Introduction 1

Bookkeeping 14

Company law 2 22

Accounting policies and standards 24

Depreciation and amortization 29

Auditing 31

The balance sheet 1 32

The balance sheet 2: assets 35

The balance sheet 3: liabilities 38

The other financial statements 41

Financial ratios 1 43

Financial ratios 2 46

Cost accounting 49

Pricing 52

Personal banking 55

Commercial and retail banking 59

Financial institutions 62

Investment banking 65

Interest rates 73

Money markets 76

Islamic banking 78

Money supply and control 81

Venture capital 83

Stocks and shares 1 87

Stocks, shares and equities 87

Going public 87

Ordinary and preference shares 88

Stocks and shares 2 90

Buying and selling shares 90

New share issues 90

Categories of stocks and shares 91

Shareholders 92

Investors 92

Dividends and capital gains 93

Speculators 93

Share prices 96

Influences on share prices 96

Predicting prices 96

Types of risk 97

Bonds 99

Government and corporate bonds 99

Prices and yields 100

Other types of bonds 100

Futures 102

Commodity futures 102

Financial futures 103

Derivatives 105

Options 105

In-the-money and out-of-the-money 106

Warrants and swaps 106

Asset management 108

Allocating and diversifying assets 108

Types of investor 109

Active and passive investment 109

Hedge funds and structured products 111

Hedge funds 111

Leverage, short-selling and arbitrage 111

Structured products 112

Describing charts and graphs 115

Mergers and takeovers 117

Mergers, takeovers and joint ventures 117

Hostile or friendly? 118

Integration 119

Leveraged buyouts 120

Conglomerates 120

Raiders 121

Financial planning 123

Financing new investments 123

Discounted cash flows 123

Comparing investment returns 124

Financial regulation and 125

Government regulation 125

Internal controls 125

Sarbanes-Qxley 126

International trade 129

Trade 129

Balance of payments 129

Protectionism 130

Exchange rates 133

Why exchange rates change 133

Fixed and floating rates 133

Government intervention 133

Financing international trade 135

Documentary credits 135

Bills of exchange 135

Export documents 136

Incoterms 137

Insurance 141

Insuring against risks 141

Life insurance and saving 142

Insurance companies 142

Expansion and contraction 145

Fiscal policy 145

Monetary policy 145

Taxation 149

Direct taxes 149

Indirect taxes 149

Non-payment of tax 150

Business plans 152

Market opportunities 152

The company, the product and the market 152

The financial analysis 153

Saying and writing numbers 158

Saying amounts of currency 158

Decimals 159

Fractions 159

Ordinals 159

Saying sequences of numbers 160

Numbers as adjectives 160

Answer key 165

Index 200

Acknowledgements 228

35.4 1 premium 4 warrants

2. strike/exercise price 5 swap

3. call options

1. accumulate capital allocate assets allocate funds allocate money diversify portfolios manage accounts manage assets manage money manage portfolios

   1. manage, assets/money/portfolio 3 allocate, money/funds/assets

   2. diversify, portfolio 4 accumulate capital

2. 1c, 2a, 3b

3. 1c, 2d, 3a, 4b, 5e

1. 1 to pool 3 to leverage

2 to take a long position 4 to take a short position

2. 1 false - Despite their name, hedge funds do not necessarily use hedging techniques

   2. true - Most hedge funds use gearing or leverage, which means borrowing money as well as using their own funds

   3. false - they generally specialize in high-risk, short-term speculation

   4. true - investors can profit from price differences between the two markets ... the price difference is usually very small (and would be zero if markets were perfectly efficient)

   5. false - structured products from banks ... are customized ... financial instruments

3. 1 Leverage 3 Full Participation

2 Capital Protection 4 Yield Enhancement

1. 1 c, 2a, 3b

2. 1 remained stable 4 grew slowly

   2. risen regularly 5 sharp increases

   3. increased rapidly

3. Possible answer:

The price of gold rose steadily during 1985-7, reaching a peak of $500 an ounce at the end of 1987. The price fell again in 1988-9. The price fluctuated rapidly in 1990, and declined slowly during 1991-2. After a sharp rise in 1993, it remained stable for four years before falling dramatically between 1996 and 1999. Gold bottomed out at nearly $250 in both 1999 and 2001. Since 2001 there has been a steady rise to over $400.

1. 1 acquisitions 3 merger

2 joint venture 4 raid, takeover bid

2. 1 white knight, hostile

   2. friendly

   3. poison pill

3. 1c, 2d, 3a, 4c, 5b

1. 1 parent company

   2. core business

   3. asset-stripping

   4. subsidiaries

2. 1b, 2d, 3a, 4e, 5c

5. leveraged

6. market capitalization

7. synergy

3. 1a, 2f, 3b, 4e, 5c, 6d

4. time value of money

5. purchasing power

6. discount rate

1. discounted cash flow

2. rate of return

3. internal rate of return

41.1

1. false - The return we could get by investing the money in other ways is the opportunity cost of capital

2. true - the rate of return must be at least as high as we could get by depositing the money in a bank instead, or by making another risk-free investment

3. false - there's nearly always inflation, so cash will have lower purchasing power in the future: you'll be able to buy less with the same amount of money

41.2

4. true - the value of money decreases over time

41.3 1b, 2e, 3d, 4c, 5a

1. 1 price-sensitive

   2. compliance

   3. insider dealing

   4. money laundering

5. fraudulent

6. disclosure

7. oversee

2. 1c, 2a, 3e, 4b, 5d

1. laundering money

2. conflicts of interest

3. compliance officer

4. insider traders

5. Chinese walls

6. deregulation

42.3

43.1

'S

1

A

L

A

N

c

E

0

F

T

R

4A

D

E

B

A

D

U

R

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1

F

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1

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44.1 1 true - In theory, exchange rates should be at the level that gives purchasing power parity (PPP)

... In fact, PPP does not work

2. false - if the price level in a country increases because of inflation, its currency should depreciate

3. true - Financial institutions, companies and rich individuals all buy currencies, looking for ... short-term capital gains if a currency gains in value

4. false - currency speculation [is] buying currencies in the hope of making a profit ... looking for high interest rates

5. true - currency traders make considerable profits from the spread between a currency's buying and selling prices

6. false - Over 95% of the world's currency transactions are purely speculative, and not related to trade

7. true - gold convertibility ... ended in 1971, because ... the Federal Reserve did not have enough gold to guarantee the American currency

8. true - For 25 years after World War II, the levels of most major currencies ... were fixed ... Since the early 1970s, there has been a system of floating exchange rates in most western countries

44.2

2. false - If there are more buyers of a currency than sellers, its price will rise; if there are more sellers, it will fall

Verb	Noun(s)	Noun for people	Adjective(s)
appreciate	appreciation	—	—
con'vert	convertibility, con'version	—	con'verted
de'predate	depreciation	—	—
inter'vene	intervention	—	inter'ventionary
'speculate	speculation	'speculator	'speculative

4. converting

5. speculators

6. intervene

44.3

1. depreciate

2. appreciate

3. speculation

45.1 1 true - a letter of credit ... is a written promise by a bank to pay a certain amount to the seller

... when the bank receives instructions from the buyer

2. true - a letter of credit ... is a written promise ... to pay a certain amount ... within a fixed period

3. false - Documentary credits are usually irrevocable, meaning that they cannot be changed unless all the parties involved agree

4. false - the bill of lading is a document ... confirming that the goods have been received for shipment

5. true - If a bill is endorsed by a well-known bank, the exporter can sell it ... in the financial markets ... This way the exporter gets most of the money immediately, and doesn't have to wait for the buyer to pay the bill

6. true - the exporter can sell it at a discount ... When the bill matures, the buyer receives the full amount

45.2 1f, 2a, 3c, 4d, 5e, 6b

45.3 accept a bill of exchange draw up a bill of exchange endorse a bill of exchange sell a bill of exchange write a bill of exchange prepare documents present documents require documents sign documents describe goods receive goods sell goods transport goods

1. accepted/endorsed

2. describe

3. sell

4. signs, received

5. present

6 DEQ

7, 8 CFR / CIF

9, 10, 11 DAF/CPT/CIP

46.1

1. EXW

2. FCA

3. FAS

4. FOB

5. DES

12, 13 DDU/DDP

u

m

47.1

n

0

l

d

e

r

t

d

r

y

w

e

r

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n

d

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12

11

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a

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16,

t

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y

n

d

a

18.

