in America is the Dow Jones index.

The same index in Britain is the FT (FTSE – footsie) index.

The same in Japan is Nikkei Dow index.

Banks, Accounts, Clients

The bank account that covers daily needs (salaries are paid into it, cash is drawn from it, and cheques are written against it) is the current account.

The account which describes the trading activities of a business over a stated period of time is the profit and loss account.

To start an account with a bank or with a supplier is to open it; to finish using an account with a bank or with a supplier and formally to end the arrangement is to close it.

To obtain cash from a bank at which one has an account is to draw out cash. Every company must watch its cash flow carefully if it is to avoid bankruptcy. The clients can transfer money from the account or withdraw the whole deposit from a bank. You can open a current account or deposit account in a bank. An inquiry to a bank, asking whether a customer is creditworthy, is a status inquiry. Payment of a debt in a cash is a cash settlement. The greatest sum which debtors are allowed to owe is their credit limit. Items for which payment is owed appear on an account as debit items. Items to be paid to a creditor are shown on a credit note.

If you need cash in the bank you can use the cash dispenser putting into it your credit card.

A note which accompanies goods sent by a seller, to be signed by the person who receives the goods, is a delivery note. A document showing what has been bought and for how much, and indicating that the goods are in transit, is an advice note.

A percentage deduction made for an order over a stated value, or payment within a stated time, is a discount. The complete statement, showing what is owed or possessed, provides a statement of the balance account. A statement produced, usually at the end of a financial year, showing the financial state of the business and including, among other things, its assets and liabilities, is its balance sheet.

The difference between the cost and the selling price is profit. The profit can be gross or net.

A company’s turnover, less its cost of sales, is its gross profit. A company’s turnover after the cost of sales, tax, rent and other liabilities are deducted is its net profit.

 

Active Vocabulary

 

ownership – собственность

gross profit – валовая прибыль

net profit – чистая прибыль

share – акция

ordinary share – акция на предъявителя

preference share – привилегированная акция

nominal share – именная акция

equity securities – акция без фиксированного дивиденда

make a takeover bid – осуществить покупку при слиянии компаний, купить на аукционе

carry out takeover – произвести покупку при слиянии компаний, взять под свой контроль

merger – слияние, объединение

run a business – вести дело, руководить бизнесом

investment – инвестиция

shareholder – акционер

share capital – акционерный капитал

quote – котироваться (на бирже)

stock exchange – биржа ценных бумаг, фондовая биржа

exchange broker (stockjobber) – биржевик, брокер на бирже, биржевой маклер

exchange transaction (deal) – биржевая сделка, операция

stockjobbing – биржевая игра

exchange fluctuation – колебание курса валюты

exchange restriction – биржевые ограничения

exchange list – биржевой бюллетень

exchange lost – потеря валюты, уменьшение валютных резервов, потеря на курсе

stock – капитал акционера по акциям

rise (about the prices) – подняться (о цене)

bull market – рынок «быков», с курсом на повышение

fall (about the prices) – упасть (о цене)

bear market – рынок «медведей», с курсом на понижение

bond – облигация, обязательство

bearer bond – обязательство, облигация на предъявителя

monetary value – денежная стоимость, ценность

pay debts – платить долги

asset – актив

fixed assets – фиксированные активы

borrow – одалживать (деньги) у кого-либо

borrower – должник; одалживающий деньги

lend – одалживать (деньги) кому-либо

lender – кредитор, заимодавец

interest rate – процентная ставка

charge the interest – брать процент

loan – заём, кредит

base rate – базовая ставка

raise a loan – брать заём, кредит

reliable client – надежный клиент

require securities – требовать гарантии (залог)

guarantee a loan – гарантировать кредит, заём

exchange rate – курс обмена валют

tax – налог

VAT rate – налог на добавленную стоимость

Customs – таможня

Excise Department – акцизный департамент

inspect the records – проверять отчетность

bank rate – ставка банка

cover daily needs – удовлетворять ежедневные потребности

draw cash from the account – снимать наличные со счета

salary – жалованье, оклад

wages – заработная плата (реальная)

write cheques against the account – выписывать чеки на счет

current account – текущий счет

deposit account – депозитный счет, авансовый счет

account rendered – оплаченный счет

trading activities – торговая деятельность

profit and loss account – счет приходов и расходов

open an account – открыть счет

close an account – закрыть счет

draw out cash – снять наличные

cash flow – оборот наличных денег

avoid bankruptcy – избежать банкротства

transfer money – перечислять деньги

withdraw deposit – забрать вклад

be creditworthy – быть кредитоспособным

status inquiry – запрос о статусе

cash settlement – оплата долга наличными

debtor – должник

owe – быть должным кому-либо (деньги)

credit limit – лимит (ограничение) кредита

debit item – раздел дебита

credit note – кредитное авизо

circular note – аккредитив

cash dispenser – банкомат

credit card – кредитная карточка

delivery note – накладная

advice note – авизо

percentage – процент

deduction – отчисление, удержание, скидка

stated value – заявленная стоимость

discount – скидка, дисконт

possess – владеть

balance account – балансовый счет

financial year – финансовый год

assets and liabilities – активы и пассивы

balance sheet – балансовая ведомость, балансовый отчет

turnover – оборот

 

