Vocabulary:

to conform (to) – to obey or be in accordance with established rules; to behave in accordance with generally accepted ideas or customs; behave like most other people

to acquire – to gain or come to possess, esp. by one’s own work, skill, or action, often over a long period of time

Exercise 5. Suggest the meaning of the following words and word combinations:

Special requirements (for smb.), to maintain large inventories of key foreign currencies, to trade currencies through an exchange of deposits, correspondent bank, to deliver an additional amount of..., correspondent account, a bank's working currency balance, to be denominated in foreign currencies, to be exceedingly risky, traveler's checks, to employ a variety of currency-hedging techniques, to shelter the currency risk exposure, to be short in any foreign currency, to make profit on selling and buying currencies, to take advantage of the arbitrage opportunity, to quote forward exchange rate, a spot transaction, to express the forward rate, in terms of annualized percentage rate, volatility of foreign exchange rates,

Exercise 6. Find the English equivalents for:

Валютный рынок, внебиржевой рынок ценных бумаг, долларовый депозит, переводной вексель, держать постоянную связь с…, торговать иностранной валютой, рынок наличных сделок, рынок сделок на срок по согласованным ценам, фьючерсный рынок, страховать от изменения валютного курса в будущем, устанавливать обменный курс для…, цена покупателя, цена продавца, разница (маржа) между ценой покупки и продажи, окончательный расчет по сделке, срочный курс, в котором учтена премия или скидка, премия или дисконт с курса «спот», курс по операциям «своп», наличная, кассовая цена, опционы со срочными контрактами, валютные опционы, срочные биржевые контракты на операции с валютой, валютный своп (1. валютный своп – обмен платежных обязательств, деноминированных в одной валюте, на платежные обязательства, деноминированные в другой валюте; 2. двустороннее соглашение об обмене процентных платежей по обязательству, выраженному в одной валюте, на процентные платежи по обязательству, выраженному в другой валюте).

Exercise 7. Match the equivalents and make sentences with the following word combinations.

exchange 1. (FOREX) foreign exchange 2. (foreign) exchange dealings 3. foreign exchange market 4. foreign exchange department 5. exchange rate 6. exchange dealer	1. валютный рынок 2. валютный отдел банка 3. валютный дилер 4. валютный курс 5. иностранная валюта 6. валютные операции, сделки
currency 1. domestic (national) 2. foreign currency) 3. floating currency 4. currency fluctuations 5. volative currency	1. иностранная валюта 2. колебания валют 3. нестабильная валюта 4. местная (национальная) валюта 5. плавающая валюта
quote 1. to quote 2. direct quotation 3. indirect quotation	1. прямая котировка 2. котировать, назначать цену 3. косвенная котировка
trade 1. to trade in currencies (syn. deal in currencies) 2. trading 3. trading location 4. trading company 5. terms of trade 6. trader (syn. dealer) 7. foreign exchange dealer	1. торги, торговля 2. компания, занимающаяся торговлей, торговый дом 3. биржевой брокер 4. заниматься валютными операциями 5. место проведения торгов 6. дилер, торгующий иностранной валютой 7. условия торговли
transact 1. to transact a business (syn. to strike a deal to carry out a transaction) 2. transaction (syn. deal, business) 3. arbitrage transaction 4. amount of a transaction 5. partner to a deal 6. party to a contract(contracting party)	1. сумма сделки 2. сделка, операция 3. партнер по сделке 4. сторона контракта 5. заключать сделку 6. арбитражная сделка
deliver 1. to deliver (transfer) an amount of currency to a bank account (syn. to credit a bank account with an amount of currency) 2. delivery 3. for immediate delivery 4. delivery at a price	1. с немедленной поставкой 2. поставки по цене 3. поставить (перевести) валюту на счет в банке 4. поставка
denominate 1. deposits denominated in currency 2. deposits denominated in dollars	- обозначать 1. валютные депозиты 2. долларовые депозиты
position 1. to adjust (square, balance) position 2. balanced total position in 3. to have a long (short) position in (syn. the bank is long (short) in) 4. the bank's total position is 5 million dollars long (short)	- позиция, сальдо 1. закрытая позиция в 2. иметь длинную (короткую) позицию в какой-либо валюте ... 3. закрыть (покрыть) открытую позицию 4. банк имеет длинную (короткую) позицию, равную 5-ти млн. долларов
rate 1. to quote (exchange) rates 2. floating exchange rates 3. forward rate 4. spot rate 5. to sell at a discount from spot 6. to sell at a premium over spot	1. курс по срочной сделке, курс по сделке на срок 2. продавать (по срочной сделке) с дисконтом с курса «спот» 3. плавающие валютные курсы 4. продавать с премией к курсу «спот» 5. котировать, устанавливать курс валюты 6. курс по наличной (кассовой сделке)
risk 1. risk exposure (syn. currency risk) 2. to expose oneself to currency risk	1. подвергать себя валютному риску 2. валютный риск
settle 1. to settle a debt 2. to settle a claim 3. settlement date (syn. value date)	1. расчетный день по фьючерскому контракту 2. урегулировать требование 3. погашать, урегулировать долг (обязательства)