17.

a

e

n

l

a

m

a

v

19.

d

a

a

m

1. 1 peak 4 trough

   2. downswing 5 recovery

   3. recession 6 boom

2. 1d, 2e, 3c, 4b, 5a

3. to get bigger or make bigger: boost, expand, increase, inflate, raise, rise, reflate, stimulate to get smaller or make smaller: contract, cool down, cut, decrease, deflate, reduce

1. 1 excise taxes / excise duties

   2. income tax / corporation tax

   3. sales tax / value-added tax / goods and services tax

   4. capital transfer tax / inheritance tax / estate tax / death duty

   5. income tax and social security tax / national insurance

   6. tariffs

   7. capital gains tax

2. 1 direct 4 progressive tax

   2. proportional tax 5 indirect

   3. social security

3. 1 false - Most countries have a capital gains tax ... at a much lower rate than income tax

   2. true - Business profits are generally taxed twice, because after the company pays tax on its profits, the shareholders pay income tax on any dividends received from these profits

   3. false - Indirect taxes such as sales tax and VAT are called proportional taxes, imposed at a fixed rate. But indirect taxes are actually regressive

   4. true - excise duties [are] additional sales taxes on commodities like tobacco products, alcoholic drinks and petrol

   5. true - Multinational companies often register their head offices in tax havens - small countries where income taxes for foreign companies are low

   6. true - some employers give their staff ... perks, such as company cars

   7. false - Using legal methods to minimize your tax burden ... is called tax avoidance

3. implement, strategies

4. reach, customers

2. false - perks ... loopholes [are] ways of getting around the law ... called tax avoidance

49.4 charge tax

collect tax impose tax levy tax pay tax

50.1 implement strategies reach customers require finance supply services

1. supply, services

2. finance, require

2. 1 market opportunity 4 marketing strategy

   2. sales forecast 5 benefits

   3. unique 6 sales promotions

3. Finance: bear market, currency market, equity market, over-the-counter market, primary market, secondary market, stock market, market capitalization, market maker, market price, market value

Marketing: market penetration, market segment, market share, market skimming

Index

The numbers in the index are Unit numbers not page numbers.

abrupt /a'brApt/ 38 abruptly /s'brAptli/ 38 absolute advantage /.aebsoluit

ad'vaintidg/ 43 absorption costing /ob'zo:pJ³n

.knstir)/ 17 accelerated depreciation

/ok.sebreitid di.priij'i'eij^n/ 9 account /a'kaont/ 4 accountancy /s'kaontontsi/ 3 accountant /a'kaontont/ 3 account book /a'kaont buk/ 10 accounting/o'kaontirj/ 3 accounting period /o'kaontirj

4

accounting policies /o'kauntir)

.pobsiz/ 7 accrued expenses /a,kru:d

ik'spentsiz/ 13 accumulate /Q'kjuimjaleit/ 36 accumulated depreciation charges /9,kju:mjaleitid di.pri: fi'eij^n ,tja:d3iz/ 12 accuracy/'sekjsrasi/ 3, 10 accurately /'aekjaratli/ 32 acid test/'aesid .test/ 15 acquire /a'kwaia¹/ 21, 22 acquisition/.aekwi'zij^n/ 22, 39 active strategy /'aektiv

,str2et3d3i/ 36 activity-based costing

/cek'tivati .beist .kostir) 17 additional costs /o'dijonol

,kosts/ 46 adequate/'aedikwat/ 10 advice /od'vais/ 22 agent /'eid39nt/ 47 allocate /'asbkeit/ 17, 36 analyst /'aenahst/ 22, 32 angel investor /'eind3ol

in,vest3^r/ 28 annual accounts /.asnjuol

a'kaonts/ 3 annual general meeting (AGM) /,aenjual ^enaral 'miitirj ,ei d3i: 'em/ 6 annual report /.aenjual n'poit/ 6 anticipate a loss /asn.tisipeit 9

'Ins/ 12 apply /a'plai/ 3 appreciate /a'prhjieit/ 9, 44 appreciation /a.prk/i'eij^n/ 9 arbitrage/.aibi'tra^/ 37 arbitrageur ^(libitm:^:'/ 37 articles of association /,a:tiklz

9V ^saufi'ei/^n/ 5 assess /o'ses/ 20

asset allocation /.asset

.asb'keij^n/ 36 asset management /'aeset

,mcemd3mont/ 36

assets/'assets/ 2, 11, 20 asset-stripping /'asset,stnpir)/ 40

assumption /a'sAmpJ^n/ 8 assurance /a'Joirants/ 47 audit committee /'o:dit ko.miti/

5

auditing/'o:ditir}/ 3 auditor/'oidits¹/ 10 auditors' report/.oiditoz

ri'poit/ 6 authorized share capital

/,:>:09raizd '/ea .kaepitsl/ 5 automatic trading system /.oitamaetik 'treidir) .sistom/ 30

backwardation /jbœkwa'deiJ^n/ 34

backward integration

/.baskwod .inti'greij^n/ 39 bad debt /.baed 'det/ 12 bail out /.beil 'aot/ 23 balance of payments /.basbnts

9V 'peimants/ 43 balance of trade /.baebnts ov

'treid/ 43 balance sheet /'basbnts Ji:t/ 2, 4, 11

bank account /'bœrjk a.kaunt/ 20

bank-customer relations /.basrjk

.kAStama ri'leijanz/ 26 bank deposit /'baerjk di.pnzit/ 1 banknote /'baegknaot/ 1 bank run /'basrjk ,rAn/ 23 bank transfer /.baegk

'trasntsf3:^r/ 19 base rate /'beis ,reit/ 24 bear (noun) /bea^r/ 31 bear (verb) /beo^r/ 47 bear market /'bes ,ma:kit/ 31 benefit /'benifit/ 50 bid /bid/ 30 bill /bil/ 1

bill of exchange /,bil av

iks'tjeind3/ 45 bill of lading /,bil av 'leidirj/ 45 blue chip /'blu: ,t Jip/ 30 board of directors /,bo:d av

di'rektaz/ 5 bond /bond/ 2, 21, 33 bonus /'baonas/ 1 bonus issue/'baonas ,iju:/ 30

bookkeeping /'bok.kiipir)/ 3, 4

boom /bu:m/ 48

boom and bust /,bu:m ond

'bASt/ 48 boost /bu:st/ 48 borrow from /'borao from/ 2 borrower /'borouD¹'/ 20 bottom line /.botam 'lain/ 14 bottom out/.botom'aot/ 38 bought ledger /,bo:t 'ledsa¹/ 4 branch /braintJV 19 brand name /'brasnd .neirn/ 12 breakeven analysis

/'breik,i:vQn a.nasbsis/ 17 breakeven point /'breik.irvan

.point/ 17 broad monev/'broid ,mAni/ 27

J i

broker /'braoka»/ 47 budget /'bAd3it/ 1 building society /'bildig

sa.saiati/ 21 bull /bol/ 31

bull market/'bol ,ma:kit/ 31

business cycle/'biznis ,saikl/ 48 business entity /.biznis 'entiti/ 8 business plan /'biznis .plaen/ 28, 50

call option /'ko:l .npjan/ 35 capital /'ksepit³!/ 2, 11 capital accumulation /.kaspiH

