Insider dealing

Insider dealing or insider trading is buying or selling of securities by people who have more knowledge than others of the company involved because they are connected with it in some way. Financial institutions are supposed to take measures to prevent knowledge gained in one department from being used in other departments to trade in shares at an unfair advantage. These measures are informally known as Chinese walls.

This article from The Times is about accusations of insider dealing in gilt-edged securities or gilts (British government bonds). Complete the article with the expressions listed. Each expression is used once.

a Chinese walls c inside e dealers g complaints b trades d insider dealing f allegations h leak

Loan leak rumour sweeps market

The Bank of England is believed to be looking into complaints that several banks this week traded on _____(1) information about the Government’s £ 7.25 billion loan announced on Tuesday. Last night, National Westminster, one of the banks that arranged the loan, firmly denied that there had been any ____(2) from its syndicated loan department or that it had made any unusual______(3) in the gilt-edged market.

Martin Owen, chief executive of Natwest Markets said: “We have had no complaints ourselves and no indication of any _______(4) from the Bank of England. Our syndicated lending happens behind ________(5), and we had no abnormal trading figures in the days before the loan. Claims like these happen when people are losing money and they love to say that someone else had preferential knowledge about an event.”

_______(6) of ______(7) swept through the City all day, encouraged by gilt____(8) and market makers who were caught out by the sharp rise in prices on Tuesday afternoon, after the announcement of the government loan…

Ex.1. Match the terms to their definitions.

1.Bonds a. financial instruments whose value is

derived from an underlying (value of stock or anything).

2.Equities b. a contract that gives the owner the right but not

obligation to buy or sell a specified asset at a specified

price on or before a specified date.

3.Derivatives c. contracts that create an obligation to buy or

sell another securities or before a specified future date.

4. Futures d. a long-term security that issued by government,

basically, a loan from the buyers to the sellers

5.Option e. a stock or any other security representing an

ownership interest.

Ex.2. Compose 5 sentences of your own.

loaded (при деньгах, куры денег не клюют) My uncle is loaded so he always buys us awesome presents. Dog, she's loaded. Have you ever seen that pimped-out Ferrari she drives around in?

to make a killing (разбогатеть, сколотить состояние) My sister made a killing working in the oil industry. If you are pretty and smart you can make a killing if you are only intelligent you probably can make a living.

to make (both) ends meet (едва) сводить концы с концами, считать каждую копейку. I lost my job and I’m having a hard time making ends meet. Many families struggle to make ends meet these days.

to live hand to mouth (жить впроголодь, тратить всё на еду). Since I lost my job I’ve had to live hand to mouth – Many people in the inner city live hand-to-mouth lives

to pay an arm and a leg for sth (отдать последнее за покупку, влетать в копеечку, стоить целое состояние). My new car cost me an arm and a leg but I love it –Man, I just had to spend an arm and a leg to get my car repaired

to pinch pennies (экономить, считать каждую копейку). My grandma is a penny pincher – Megan never goes to restaurants because she's such a penny pincher