Exchanges

1. Read the following words and word combinations and learn their meanings by heart:

an exchange	1.біржа; 2.обмін
a stock exchange	фондова біржа
a commodity exchange	товарна біржа
a labor exchange	біржа праці
a rate of exchange	біржовий курс
an exchange business	біржова операція
a broker	брокер
securities	цінні папери
a bond	облігація
a council	рада
a trading floor	торговий зал
a fixed rate	фіксований курс
an ordinary share	звичайна, проста акція
an installment	розстрочка
an exchange trade	біржова торгівля
a penny	пенні, пенс
a preference	пільга, перевага
a preference share	привілейована акція
a fixed income	фіксований дохід
to go bankrupt	збанкрутувати
in full	цілком, зовсім
a deal	частка, угода
to deal	мати справу, торгувати, розглядати
unlisted securities	не допущені на біржу цінні папери
to be listed	бути допущеним на біржу
restructure	реорганізація
gilts	цінні папери високої якості
gilt-Edged Securities	= gilts
a stock market	біржовий ринок
a redemption date	дата повернення боргу
a fund	резерв, фонд, запас
funds	капітал
to fund money	розміщувати гроші
to refund money	повернути гроші
spending	витрати

2. Read and translate the following text.

What is an exchange? It is an organized meeting of people in an appointed place to buy and sell. Certain rules govern the trading there and the members of exchange are called brokers.

There are the two types of exchanges known as the commodity exchange and the stock exchange.

Commodity exchanges were established with the aim of trading cotton, wool, timber, wheat, skins and many other commodities. Among well-known commodity exchanges are the Board of Trade in Chicago trading corn, the New York Coffee and Sugar Exchange. The world-known is British Metal Exchange trading metal, the Wool Exchange trading wool, Hatton Garden trading diamonds, Beaver House trading furs. The Baltic Exchange is a large grain market. In Japan there is the Tokyo Commodity Exchange for Industry.

Stock exchanges are such places where securities, stock and bonds are sold and bought. It should be noted that the fluctuation of prices on exchanges influences the prices of various commodities on the world market.

The business of buying and selling on stock exchanges is called dealing, while a transaction is called a deal.

The most famous stock exchanges are the New York Stock Exchange, the Royal Exchange in London, the Tokyo Stock Exchange, the Osaka Securities Exchange, the Australian Stock Exchange, the Sydney Futures Exchange and others.

The governing body a stock exchange is, as a rule, the Council, which is elected by the members. A large stock exchange has the main trading floor in some large city and some other cities and towns. Say, the stock exchange of the United Kingdom and the Irish Republic amalgamated in 1973. Since that time it is known as „The Stock Exchange”. The main trading floor and central administration of it is in London, however, there are trading floors in Glasgow, Liverpool, Manchester, Birmingham, Dublin and Belfast.

Before you invest in the stock market, you need to know the meaning of a few basic terms. Let us consider them.

What is a stock? The term „stock” means stock market holdings which pay a fixed rate of interest. But in day-to-day dealings, the words stocks, shares, equities and securities mean pretty much the same thing.

Ordinary shares. If you invest in the stock market, you will almost always be dealing with what are known as ordinary shares. You may come across some other types of shares. These include the following.

Partly-paid shares. Companies may issue partly-paid shares, which allow you to pay for the shares in installments. You can only sell partly-paid shares if all of the installments are up to date. If you miss an installment, you will lose your shares and any money you have already paid.

Penny shares. These are shares which have a low price. They usually cost less than 15 pence each. They can be very risky investment, but if the price rises you may make a great deal of money.

Preference shares. These shares earn a fixed income. You will receive any dividends before the people who hold ordinary shares in the same company. If a company becomes bankrupt, preference shareholders are paid first, after all the creditors have been paid in full.

Unlisted securities. Companies which are not big enough to be listed on the Stock Exchange, or which to do want to pay to be listed, can be sold on the United Securities Market (USM). The Stock Exchange restructured the USM in the mid 1990s.

Gilts. Gilts, or Gilt-Edged Securities, are securities issued by the British government which have a fixed rate of interest (usually for a set term) and are sold on the stock market. The money that they raise helps to fund government spending. They can be:

• longs, with a redemption date (date when the government pays back the money) more than fifteen years away;

• mediums, with a redemption date between five and fifteen years away;

• shorts, with a redemption date of five away or less.

Exercise 1. Find English equivalents of the following words from

the text and memorize them:

біржа; товарна біржа; деревина; товар; зерновий ринок; цінні папери; облігація; коливання; рада; торговий зал; об’єднуватися; цінні папери; проста акція; розстрочка; пільгові акції; цілком; не допущені на біржу цінні папери; цінні папери високої якості; витрати.

Exercise 2. Complete the sentences from the text.

1. What is an exchange? It is … . 2. There are the two types of exchanges known as … . 3. Commodity exchange were established with the aim of … . 4. Stock exchanges are such places where … . 5. The business of buying and selling on stock exchanges is called … , while a transaction is called … . 6. The governing body a stock exchange is … . 7.A large stock exchange has the main trading floor in … . 8. The term „stock” means … . 9. If you invest the stock market, you will almost always be dealing with … . 10. Companies may issue partly-paid shares, with allow you to … . 11. Penny shares are shares with have … . 12. Preference shares earn … . 13. Companies which are not big enough to be listed on the Stock Exchange, or which to do want to pay to be listed, can be sold on … . 14. Gilts, or Gilt-Edged Securities, are … . 15. Gilts can be longs, with …, mediums, with …, shorts, with … .

Exercise 3. Answer the questions:

1. What is an exchange?

2. What two types of exchanges do you known?

3. What do you known about commodity exchange? Name some of them.

4. What is difference between commodity exchange and stock exchange?

5. Can you name the most famous stock exchanges?

6. What is a stock?

7. What types of shares do you known?

8. Can you explain the difference between ordinary and preference shares?

9. Do you see the difference between partly-paid shares and penny shares?

10. Who issues gilts?

11. What kind of gilts do you know?

Exercise 4. Speak on the topics:

- exchange;

- stock and shares.

Exercise 5. Act out the dialogue on the basis of the following

assignment:

Your friend wants to know something about exchange. Speak about exchanges, stock markets and shares.