3,kju:mja'leiJ^n/ 36 capital adequacy ratio /,kaepit³l

'asdikwosi .reijbo/ 27 capital gain /.kaspiH 'gein/ 31,

33

capital gains tax /.kaspiH

'geinz _ftaeks/ 49 capitalization issue

/.kaspiHai'zeijan ,iju:/ 30 capitalization rate

/.kaspiHai'zeiJon .reit/ 41 capitalize /'kaspit^laiz/ 30 capital preservation /,kaepit³l

.preza'veij^n/ 36 capital transfer tax /'kaepitM

'tr^ntsf3:^r .tasks/ 49 carrier /'kasrb'Y 45 carry out /.kasri 'aot/ 3 cash /kaej/ 1 cash dispenser /'kasj

di,spentso^r/ 19 cash flow /'kasj ,fbu/ 25, 32 cash flow statement /'kasj ,fbu

.steitmant/ 11, 14 central bank /.sentral 'basrjk/ 21 certificate of deposit /sa.tifikat 9v di'pnzit/ 25 certificate of origin /so.tifikot

ov 'oric^m/ 45 CFR - cost and freight /,si: ef

'a: ,knst ond 'freit/ 46 chairman /'tJeomon/ 5 charge /tju:d3/ 20 charge against /'tja:d3

o.gentst/ 13 charge against profits /,tju:d3

o.gentst 'profits/ 9 chart/tjait/ 32 chartist/'tjartist/ 32 cheque/t J ek/ 19 chequebook/'tjekbok/ 19 Chinese walls /,tJainiiz 'woilz/ 42

CIF - cost, insurance and freight /,si: ai 'ef ,kost injooronts ond 'freit/ 46 CIP - carriage and insurance paid to ... /,si: ai 'pi: ,kaerid3 ond injooronts 'peid tu:/ 46 clearing bank /'kliorir) ,baer)k/ 21

climb/klaim/ 38 coin /кот/ 1 collateral /ko'tet^H/ 19 commercial bank /,кэ'тз:Х^э1

,baer)k/ 20 commercial invoice /ко,тз:J^l

'invois/ 45 commercial paper /ko,m3:JM

'peipo¹/ 25 commission /ko'mijon/ 1, 31 commodities /ko'mndotiz/ 34 common currency /.knmon

'kAront si/ 44 company/'клтрош/ 5 comparative advantage

/kom.pœrotiv od'vci:ntid3/ 43 comparative cost principle /kom.pœrotiv 'knst .printsopl/ 43 compensate /'komponseit/ 47 competitive /kom'petitiv/ 25 compliance /kom'plaionts/ 42 comply with /kom'plai wiô/ 10 compounding /kom'paondnj/ 41 confidential /.konfi'dentJM/ 42 conflict of interest /.knnflikt ov

'mtrost/ 42 conglomerate /kon'glnnwot/ 21, 40

conservatism /kon's3:votiz⁹m/ 8, 12

considerable /kon'sid^robl/ 38 considerably /kon'sid^robli/ 38 consistency/kon'sistontsi/ 7

consolidated financial statement /kon.snlideitid fai.naentJM 'steitmont/ 8 consulting/kon'SAltir)/ 10 consulting firm /kon'sAltir)

,f3:m/ 22 consumption /kon'sAmpJ^n/ 48 continuity/,knnti'nju:oti/ 8 controller /kon'troolo«/ 10 convention/kon'ventJ^n/ 7 convertible/kon'v3:tobl/ 33 convertible bond /kon'v3:tobI

.bond/ 28 cool down the economy/,ku:l

,daon 3i l'konomi/ 48 core business/,ko: 'biznis/ 40 corporate bonds /'ko:p°rot ,bondz/ 33

corporate customer /'koip^rot

,kAStomo^r/ 20 corporate governance

/,ko:p°rot 'gAvononts/ 5 corporate raider/,ko:p⁹rot

'reido¹/ 40 corporation /,ko:por'eiJ⁹n/ 6 corporation tax /.koip^r'eijan

.taeks/ 49 cost accounting /'kost

o.kaontir)/ 17 cost centre/'kost ,sent°r/ 17 cost of capital /,knst ov

'kaepit^l/ 41 cost of goods sold /,knst ov

,godz 'soold/ 14 cost of sales /.kost ov 'seilz/ 14 cost-plus pricing/'kost,plAS

.praisir)/ 18 coupon /'ku:pon/ 33 cover costs /,kAvo 'knsts/ 17 CPT - carriage paid to... /,sii

pi: 'tlx ,kaerid3 'peid tu:/ 46 crash /kraef/ 31 create credit/kri.eit 'kredit/ 20

creative accounting /kri.eitiv

o'kaontig/ 3 credit/'kredit/ 4 credit card/'kredit ,ka:d/ 19 creditor/'kredito¹/ 3 creditors/'kreditoz/ 4, 13 credit rating/'kredit ,reitir)/

24, 33 credits /'kredits/ 19 credit standing /'kredit

.staendir)/ 24 creditworthiness

/'kredit,w3:dmos/ 24 C terms /'si: ,t3:mz/ 46 cum div/'kAm ,div/ 31

currency /'kAr^ntsi/ 1 currency forward /,kAr°ntsi

'fo:wod/ 34 currency future /,kAr°ntsi

'fju:tJo^r/ 34 currency market/'kAr°ntsi ,ma:kit/ 23

currency speculation /.kArontsi

.spckjo'leij^n/ 44 current account/'kAront

o,kaont/ 19 current assets /.kAront 'resets/ 9, 12

current liabilities /.kAront

.laio'bilotiz/ 13 current ratio /.kAront 'reijioo/ 15

current replacement cost /.kAront ri'pleismont ,kost/

7,9

curriculum vitae (CV) /ko.rikjolom 'viitai ,si: 'vi:/

50

customized /'kAStomaizd/ 37 customs clearance /'kAStomz .khoronts/ 46

DAF - delivered at frontier /.di: ei 'ef di.livod ot frAn'tio^r/ 46 damage to property /,daemid3

to 'propoti/ 47 day book /'dei ,bok/ 4 day trader/'dei .treido¹/ 31 DDP - delivered duty paid /,di: di: 'pi: di.hvod ,dju:ti 'peid/ 46

DDU - delivered duty unpaid /.di: di: 'ju: di.livod ,dju:ti An'peid/ 46 dealer/'di:lo^r/ 25 dealing /'dillir)/ 22 death duty/'deB ,dju:ti/ 49 debit/'debit/ 4 debit card /'debit ,ku:d/ 19 debits/'debits/ 19 debt/det/ 2 debt instrument /'det

.intstromont/ 25 debtors/'detoz/ 4, 10, 12 declare bankrupt /di.kleor

'baerjkrApt/ 33 decline/di'klain/ 38 decrease (n)/'di:kri:s/ 38 decrease (v) /'di'krns/ 38 default/di'foilt/ 33 defensive stock /di'fentsiv

,stnk/ 30 deferred taxes /di,f3id 'taeksiz/

13

deficit/'defisit/ 43

deflationary /di'fleiJ^n^ri/ 48 demand /di'mcnnd/ 23, 30 deposit/di'pozit/ 20 deposit account /di'pozit

Q.kaont/ 19 depositor/di'pozito^r/ 20 depreciate /di'prixJieit/ 9,44 depreciation/di.priiji'eij^n/ 7, 9 depression/di'prej^n/ 48 DEQ - delivered ex quay /,di: i: 'kju: di.livQd ,eks 'ki:/ 46 deregulate/,di:'regjoleit/ 21, 42 deregulation /_ldi;regj9^lleiJ^n/ 21

derivative/di'riVQtiv/ 35 DES - delivered ex ship /,di: i:

'es di.livod ,eks 'Jip/ 46 deteriorate/di'tisrbreit/ 38 deterioration /di.t^rb'reij^n/ 38

direct/di'rekt/ 47 direct cost/di'rekt ,kDst/ 17, 18 direct debit/di.rekt 'debit/ 19 direct tax /di'rekt .tasks/ 49 director /di'rekt9^r/ 5 disclose /dis'kbuz/ 7, 10 disclosure /dis'kbo39^r/ 42 discount (n) /'diskaont/ 25 discounted cash flow

