3. Give English equivalents of the following:

класти гроші на банківський рахунок	фінансові витрати
одержувати відсотки	витрачати гроші
задовольняти потреби	приймати рішення

4. Define the terms:

wage	salary	wealth
surplus	budget	saving

5. Answer the following questions:

1. What is the difference between ‘wage’ and ‘salary’?

2. How can ‘wealth’ be expressed?

3. How can you use your wealth to get income? Give your examples.

4. What is a budget?

5. When is a budget said to have a deficit and when a surplus?

6. What three steps are involved to prepare a budget?

Unit 13. How to Buy Bonds and Stocks

1. Read and memorize the following words and word combinations:

• bond – зобов'язання

• stockbroker – біржовий маклер

• intermediary – посередник

• securities – цінні папери

• stock exchange – фондова біржа

• negotiate – вести переговори

• transaction – угода

• safekeeping – схоронність

• valuable source of information – цінне джерело інформації

• objectives – цілі

• market order – ринкове замовлення (порядок)

• obtainable – доступний

• limit order – замовлення (порядок) межі

• purchase – закупка

• amount – кількість

• process – процес, обробляти

2. Read, translate and retell the text:

Investing in bonds or stocks is not difficult at all. First, you have to decide what bond or stock you want to buy. That is perhaps the most difficult part of the procedure. After deciding, you would call a stockbroker (they are listed in the phone book). A stockbroker is a market intermediary who buys and sells securities for clients. The broker, who is a registered representative authorized to trade in stocks and bonds, would call a member of the stock exchange who represents the firm for which the broker works. That member would go to the place where the bond or stock you want is traded and negotiate a price. When the transaction is completed, the trade will be reported back to your broker, who will call you.

The same procedure is followed if you wish to sell bonds or stocks. If you choose, the broker will keep the bond or stock certificate for you for safekeeping or so that you can sell it easily and quickly with just a telephone call. The broker is also a valuable source of information as to what stocks or bonds would best meet your financial objectives. It is important that you learn about stocks and bonds on your own, though, because stock analysts don’t always give the best advice.

There are other ways to buy stocks, if you are interested. In fact, only about 45 percent of stock is bought through brokers.

Buying and selling stock offers investors more options for placing an order than does buying and selling bonds. An investor can place a market order that instructs the broker to buy or sell stock at the best price obtainable in the market at that time. This type of order can be processed quickly, and the trade price can be given to the investor in minutes. A limit order, on the other hand, tells the broker to purchase or sell stock at a specific price. Let’s say, for example, that a stock is selling for $40 a share, and you feel it is likely to drop a little before it goes higher. You could place a limit order at $38. The broker would purchase the stock at that amount if the stock drops. If the stock never falls to $38, no order would be processed.