.

Which word?

Share vs. Stock

Either shares (plural) or stock (uncountable) can be used to describe the amount of a company that a person owns or a company’s value on the stock exchange (основний капітал; акціонерний капітал; пакет акцій; фонди – частина сумарного акціонерного капіталу, що належить певній особі або групі осіб). In this sense shares is more common in BrE and stock – more common in AmE. Share, NOT stock, is used when talking about a particular number of shares in both BrE and AmE (акція; частка; пай). In BrE, the phrase stocks and shares (акції та облігації) means “bonds and shares”. This meaning of stock is also found in other phrases: a company’s loan stock; government stock. The AmE expression for “bonds and shares” is stocks and bonds.

b) Translate into Ukrainian paying special attention to the words in italics.

1. They invested their money in stocks and bonds.

2. The bank holds 60% of the company’s shares / stock.

3. The publisher’s stock rose to $25 a share.

4. They got a profit of $3.75 a share.

5. The company boasts 1.2 billion shares.

Task 10. Practice reading the following words.

although [O:l`ðəu] / [O:l`ðou] to borrow [`bOrəu] / [`bO:rou] consideration [kənֽsıdə`reı∫ən] corporate [`kO:pərət] device [dı`vaıs] earnings [`ə:nıŋz] enough [ı`nAf] entity [`entəti] expenses [ık`spentsız] external [ık`stə:nəl] finance [`faınænts] 81% / [faı`nænts] 19% to finance [faı`nænts] hence [hents] ingredient [ın`gri:diənt] internal [ın`tə:nəl] interrelated [ֽıntərı`leıtəd] inventories [`ınvəntəriz]

loan [ləun] / [loun] managerial [ֽmænə`Gıəriəl] necessary [`nesəseri] offer [`Ofə] / [`O:fər] ongoing [`Onֽgəuıŋ] / [`α:nֽgouıŋ] primary [`praıməri] profits [`prOfıts] / [`prα:fəts] property [`prOpəti] / [`prα:pərti] proprietorship [prə`praıətə∫ıp] to receive [rı`si:v] to rein­vest [ֽri:ın`vest] retained [rı`teınd] securing [sı`kjuərıŋ] statesman [`steıtsmən] sufficient [sə`fı∫ənt] truth [tru:θ] utilizing [`ju:tılaızıŋ] to view [vju:]

Task 11. Read the text. What is Finance? (Part I)

“And statesmen as well ought to know these things; for a state is often as much in want of money and of such devices for obtaining it as a household, or even more so; hence some public men devote themselves entirely to finance.”

(4^th Century BCE – Aristotle [`ærıstOt^əl] – Politics, Book I, Part XI,)

The field of finance refers to the concepts of time, money and risk and how they are interrelated. One of the key ingredients here is money.

Indeed, finance is often defined as money borrowed from a bank, received from investors, etc. in order to run a business, complete an activity or buy something. It is also viewed as the activity of managing money, especially by a commercial organization or a government.

Finance is used by individuals (personal finance), by governments (public finance), by businesses (corporate finance), as well as by a wide variety of organizations including schools and non-profit organizations.

Managerial or corporate finance is the task of providing the funds for a corporation’s activities. For small business, this is referred to as SME finance. It generally involves balancing risk and profitability, while attempting to maximize an entity’s wealth and the value of its stock. Finance, in this case, is securing and utilizing capital to start up, operate, and expand a company.

Most people go into business to make money – to make profits. But there is some truth to the old say­ing, “It takes money to make money.” That is why money is one of the primary considerations when going into business.

Without sufficient funds a company cannot begin opera­tions, meet day-to-day expenses, and expand. The money needed to start and continue operating a business is known as capital. Capital, in the financial sense, is the money that gives the business the power to buy goods to be used in the production of other goods or the offering of a service.

A new business needs capital not only for ongoing expenses but also for purchasing necessary assets. These assets – inventories, equipment, buildings, and property – represent an investment of capital in the new business.

Some money a business uses will come from internal funds; other money might come from external funds. Most of the money a business uses for its expenses comes from the sale of its products and services. Since these funds come from the operation of the business, they are described as internal funds.

The funds that remain after paying expenses are a firm’s profits or earnings. Although the owners could keep all of the profits for themselves, in most instances the business will rein­vest some of them in the business. These funds are called retained earnings and are considered internal funds.

About 60 to 80 percent of a firm’s financing comes from its internal sources. The rest must come from outside, or external, sources.

Even the most successful busi­nesses need to use external funds when they are starting or expanding. At times there is not enough money coming in to cover operating costs. When this happens, firms do three basic things:

• borrow;

• sell shares of stock (if it is a corporation) or seek additional capital from the owners (if it is а partnership or proprietorship);

• reduce spending.