Exercises

Ex. 1. Answer these questions:

A. 1. What is the Stock Market? What contributed to the emergence and growth of stock exchanges?

2. Where were best organized stock markets established?

3. What general trend in the stock market development has been observed over the years of its existence?

4. What stock exchanges have become most dominant? What part do they play in the financial systems of advanced countries?

5. What are the basic types of stock markets? How are they conducted?

B. 1. What is characteristic of the corporate securities market in Russia?

2. Is the stock market of great importance to industry?

3. What is being done to contribute to the development of the Russian Stock market?

4. What listing procedure is adopted by the Russian Stock Exchange?

Ex. 2. Give derivatives of:

origin	trade	appearance	intermediation
transfer	expansion	organization	regulate
interest	different	dealer	quote
restrict	transaction	activity	control
examination

Ex. 3. Say in a few words what the main text is about.

Ex. 4. Sum up the content of the dialogue.

Ex. 5. Work on vocabulary and grammar.

a) Study the key words of the unit in the dictionary at the back of this book:

securities, market, equity capital, options, quotation;

b) Think of word combinations with:

market, stock, share, securities, debt, placement, trading

c) Match the verbs from (a) with the nouns from (b) below:

a) to expand

to develop

to resell

to remove

to issue

to list

to possess

to meet

to submit

b) barriers securities stocks trading shares infrastructure

standards

capital

documents

Ex.6.

a) Supply the articles where necessary.

b) Write down 3-5 questions about the text.

c) Name the problems of emerging markets mentioned in the text and say which of them are typical of Russia.

In 1990 the fastest rising stock markets in ... world were those emerging in the developing countries. There are now more than 50 stock exchanges in ... developing world: some are insignificant or dormant, others are active and growing.

It was once widely presumed that poor demand for securities would be the biggest handicap to ... emergence of stock markets in the developing world. There were not enough potential buyers in developing countries. However, it is now evident that there is generally ... adequate demand for securities, in both the primary and secondary markets, arising both from speculative interest and from ... portfolio needs of financial institutions.

Even if the emerging stock markets have some demand-side difficulties, ... more general, continuing and severe problem has been ... insufficient supply of securities. The chief markets problem in developing countries is that the secondary market for bonds and shares is often inactive. There are often not enough buyers and sellers to make ... steady market. Quite often institutional stockholders hold securities firmly matched against their future liabilities rather than engaging in frequent trade. When institutions do enter ... secondary market they may try to buy or sell in large lots, thus making a big price disturbance. As institutions amass large blocks of shares they may be tempted to exercise their market power, especially in ... field of corporate takeovers.

Speculation has been common in most of the emerging stock markets and very noticeable because of ... thinness of the markets. While the opportunity for speculation is one of the chief attractions of any stock market, the line between speculation and sharp practices is something hard to draw.

Privileged placements, insider trading, short selling and other questionable practices have occurred throughout the developing world.

In these circumstances, ... pure theory of international trade suggests that stock markets would not be viable in all countries but would cluster at a few points of... globe, determined by the location of factor skills and time zones.

Words you may need:

Англійський варіант	Російський варіант	Український варіант
dormant	спящий; бездействующий	сплячий; недіючий
presume	полагать, допускать, считать	вважати, допускати,
handicap	недостаток, помеха	недолік, перешкода,
steady market	устойчивый рынок	стійкий ринок
large lots	крупные лоты	крупні лоти
big price disturbance	существенное колебание цен	істотне коливання цін
amass	накапливать	накопичувати
takeover	поглощение (одной компании другой)	поглинання (однієї компанії іншою)
thinness of the market	узость рынка	вузькість ринку
speculation	спекуляции (торговля ценными бумагами с целью получения прибыли)	спекуляції(торгівля цінними паперами з метою отримання прибутку)
sharp practice	надувательство	обдурювання
insider trading	незаконные операции с ценными бумагами на основе «внутренней» информации о деятельности компании эмитента	незаконні операції з цінними паперами на основі «внутрішньої інформації» про діяльність компанії емітента
short selling	«короткая» продажа	«короткий продаж»
viable	жизнеспособность	життєздатність
cluster	группировать	групувати

Ex. 7.

a) Supply the prepositions where necessary.

b) Write down 3-5 questions about the text.

c) Describe the trends in the major equity markets mentioned in the text.