Exercises

1. Answer the questions.

1) What is the stock exchange?

2) How is capital raised by companies and the government?

3) Why are stock exchanges important?

4) What does successful work of stock exchanges require?

5) Can investors themselves buy shares?

6) How do smaller and newer companies trade?

7) What do successful companies do to be quoted on the Stock Exchange?

8) What rights do shares entitle their owners?

9) What does the market price of a share reflect?

10) How long is the accounting period at the London Stock Exchange?

11) What does this allow speculators?

2. Translate into English.

Котироваться на фондовой бирже, капитал привлекается двумя способами; это рынок, где ценные бумаги продаются и покупаются, направить накопления на…; правила, чтобы предотвратить мошенничество, покупать акции через брокера, в обмен на комиссионные; сеть дилеров, торгующих ценными бумагами, обратиться на биржу, большое количество требований, годовые отчеты, отчет о финансовом состоянии компании, давать право собственникам; отражать, насколько хорошо или плохо идут дела компании, по сравнению с …, перепродать по более высокой цене, выкупить по более низкой цене.

3. Match these types of shares to their definitions.

There are a number of different types of shares:

(обычные акции без фиксированного must be paid before the ordinary dividend,

дивиденда) which guarantees a return on investment as

long as the company is making a profit.

However, if the company doesn’t make a

profit, the preference shareholder won’t be

entitled to vote in company matters.

2. Cumulative Preference Shares - (b) These are the most common shares. The

(накопительные привилегированные ordinary shareholders bear the largest part of

акции) the risk, but the returns can be much higher

than with other forms of investment. Ordinary

shareholders are entitled to one vote per

share, which gives them more say in

the running of the company;

but the amount of dividend they receive

depending on how much profit has been

made.

3. Preference Shares - (c) This is another type of preference share which

(привилегированные акции) pays a fixed rate of interest until a certain

time. After this time it is converted into an

ordinary share on which the holder receives a

dividend rather than interest.

4. Convertible Preference Shares - (d) This is a special class of preference share

(конвертируемые привилегированные which offers a safer return of investment.

акции) This is because if the company cannot

pay the dividend one year, the outstanding

amount is carried over to the following years.

That means that rather than losing his

dividend in a year where the company runs

at a loss, the shareholder can expect to

receive it one or more years later along with

the dividend from the following year.