Vocabulary:

option – опціон, право купівлі або продажу цінних паперів за обумовлену ціну в обумовлений строк

subscription warrant – підписний/передплатний сертифікат

stockholder (shareholder) – акціонер

bondholder – власник облігацій

to keep sth in trust for sb – утримувати на правах піклувальника

common stocks – звичайні акції

to be listed for trading – бути зареєстрованим на біржі, котируватися

stock / commodity / currency exchange – фондова / товарна / валютна біржа

legal entity – юридична особа

to be liable for the corporation's obligations – нести відповідальність за зобов’язаннями

proceeds – виручені кошти, виручка

preferred stock (GB preference share) – привілейовані акції

to be entitled to sth – мати право на ...

cumulative – сумарний, сукупний

claim – платіжна вимога, рекламація

maturity date – строк, дата погашення; строковість

debt obligation –боргове зобов’язання

lender – кредитор

face amount/value – номінальна вартість

US Treasury bonds (T-bonds) – довгострокова облігація державної скарбниці (випускається на 10 і більше років) (США)

US Treasury notes (T-notes) – середньострокова облігація державної скарбниці (випускається на термін менше 10 років) (США)

US Treasury bills (T-bills) короткостроковий скарбничий вексель (випускається на 13, 26 і 52 тижні) (США)

convertible bond (or convertible debenture) – конвертоване в акції боргове зобов’язання; облігація, що погашається шляхом її обміну на певну кількість акцій компанії-емітента

call – опціон кол; опціон з купівлі

put – опціон пут; опціон на продаж

rights – додаткові акції (додат. випуск цінних паперів)

to raise capital – залучати, мобілізувати капітал

warrant – варант, заставне свідоцтво, підписний сертифікат

to be negotiable – мати товаророзпорядчу силу

commodities and financial futures – товарні та фінансові ф’ючерси

Questions:

1. What is a security?

2. How are the people who own stocks and bonds

3. referred to? What are their rights?

4. What is the difference between bonds and stocks?

5. Speak about common stocks (GB ordinary share).

6. How does a preferred stock (GB preference share) differ from common stocks (GB ordinary share)?

7. What bonds does the US Treasury issue?

8. What is a convertible bond (or convertible debenture)?

9. What are the peculiarities of an option?

10. What is the difference between options, warrants and rights?

11. Explain what futures are.

Bank accounts

There are two reasons for using bank accounts: convenience and safety in money use provided by a current account (US: checking account) at a bank; and small but regular interest that is provided by a deposit account (US: savings account) if you want to save your money for a long period of time.

The checking account is an account for receiving money from other people (wages and salaries paid into the account or different amounts of money received from the customers). It is money that a customer deposits in order to use that money to write checks, so it is the account for paying your bills, rent, subscriptions and other expenses. If you keep your money in your checking account you can go shopping without having to carry cash around with you. When you want to make a payment you simply fill in the amount on a check and hand it together with your check card to the cashier in the shop.

A checking account holder can use all banking services: send money abroad, buy and sell stocks, place standing orders or authorize direct debits, and of course, to apply for an overdraft or other loans. Checking account is called demand deposit, that is a customer can withdraw the money without waiting for any time.

The savings account is the account for money that you do not need for day-to-­day expenses and want to save it and to receive some interest. When you open your savings account you receive a passbook or savings book. Every deposit or withdrawal is entered into it by a teller. So you have a complete written record of all transactions with your account. The interest that your money earns is also recorded.

Any money put into your savings account begins earning interest from the day it was deposited. The interest rate can vary from time to time according to the market rate. You can pay money into your savings account at any branch of the bank.

There is a variety of a deposit account – time deposit (or certificate of deposit – CD) which allows customers to deposit larger amounts of money for a definite fixed term and earns a higher rate of interest. If you withdraw your money beforehand you will lose your interest rate.

Savings account is free of charge; it earns interest to its holder, so that makes it profitable for customers.

But checking account charges different fees for bookkeeping of the account, service charges for different transactions. Every month a checking account holder receives a monthly statement telling him exactly what has been debited or credited to his account.

There are new accounts – NOW and Super NOW accounts that offer their customers all the convenience of a checking account with the income advantages of a savings account.