Практический курс английского языка = Practical Course of English for Students of Economics. Учебное пособие для студентов экономических специальносте

stock; capitalization; common stock; preferred stock; preemptive rights; one vote for each share owned (text 2); cash distribution; dividend policy; stock dividend; property dividend; increase earnings for common shareholders (text 3); channel savings; primary market; secondary market; OTC market (text 4); currency option; call option contract; forex market transactions; spot rate; forward transaction (text 5); an insurance police; the insurer; cover the loss; product liability insurance (text 6); calculated risk; to time the market; to deal with risk (text 7).

4. Give the Russian equivalents to the following.

to stock the shelves; relative to the demand for the resources; a claim against the income; accumulated retained earnings; financial markets; preferred stock; debt securities; initially issued securities; financial records of transaction; securities are traded; equity liability; to repay the principal; accidental losses; indemnification; fortuitous loss ; financial services; interest rate; available for lending; borrow for consumption; the cost of credit; total spending; assets held by individuals; party of the transaction, bid-ask format; outstanding shares; confers voting and preemptive rights; to cast the votes; allow the stock split; undergo unforeseen changes; surefire way; due to uncertainty; rewards for the assumption of risks.

5. Complete the following table

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6. Give the English equivalents to the following.

проводить операции с ценными бумагами; определять процентную ставку; подвергать риску; сделать фонды доступными; в условиях неопределенности; участвовать в оценке активов компании; относительно спроса на ресурсы; финансовая система; акции; рыночная стоимость акции; привилегированная акция; одна акция – один голос; доля активов; различаться по своим правам; облигации; защитить от потерь; ценные бумаги; материально-тех- нические ценности; сделка; процентная ставка; финансовые активы; получать дивиденды сверх номинала; фондовая биржа; выкупить акции у акционеров; получить дополнительный дивиденд; увеличить доходы владельцев простых акций; простой дивиденд; цена колеблется; страховой полис; страхователь; страховой взнос; страховщик; $20 за акцию; принять на себя финансовые обязательства.

7.Think of the situations where you could use the following idiomatic expressions. Give their Russian equivalents.

Keep a cool head; keep a low profile; keep and eagle eye on smb; keep balls in the air; keep clear of smb; keep one’s chin up; keep one’s cool; keep one’s ear to the ground; keep one’s feet on the ground; keep one’s finger crossed; keep one’s head above water; keep one’s head down; keep one’s powder dry; keep one’s word; keep smb in the air; keep smb at arm’s length

8.Insert the necessary prepositions.

1.The main task is to find out what is ... the core of the problem.

2.The financial markets are composed ... the money market and the capital market. 3. It applies ... any group of markets. 4. You can do whatever you want but ... your own risk. 5. He specializes ... dealing ... bonds.

6.It accounts ... 80 percent of all their shares. 7. What bank are you going to borrow money … ? 8. I’m not sure he has the right … these securities. 9. This money is enough to pay …the service. 10. It accounts … 50 percent … all their securities. 11. We aren’t planning to enter … an agreement … this bank. 12. What is the exchange rate the spot transaction takes place …? 13. These rates are quoted … European terms.

14.It’s not the same! They vary largely … rights. 15. The shareholders have the right … higher dividends. 16. We have the right to vote … all the matters of the company. 17. They tried to hold the inflation … constant rate but failed. 18. They assured us to exercise it … 30 days. 19. You can buy them … person, … mail, … the phone, or … the Internet. 20. They are to compensate … all your losses.

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9.* Paraphrase the words in italics.

1.The financial system is an integral part of the economic system.

2.The financial system provides the means whereby modern economies grow and increase the standard of living of the citizens. 3. For every real transaction there is a financial transaction that mirrors it. 4. All trade involves both the real sector and the financial sector. 5. The financial sector is important for the real sector. 6. They are composed of the money markets and the capital markets. 7. They deal with buying and selling the securities of the company. 8. The term money market applies to a group of loosely connected markets. 9. Currency option contracts confer on the buyer a right, but not an obligation. 10. The benefits from acquisition are called senergies. 11. Our analysis focuses on the total value of the firm.

12.Stock prices can be found in newspapers, on TV and in the Internet.

13.A proxy authorizes the proxy holder to vote. 14. They are ready to pay cash to obtain the stock of another company. 15. Pieces of their profits are an incentives to hold stocks.

10.Match the halves.