2. Find in the text English equivalents for:

 

акции; осуществить покупку при слиянии компаний; результат слияния; акционерный капитал; осуществлять биржевые сделки; колебание курса валюты; капитал акционера по акциям; облигация; денежная стоимость; фиксированные активы; брать процент; брать кредит; курс обмена валют; проверять отчетность; снимать наличные со счета; открыть счет; закрыть счет; снять наличные; забрать вклад; запрос о статусе; банкомат; процентная скидка; балансовый отчет.

 

3. Give Russian equivalents for:

 

equity securities; to carry out a takeover; stock exchange; exchange fluctuations; exchange restrictions; a stockholder; to pay debts; a borrower; a lender; to require securities to guarantee a loan; to cover daily needs; to write cheques against the account; a current account; the profit and loss account; to transfer money from the account; a cash settlement; a delivery note; assets and liabilities.

 

4. Find in the text definitions of:

 

1. the shares,

2. a stock,

3. a bond,

4. an asset,

5. the exchange rate,

6. the current account,

7. the profit and loss account,

8. a discount,

9. the balance sheet.

 

5. Translate the sentences into Russian.

 

1. The amendments would enable Parliament to control import tax rates on commodities subject to excise duty.

2. According to official figures the inflation rate for January 2009 stood at 9.4%.

3. 25% of the shares belong to the employees at an open joint-stock company.

4. The European Union is expected to sign an agreement with the Russian government to allocate a ECU 200 million loan for a ten-year period at an interest rate of LIBOR plus 0.5%.

5. At least 70% of the stocks of medium- and large-sized industrial enterprises are to belong to non-state companies and private persons.

 

 

6. Make up the sentences with the following words and word combinations.

 

1. to share joy, to share a room with smb, nominal share, shareholder, preference share;

2. profit, to be profitable, gross profit, net profit;

3. to be an asset for a company, assets and liabilities, fixed asset;

4. stock exchange, to exchange, exchange rate, exchange broker, exchange list, exchange transaction;

5. a credit, to be creditworthy, credit limit, creditor, credit note, credit card;

6. current account, deposit account, account rendered, to open an account;

7. cash, to withdraw cash, cash flow, in cash, cashier, cash settlement.

 

7. Complete the sentences.

 

1. The Company is obliged to acquire the securities at prevalent market prices in the future to …

2. The Treasurer is directed to open an account and deposit the funds of the corporation with ….

3. The Annual Meeting of the Shareholders may be held at any date set by ….

4. In two separate transactions, the Company sold the business of executing and clearing securities transactions for ….

5. All cheques, drafts or other orders for payment of money shall be signed by ….

6. Securities sold not yet purchased represent an obligation of the Company to deliver specified equity securities at ….

8. Act as an interpreter representing Samsung Electronics at a briefing with journalists.

Mrs.Loginova, journalist, «Komsomolskaya Pravda»: Мистер Лу Кун Хи, является ли Самсунг Электроникс концерном или акционерным обществом? И второй вопрос: как распределяется акционерный капитал в Самсунг Груп?

Interpreter:...........................................................................................

The Chairman of Samsung Group, Mr.Lee Kun Hee: Samsung Electronics Co., Ltd. is a stockholding company. 55,45% of the shares belong to the private investors; 22,85% – to financial institutions and funds; 15,25% – to affiliated companies; 4,45% – to me and my family, 2% – to my employees.

Interpreter:...........................................................................................

Mr.Savelyev, journalist, «Moscowskie Vedomosti»: Владеет ли Самсунг Груп акциями других компаний в сфере электроники?

Interpreter:...........................................................................................

Mr.Lee Kun Hee: SEC possesses 10-20% of the shares of the other companies in the sphere of electronics.

Interpreter:...........................................................................................

Mr.Denisov, journalist, TV-program «Segodnya»: Мистер Ли, кто, на Ваш взгляд, является самым серьезным конкурентом для Самсунг Электроникс в настоящее время?

Interpreter:...........................................................................................

Mr.Lee Kun Hee: We consider that such famous companies as Sony and Panasonic, and some other companies are our main competitors at the electronics market.

Interpreter:...........................................................................................

Mrs.Fedotova, journalist, TV-program «Itogi»: Мистер Ли, что Вы думаете о перспективах развития Вашей компании на рынке Восточной Европы?

Interpreter:...........................................................................................

Mr.Lee Kun Hee: I suppose that Eastern Europe is a perspective market in the future but now we experience some difficulties here due to instability in the economic situation.

