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1.1. Choose the correct expressions from the text to com-plete the following:

1. I started 15 years ago with (capital / dividends) of $50,000. We had one small restaurant in Sydney and now we have twenty throughout Australia. 2. My (borrowers / shareholders) were mem-bers of my family: my parents, brothers and sisters all put up mon-ey. 3. They didn't receive any (dividends / shares) for the first five years: we put all our profits back into the company! 4. Now we want to increase the amount of (equity / dividends), so we are look-ing for outside (borrowers / lenders). 5.(Lenders / shareholders) have been very helpful. 6. We obtained $50,000 of (loan capital / share capital) from a bank when we started. 7. Now we have paid off all the (dividends / principal) and (interest / shares) after seven years.8. We have taken out other loans recently, but our (lending / indebtedness) is not bad in relation to the size of the business.

1.2. Would you like to start a business? What sort? Where would you get the capital?

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2. FINANCIAL CENTRES

Text 2

Read the text and memorize the words and word combi-nations in bold type:

a) Financial centres

Financial centres are places where there are many banks and other financial institutions. London as a financial centre is called the City or the Square Mile, and New York is Wall Street.

Financial centres bring together investors and the businesses that need their investment. A speculator is an investor who wants to make a quick profit, rather than invest over a longer period of time.

Brokers, dealers and traders buy and sell for investors and in some cases, for themselves or the organizations they work for.

b) Stock markets

When companies need more capital to expand, they decide to float the company (sell shares for the first time) in a flotation. Shares are issued, and listed (BrE and AmE) or quoted (BrE only) for the first time on the stock market. If it is a UK-based company, it is listed on the London stock exchange.

Stock markets in other countries are also called bourses. c) Other financial markets

Other financial products include:

commercial paper: short-term lending to businesses. bonds: longer-term lending to businesses and the gov-

ernment.

currencies (foreign exchange or forex): buying and sell-ing the money of particular countries.

commodities: metals and farm products.

These are traded directly between dealers by phone and com-puter. Commodities are also traded in a commodities exchange. Shares, bonds and commercial paper are securities, and the finan-cial institutions that deal in them are securities houses.

2.1. Correct the eight mistakes in italics in this article, us-ing expressions from the text above:

Now that a lot of buying and selling can be done over com-puter networks, (1) breakers and (2) tradesmen do not need to be in

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one place, and (3) speculists can make money dealing from a com-puter in their living room.

In New York, the area around (4) the South Bronx is tradi-tionally home to many financial institutions, such as the New York Stock Exchange. But many of them have now moved some or all of their offices outside this expensive area.

London is one of Europe's most important financial (5) towns: over 500 foreign banks have offices in London, and its stock exchange is the largest in Europe. But more and more finan-cial (6) institutes are not actually based in the traditional area of the (7) Citadel or (8) Mile Square. As in New York, they are moving to areas where property is cheaper.

So, will financial centres continue to be as important in the future as they are now?

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