1.Your decision to invest in education in

2.Investment generally refers to

3.The financial markets make possible

4.There is no guarantee that

5.Investment risk can be measured by

6.The more assets are financed by debts

7.When the rate of inflation rises,

8.Investors continually seek investments that provide

9.The pooling of interests is one of

10.The party suffering the losses

11.The volatility is the amount that

a)the expected flow of future income will ever materialize.

b)the price fluctuates above and below the previous price.

c)investments have less purchasing power.

d)the volatility of investment.

e)the exchange of current income for future income.

f)a decision to invest in human capital.

g)the greatest net after-tax returns.

h)the acquisition of capital goods.

i)the greater the risk.

j)the characteristics of insurance.

k)is compensated in full from the fund.

11.* Make up the sentences putting the words in the correct order. The first word is given in bold.

1. Business, equity, either, money, can, through, debt, raise, or.

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2.Raising, mean, lenders, on, money, becoming, can, dependent, very.

3.The, simply, nothing, in, greatest, is, risk, of, risk, doing, the, busi-

ness.

4.If, risk, finger, you, have, much, of, current, chance, then, tips, relevant, your, reliable, you, better, and, information, managing, have, a, at.

5.Raising, on, business, your, and, depends, people, in, economy, the, having, money, the, on, concept, of, business, on, right, the, your.

12. Explain the difference in the meaning of the following synonyms. Use them in your own sentences.

1.Income, revenue, return, yield, earnings, proceeds, receipts, gains

2.risk, hazard, peril, jeorpady

13. Read the words given below. What meaning do the prefixes under- and over- add to a word?

Undervalue, undermine, overeating, overestimate, overcook

Add the prefixes to the following words, translate them into Russian, use the words in your own sentences or situations.

Under- to load, to man, to pay, production, to take, capacity, to rate, to quote, world, to charge;

Over- abundance, to act, to come, to colour, to crowd, to do, draft, due, to feed, to hear, to lap, time, to ma, stock, statement, tax.

14. Rewrite the sentences, using the Passive Voice.

1. Most economies require enormous amounts of investment in capital goods. 2. Households invest when they buy a new house. 3. Many factors can affect the value of your investment. 4. Economists have developed a mathematical tool to “measure” these fluctuations. 5. The Greek letter beta represents this measurement. 6. An insurance company protects the insured against losses. 7. If a policyholder intentionally starts a fire, the insurer will not cover the loss. 8. The company will recover sufficient funds from the insurer to rebuild the warehouse. 9. They are discussing their investment policy for the next year. 10. He showed me his scheme of new stock issuing.

15. Open the brackets.

A market order (to give) your broker the signal (to buy) or (to sell) a particular security at the current market price. A market order ( to guarantee) execution, but it (not to guarantee) a specific price. You can (to give) your broker additional instructions. Limit order (to allow) you (to instruct) your broker (to buy) or (to sell) a stock at a specific price or better. You (to use) a limit order when the stock you (to be interested) in (to change) in price. This (to prevent) the broker from (to buy) too

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high, or (to sell) too low. A limit order ( to guarantee) a price but not the execution.

Stop loss order (to let) you (to instruct) your broker to sell a stock if it (to fall) below a specified price (to prevent) further loss. You (to use) a stop loss order if you (to be concerned) that a stock you own (to fall) in price. A stop loss order (to use) (to protect) unrealized profits or prevent further losses on a position. One type of orders (to be) good-till-can- celled (GTC) or day order. When you (to place) a limit, stop or stoplimit order, you (to ask) if you (to want) it (to be) “good until it is cancelled” or “good for the day”. This (to allow) you (to choose) the length of time the order (to remain) open for execution at the marketplace

Look through the text once again. What is the text about? Put down the financial terms used in the text. Explain their meaning.

16. Translate into English, using the Passive Voice.

1. Операции с этими ценными бумагами были проведены по телефону и через компьютерную сеть 2 дня назад. 2. Как правило, дивиденды выплачиваются наличными. 3. Этот капитал может быть использован для производства товаров и услуг. 4. Боюсь, эти данные не будут проверены к концу рабочего дня. 5. Все пошлины оплачены, и бумаги можно отправлять заказчику. 6. Деньги переведены на их счет два дня тому назад. 7. Оценка деятельности компании дается акционерами на ежегодном собрании. 8. Не все риски можно просчитать. 9. Сотни факторов подлежат тщательному рассмотрению и обсуждению, прежде чем решение будет принято. 10. Капиталы инвестируются только в те проекты, которые могут принести прибыль. 11. Все заработанные деньги были вложены в этот перспективный проект. 12. Все имущество будет застраховано в течение первой недели после покупки.