/di.skaontid 'kasj ,fbu/ 41 discount factor /'diskaont

.faekt^/ 41 discounting/di'skauntirj/ 41 discount rate /'diskaont ,reit/

24, 27, 41 distribute/di'stribjuit/ 11 diversification

/dai,v3:sifi'keij³n/ 32, 39 diversified portfolio /dai,v3isifaid .poit'fQuliou/ 32

diversify /dai'v3:sifai/ 36 divestiture/dai'vest it J9r/ 22 dividend /'dividend/ 2 dividend cover /'dividend

,kAV9^r/ 15 documentary credit

/.dokprnentari 'kredit/ 45 documentation

/.dokjamen'teijan/ 46 double-entry bookkeeping

/,dAbl .entri 'bok.kiipir)/ 4 downswing /'daonswig/ 48 downturn /'daunt3in/ 48 draft /draift/ 45 dramatic /dro'maetik/ 38 dramatically /dr9'mastik4i/ 38 draw up /,dro: 'Ap/ 5 drop/drop/ 38 D terms/'di: ,t3imz/ 46

due diligence /,dju: 'dilid^onts/

dumping /'dAmpirj/ 43 earn /3in/ 1 earnings/'3:nir)z/ 2 earnings per share /,3:nir)z ,p3i

'Jestf 15 e-banking/'i: .bacrjkirj/ 19 EBIT/'iibit/ 14 EBITDA /.iibit'da:/ 14 economies of scale /i.konamiz

qv 'skeil/ 18, 43 efficiency /i'fiJgntsi/ 15 efficient market hypothesis

/x,fifont 'maikit hai,po9osis/

32, 36

elastic/ilaestik/ 18 employment /im'ploimant/ 24 endorse/in'dois/ 45 entrepreneur /.Dntr9pr9'n3:^r/ 28 equities /'ekwitiz/ 2, 29 equity /'ekwiti/ 29 equity market /'ekwiti ,mu:kit/

establish /I'staebliJV 3 estate tax/i'steit .tasks/ 49 E term /'i: ,t3:m/ 46 ethical /'eBik^l/ 3 evaluate /I'vaeljueit/ 10 ex div /'eks ,div/ 31 examination /ig,zaemi'neij³n/ 10

exchange market /iks'tjeind3

,ma:kit/ 44 exchange rate /iks'tjeind3

,reit/ 23, 44 excise duty /'eksaiz ,dju:ti/ 49 excise tax /'eksaiz .tasks/ 49 execute orders /.eksikjuit

'oid^z/ 22 executive director /ig,zekj9tiv di'rekta^r/ 5

executive summary /ig,zekj9tiv

'sAmsri/ 28, 50

exercise an option /,eks9saiz

on 'op/on/ 35 exercise price /'eksQsaiz ,prais/

35

exit strategy /'eksit .straetodgi/ 28

expense/ik'spents/ 4 expenses/ik'spentsiz/ 2 export (n) /'ekspoit/ 43 export (v) /ek'spoit/ 43 exporter/ik'spo:t9^r/ 43 export licence /'ekspoit

.laisonts/ 45 external audit /ik,st3:n³l 'oidit/

3 external auditor /ik,st3:n³l

¹ oidit 9^r/ 10 extraordinary general meeting (EGM) /ik,stro:d³n⁹ri ,d3en³H 'miitir) ,i: d3i: 'em/ 6 EXW - ex works /.i: eks

'dAblju: ,eks 'w3:ks/ 46 face value/'feis .vaelju:/ 25 fair presentation /.feo

.prezon'teij^n/ 7 fall/foil/ 38

fallen angel /,fo:lon 'eind3⁹l/

33

FAS - free alongside ship /,ef ei

'es ,fri: a.lorjsaid 'Jip/ 46 FCA - free carrier /,ef si: 'ei

,fri: 'kasrb¹/ 46 fee /fi:/ 22 fees /fi:z/ 1, 36

financial accounting /fai'naenJM

9,kaontir)/ 3 financial future /fai.naenJM

'fjuitJV/ 34 financial institution /fai.nasnJM .intsti'tjuijm/ 21

financial instrument /fai.nasnJM

'intstr9m9nt/ 25 financial planning /fai,nasnJM

'plaenirj/ 41 financial restructuring /fai.naenj^l ₁ri:'strAktj9rir)/ 22

financial results /fai.naenJM

ri'zAlts/ 29 financial stability /fai.naenJM

St9'bll9ti/ 23 financial statement /fai.naenj^l

'steitmont/ 2, 3, 4

financial system /fai,nasnj³l

'sist9m/ 23 financial year /fai.naenJM 'ji9¹/ 8

financing/'fainaent sir)/ 14 fiscal policy /,fisk³l 'pobsi/ 48 fixed assets /.fikst 'aesets/ 9, 12 fixed costs/'fikst ,kosts/ 17 fixed dividend /.fikst

'dividend/ 29 fixed exchange rate /.fikst

iks'tjeind3 .reit/ 44 fixed interest payment /.fikst

,intr9st 'peim9nt/ 33 fixed-term /'fikst ,t3:m/ 26 floating exchange rate /.fbutig

iks'tjeind3 ,reit/ 44 floating interest rate /.fbutirj

'intr9st .reit/ 24 floating-rate note/'fbutig ,reit

,n9ut/ 33 flotation /fbu'teij^n/ 29 fluctuate /'fUktJueit/ 34,38 FOB - free on board /,ef 9U

'bi: ,fri: on 'bo:d/ 46 follow rules /,fobo 'ruilz/ 3 forecaster /'fo:ka:st9^r/ 22 foreign currency /.fnrin

'kArentsi/ 19 forward /'foiwod/ 34 forward contract /'fo:w9d

.knntraskt/ 34 forward integration /,fo:w9d

,intigreij9n/ 39 found /faond/ 5 founder /'faondo¹/ 5, 28 fraud /fro:d/ 3, 10 fraudulent /'froidjalant/ 42 freely floating exchange rate /,fri:li .ftautir) iks'tjeind3 ,reit 44 free trade /,fri: 'treid/ 43 freight/freit/ 46 friendly bid /'frendli ,bid/ 39 friendly takeover /'frendli

.teikouvy/ 39 F terms /'ef ,t3imz/ 46 full capacity /,fol k9'paes9ti/ 48 full-disclosure /,fol dis'kl3U39^r/ 8 fundamental analysis

/.fAndamentsl o'naebsis/ 32 funds /fAndz/ 2 funds flow statement /'f Andz

,flou .steitmsnt/ 14 futures contract /'fjuitjaz

.knntraekt/ 34 gearing/'giorirj/ 16,37

get better /.get 'bet9^r/ 38 get worse/.get 'w3is/ 38 gilt-edged stock /.gilt ,ed3d

'stok/ 33 gilts /gilts/ 33

give the right /.giv do 'rait/ 35 go bankrupt /,g9u 'basgkrApt/ 15, 29

go into liquidation /,g9o int9

,likwideij9n/ 29 go public /,g9o 'pAblik/ 29 going concern /.gouir) k9n's3in/

7,8

going-rate pricing /.gouir) .reit

'praisir)/ 18 gold /gould/ 23 gold convertibility /.gaold

k9n,v3:t9'bibti/ 44 goods/gudz/ 12 goods and services tax (GST) /,gudz and 's3:visiz .tasks ,d3i: es 'tii/ 49 goodwill/gud'wil/ 12 government bond /'gAvanmont .bond/ 27, 33

government expenditure /.gAv^nmsnt ik'spenditjs¹/ 48

gradual/'gradual/ 38 gradually/'grœd3U9li/ 38 grant a loan /.graint 9 'bon/ 20 grant credit/.grurnt 'kredit/ 11 gross profit /,gr9us 'profit/ 6, 14 gross profit margin /.groos

