1. Study the new words and their definitions, translate the examples:

1. auction – a public sale of property to whomever offers the highest price.

They held an auction and sold all of their possessions in one day.

If that store goes out of business, all of its goods will be auctioned off.

The auctioned goods brought in over $5000.

2. bankrupt – unable to pay one’s debts when they are due.

That company has filed for bankruptcy with the court, if it owes you money, you may not be paid.

One of the company officials bankrupted the company by embezzling most of its funds.

Bankrupt stores often sell off their remaining goods very cheaply.

Many businesses may go bankrupt because of the new restrictions on exports.

3. deficit – an excess of spending compared to income.

Many members of Parliament do not approve of proposed budget because it will result in a

deficit.

4. dividend – a sum or fund to be divided and distributed.

The company has paid large dividends to its investors for the past three years.

5. foreclosure – a legal procedure that permits a credit institution, such as a bank, to take possession of something bought on credit (usually a property or building) because credit payments were not adequately made.

There have been several foreclosures on farms this year because of the lack of rain.

If the bank forecloses on our loan, it will auction off our house.

6. forfeit – to lose, to lose the right to, by some error, offense, or crime.

The rental contract requires forfeiture of our deposit if the car is not in good condition when we

return it. He forfeited his right to vacation time by coming in late on so many days.

The forfeited money will be turned over to the government.

7. outlay – the amount of money spent.

We hope that our profit will cover our initial outlay within the first six months.

The company will outlay enough money to put a deposit on the equipment.

8. overdue – unpaid when due, delayed beyond an appointed time.

The telephone bill is already a week overdue; I should have paid it last Wednesday.

9. pawn – to deposit an item as security for a debt.

When I needed money, I went into the local pawnshop and pawned my grandfather’s watch.

The pawned articles can be reclaimed by presenting the pawn ticket to the pawnbroker and

paying him back the borrowed money.

10. revenue – the total income produced by a given source.

The government hopes that tax revenues will rise as the incomes of the people rise.

11. share – any of the equal portions into which property or invested capital is divided.

My father owns five hundred shares of stock in that company.

All of the shareholders are invited to a meeting twice a year to vote on company policies.

12. solvent – able to pay all legal debts.

The solvency of that company is in question; some people think that it will go bankrupt soon.

They will have to cut the workers’ wages in order to stay solvent.

The shareholders are worried about the rumours concerning the insolvency of the company.

If they are really insolvent, they will be forced to declare bankruptcy.

13. speculate – to buy or sell in expectation of profiting from changes in the market.

Buying those shares of that new company was pure speculation on his part; he had no way of

knowing that their value would increase so much. You could lose a lot of money if you speculate without knowing exactly how the stock market works. Her actions in buying and selling that stock so quickly were those of a speculator.

14. thrifty – practicing economy and good management.

You can save a lot of money through thrift. She is very thrifty; she rarely wastes anything.

We admired their thriftiness in reusing all of the paper bags.

15. vouch for – to give a guarantee.

My parents had to vouch for my car loan because my income is low.

I can vouch for his honesty; he has worked for me for ten years.

16. voucher – a document record of a business deal.

Be sure to turn in your vouchers when you return from each business trip.