Interpreter:...........................................................................................

Mr.Lee Kun Hee: I’d like to add that South-East Asia and Western Europe are preferable now for us because they attract more investors.

Interpreter:...........................................................................................

Mr.Vanin, journalist, NTV-program: Мистер Ли, можете ли Вы привести цифры, которые характеризовали бы суммы чистой прибыли компании в 2000 году и суммы чистых продаж?

Interpreter:...........................................................................................

Mr.Lee Kun Hee: In 2000 the amount of our net profit was up to $ 294.5 million. As far as the net sales are concerned it was approximately $ 28.8 billion.

Interpreter:...........................................................................................

Mr.Lee Kun Hee: Thank you for your questions.

Interpreter:...........................................................................................

 

9. Topics for further discussion.

 

1. Is it necessary for a contemporary person to know about the life of financial world?

2. What do you know about the work of the Stock Exchange in your country?

3. How can Stock Exchange influence our everyday life?

4. What does «to be a reliable client in a bank» mean?

5. Is it important for a businessman to choose a bank with good reputation?

6. What does «to be a shareholder» mean?

7. Do the rates and indexes influence the business activity of the companies? How?

8. What financial conditions are necessary to achieve a success in business?

 

10. Make up the plan and render the text «Stock Exchange and Its Work».

 

11. Translate and try to explain these proverbs:

 

1. A penny saved is a penny earned.

2. As poor as a church mouse.

3. Take care of the pence and the pounds will take care of themselves.

PROVERBS AND SAYINGS

1. A bad compromise is better than a good lawsuit.

Худой мир лучше доброй ссоры.

2. A bad shift is better than none.

Лучше плохой выход, чем никакого.

3. A bargain is a bargain.

Уговор дороже денег.

4. A good beginning makes a good ending.

Лиха беда начало.

5. All is not gold that glitters.

   Не все то золото, что блестит.

6. A penny saved is a penny earned.

Сэкономил – все равно, что заработал.

7. Art is long, life is short.

Век живи – век учись.

8. As poor as a church mouse.

Бедный как церковная мышь.

Гол как сокол.

9. Better one word in time than two afterwards.

Лучше одно слово вовремя, чем два, когда уже поздно.

10. Better speak truth rudely than lie covertly.

Лучше говорить правду в глаза, чем злословить за спиной.

11. Courtesy cost nothing.

За вежливость денег не берут.

12. Experience is the mother of wisdom.

Жизненный опыт – основа мудрости.

13. First think then speak.

Сначала подумай, потом говори.

Молвишь – не воротишь.

Слово не воробей, вылетит – не поймаешь.

14. Great talkers are little doers.

Кто много говорит, тот мало делает.

Где много слов, там мало дела.

15. In every beginning think of the end.

Если берешься за дело, продумай его до конца.

16. Little strokes fell great oaks.

Терпение и труд все перетрут.

17. No living man all things can.

За все берется, но не все удается.

Всего делать никто не умеет.

18. No sweet without some sweat.

Без труда не вытащишь и рыбку из пруда.

Не вкусив горького, не увидишь сладкого.

19. One drop of poison infects the whole tun of wine.

Паршивая овца все стадо портит.

20. Take care of the pence and the pounds will take care of themselves.

Копейка рубль бережет.

21. Tastes differ.

О вкусах не спорят.

22. To know everything is to know nothing.

Все знать – значит ничего не знать.

23. Two heads are better than one.

Ум хорошо, а два лучше.

24. Where there is a will, there is a way.

Где хотенье, там и уменье.

Была бы охота – заладится любая работа.

 

 

СПИСОК ЛИТЕРАТУРЫ

Основная

1. Витохина О.А. Иностранный язык: Методические указания для практических занятий и самостоятельной работы студентов. – Белгород: Кооперативное образование, 2007. – 129 с.

2. Мюллер В.К. Англо-русский словарь. Полная версия. Более 180 000 слов, выражений и значений. – М.: Эксмо, 2007. – 912 с.

3. Пинская Е.В.Деловой английский язык. Часть 1: Учебное пособие. – Киев: Общество «Знание», КОО, 2007. – 64 с.

4. E.F. Roslyakova, Ph.D. and Clarence B. Davis, Ph.D. Workshop Materials. Excerpted from English at Work and Play (3^rd Edition). – Belgorod Consumer Cooperative University. – Belgorod, 2008. – 46 p.

 

Дополнительная

 

1. Macmillan English Dictionary for Advanced Learners. – Macmillan Publishers Limited, 2002. – 1692 p. 

2. Sarah Jones-Macziola with Greg White. Further Ahead. A communication skills course for Business English. Learner’s Book. – Cambridge University Press, 2004. – 136 p.

3. Sarah Jones-Macziola. Further Ahead. A communication skills course for Business English. Home Study Book. – Cambridge University Press, 2005. – 76 p.