'profit ,mu:d3in/ 16 grow/grso/ 38 growth /grooO/ 36, 38 growth stock /'grsoO .stok/ 30 health insurance /'helO

in,J 09t9nts/ 1 hedge against/'hed3 9,gentst/ 34 hedge fund /'hed3 .fAnd/ 37 hedging /'hed3ir)/ 37 high net worth individual /.hai .net ,W3:9 ,individ3U9l/ 21, 28

highly-geared /.haili 'gi9d/ 16 highly-leveraged /.haili

'Ii:v9rid3d/ 16 hire purchase /,hai9 'p3:tj9s/

24, 26

historical cost /hi.storikal

'kost/ 7 hit bottom/.hit 'bot9m/ 38 horizontal integration

/horizontal ,mtigreij³n/ 39 hostile bid /'hnstail .bid/ 39 hostile takeover/'hnstail

,teik90V9¹/ 39 image pricing/'imid3 .praisir)/ 18

implement (v) /'impliment/ 50 import (n) /'import/ 43 import (v) /im'poit/ 43 importer /im'po:t9^r/ 45 impose /im'p90z/ 49 improve /im'pruiv/ 38 improvement /im'pru:vm9nt/ 38

in circulation /in ,S3:kj9'leij9n/

27

in transit /in 'trasnzit/ 45 incentive/in'sentiv/ 9 income/'irjkAm/ 1 income and expenditure account /.irjkAm 9nd ik'spenditjor 9,kaunt/ 14 income stock /'igkAm ,stnk/ 30 income tax /'irjkAm .tasks/ 49 incoterms /'ir)k90,t3:mz/ 46 increase (n) /'inkriis/ 38 increase (v) /in'kriis/ 38 indemnify /in'demnifai/ 47 independent auditor /.indipend9nt 'o:dit3^r/ 3

index-linked fund

/.indeks'lirjkt .fAnd/ 36 indirect cost/.indirekt 'knst/ 17, 18

indirect tax/,indirekt 'tasks/ 49 inelastic/.inilaestik/ 18 inflation/in'fleij°n/ 27 inflation accounting /in'fleij°n

9,kauntir)/ 7 inheritance tax /in'hent9nts

.tasks/ 49 initial public offering /i.nijol

.pAblik 'nf9rig/ 22 insider dealing /in.saido 'diilir)/ 42

insider trading /in,said9

'treidirj/ 42 insolvent/in'snlvant/ 33 institutional investor

/.intstitjuipwl in'vest9¹/ 22 instrument /'intstrsmsnt/ 35 insurance /in'Juarsnts/ 47 insurance certificate

/in'f09r9nts S9,tlflk9t/ 45 insurance company

/in'Jo9r9nts ,kAmp9ni/ 21 insure against /in'Joor

9,gentst/ 47 insurer/in'J'U9r9^r/ 47 intangible assets /in,taend39bl

'assets/ 12 interest /'intrast/ 2, 19

interest cover /'intr9St ,kAV9^r/ 16

interest-free/,intr9St 'fri:/ 26 interest rate future /'intr9St

.reit 'fjuitJV/ 34 interim report /,int9nm ripoit/

6

intermediary /,int9'mi:di9ri/ 22 internal audit /in,t3in9l 'oidit/

3, 10

internal auditor/in,t3:n*l

'oidit 9^r/ 10 internal rate of return

/in,t3:n9l ,reit 9v rit3in/ 41 internet banking /'intonet

,baer)kir)/ 19 intervene /.into'vim/ 23,44 in-the-money /'in d9 ,mAni/ 35 inversely /in'v3:sli/ 33 invest /in'vest/ 2, 24 investing/in'vestir)/ 14 investment/in'vestm9nt/ 19 investment account

/in'vestm9nt 9,kaont/ 26 investment bank /in'vestm9nt

.baeqk/ 21 investment company /in'vestm9nt ,kAmp9ni/ 25

investment fund /in'vestmant

,fAnd/ 22 investor /in'vest9^r/ 2, 22 invisible export /in'vizobl

.ekspoit/ 43 invisible import /in'vizobl

, import/ 43 irregularities /i,regja'laerotiz/ 10 irrevocable /I'revakabl/ 45 irrevocable credit /i.revokobl •krecht/ 45

issue /' iJu:/ 21

issue currency /.ijui 'kArontsi/

23

issue securities /.ijui

si'kjoorotiz/ 22 joint venture /,d30int 'ventJV/

journal /'d33in4/ 4

junk bond /'d3Ar)k .bond/ 33,

labour /'leibo^r/ 24

launch/bint J/ 18

laws /b:z/ 3

leasing /'liisirj/ 24, 26

legal entity /,liig³l 'entiti/ 5

legitimate /Ii'd3it9m9t/ 42

lend /lend/ 20, 28

lend to /'lend tu:/ 2

lender of last resort / Jendor 9V

.laist ri'zoit/ 23 letter of credit /, let or 9V

'kredit/ 45 level off /,lev³I 'of/ 38 leverage /'li:vorid3/ 16, 37, 40 leveraged /'Ii:v9rid3d/ 40 leveraged buyout/,li:v9nd3d

'baiaot/ 40 levy /'levi/ 49

liabilities /.laio'bilatiz/ 2, 11, 20 liability /,lai9'bibti/ 47 liable for /'laiobl fo:^r/ 5 life insurance /'laif in,Jo9r9nts/ 47

limited liability /.limitid

,lai9'bibti/ 5 liquid assets /.likwid 'resets/ 15 liquidity/li'kwidati/ 15,20, 25 listed company /.listid

'kAmp9ni/ 6, 29 living standards /'liviq

,staend9dz/ 43 Lloyd's of London /.loidz 9V

'lAndon/ 47 loan /bon/ 2, 19 long position /'lor) po.zij^n/ 31,37

long-term liabilities /.lor) ,t3im ,lai9'bibtiz/ 13

loophole /'luiphool/ 49 loss /Ins/ 47

loss-leader pricing /,1ns ,li:do

. praisir)/ 18 loss of property /,los 9V

'pmpoti/ 47 lower of cost or market /.boor

9v ,knst 0: 'ma:kit/ 12 lucrative/'luikrotiv/ 42 lump sum /.lAmp 'SAm/ 47 make a claim /,meik 9 'kleim/ 47

make a profit /,meik 9 'profit/ 31

make provisions /,meik

pr9'vi39nz/ 12 managed floating exchange rate /,mcenid3d .fbotir) iks'tjeind3 ,reit/ 44 management accounting

/^,maenid3m9nt 9,kaontiij/ 3 management buyout

/,maenid3m9nt 'baiaot/ 40 management letter

/,maenid3m9nt 'leto^/ jo managing director /.maenid3ir)

di'rekt9^r/ 5 margin /'ma:d3in/ 24 market capitalization /,ma:kit

.kaepiHai'zeiJ^n/ 40 market forces /,ma:kit 'foisiz/ 44

market maker /'maikit .meiko¹/ 30

market opportunity /.maikit

,Dp9'tju:n9ti/ 50 market penetration pricing /.maikit .pem'treij^n .praisir)/ 18 market price /'ma:kit .prais/ 30 market risk /.maikit 'risk/ 32 market segment /.maikit

'segm9nt/ 18 market share/,maikit 'Je9^r/ 18 market skimming /'maikit

.skimir)/ 18 market value /,maikit 'vasljui/ 9, 25

marketing policy /'maikitiq

.pDbsi/ 17 marketing strategy /'maikitir)

,strœt9d3i/ 50 mark-up /'maik Ap/ 30 mark-up pricing /'maik Ap

.praisir)/ 18 matching /'maetjir)/ 8 materiality/m9_lti9ri'asbti/ 8 maturity /m9'tjo9r9ti/ 20, 25

maturity date /m9^,tjoor9ti

,deit/ 33 measurement/'me39m9nt/ 7 memorandum of association /mem9r,amd9m 9v

9_lS9oJi^,eiJsn/ 5

merchant bank /,m3itj9nt

'baegk/ 21 merger /'ni3:d39^r/ 21, 22, 39 mergers and acquisitions department /,m3id39Z 9nd

