Text в The Stock Exchange

A stock exchange is a highly organised financial market where bonds, shares and other securities can be bought or sold.

Stock market business is worldwide. London, Johannesburg, New York, Melbourne, Tokyo, Calcutta, Paris, Amsterdam and Brussels are all famous centres of stock exchange activity.

The function of a stock exchange is to put those who wish to sell securities in touch with those who wish to buy them.

The London Stock Exchange plays a vital rale in maintaining Lon­don's position as a major financial centre. London has had a stock ex­change for dealing in' different securities tor over 200 years, its first build­ing was constructed in 1801. 'Then, in 1853 a new building was constaicted on the same site. But to keep pace with modern requirements and to provide the most up-to-date facilities for both members and investors it was decided once again to rebuild the Stock Exchange on the same site. Work started in 1966. The Stock Exchange was completed in 1972.

Asa result of legal reforms implemented in 1986 and known as " Big Bang", the Exchange has changed radically over recent years. The most fundamental change has been the move away from the traditional mar­ket floor to screen-based trading. Now stockbrokers deal in securities through telephones and computers which have linked London much more closely with the other major international financial centres.

Note on the Text

¹ Обратите внимание, что to deal in — торговать, a to deal with — иметь дела с чем-либо.

Vocabulary List

ской фондовой биржи 27 октября

1986г.)

radically adv— радикально screen-based trading — электронная

торговля

stockbroker n - биржевой брокер dealing n —сделка link v — связывать

share n — акция

vital role — жизненно важная роль maintain v — удерживать, поддержи­вать deal in securities — торговать ценными

бумагами

keep pace with - идти в hoi у с "Big Bang" — «Бит Бэнг» («Большой взрыв* — реорганизация Лондон-

Comprehension Questions

1. What is a stock market?

2. What function does a stock market perform?

1. Has the London Stock Exchange moved to different places and different buildings over more than 200 years of its existence?

3. Whal reform of the London Stock Exchange was implemented in 1986?

162

Unit 4

II. The Financial System

163

Exercises

Ex. 39. Find in Text В English equivalents for the following Russian words and phrases:

• покупать и продавать облигации;

• акции и другие ценные бумаги;

• сводить вместе желающих продать и желающих купить ценные бу­ маги;

• играть жизненно важную роль;

• удерживать положение;

• идти в ноту с современными требованиями;

• обеспечить ... современными условиями для работы;

• было решено;

— осуществлять реформы;

- продавать и покупать-ценные бумаги с помощью телефона и ком­ пьютера.

Ex. 40. Write out from Text В international words, transcribe and translate them into Russian.

Ex. 41. я) Read the text and translate it into Russian, b) Say whether you agree with the assessment of the Russian stock market given in Ihc text.

At present, the Russian stock market docs not fully meet the Russian econ­omy's development requirements. The task of the market to accumulate sav­ings and to transform them into investments in the real economy is not ful­filled effectively. Few securities are traded in the market. It is believed, however, that the market has a tremendous potential. If risks arc lowered and a favour­able investment climate is created in Russia, our market will become attrac­tive to Russian and foreign investors.

Words and word combinations you may need

task n - задача accumulate v — накапливать transform v —трансформировать, пре­образовывать

trade v— покупать и продавать ценные

бумаги

lower risks - снижать риски tremendous ad/ — огромный

Ex. 42. Match the infinitives in A with the nouns in B.

A B

to meet a climate

to accumulate savings

to fulfil a task

to sell requirements

to implement construction

to play facilities

a house bonds refonns securities a role a potential

to deal in to rebuild to provide to have to complete to create

Ex. 43. Rewrite the sentences as in the Example paying attention to adverbs and adjectives.

Example: Typically, lots of shares are traded on this exchange every day, On a typical day, lots of shares are traded on this exchange.

1. The country has progressed tremendously.

2. The two countries are linked closely.

3. The Chairman's speech impressed everyone greatly.

4. The effective use of resources is our task.

5. There are radical changes in our life thanks to computers.

6. Traditionally, we have good relations with this country.

Ex. 44. Read the interview with a foreign financier and sum up his assessment of the financial policy pursued by the government of his country.

Reporter: We know that your government reconsidered the country's finan­cial policy iast year. What made the government do that?

financier: The huge budget deficit and the growing external debt forced the government to take some urgent measures which finally led to changes in the government financial policy last year.

K.; Did the change affect ihe central bank of your country?

F.: Yes, our central bank was granted more autonomy.

R.: 1 see. Did the new policy have an impact on commercial banks?

F.: Definitely, now all banks must publish quarterly reports about their assets.

R.: It has strengthened the banking system, hasn't it?

R: Yes, it has. Besides, the government has issued bonds to reduce the gov­ernment debt.

R.: Were any new taxes introduced?

F,: Yes, the government introduced VAT, but it was very unpopular and not very effective.

R.: In such situations governments have to reduce state expenditure. Did your government reduce expenditure?

F.: Yes, the government reduced spendings and made subsidies and allowances more targeted'. But the reforms are rather painful for the population.