17. Read the words given below. Be sure you know the meaning of each word. Insert them in the blanks. Mind your grammar.

combination, agency, market, value, term, quotation, government, level, interaction, activity, amount, cost, income, compensation, inflation, redistribution, productivity, rate, output, stock, factor, purchasing, percentage, price, outcome, force, index, currency, cause.

Inflation rates, interest rates, and exchange rates represent fundamental ... in the economy that influence the ... of business and financial decisions, and hence the direction of economic activities. The phenomenon of continuously increasing ... is called inflation. The inflation rate is the ... change in the general price level over a specified period of time. Inflation reduces the ... power of money and other assets denominated in monetary units. Changes in inflation are tracked by a measure known as a price ... .

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Inflation is caused by changes in a number of economic ... . These factors include the money ..., the level of ..., interest ..., labor ..., and the exchange rate. The far-reaching effects of inflation include ... of income and wealth, influence on a country’s international trade and financial ..., and general uncertainty and loss of confidence. Governments usually try to control ... by manipulating their money stocks.

The ... paid for lending money is called interest. The interest rate is the percentage of the loan ... paid as compensation. Interest is a source of ...

to the lender and a ... to the borrower. In a free-market system, interest rates are determined by the ... of demand and supply forces. The ... of interest rates is affected by changes in economic factors such as the money stock, output, the inflation rate, and exchange rates. ... try to control interest rate changes primarily by manipulating the money stock.

An exchange rate is the price of one ... expressed in terms of another currency. Exchange rates are commonly quoted either in European or American … . In European terms of ..., the value of a U.S. dollar is expressed in terms of all other currencies. In American terms of quotation, the ... of all other currencies are expressed in terms of U.S. dollars. Historically, exchange rates have been determined either by the ... forces of demand and supply (the floating-rate system), by official government

... (the fixed-rate system), or by a ... of the two (the system of managed float).

Exchange rates, interest rates, and inflation rates are interrelated. Changes in one can ... the others to change.

Look through the passage once again. What economic phenomena are described in it? Define and explain each of them.

18.* Work in pairs. Expanding the following statements, explain each other the functions of the financial system.

Functions of the Financial System

Savings Function – providing a potentially profitable and relatively low-risk outlet for the public’s savings.

Liquidity Function – providing a means of raising funds by converting securities and other financial assets into cash balances.

Payments Function – providing a mechanism for making payments to purchase goods and services.

Policy Function – providing a channel for government policy to achieve society’s goals of high employment, low inflation, and sustainable economic growth.

Wealth Function – providing a means to store purchasing power until needed at a future date for spending on goods and services.

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Credit Function – providing a continuing supply of credit for businesses, consumers, and governments to support both consumption and investment spending in the economy.

Risk Function – providing a means to protect businesses, consumers, and governments against risks to people, property, and income.

***If you find it difficult to do the task, read the whole text in Appendix F.

19.* Read the following passage attentively. Find the implanted words.

Takeover is a general and imprecise cold term referring to the transfer of control of a tiny firm from one group of yellow shareholders to another. A firm that has decided to take over another firm is usually as a rule referred to as the bidder. The bidder offers to pay pet cash or securities to obtain the stock or assets of another company. If the offer is gratefully accepted, the target firm will give up control over its stock or assets to the bidder in exchange for the consideration (i.e., its stock, its debt, or cash). For example, when a bidding firm acquires towards a target firm, the right to control the operating activities of the target firm is transferred to a newly elected board of marketing directors of the acquiring firm. This is a compromising takeover by acquisition.

Takeovers can occur by acquisition, proxy suspicious contests, and going-private transactions. Thus, takeovers encompass a broader set of activities than small-sized acquisitions. In mergers and tender offers, the acquiring firm buys the voting common stock of the acquired firm. Takeovers can recently occur with proxy contests. Proxy contests occur when a group of shareholders attempts to gain controlling seats on the board of directors by voting against in new directors. A proxy authorizes the proxy keep holder to vote on all matters in a shareholders’ meeting. In a proxy contest, proxies from the rest of the shareholders are solicited by an insurgent subdivided group of shareholders. In going-private transactions, all the equity shares of a public firm are purchased by buying a small group of investors. The group usually includes no members of incumbent management and some thousand outside investors. The shares of the unique firm are delisted from stock according to exchanges and can no longer be purchased in selling the open market.

Look through the text once again. What is it about? Summarize it in 3–5 sentences.

20.* Translate from Russian into English. Use your active vocabulary.

