Vocabilary

Dormant спящий, (зд.) бездействующий

To presume полагать, допускать, считать

Handicap недостаток, помеха, препятствие

Steady market устойчивый рынок

Large lots купонные лоты

Big price disturbance существенное колебание цен

To amass накапливать

Takeover поглощение (одной компании другой)

Thinness of the market узость рынка

Speculation спекуляция (торговля ценными бумагами с целью получения прибыли)

Sharp practice мошенничество, надувательство

Insider trading незаконные операции с ценными бумагами на основе «внутренней» информации о деятельности компании эмитента

Short selling «короткая» продажа

Viable жизнеспособный

To cluster группироваться

Exercise 11. Translate the dialogue, using the vocabulary, given after it. Sum up its content and act it out.

THE CORPORATE SECURITIES MARKET IN RUSSIA

Foreigner: What’s your opinion of the present-day position of the corporate securities market in Russia?

Russian: The market is still rather weak and sluggish. Compared with Western markets the number of actively traded stocks is small, liquidity is limited. Share prices of many corporations are going down.

F.: It’s not surprising. The market, due to the situation in Russia, is not attractive to investors. Foreign investors are cautious about sinking big money into Russia.

R.: The situation is embarrassing, particularly because it is recognized that the stock market stimulates economic development.

F.: In this connection, what measures are going to be taken to encourage the process of the securities market development?

R.: There’s no simple answer to this question. Attempts are being made to create international electronic networks for long-distance trading in shares. We’ve started trading in the world major stock markets.

F.: Do Russian commercial banks play an active role in the development of the stock market?

R.: Yes, they possess the required capital, developed infrastructure and highly qualified personnel. Very often they act as dealers in the primary market.

F.: In my country to have stocks listed, that is accepted for trading on the stock exchange, a firm must meet certain standards. Among other things, it must have a certain amount of earnings before tax, assets, etc.

Are there any requirements that companies issuing shares have to comply with in your country? What documents are to be submitted by the companies going through the listing procedure?

R.: For the primary offering, or primary distribution, the company must submit a prospectus of issuance. This document must contain full information about the securities the company is going to issue and all the details of the nature of the company’s business, its capital structure and assets. The company is also required to complete the Russian stock exchange questionnaire to show its financial position.

F.: Are the results of the stock exchange examination and relevant materials about the companies listed at the exchange made public?

R.: Yes, you can find all this information in specialized publications. The information is also broadcast by the Interfax channels.