Exercise 8. Do it in English making use of the active.

Официальные центры, где совершается купля-продажа иностранных валют на основе спроса и предложения и обслуживающие международный платежный оборот, называются валютными рынками. Валютный рынок представляет преимущественно межбанковский рынок, где осуществляются различные валютные операции. Сделки на валютных рынках осуществляются круглосуточно по Интернету или телефону. Крупные банки имеют валютные отделы, оснащенные компьютерами, телефонной и телексной связью с другими банками или брокерскими компаниями. Они подсоединены телетайпом или видеосвязью к телеграфному агентству (Рейтер и др.), которое постоянно сообщает о важнейших политических и экономических событиях и о курсах валют. Включение в систему СВИФТ позволяет быстро осуществлять сделки и переводы по ним, в частности, получать подтверждение поступлений валюты раньше реального зачисления ее на счет банков.

Part 7. Stock market.

Read and translate the text « Market place »

The stock market. To some it's a puzzle. To others, it's a source of profit and endless fascination. The stock market is the financial nerve centre of any country. It reflects any change in the economy. It is sensitive to interest rates, inflation and political events. In a very real sense, it has its fingers on the pulse of the entire world. Taken in its broadest sense, the stock market is also a control centre. It is the market place where businesses and governments come to raise money so that they can continue and expand their operations. It is the market place where giant businesses and institutions come to make and change their financial commitments. The stock market is also a place of individual opportunity.

The phrase "the stock market" means many things. In the narrowest sense, a stock market is a place where stocks are traded - that is bought and sold. The phrase "the stock market" is often used to refer to the biggest and most important stock market in the world, the New York Stock Exchange, which is as well the oldest in the US. It was founded in 1792. NYSE is located at 11 Wall Street in New York City. It is also known as the Big Board and the Exchange. In the mid-1980s NYSE-listed shares made up approximately 60% of the total shares traded on organized national exchanges in the United States.

AMEX stands for the American Stock Exchange. It has the second biggest volume of trading in the US. Located at 86 Trinity Place in downtown Manhattan, the AMEX was known until 1921 as the Curb Exchange, and it is still referred to as the Curb today. Early traders gathered near Wall Street. Nothing could stop those outdoor brokers. Even in the snow and rain they put up lists of stocks for sale. The gathering place became known as the outdoor curb market, hence the name the Curb. In 1921 the Curb finally moved indoors. For the most part, the stocks and bonds traded on the AMEX are those of small to medium-size companies, as contrasted with the huge companies whose shares are traded on the New York Stock Exchange.

