4. Answer the following questions:

1. What are the two main types of exchanges?

2. What commodities are traded on produce markets?

3. What are the largest commodity markets in the world?

4. What is the “CIF trading”?

5. What is traded on stock exchanges?

6. What is the difference between brokers and jobbers?

5. How would you explain the following jobs to a six-year-old child?

bond dealer;

personnel manager;

stockbroker;

trade union organizer;

internal auditor;

market researcher

6. Find pairs of opposites in the list.

1. boom	a) setback
2. trend downward	b) demand
3. rally	c) reached its peak
4. supply	d) slump
5. touched its lowest	e) the least heavily weighed
6. turned firmer	f) upswing
7. fall	g) turned softer
8. the most heavily weighed	h) rise
9. minor metals	i) dull market
10. active market	j) fluctuations in prices
11. steady prices	k) base metals

7. Match the words in the box with the correct definitions.

bear	broker	quotation	over-the-counter
yield	interest	odd lot	bearer bonds
bull	proxy	dividend	blue chip

1. A person or firm which buys and sells securities.

2. A share of the company's profit which is paid to the shareholders.

3. An individual who sells a security and hopes to buy it back for a lower price.

4. The price given for buying or selling a security.

5. The shares with the highest status as an investment.

6. A written authorization by a shareholder for another person to vote on his behalf.

7. A market for buying and selling stock or bonds among brokers.

8. A percentage return on an investment in stocks or bonds.

9. The payment made to bondholders in return for the loan of money.

10. Fewer than 100 shares of stock.

11. Securities which are registered without any register of ownership.

12. An individual who buys a security and hopes to sell it at a higher price.

8. Choose the best alternative to complete the text.

1.	a) gears	b) rules	c) patterns	d) symbols
2.	a) bargaining	b) trade	c) market	d) party
3.	a) direct	b) currency	c) stock	d) produce
4.	a) commodity	b) stock	c) futures	d) foreign trade
5.	a) organised	b) active	c)bid	d) wholesale
6.	a) controls	b) issues	c) places	d) deals
7.	a) present	b) future	c) past	d) service
8.	a) bears	b) investors	c) traders	d) governors
9.	a) acts of God	b) inflation	c) loss	d) crises
10.	a) boom	b) gilts	c) consumer	d) financial

Organized Markets

Organized markets are usually held in premises where business is transacted according

to a prescribed set of (1) . Sometimes only members are admitted to the (2) ,

Organized markets or (3) exchanges have been established for cotton, wool, tea,

coffee, wheat, rubber, timber, tin, copper and some other commodities. Thus there are such (4)___exchanges as Sugar Exchange, Metal Exchange, Wheat Exchange and others.

There are two types of (5)________ markets:

• spot market

• forward or futures market.

Spot market (6)______ in actuals, the actual physical product, for immediate delivery.

In forward or futures markets the commodity can be bought or sold for delivery at some time in the (7)_________ . Forward prices can be higher or lower than the spot prices. In a forward or futures market traders take an option to buy or to sell the product in the future.

(8)________know that prices can change, so they hedge by balancing their buying and selling of actuals and futures to protect themselves against (9)_________.

Organized markets include (10) markets, which in their turn include the stock

exchange and foreign exchange market.

9. SEAQ. Use the words in the box to complete the text about SEAQ below.

security corporate database

stocks screens commissions

market makers computerised operations

services brokers purchasing

This is a (1) _______ dealing system and stands for the Stock Exchange Automated Questions.

(2) _______now deal in (3)______ and shares over the telephone at their own dealing desks. (4)_______ and selling prices are displayed on their (5)________ . This new system provides added (6)____________ for investors because all deals are recorded on a (7)________ . In 1986, the London Stock Exchange made several changes in its (8)_______. First of all, in March, it offered overseas and (9)________ membership to banks and insurance companies. At the same time minimum (10)_____were abolished. This now enables clients to negotiate freely with their (11)_________ about charges for (12)____.

10. In small groups discuss the following discussion questions and report to the class.

1. What role do financial markets play today?

2. What are the major financial markets today?

3. How can financial markets be classified?

4. Discuss the activities of commodity brokers. Do they remind you of mere speculation?

11. Write a letter to the commodity brokers whose services you often use concerning the forthcoming fur auction and your desire to purchase some furs through them.

_______________________________Unit 13______________________________________

1. Answer the following questions:

1. What do you know about securities market in Ukraine?

2. How does it operate?

3. What do you expect to happen to it in the foreseeable future?

2. Train the following words and phrases:

stock market - фондовий ринок

principal - головний

transferable securities - цінні папери, які можна переуступити іншій особі

expansion - розширення

facilities - тут послуги

sophisticated - тут складний, більш сучасний

to draw up - складати (документ)

orderly - упорядкований

cross-border trading – міжнародна торгівля

equity - тут звичайна акція

arbitrage - арбітражна операція

to emerge - виникати

over-the-counter market – позабіржовий ринок

governing body - керівний орган

network - мережа

quotation - котирування

to list - вносити в курсовий бюлетень

listing - допуск цінного папера до офіційної торгівлі на фондовій біржі

share index - фондовий індекс

indication - показник