.sekwi'zijonz di.paitirumt/ 39 merge with /'m3id3 wid/ 21 mezzanine financing /'metS9niin .fainaentsig/ 28, 40

middleman/'midlmaen/ 47 misconduct/mis'knndAkt/ 6 moderate/'mDd³r9t/ 38 moderately /'mtxbr9tli/ 38 monetarist /'mAnit^ist/ 27 monetary authorities /.mAnit^ri oi'Borotiz/ 27

monetary growth /,mAnit³ri

•gr909/ 27 monetary policy /,mAnit°ri 'pnbsi/ 23, 48

money laundering /'mAni

,loind⁹rir)/ 42 money market /'mAni .maikit/ 25

money supply/'mAni sa,plai/ 27 monopolist/mo'nop^list/ 18 mortgage /'moigid3/ 1,19,24 mutual fund/'mjuitjuol ,fAnd/

36

names /neimz/ 47 narrow money /'nasr90 ,mAni/ 27

national insurance /.naej^n⁰!

in'J 09r9nts/ 49 natural disaster /.nset J^r°l

di'zaist9^r/ 47 net assets/.net 'assets/ 12 net book value /.net 'bok

.vaeljui/ 12 net income /.net 'ir)kAm/ 2 net present value /.net 'prez^nt

.vselju:/ 41 net profit/.net 'profit/ 6, 14 net realizable value /.net ri9'laiz9bl .vaeljui/ 9 net worth /.net 'W3i6/ 12 nominal ledger /.nominal

'led39¹/ 4 nominal value /'nomin^ .vaeljui/ 25

non-bank financial intermediary /,nnn ,baer)k fai.naentJM ,inta'mi:diari/ 21 non-current assets /,non ,kAr³nt

'aesets/ 12 non-current liabilities /,nDn

,kAr³nt .laio'bilotiz/ 13 non-executive director /,nDn

ig,zekjativ di'rekta¹"/ 5 non-profit organization /,non ,profit ,o:ganai'zeiJ<">n/ 14 non-standardized /,nDn

'staendadaizd/ 34 note /naot/ 1

not-for-profit organization /,nDt fa ,prDfit .oiganai'zeij'n/ 14 objective/ab'd3ektiv/ 5,17 objectivity/,Dbd3ik'tivati/ 8 obsolete /'obsaliit/ 9 odd-even pricing /,od 'iivan

,praisir)/ 18 odd pricing/'Dd ,praisir)/ 18 offer /'Df3>-/ 29, 30 on credit /,Dn 'kredit/ 2 online broker /,nnlain 'brauka^r/ 31

on paper /,Dn 'peipa^r/ 1 open-market operations /,aupan

,ma:kit .opVeiJ'nz/ 27 operations /.npar'eijanz/ 14 opportunity cost /.Dpa't juinati

,kost/ 41 option /'DpJ^n/ 35 ordinary share /'o:d³n°ri ,Jea^r/ 29

outgoings/,aut'gauir)z/ 1 out-of-the-money /'aot av da

,mAni/ 35 outperform ^autpa'foim/ 36 output/'autput/ 24 overdraft/'auvadraift/ 19,24 overdraw/,auva'dro:/ 19 overheads/'aovahedz/ 17 overheating/,auva'hi:tig/ 48 oversee /.auva'si:/ 42 over-subscribed

/,auvo sob'skraibd/ 31 over-the-counter

/,auvada'kaunta^r/ 30, 34, 37 overtime /'auvataim/ 1 owe /au/ 2, 11 own /aun/ 2 own a security /,aun a

si'kjuarati/ 31 own shares /'aun ,/eaz/ 30 par value /'pa: ,vselju:/ 25 parent company /'pearant ,kAmpani/ 40

partner/'pa:tna^r/ 5 partnership /'pcntna/ip/ 5 passive strategy /'paesiv

,straetad3i/ 36 patent /'peit°nt/ 12 pattern /'past^n/ 32 pay a dividend /,pei a

'dividend 31 pay interest/,pei 'intrast/ 20 peak /pi:k/ 38, 48 pegged against /'pegd a,gentst/ 44

pension /'penj³n/ 1 pension fund /'penj³n ,fAnd/ 22 period of contraction /.piariad

av kan'traekp>n/ 48 period of expansion /.piariad

av ik'spaentj³n/ 48 perk /p3ik/ 49 personal customer /'pais^l

,kAstama^r/ 20 personal injury /,p3:s³n³l

'ind3ari/ 47 personal loan /.psiswl 'laun/ 20

place an order /,pleis an 'aida¹/ 30

poison pill /,poiz^n 'pil/ 39 policy /'polasi/ 47 political business cycle

/pa'litik-">l ,biznis ,saikl/ 48 pool /purl/ 37 portfolio/,po:t'faoliau/ 36 position /pa'zij³n/ 37 predict/pri'dikt/ 32 preference share /'prefarants

,Jea^r/ 28, 29 premises /'premisiz/ 46 premium /'priimiam/ 35, 47 prepare /pri'pea^r/ 3 preserve/pri'z3:v/ 36 prestige pricing /pres'ti:3

,praisii]/ 18 price/prais/ 18 price difference /'prais

,difarants/ 37 price/earnings ratio /,prais

'3inir)z ,reijiau/ 15 price-sensitive /,prais

'sentsitiv/ 42 price-sensitive information /,prais ,sentsitiv ,infa'meij"³n/ 32 price variations /,prais

.veari'eijonz/ 18 primary market /'praimⁿri

,ma:kit/ 30 principal /'prinsap^l/ 33 private bank /'praivit ,baer)k/ 21 private company /'praivit

,kAmpani/ 6, 28 private pension plan /,praivit

'penj'^n ,plaen/ 19 produce (v) /pra'djuis/ 29 productivity /,prodAk'tivati/ 43 profit/'profit/ 2 profitability /.profita'biliti/ 16, 26

profitable/'profitabl/ 17 profit and loss account /,profit

and 'Ids a.kaunt/ 2, 4, 11, 14 profit and loss sharing /,profit

ond 'Ids Jearir)/ 26 profit target/'profit ,taigit/ 18 progressive /pra'gresiv/ 49 projected trends /pra^ektid

'trendz/ 50 property, plant and equipment /.propati ,plaint and I'kwipmont/ 12 proportional /pra'po:J³n³l/ 49 prospectus /pra'spektas/ 29 protect /pra'tekt/ 43 protectionism /pra'tekj³niz^:>m/ 43

provisions /pra'vi3anz/ 7 public company /'pAblik

,kAmponi/ 28 public limited company

/.pAblik ,limitid 'kAmpani/ 6 purchasing power /'p3:tjasir)

,paua^r/ 41 purchasing power parity

/,p3:tjasii] ,paua 'pasrati/ 44 purpose /'p3ipas/ 5 put option /'put |DpJ³n/ 35 qualified report/'kwolifaid

ri,po:t/ 10 quality certificate /'kwolati

sa,tifikat/ 45 quarterly report /,kwa:t^ali

ri'poit/ 6 quick /kwik/ 38 quickly /'kwikli/ 38 quick ratio/'kwik ,rei/iau/ 15 quota /'kwauta/ 43 quoted company /'kwautid

.kAmpani/ 6, 29 raid /reid/ 39

raise capital /,reiz 'kaepit°l/ 21 raise funds /,reiz 'fAndz/ 22 random /'raendam/ 32 random walk hypothesis /,rasndam 'wo:k hai.poOasis/ 32

rapid /'raepid/ 38 rapidly/'raepidli/ 38

Professional English in Use Finance

rate of return /,reit ov ri'tsrn/

26, 28, 41 ratio /'reijioo/ 15 raw materials /,ro: mo'tioriolz/ 12

reach a low point /,ri:tj 9 'loo

.point/ 38 reach a maximum /,ri:tj o

'maeksimom/ 38 reach a peak /.riitj o 'pi:k/ 38 receive/ri¹ si:v/ 31 recession /ri¹ seJ^n/ 48 recommend/.reko'mend/ 10 record (v) /ri'koid/ 3, 10 recovery/ri'kAVori/ 48 redeem/ri'diim/ 25 reflationary /,rii'fleiJ"^n°ri/ 48 registered office /,red3istod