The Exchange is a non-for-profit corporation run by a board of directors. Its member firms are subject to a strict and detailed self-regulatory code. Self-regulation is a matter of self-interest for stock exchange members. It has built public confidence in the Exchange. It is also required by law. The US Securities and Exchange Commission (SEC) administers the federal securities laws and supervises all securities exchanges in the country. Whenever self-regulation doesn't do the job, the SEC is likely to step in directly. The Exchange doesn't buy, sell or own any securities nor does it set stock prices. The Exchange merely is the marketplace where the public, acting through member brokers, can buy and sell at prices set by supply and demand.

It costs money to become an Exchange member. There are about 650 memberships or "seats" on the NYSE, owned by large and small firms and in some cases by individuals. These seats can be bought and sold; in 1986 the price of a seat averaged around $600,000. Before you are permitted to buy a seat you must pass a test that strictly scrutinizes your knowledge of the securities industry as well as a check of experience and character.

Apart from the NYSE and the AMEX there are also "regional" exchanges in the US, of which the best known are the Pacific, Midwest, Boston and Philadelphia exchanges.

There is one more market place in which the volume of common stock trading begins to approach that of the NYSE. It is trading of common stock "over-the-counter" or "OTC" - that is not on any organized exchange. Most securities other than common stocks are traded over-the-counter. For example, the vast market in US Government securities is an over-the-counter market. So is the money market - the market in which all sorts of short-term debt obligations are traded daily in tremendous quantities. Like-wise the market for long-and short-term borrowings by state and local governments. And the bulk of trading in corporate bonds also is accomplished over-the-counter.

While most of the common stocks traded over-the-counter are those of smaller companies, many sizable corporations continue to be found on the "OTC" list, including a large number of banks and insurance companies.

As there is no physical trading floor, over-the-counter trading is accomplished through vast telephone and other electronic networks that link traders as closely as if they were seated in the same room. With the help of computers, price quotations from dealers in Seattle, San Diego, Atlanta and Philadelphia can be flashed on a single screen. Dedicated telephone lines link the more active traders. Confirmations are delivered electronically rather than through the mail. Dealers thousands of miles apart who are complete strangers execute trades in the thousands or even millions of dollars based on thirty seconds of telephone conversation and the knowledge that each is a securities dealer registered with the National Association of Securities Dealers (NASD), the industry self-regulatory organization that supervises OTC trading. No matter which way market prices move subsequently, each knows that the trade will be honoured.

Derivative instruments. Financial innovation has brought many new financial instruments of which the pay-offs or values depend on the prices of stocks. Examples are exchange traded funds (ETFs), stock index and stock options, equity swaps, single-stock futures, stock index futures, etc. These latter may be traded on futures exchanges such as Euronext.liffe (which are distinct from stock exchanges - their history traces back to commodities futures exchanges), or traded over-the-counter. As all of these products are only derived from stocks, they are sometimes considered to be traded in a (hypothetical) derivatives market, rather than the (hypothetical) stock market.

Exercise 1. Find the Russian equivalents for:

To have one’s fingers on the pulse of the entire world, to put up lists of stocks for sale, a non-for-profit corporation, to be subject to a strict and detailed self-regulatory code, to step in directly, to scrutinize the knowledge, a check of experience and character, to be traded over-the-counter, the vast market, to be traded daily in tremendous quantities, to be found on the "OTC" list, to move subsequently, financial instruments, to trace back to…, to be derived from stocks.

Exercise 2. Find the English equivalents for:

Быть чувствительным к чему-либо, добывать деньги, изменять финансовые обязательства, биржевой оборот ценных бумаг, разрешить купить место, пройти тест, внебиржевой рынок ценных бумаг, краткосрочные долговые обязательства, большой объем торговли, производить на внебиржевых рынках ценных бумаг, торговый зал биржи, абсолютно незнакомые люди, осуществлять операции с ценными бумагами, финансовые инструменты (инструменты, цена которых является производной от других инструментов: опционы, фьючерсы и т.д.), выплаты (доходность), взаимный фонд обоюдной торговли, опцион ценных бумаг, фьючерсные контракты на отдельные ценные бумаги, фьючерсные контракты на основе фондовых индексов, рынок производных.

Exercise 3. Use the correct form of the verb: