Vocabulary

Stock Exchange фондовая биржа

Bull «бык», покупатель ценной бумаги, играющий на повышение

Bear «медведь», продавец ценной бумаги, играющий на понижение

Stag спекулянт, покупающий новые ценные бумаги при объявлении подписки в надежде продать их с прибылью после начала торговли на вторичном рынке

Speculation спекуляция, купля-продажа ценных бумаг для получения прибыли

Speculator лицо, занимающееся спекуляцией

Account операционный период на фондовой бирже

Anticipation ожидание

Contango отсрочка расчета по сделке

Carry-over отсрочка сделки

New issue новый выпуск (ценных бумаг)

Shares that …

are likely to be акции, подписка на которые, по ожиданиям,

over-subscribed превысит предложение

Premium премия (сумма, на которую цена, заплаченная за акцию, превышает ее номинальную стоимость)

Option опцион

Short selling «короткая продажа»

Warrant варрант

Convertible security конвертируемая ценная бумага

To anticipate ожидать, предвидеть

Option money опционная премия

To exercise an option исполнить опцион

To lapse (зд.) терять силу

To take title (to) получать право собственности (на что-л.)

Exercise 2. Answer the following questions:

1. What type of market is a Stock Exchange?

2. What part does the speculator play on the stock exchange?

3. Who would normally deal with the issue of new shares?

4. Is there ever a time when no one is buying or selling?

5. What do “bears” expect?

6. In what market do stags operate?

7. Do options and short selling allow a speculator to profit from movement in a stock price?

8. What is an option? How are they classified?

Exercise 3. Fill in the gaps with the words and expressions from the texts:

1. The buying of something ………….. at one time for the purpose of …………… the same thing ……………at another time is speculation.

2. The chief varieties of speculators on the stock exchange are known as “………..”, “………..”, and “………..”.

3. A speculator may buy ………………., for which he cannot or does not wish to ……… at the time, in the hope that “during the account”, i.e. before the date of …………., the price will have ………………… and he can then sell them at a profit. A buyer who buys like this in the hope of a rise in prices is a “……….”.

4. Bears are pessimistic speculators who expect a ………..in ……………….. .

5. . It quite often happens that “bulls” or “bears” are wrong in their………………, or that they are convinced that by holding out even beyond ……………………….they could still make a ……………… .

6. Stags are speculators who operate in the “………………………..” market rather than on the Stock Exchange, although they must use the Stock Exchange before they can …………….. any …………… .

7. What a stag does is …………………………………..that are just being ………………and are likely to be………………………… .

8. The activities of “stags” have been greatly …………….in recent years.

9. Options and short selling allow a speculator to profit from ……………….in a stock’s price without…………………………. .

10. An option is a ………………..that gives its holder the right, but not the…………………., to buy or sell …………………at a set price during a ……………………….time period.

Exercise 4. Translate the words and expressions below from Russian into English and make up your own sentences with them.

1. «бык», покупатель ценной бумаги, играющий на повышение

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2. новый выпуск (ценных бумаг)

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3. отсрочка сделки

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4. отсрочка расчета по сделке

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5. ожидание

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6. операционный период на фондовой бирже

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7. лицо, занимающееся спекуляцией

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8. спекуляция, купля-продажа ценных бумаг для получения прибыли

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9. спекулянт, покупающий новые ценные бумаги при объявлении подписки в надежде продать их с прибылью после начала торговли на вторичном рынке

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10. премия

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Exercise 5. Translate the words and expressions below from English into Russian and make up your own sentences with them.

1. stock exchange

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2. option

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3. short selling

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4. warrant

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5. convertible security

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6. to anticipate

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7. option money

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8. to exercise an option

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9. to lapse

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10. to take title

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Exercise 6. Find in the text (of exercise 1) English equivalents for the following Russian phrases:

1. извлекать выгоду

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2. до наступления срока платежа

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3. продавать с прибылью

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4. ожидать падения акций

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5. правильный прогноз

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6. отсрочка расчета по сделке

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7. изменение стоимости ценных бумаг

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8. ошибаться в ожиданиях

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9. получить отсрочку платежа

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10. работать на рынке ценных бумаг нового выпуска

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Exercise 7. Single out the main points of the text (ex. 1). Use the following opening phrases:

1. The text looks at (the problem of …) …;

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2. The text deals with the issue of …;

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3. It is clear from the text that …;

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4. Among other things the text raises the issue of …;

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5. The problem of … is of great importance.

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6. One of the main points to be singled out is …;

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7. Great importance is also attached to …;

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8. In this connection, I’d like to say …;

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9. It further says that … ;

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10. I find the question of … very important because …;

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11. We shouldn’t forget that … ;

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12. I think that … should be mentioned here as a very important mechanism of … .

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Exercise 8. Match the verbs from (a) with the nouns from (b) below:

a) to make b) arrangements

to back shares

to pay for the activity

to expect an asset

to evolve an option

to make a rise

to apply for a profit

to reduce the judgment

to buy shares

to exercise a fall

to anticipate a delaying procedure

Exercise 9. Think of and write the verbs that are most commonly used with:

1. profit

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2. shares

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3. asset

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4. option

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5. judgment

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6. price

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7. a fall

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8. success

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9. payment

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10. market

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11. issue

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12. security

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13. premium

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14. sale

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Exercise 10. Read the text, filling each gap with a suitable word from the box below. Say what you have learnt about trading on the New York Stock exchange. Study the vocabulary given after.

The New York Stock Exchange

The New York Stock Exchange (NYSE) is the oldest and largest of the ______________. It is a universal symbol of economic freedom. Three out of five Americans through this institution share in the strength and growth of the _________________ enterprise system. On a typical day about $6billion worth of shares are _________________on the NYSE.

Trades between buyers and _________________ of securities are arranged by brokers. Brokers act as agents, _________________ buyers in touch with sellers but not taking title to the securities. They represent on the floor different customers: mutual funds, investment funds, pension __________________ and small investors. Brokers’ day is a non-stop gathering of information.

The NYSE has 1366 members. A broker can join the exchange only by buying a ____________ or “seat”, that costs as much as half a million dollars. There are different ____________ of members. Commission brokers are partners in brokerage firms who carry out trades for the firm’s clients. Besides, there are specialists, who are ______________ to a specific stock or bond and assist commission brokers in trading that stock or bond. Specialists buy stock for their capital, they ensure that a buyer meets a seller and a seller _____________ a buyer. Today, some 2200 stocks and more than100 bond issues are ________________ on the Exchange. Each stock is traded in one individual spot which brings all orders together in one place.

The New York Stock Exchange was ______________ in 1792, when merchants met to formalize rules and hours for _________________. Business flourished. At first each post auctioned only a handful of ________________. Then a handful grew into a hundred. But the underlying principles have never changed. The unique structure of the auction system has been its strength and cornerstone since its ________________.

New sophisticated technology has altered the stock exchange ______________. The army of clerks was replaced by highspeed computers, which allows to keep track of all _____________, to report the transactions to customers immediately, to bring orders to the trading posts electronically and to execute them. Computers are used for what they can do best: to move data around, to store _____________, and provide information to people. All trades are performed electronically.

To prevent the system from the abuse the exchange has enforced rules governing ethical ________________and established a “stock-watch” electronic system, allowing to control and analyse instantly all trade on the _________________.

Governors, who are appointed from the rank of brokers and specialists, watch the market and see to it that buyers interested in a particular security could ____________ from an equal footing, only in that case they open the stock trade. All this makes people trust the exchange. 50 million Americans have become ______________. The NYSE is not just a place, it’s a way of doing business.