'ofis/ 5 regressive/ri'gresiv/ 49 regular income /.regjolor

'irjkAm/ 36 regulate/'regjoleit/ 23 reinsurance /.rkin'Jo^rnts/ 47 remain constant /ri.mein

'knntstont/ 38 remain stable /ri.mein 'steibl/ 38

rent /rent/ 1

replacement cost accounting /ri'pleismont .knst o.kaontir)/ 7 repossess/.riipo'zes/ 19 repurchase agreement (repo) /.rii'psrtjos o.griimont/ 25 research (v) /ri's3:tJ7 22 reserve requirement /ri'z3:v

n.kwaiomont/ 20 reserve-asset ratio /n,Z3:v

.asset 'reijiau/ 27 reserves /ri'z3:vz/ 13, 20, 23, 44 retail bank /'riiteil .baerjk/ 20 retain /ri'tein/ 2 retain earnings /ri.tein '3:nir)z/

31

retained earnings /ri.teind

'3:nir)z/ 11 return on assets /ri,t3:n on

'assets/ 16

return on equity /ri,t3:n Dn

'ekwiti/ 16 revalue/rii'vaslju:/ 9 revenue /'revonju:/ 2, 4, 28 revenue recognition /.revonju:

.rekog'mj^n/ 8 rights issue /'raits ,ijui/ 30 rise/raiz/ 38 risk /risk/ 20, 47

risk assessment/'risk

o.sesmont/ 20 risk-averse /'risk o,v3:s/ 28 risk capital /'risk .kaspiH/ 28 risk capitalist/.risk 'kaspiHist/ 26

rules /ruilz/ 3

run on the bank /.rAn on do

'baerjk/ 23 safekeeping/.seif'kiipnj/ 26 salary /'saelori/ 1 sales forecast /'seilz ,fo:ku:st/ 50

sales promotion /'seilz

pro.mouj^n/ 50 sales revenue /'seilz .revonju:/ 14

sales target/'seilz ,tu:git/ 18 sales tax/'seilz .tasks/ 49 sales volume /'seilz ,volju;m/ 17

save /seiv/ 20, 24, 47 savings account /'seivirjz

o.kaont/ 19 savings and loans association /.seivnjz ond 'loonz osooji.eijm/ 21 scrip issue/'skrip ,iju:/ 30 secondary market /'sek⁹nd⁹ri

.muikit/ 30 securities/si'kjoorotiz/ 36 sell an option /'sel on .npj^n/ 35 selling, general and

administrative expenses /.selig ,d3en^l ond od'ministrotiv ik.spentsiz/ 14 separate entity/.sep^rot 'entiti/ 8

service charge /'s3:vis ,t jaid^/ 26

set up /.set 'Ap/ 2 settlement day/'setlmont ,dei/ 31

share/Jeo^r/ 2,21,29 share capital /'Jeo .kaspitol/ 2, 5, 11

shareholder /'Jeo,hooldo^r/ 2, 29

shareholders' equity

/.Jeohooldoz 'ekwiti/ 11, 13 share premium /'Jeo .priimiom/ 13

sharp/Ja:p/ 38

sharply/'Jaipli/ 38

shipment /'Jipmont/ 45

short position /'Joit po.zij^n/ 37

short-term/,Jo:t't3:m/ 25

sickness /'siknos/ 47

sight deposit/'salt di.pozit/ 27

significant/sig'mfikont/ 38 significantly /sig'nifikontli/ 38 slight/slait/ 38 slightly/'slaitli/ 38 slow/slou/ 38 slowly/'slooli/ 38 slump /sUmp/ 48 social security /.souJ»1

si'kjuoroti/ 1,49 sole trader /.sool 'treido¹/ 5 solvency /'solvontsi/ 15,24 source and application of funds statement /.sors ond aspli,keij³n ov 'fAndz .steitmont/ 14 speculation /.spekjo'leiJW 37 speculative/'spekjolotiv/ 44 speculator/'spekjoleito¹/ 31 spend /spend/ 1 spot price /'spot .prais/ 34 spread /spred/ 24, 30 stabilize/'steibolaiz/ 38 stag/stasg/ 31 standard /'stasndod/ 3 standardized /'staendodaizd/ 20, 34

standing order /.staendir) 'o:do^r/ 19

start-up /'staitAp/ 28 start-up capital /'staitAp

.kaspit^l/ 28 statement /'steitmont/ 19 statement of total recognised gains and losses /.steitmont ov ,toot⁹l .rekognaizd .geinz ond 'lnsiz/ 14 steadily/'stedili/ 38 steady/'stedi/ 38 steal /still/ 47 stimulate the economy

/.stimjoleit ôi i'knnomi/ 48 stock /stok/ 4, 21, 29 stockbroker/'stnk.brouko¹/ 30 stockbroking/'stok.brookiq/ 22 stock exchange /'stok iks,tjeind3/ 6, 29 stock future /'stok ,fju:tJo^r/ 34 stockholder /'stok,hooldo¹/ 29 stock index/'stok .indeks/ 31 stock index future /.stnk

.indeks 'fju:tJo^r/ 34 stock market/'stok .maikit/ 29 stock take/'stok .teik/ 10 straight-line method /.streit

'lain .meBod/ 9 strategic industry /stro,ti:d3ik

'indostri/ 43 strategic planning /stro,ti:d3ik 'plasnir)/ 22 strike price/'straik .prais/ 35 structured product /'strAkt Jod

.prodAkt/ 37 subjective/sob'd3ektiv/ 8 submit /sob'mit/ 10 subsidiary/sob'sidiori/ 8,22,

40

substantial /sob'stasntj^l/ 38 substantially /sob'stasntjoli/ 38 sudden /'sAcbn/ 38 suddenly /'sAd³nli/ 38 supervise/'suipovaiz/ 23 supplier /so'plaio^r/ 11 supply/so¹ plai/ 23,30 surplus /'s3iplos/ 14 swap /swop/ 35 syndicate /'sindikot/ 47 synergy /'sinod3i/ 40 systematic risk /.sistomastik ' 'risk/ 32

systems of control /.sistomz ov

kon'troul/ 10 tactics /'tasktiks/ 50 take a short position /.teik o

'Jo:t po.zij^n/ 31 takeover/'teik.oovo¹/ 39 takeover bid /'teik.oovo ,bid/

6, 21, 39 tangible assets /.tasnc^obl

'aesets/ 12 target customer /,ta:git

'kAstomo^r/ 18 tariff /'taerif/ 43, 49 tax /taeks/ 1,2,49 taxation /taek'seijon/ 48, 49 tax avoidance /'tasks

o.voidonts/ 49 tax burden /'taeks ,b3:d³n/ 49 tax evasion /'tasks i,vei3°n/ 49 tax haven /'tasks ,heiv³n/ 49 tax shelter/'taeks ,Jelto^r/ 47 technical analysis /,teknik³l

o'naelosis/ 32 telephone banking /'telifoon

,baer)kir)/ 19 terms and conditions /,t3imz

ond kon'dij^nz/ 20 theft /Geft/ 47 time deposit /'taim di.pnzit/ 25, 27

time-period /'taim .pioriod/ 8 times dividend covered /,taimz

.dividend 'kAvod/ 15 times interest earned /.taimz

.introst '3:nd/ 16 time value of money /'taim

,vaslju: ov .rnAni/ 41 top out /.top 'aot/ 38 tracker fund /'trasko^r .fAnd/ 36

trade mark/'treicl ,mark/ 12 trade surplus /'treicl .ssiplos/ 43

transaction /traen'zaekj⁹n/ 3, 4 transfer /'traentsf3:^r/ 20 traveller's cheque /'traevoloz