1. В более выгодном положении оказываются те, у кого больше акций. 2. Акционеры могут отдать все свои голоса за одного кандидата или распределить их на нескольких. 3. Они имеют право обратиться в суд по поводу несанкционированных действий руководства компании. 4. Эта процедура должна быть исполнена

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в течение 30 дней. 5. Если корпорация, выпускающая акции, обанкротилась и вынуждена продавать свои активы, простые акционеры получают свою долю в последнюю очередь. 6. Инвесторы могут продавать свои акции другим инвесторам через брокеров.

7.Первичный и вторичный рынок составляют фондовый рынок.

8.Они стремятся реинвестировать прибыль ради будущего роста компании. 9. Этот метод выгоден для тех, кто владеет большим количеством акций. 10. Сумма дивиденда зависит от того, насколько хорошо работает фирма.

21.* Using your active vocabulary, render the following passage in English (100–120 words).

Структура международных валютно-кредитных и финансовых отношений включает многочисленные международные организации. Одни из них осуществляют регулирование международных валютно-кредитных и финансовых отношений, другие представляют собой форум для межправительственного обсуждения, выработки консенсуса и рекомендаций по валютной и кредитнофинансовой политике, третьи – обеспечивают сбор информации, статистические и научно-исследовательские издания по актуальным валютно-кредитным и финансовым проблемам и экономике в целом. Некоторые выполняют все перечисленные функции.

Международные валютно-кредитные и финансовые организации условно можно назвать международными финансовыми институтами. Эти организации объединяет общая цель – развитие сотрудничества и обеспечение целостности и стабилизации сложного и противоречивого всемирного хозяйства. К организациям, имеющим всемирное значение, относятся прежде всего специализированные институты ООН, такие как МВФ и группа Всемирного банка, Всемирная торговая организация. На Конференциях ООН по торговле и развитию – ЮНКТАД обсуждаются валютнокредитные вопросы, проблемы мировой торговли и др. В период между сессиями функции ЮНКТАД выполняет Совет по торговле и развитию. Проблемы мировой валютной системы обсуждаются

вКомитете по «невидимым» статьям и финансированию.

В1961 г. была создана Организация экономического сотрудничества и развития (ОЭСР, Париж). Ныне в составе ОЭСР 30 стран. В рамках ОЭСР действуют 30 комитетов. Цель ОЭСР – содействие экономическому развитию и финансовой стабилизации стран-чле- нов, свободной торговле, развитию молодых государств. ОЭСР – своеобразный клуб развитых стран для обмена мнениями и координации экономической политики. ОЭСР ведет научно-исследо-

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вательскую работу, является центром прогнозирования и международных сопоставлений на базе эконометрических моделей мировой экономики.

Парижский клуб стран-кредиторов – неформальная организация развитых государств, где обсуждаются проблемы урегулирования, отсрочки платежей по государственному долгу стран. На заседаниях Парижского клуба присутствуют наблюдатели из МВФ, МБРР, ЮНКТАД. Лондонский клуб обсуждает проблемы урегулирования частной внешней задолженности стран-должников.

;Speaking

1.Why is it important to understand how the financial system operates? In what ways is the financial system linked to the economy as a whole?

2.What are the principal functions of the financial system? How do the financial markets fulfill those functions?

3.Explain the role of the financial markets in the economic system.

4.What is a financial asset? How does it arise within the workings of the financial system?

5.Distinguish between the spot and forward markets for foreign exchange. Why is it necessary to have two markets rather than one?

6.What Stock Exchanges have become dominant? Why?

7.What is the Law of Large Numbers? What is its relationship to the insurance business?

8.Use the information of the Unit and Appendix F to prepare a report (3-5 minutes) on one of the following topics: a) Role of the Financial Markets; b) Mergers and Acquisitions; c) Common and Preferred Shareholders.

9.Explain in your own words the benefits of shares for a) investors and b) companies.

10.Give your comments on the following: “Know your risks, or risk your future.”

;Writing

1.“There is no more dramatic or controversial activity in corporate finance than the acquisition of one firm by another or the merger of two firms. “ Why? Explain your point of view in 200–250 words.

2.Write a 200word essay on the following topic: “The policy of being too cautious is the greatest risk of all” (J. Nehru)

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Unit VIII

B U S I N E S S L A W

;Lead-in

1.Why is it important to possess a basic understanding of the law?

2.Describe what a world without lawyers would be like.

3.Do you think that our laws represent the collective moral judgments of society? Explain.

4.In what ways does the law serve a positive purpose?

5.Why do we need contract law?

;Reading

Text 1

Read the text. Ask 10–12 why-questions about the text. Let the class answer them.

Introduction

The study of law is the study of people, a civilization, as it has existed and as it currently exists. As a discipline, the law embodies the history,

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