2. State whether each statement is true or false based on the information the dialogue

1. Phil O'Brien wants to invest the legacy his aunt left him.

2. As a broker, Carol Leavine will help Phil with his investments.

3. Phil and Barbara O'Brien already have an investment portfolio.

4. Phil studies the stock market.

5. Phil feels he can now take great financial risks.

6. Jeff Hunter knows about all aspects of the stock market.

7. Phil hopes to increase his dividends from stocks.

8. The earnings on municipal bonds are taxable.

9. Carol thinks .Mr.Hunter's brokerage firm handles mutual funds.

10. Jeff Hunter doesn't know about buying commodities on the futures market.

3. Answer each of the following questions orally

1. Why do you think Phil and Barbra O'Brien may need a tax shelter?

2. What do the O'Briens have in their portfolio?

3. What does Phil watch in studying the stock market?

4. Why isn't Phil interested in speculation?

5. What are some of the things that Jeff Hunter can inform Phil about?

6. What kind of securities does Mr. Hunter's brokerage firm handle?

4. Matching. Find the words in the right hand column that are closest in meaning to the words in the words in the left hand column.

1. uniting of companies a. a collection of securities

2. brokerage firm b. commodities

3. take financial risk c. merger

4. utilities d. tax shelter

5. split e. tax-exempt

6. buying stocks directly f. speculate

7. raw material g. the gas and electric companies

8. investment to reduce taxes h. over- the- counter trading

9. portfolio i. company of brokers

10. not taxable j. division of a share of stock

5. Rewrite each of the following sentences replacing the underlined words with the correct form of one new words of this lesson

1. These stocks are frequently bought and sold.

2. Your agent will be able to sell those securities.

3. Are they going to buy more shares in the gas and water companies?

4. When the stock was divided, we bought more shares in the company.

5. The stockholders received large profits from the corporation.

6. How many units did the Dow Jones industrial average fall today?

7. New York City issued city government securities in order to finance street repairs and subway construction.

8. Deborah Adams plans to take a big financial risk in the stock market this year.

6. A. Answer each of the following questions with an affirmative response, then with a negative one, as in the model

Model: - Do you need some data?

- Yes, I need some / or - No, I don't need any.

1. Do you and your husband own some shares in mutual funds?

2. Did they buy some preferred stocks?

3. Will I find some good brokerage firms there?

4. Did Mr. Levine know about some corporate mergers?

5. Can we sell some commodities?

B. Model: There are some brokers in the office.

There are no brokers hi the office / or there aren't any brokers in the office.

1. There are some over- the- counter trading figures.

2. We sometimes visit the Stock Exchange.

3. Somebody has audited these accounts.

4. Either Mr. O'Brien or Mr. Levine will co- sing the loan.

5. I work in that brokerage firm also.

6. Anyone can be named as their agent.

7. Barbara O'Brien knows about securities too.

8. You sometimes check the Dow Jones average.

9. They’ll need some tax shelters.

10. The McNeils have either stocks or bonds in their portfolio.

C. Model: -Do you have any common stocks? - No, none.

1. Do you receive any dividends?

2. Did the board set some new policies?

3. Will they buy some utilities?

4. Did the teller have any customers?

3. Rewrite each of the following negative sentences as in the model. Model: There isn't any money in the checking account.

There's no money in the checking account.

1. That bank doesn't extend any credit.

2. There aren't any price indexes in today's paper.

3. There aren't any fees for those services.

4. We don't receive any dividends.

5. There isn't any government intervention.

6. There isn't any time to draw up a will.

7. She doesn't have any shares in the corporation.

BANKIG CONVERSATIONS

A client has come to your brokerage firm for advice about his investments. Explain to him the investment strategies he might want to follow, the nature of the stock market he's facing right now, the economic factors that should influence his decision to buy or sell stocks, and the kinds of stocks that represent a good investment and those that you would not recommend.

yield — rate of return on an investment

growth rate — percentage at which property increases in value

option — choice, alternative

bullish — said of the stock market when prices are rising

bearish — said of the stock market when prices are falling

slowdown — a decrease in industrial production and in other economic activity

inflation — a process of rising prices

double-digit (digit = number) — an amount having two digits

data processing — machines that handle information

high technology — scientific advances applied to new devices, such as computers, calculators

earnings — income (money earned) on an investment or in a business

bargain — an item bought at a price that the buyer considers low

bargain-hunters — said of investors who buy stocks when prices are low (to hunt—to chase animals for food)

collectibles — items such as works of art, stamps, or coins that can be collected (for investment purposes)

works of art — paintings or sculpture (statues)

dealer — person conducting business transaction(for example, a trader, a storekeeper, a broker)

bid — offer of money by a buyer for the purchase of something

auction — sale of property to the person whose bid is the highest

commission — payment for the services of an agent or broker, usually a percentage of the value of the transaction

strategy — plan of action

recession — period of temporary economic decline and unemployment (joblessness)

to appreciate — to increase in value .Investors hope their property will appreciate

stamp — a piece of paper placed on an envelope or package to show that the fee for mailing has been paid

coin — a piece of metal with a certain value that is used as currency

Independent nations always issue their own stamps and coins.

liquidity — ability to be converted (changed) into cash

Investors are worried about the declining liquidity of their investment holding.

ounce — measure of weight used in English-speaking countries, equivalent to approximately 28 grams

bull — an investor who counts on prices rising when he or she buys stocks.

bear — an investor who counts on prices falling when he or she-buys stocks