Миловидов В.А. Английский разговорный язык. Практическое пособие по развитию устной речи
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daddy –
evil – ;
fisherman –
frog –
grab –
mom –
purse –
rub – ,
scream – ,
stuff –
witch –
wood –
hang up the phone –
is worth more –
Exercise 2
Answer the questions:
1. Where did the Waltons invite their new neighbors?
2. Why did little Brian say that his dad was a fisherman?
3. Who called out to the women in the woods?
4. What had happened tp the stockbroker?
5. Why did the woman not kiss the frog?
Money Markets in Great Britain
The Stock Exchange of the United Kingdom and the Republic of Ireland was formed in the last
century. The main trading operations are being performed in London, but the Stock Exchange
has also centres in Birmingham, Liverpool, Belfast, Bristol, Leeds, Manchester, Newcastle,
Glasgow and Dublin.
The major functions of the Stock Exchange are:
– it provides a market for the investors to buy and sell securities;
– it helps to insure that the price of a deal is fair;
– the companies and others who wish to raise capital can easily do so at the ready secondary
markets.
The most important way of raising long-term capital is by issuing shares. Companies may also
issue debentures which make up long-term debt.
The issue of government stock which is taken by the public, financial institutions and other firms
provides for long-term government finance.
On 27 October 1986, the capital market underwent revolutionary changes known since as the
«Big Bang». It admitted «outsiders» to the Stock Exchange which had been limited to
stockbrokers and stock jobbers. The «Big Bang» allowed banks and other institutions to acquire
their own securities businesses. It also introduced the idea of «dual capacity». Before that a
member firm could be only a broker acting as agent of clients and trading on a commission
basis, or a jobber buying and selling shares as a principal «on his own book». It could not be
both.
After the «Big Bang» a member can be:
– a market maker who acts as a jobber;
– an agency broker, who trades securities on com – mission;
– a dealer/broker (one firm may combine the functions of market making and agency brokerage
at the same time).
The «Big Bang» led to bigger markets and higher profits in Great Britain financial industry.
:
admit – ,
deal –
debenture – ( – )
debt – , ,
fair –
insure –
jobber – ,
outsiders – ,
principal – , «»
share –
undergo –
long-term –
government stock –
"Big Bang" – «»
dual capacity –
on a commission basis –
on his own book –
market maker –
Exercise 3
Answer the questions:
1. When was the Stock Exchange of the United Kingdom and the Republic of Ireland formed?
2. In what cities are the trading operations of the English Money Market performed?
3. What are the functions of the Stock Exchange in Britain?
4. What is the most important way of raising long-term capital?
5. What else can companies issue to make up long-term debt?
6. When did the capital market undergo the «Big Bang»?
7. What did the «Big Bang» allow banks and other institutions to acquire?
8. What is «dual capacity»?
9. How does a broker operate?
10. What was the «Big Bang's» influence on the Great Britain's financial industry?
1
Stockbroker's creed: A man is a client until proven broke.
2
October. This is one of the peculiarly dangerous months to speculate in stocks in. The others
are July, January, September, April, November, May, March, June, December, August and
February.
3
A man calls his stockbroker all anxious and out of breath with this urgency in his voice. He says,
«Sell it all, sell everything fast, right away.»
The stockbroker tries to explain that the market is cyclical in nature and that for long term
outlook stocks still remain the place to be.
The man says, «Let me tell you a secret. You know I've been married for 6 years now and I've
been your client for 5 years.»
«Yes, go on,» the stockbroker says.
"Well. My wife has this thing about the market. Her grandparents lost it all in the great crash and
ever since then her family found investing in the market akin to original sin. When we got
married I promised her that
I would follow in her parents footsteps and never venture in the stock market and always leave
all our money under the mattress."
«Wow, I didn't know that. I guess you want the money because the market is going down, in
case she asks for it.»
«No, I want the money because she ordered a new mattress and it is being delivered in two
days.»
:
akin –
anxious –
broke – ;
creed –
cyclical –
deliver –
footsteps – ,
mattress –
peculiarly –
proven – ()
speculate – ()
urgency – ,
venture – ,
out of breath –
right away –
long term outlook –
great crash – 20- XX ,
original sin –
Exercise 4
Answer the questions:
1. What is a stockbroker's creed?
2. What is the most dangerous month to speculate in stocks?
3. What did the man ask his stockbroker to do?
4. What did the broker try to explain to the man?
5. Why did the man's family use the mattress as the bank and the stock exchange?
Trading Stocks
Trading stocks begins with an investor placing an order, that is informing the stockbroker as to
what stock and how much he wants the broker to buy or sell. An order to buy or sell stock at the
best possible price is called a market order. The broker conveys the order to an exchange
member on the trading floor, who attempts to get a better price for the buyer by offering a little
less. For example, the broker might offer 47 1/8 ($47.12,5) for the stock with a current price of
47 1/4 ($47.25) and see if someone will sell at this price. If the investor were selling, the broker
would attempt to get a slightly higher price by offering, say, 47 3/8 ($47.3,75).
The final sale will then be electronically relayed to the broker who placed the order.
The investor might also place a limit order which specifies the highest or lowest price at which
the broker may buy or sell. If the investor cannot be accomodated immediately, the broker
places the order in a sales book and then tries again in order of priority. If an investor wants to
keep the order on the books, he can issue an open order which instructs the broker to leave the
order on the books until it is executed or cancelled.
Sometimes the investor might give a discretionary order which allows the broker to exercise
judgment in making money. The investor leaves it up to the broker to decide when and at what
price to buy or sell.
