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Моісєєва Ф.А. та ін.We Study Economics..doc
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Comprehension:

1. What is traded on spot markets?

2. On what markets can contracts be made?

3. What is a forward contract?

4. What is the purpose of futures, options and other derivatives?

5. What is the difference between a call option and a put option?

6. Are there any more derivative instruments?

Summarizing. Complete the following sentences to summarize the text above:

  1. Spot markets trade in commodities, currencies and…

  2. Future markets make contracts to buy commodities, currencies at a … date.

  3. With the help of futures, contracts and other derivatives companies and individuals may diminish…

  4. Although exchange rates and interest rates fluctuate, many businesses want to buy or sell currencies at a…

  5. Options, which are bought at the market of stocks and shares, allow organizations to hedge…

  6. Besides options many companies nowadays arrange…

Text organization.

The statements below express the main ideas of the text. Number them so that they are in the same order as the ideas in the text. The first one is given for you:

Statement

Order

Every weekday, enormous amounts of commodities, currencies and financial securities are traded on spot markets.

1

Options are merely one type of derivative instrument.

As well as currencies and commodities, there is now a huge futures market in stocks and shares.

Many producers and buyers of raw materials want to hedge, in order to guarantee next seasons prices.

Futures, options and other derivatives exist in order to diminish the effects of future changes in prices, exchange rates, interest rates, and so on.

Many companies nowadays also arrange currency swaps and interest rate swaps with other companies or financial institutions.

Viewpoint:

How popular are the above-mentioned derivative instruments in our country?

10. Buyouts

Lead-in:

Discuss when, in your opinion, buyouts take place.

Key words and phrases

1. takeover – злиття, поглинання підприємства

2. synergy (synergism) – синергізм (явище, коли результат перевершує суму окремих ефектів)

3. stockholder value – (економічна) вартість акціонера

4. raider (бірж.) – скупник акцій

5. to make a loss – зазнати витрат (збитків)

6. buyout – викуп активів, акцій діючого підприємства

7. cash reserves – резерв грошової готівкі

8. leverage buyouts – викуп контрольного пакету акцій за рахунок кредиту

9. challenge – складна задача, виклик

10. hostile takeovers and buyouts – поглинання підприємств без згоди керівництва

11. to lay-off workers – звільняти працівників