.tjek/ 19 treasury bill (T-bill) /'tre3ori ,bil/ 25

treasury bond /'tre3ori .bond/

33

treasury note /'tre3ori ,noot/ 33 trend /trend/ 32 trial balance /.traiol 'baelonts/ 4

trough /trof/ 48

true and fair view /.tru: ond

,feo 'vju:/ 3, 7, 10 turnover/'t3:n,oovo^r/ 6, 14 underpriced /.Ando'praist/ 40 undervalued /.Ando'vaslju:d/

40

underwrite /.Andor'ait/ 22, 29 underwriter /'Andor.aito¹*/ 47 unique/jui'niik/ 50 unit cost/.juinit 'kost/ 18 unit-of-measure /.juinit ov

'me30^r/ 8 unit trust/.juinit 'trASt/ 36 unsecured/.Ansi'kjood/ 25 unsystematic risk

/.Ansistomaetik 'risk/ 32 upswing /'Apswirj/ 48 upturn /'Apt3:n/ 48 valuation /.vaelju'eij^n/ 7, 22 value stock/'vaslju: .stnk/ 30 value-added tax (VAT) /.vaeljui.asdid 'tasks ,vi: ei •tii/ 49

variable costs /'veoriobl .kosts 17

variable interest rate /.veoriobl

'introst ,reit/ 24 velocity/vi'lnsoti/ 27 velocity of circulation /vi.lnsoti

ov ,s3:kjo'leiJ³n/ 27 venture capital /.ventJo

'kaspiM/ 28 venture capitalist /.ventJo

'kaepiMist/ 26 verifiable /'verifaiobl/ 8 vertical integration /,V3itik®l

.inti'greij^n/ 39 visible trade /'vizobl .treid/ 43 volatile /'volotail/ 36 wages /'weid3iz/ 1 warrant /'wnront/ 35 wear out/,weor 'aot/ 9

weight certificate /'weit

so.tifikot/ 45 white knight/.wait 'nait/ 39 withdraw/wiö'dro:/ 19 withdrawal/wiö'droiol/ 19 working capital /'w3:kig

.kaepiH/ 2, 26 work-in-progress /.W3ik in

'proogres/ 12 World Trade Organization /.W3:ld 'treid o:gonai.zeiJ°n/ 43

write an option /.rait on

'npJon/ 35 write off /.rait 'of/ 12 wrongdoing/'rorj.dunr)/ 6 yield /ji:ld/ 20, 33 zero coupon bond /'zioroo

,ku:pnn .bond/ 33 zero-sum game /'zioroo ,SAm .geim/ 34

Acknowledgements

I would like to thank Sally Searby at Cambridge University Press for commissioning this book. I owe a huge debt to my hawk-eyed and unremitting editors Joy Godwin and Lyn Strutt, who have had an enormous input into the book: the first draft was very different. I am grateful to Gareth Davies, Fiona Dunbar, Bridget Eakins and Rosemary Richey for their very useful comments on the first draft of the first half of the book. My thanks are also due to everyone involved in the design, production and marketing of the book.

Ian MacKenzie

The author and publishers are grateful to those authors, publishers and others who have given permission for the use of copyright material identified in the text. It has not always been possible to identify the source of material used or to contact the copyright holders and in such cases the publishers would welcome information from the copyright owners.

Barclays Bank PLC for adapted text on p. 18: 'Barclays Interim Report 2004', taken from the website www.investorrelations.barclays.co.uk. © Barclays Bank PLC. Used by permission; Pictet Asset Management UK Limited for text on p. 49: 'How can Pictet Help you?' taken from the website www.pictet.com. © Pictet Asset Management UK Limited. Used by permission; NatWest for text on p. 49: 'NatWest Personal Banking', taken from the website www.natwest.com. © National Westminster Bank Pic. Used by permission; UBS AG for text on p. 81, taken from the website www.ubs.com. © UBS 1998-2005. All rights reserved.

Photographs: p. 14 Corbis/Gabe Palmer, p. 15 Alamy/B.A.E. Inc, p. 50 Corbis/Jim Cummins, p. 52 Getty Images/RF, p. 62 Alamy/RF, p. 69 Alamy/Henry Westheim Photography, p. 74 Corbis/Reuters, p. 88 Alamy/RF, p. 90 Corbis/Simon Taplin, p. 93 Getty Images/Taxi, p. 94 Getty Images/AFP

Illustrations: Cartoon Bank pp. 22, 33; Cartoon Stock pp. 11, 24, 29, 44, 46, 54, 76, 80, 84, 86, 92, 101, 103; Kamae Design pp. 61, 69, 70, 99, 110

Professional English in Use

Ian MacKenzie

63-5-3-4"

1 HIT

Professional English in Use Finance, the latest exciting addition to the bestselling English Vocabulary in Use titles, is suitable for intermediate to advanced students (B1-C2)

Professional English in Use Finance contains 50 units covering the most up-to-date financial vocabulary, from accounting to borrowing and lending, central banking to venture capital and many more areas including financial idioms and metaphors.

Primarily designed as a self-study reference and practice book, it can also be used for classroom work and one-to-one lessons. This book is a must for both trainers and learners of ESP and Business English, who need to use English in a financial environment.

50 easy-to-use units: vocabulary items are presented and explained on left-hand pages with a range of practice exercises on right-hand pages.

Presents and explains all new vocabulary in context. 'Over to you' sections give learners the opportunity to put the language into practice.

Includes a comprehensive, learner-friendly answer key.

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Advanced Grammar

ISBN-13: 978 0 521 54070 4

2050002098374

Ca

UND

Professional English in Use Finance is the ideal companion for learners preparing for the new Cambridge International Certificate in Financial English. Suitable for self-study or classroom use, Professional English in Use Finance covers vocabulary and key topics from the exam. The exam is for finance students and those already employed in a finance setting.

/e recomme

CAMBRIDGE

Advanced > Learner's /

9780521616270

ISBN-13: 978 0 521 61403 0

Dictionary /

ISBN-13: 978 0 521 60499 4

I

2. Find words in A and B opposite with the following meanings.

   1. behaviour that breaks the law

   2. sales revenue minus the cost of sales, before deductions for administration expenses, interest charges, etc.

   3. sales revenue minus the cost of making and selling the goods, and deductions for administration expenses, interest charges, etc.

   4. the total amount of money a company receives from selling goods or services

3. Match the two parts of the sentences. Look at A and B opposite to help you.

2 American corporations publish details

3 Companies' financial statements, and the auditor's report,

4 Quarterly and six-monthly reports

5. Shareholders can ask company directors questions

6. Companies can hold an emergency general meeting

a about their sales and profits every three months, b are contained in their annual reports, c are not checked by external auditors, d if there is a crisis.

e can have their shares traded on a stock exchange, f at an annual meeting.

1 Because we the , we don't have worry about the market

value of fixed assets.

2. To depreciate , we part of their from profits

each year.

2. Because land usually appreciates, companies do not generally its on

the balance sheet.

9.3 Match the two parts of the sentences. Look at B and C opposite to help you.

1. All fixed assets can appreciate if there is high inflation,

2. Accelerated depreciation allows companies to

3. Fixed assets generally lose value, except for land,

4. The straight-line method of depreciation

5. Accelerated depreciation reduces companies' tax bills,

a which usually appreciates.

b charges equal amounts against profits every year,

c remove some extremely valuable assets from their balance sheets,

d which encourages them to invest in new factories, etc.

e but historical cost accounting ignores this.

1 I'm an internal auditor. I

are , and that they

accounting principles.

2 If the control systems aren't adequate, I make concerning changes.

3 The external auditors check to see if transactions are being correctly.

1 Only quoted or listed companies

Professional English in Use Finance 7