- •8.2 Look through the following vocabulary notes which will help you understand the text and discuss the topic.
- •8.3 Reading
- •8.4 Comprehension
- •8.4.1 Answer the questions using the active vocabulary and Unit 8 Glossary.
- •8.4.2 Mark these statements t(true) or f(false) according to the information in the Text and Unit 8 Glossary. If they are false say why.
- •8.5 Language practice
- •8.5.1 Match the English terms in the left-hand column with the definition in the right-hand column.
- •8.5.2 Complete the following texts using the suitable words or phrases from the box.
- •8.5.3 Complete the text. Replace the Russian words and phrases by the English equivalents
- •8.5.4 Text for discussion.
- •Mergers and Acquisitions
- •8.6 Render the passage in English using the English equivalents of the italicised phrases given in Russian. Express the main idea of the passage in one sentence.
- •Professional English Unit 8 Reading Self – Control Test Underwriting Stocks and Bonds
- •1. Which of the following is the main idea of the text?
- •2. What is most likely the topic of the passage preceding the text?
- •3. It can be derived from the text that
- •4. It can be inferred from the text that
- •5. Judging by what you have derived from the text, which do you think of the following is the best to define the term ‘underwriting’?
- •6. Judging by what you have derived from the text, how do you think ‘seasoned issue’ can be described?
- •7. It cannot be derived from the text that
- •8. It can be derived from the text that
- •9. Which of the following statements would the author most probably disagree with?
- •10. What is most likely the subject of the extract which is missing from this text?
8.6 Render the passage in English using the English equivalents of the italicised phrases given in Russian. Express the main idea of the passage in one sentence.
Инвестиционные банки – это фирмы, которые помогают (assist) в первоначальной продаже (initial sale) ценных бумаг на первичном (primary) рынке и в качестве (as) брокеров и дилеров помогают в купле – продаже (trading) ценных бумаг на вторичном (secondary) рынке, некоторые из которых организованы как (into) биржи. Комиссия по ценным бумагам и биржам регулирует финансовые институты на рынках ценных бумаг и следит за тем, чтобы (ensures that) адекватная информация доходила до (reaches) потенциальных инвесторов.
Андеррайтинг предполагает (implies), что инвестиционные банки получают право собственности на (take ownership of) выпуск акций (stock issue), выкупив (by purchasing) все акции эмитента, и, далее, перепродают их на рынке. Выпуски могут иметь достаточную подписку, недостаточную подписку или подписку с превышением лимита в зависимости от того, была ли правильно установлена цена.
Инвестиционные банки помогают (assist) выпускающим фирмам (issuing firms), оказывая консультирование (by providing advice), регистрацию документов (filing documents) и размещение на рынке выпущенных ценных бумаг (marketing issues). Инвестиционные банки часто оказывают помощь при слияниях и поглощениях, а также при частном размещении ценных бумаг (and private placements as well).
Professional English Unit 8 Reading Self – Control Test Underwriting Stocks and Bonds
1. Which of the following is the main idea of the text?
(A) Different types of conventional banking services.
(B) The investment banker’s chores to attend to for issues of debt.
(C) The history of investment banking.
(D) Using Investment Bankers to Distribute Securities to the Public.
2. What is most likely the topic of the passage preceding the text?
(A) Brokerage services.
(B) The history of investment banking.
(C) Brokers and dealers.
(D) Regulation of securities firms.
3. It can be derived from the text that
(A) the longer the investment banker holds the securities before reselling them to the public, the lower the risk that a negative price change will cause losses.
(B) small investment banks can do without distributing syndicates. (C) most investment bankers are attached to large brokerage houses that have nationwide sales offices which are contacted prior to the issue date with the aim of to fully subscribe the issue.
(D) it is serious for an issue to be oversubscribed, since it may be necessary to lower the price below the price the investment bank paid to the issuer in order to sell all of the securities to the public.
4. It can be inferred from the text that
(A) over 80% of all corporate expansion is financed by issuing debt and equity instruments.
(B) when a corporation wants to borrow or raise funds, it may decide to issue bonds or shares.
(C) an investment banker can be of great assistance to an issuer after the securities are actually offered for sale.
(D) IPO is also known as a "seasoned equity offering" (SEO).