Stock exchange

Stock exchange — organized market for the sale and purchase of securities such as shares (share — one of the equal parts into which the ownership of a company is divided) and bonds (bond — an official document promising that a government or company will pay back money that it has borrowed, often with interest). In developed capitalist countries, the stock exchange has important functions: as a ready market for securities, it ensures their liquidity (the state of being readily convertible into cash) and thus encourages people to channel savings into business; and, as a pricing mechanism, it determines prices that reflect the actual value of a company's stock (the capital of a company). Trading is done in various ways: it may occur on a continuous auction basis or it may involve brokers buying and selling shares in a company for other people. Membership requirements of the exchanges of different countries vary mainly with respect to the number of members and the rigour of the eligibility requirements. Membership requirements also differ in the degree to which government participates in their management. The London Stock Exchange, for example, functions as an independent institution, free from government legislation. In the United States, stock exchanges are subject to specific legislative regulation. In Europe, it is quite common for the members of the exchanges to be appointed by a government official and to have semi governmental status.

1) What is meant by the term “stock exchange”? 2) What functions does the stock exchange have? 2) How is trading done? 3) How do membership requirements of the exchanges of different countries vary? 4) What the London Stock Exchange function as does? 5) What are stock exchanges in the United States subject to? 6) Who appoints the members of the exchanges in Europe? 7) What is meant by the term “liquidity”?

Economist

I’m a student of the Economy and Law Department of Baranovichi State University. In four years I’ll graduate from the University and become a professional economist. I’m sure that the profession of an economist is one of the most important nowadays in view of the situation in our Republic.

What makes a good economist? Whatever he does, an economist should have a thorough training in economic theory, mathematics and statistics and our University offers such training. At the University we are taught various general and special subjects, such as Macroeconomics, Microeconomics, Management, Accounting, Marketing, Advertising, Money and Banking, Economic Theory, Econometrics, Statistics, Computer Science, Philosophy, Business Ethics, Foreign Languages, etc.

The profession of an economist is quite diversified. The graduates of our Department work at educational institutions, various research centres, in industry, business, banks, etc.

Being employed in industry and business, our graduates work as managers: as an executive manager, a sales manager, a financial manager. Some of us work as accountants. An accountant is one of the most prestigious and widely required professions of an economist in our society. You shouldn’t mix an accountant with a book-keeper. While a book-keeper is mostly involved in calculations, like balance sheets, income statements, invoices, an accountant is responsible for designing the financial policy of a company.

Some of us work at the banks, others work for the government or are employed by various agencies and by military services. Economists are needed at plants, firms, on collective farms... Well, it’d take less time to name the places where economists are not needed.

Knowing the economic laws of the development of the society, economists can solve many problems facing our Republic and I hope I’ll manage to make my contribution to this process.

1. Why is the profession of an economist one of the most important nowadays in our Republic? 2. What makes a good economist? 3. The profession of an economist is quite diversified, isn’t it? 4. In what way do accountants differ from book-keepers? 5. What kind of specialists are graduated from economic departments? 6. What does the profession of an economist contribute to?