Shares are sold in lots. An odd lot is any number of shares less than 100. One hundred shares
comprises a round lot. Brokers usually combine odd lots with a series of other small lots to form
a round lot. A purchase of 10,000 shares is sometimes called a block sale.
In addition to the price of the stock, the investor pays the broker a commission for buying or
selling the securities.
Sometimes investors pay less than a full amount when they buy stock. This is called margin
trading. The Federal Reserve System, the US Central Bank, determines the minimum margin
required. In the late 1990s years the stock margin was approximately 50 percent. Fearing that
the investor might sell the stock and abscond with the funds, the broker keeps stock certificates
of margin accounts at the brokerage as a collateral. If the stocks were to plummet, the broker
would call the investor and request that he put up more money or have the stock sold.
Active buyers of stock are called «bulls». They believe that the prices of stocks are going to rise.
During the mid 1980s, the US witnessed a very long bull market. At the 1987 crash even bulls
became «bears». A bear is an investor who makes a profit when the prices are going to fall.
Selling short is a high risk strategy which bears use in order to do that. They sell borrowed stock
in the hope of later buying it on the open market at a lower price.
Options are contracts that allow an investor to either buy or sell a security at a predermined
price within a certain time. Depending on the investor's expectations, he may buy a put option or
a call option. A put option grants the owner the right to sell a security. Believing that the price of
certain shares will drop over some period of time an investor might buy an option and benefit
from selling the shares at the option price to the person who sold the options. A call option
grants its owner the right to buy a certain amount of stock at a predetermined price within a
fixed period of time.
:
abscond – ,
accomodate – ,
bear –
bull –
cancel – ,
collateral –
comprise – , ()
convey –
crash – ,
current – ,
execute – ,
expectations –
fix –
funds –
grant – ,
lot –
plummet –
predermine –
priority –
relay –
slightly – ,
specify – ,
witness – ;
place an order –
market order –
trading floor –
limit order – ,
sales book–
open order –
discretionary order – ()
exercise judgment – , ,
leave up to – ()
round lot –
odd lot –
block sale – ()
margin trading –
The Federal Reserve System –
stock certificate –
margin account –
sell short –
put option – ,
call option – ,
Exercise 5
Answer the questions:
1. What is an order?
2. Where does a broker convey the order?
3. What does an exchange member do when he is conveyed an order?
4. What is a limit order?
5. What is an open order?
6. What does a discretionary order allow the broker to do?
7. What form are shares sold in?
8. What is an odd lot?
9. What is a margin trading?
10. What is the difference between a bull and a bear?
11. What is an option contract?
12. What is the difference between a call option and a put option?
1
«I hear that you dropped some money in Wall Street. Were you a bull or a bear?»
«Neither, just a plain simple ass.»
2
A young stockbroker decided to take a day off and visit some of his professors in his old school.
When he made his way into the entrance he noticed a dog was attacking a small child. He
quickly grabbed the dog and throttled it with his two hands.
The next day the local newspaper reported the story with the headline, «Valiant student saves
boy from ferocious dog».
The stockbroker called the editor and strongly suggested that a correction be issued and that
the paper will tell the readers he was a successful Wall Street broker and not a student.
The next day the newspaper issued a correction and the headline read, «Pompous stockbroker
kills school mascot».
:
ass –
correction –
drop – , , .
editor –
entrance – ()
ferocious – ,
headline –
mascot – (: )
plain – , ,
pompous – ,
simple – ,
throttle – ,
valiant – ,
take a day off –
Exercise 6
Answer the questions:
1. Was the man who had dropped the money, a bull or a bear?
2. Where did the young man decide to go on his day off?
3. Who did the young man notice at the entrance hall?
4. What did he do to the dog?
5. What did he do it with?
6. What did the newspaper headline say the next day?
7. Why did the stockbrocker ask the editor to make corrections?
8. Why did the editor make such a correction?
How to Make Money in the Stock Market
Investors buy stock for one simple reason: to make money. The surest way to earn money from
investing is to create as diverse a portfolio as possible, and hang on to it for a long time. To
succeed at making money investors need good sources of information.
Much information is supplied by stockbrokers. They study market reports and get information on
the forecasted financial performance of companies. Brokers usually recommend opportunities or
provide special services such as newsletters. For this brokers charge additional fees.
Sometimes investors prefer to avoid high brokerage fees. They implement their own investment
strategies. Serious investors subscribe to investment newsletters and carefully study the stock
market. Best investors become an expert in a particular industry.
A simpler investment strategy is to choose some reliable blue chip stocks and stick to it. This
strategy is safe and can earn money over the long run. Investors should avoid making common
mistakes which are: 1) a failure to diversify, 2) paying too much for a stock which would not go
up, 3) not knowing when to sell a stock going down, 4) paying too much attention to rumours
and tips.
There are also several techniques of predicting the stock prices. Most investors begin with the
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 other industries. Some investors
usually called «chartists» try to identify a specific stock's behaviour charting it over time and
then predicting the future price movement. Other investors believe that prices are random. The
random walk theory is based on the assumption that future stock prices are independent of past
stock prices. These investors choose stocks at random.
A group of investors has adopted an unusual approach, contrarianism, which holds that the
market will move in the direction opposite to that predicted by the general public. In other words,
these investors do the opposite to what the general public does.
:
behaviour –
charge – ()
chart – , , ; , ,
chartist – «», ,
contrarianism – ,
,
diverse – , , ()
diversify – ,
expert – ,
failure – , ,
forecast –
implement – , ,
newsletter –