Semester 4, Lesson 5 (50)
EXCHANGES
I. Read
the following words and word combinations and learn their meanings by heart:
an exchange
[iks'CeinG] біржа, обмін; a stock [stOk] exchange - фондова біржа; a commodity [kq'mOditi] exchange - товарна біржа; a labour [`leibq] exchange - біржа праці; a rate [reIt] of exchange - біржовий курс; an exchange business - біржова операція; a
broker [broukq] брокер; securities [si'kjuqritiz] цінні папери; a bonds [bondz] облігації, бони; a council - рада; a
trading floor - торговий зал, a fixed rate - фіксований курс; an ordinary share
- звичайна, проста акція; an installment - черговий платіж (при оплаті на
виплат); an exchange trade - біржова торгівля; a penny - пенні, пенс; a
preference share - привілейована акція; a fixed income - фіксований дохід; to
go bankrupt [`bxNkrApt] збанкрутувати; a deal [di:l] частка, угода; to deal - мати справу,
торгувати, розглядати; to deal out - розподіляти; unlisted securities - не
допущені на біржу цінні папери, to be listed - бути допущеним на біржу;
restructure - реорганізація, Gilt-Edged Securities = gilts [gilts] цінні папери
високої якості; a stock market - біржовий ринок; a redemption [ri'dempSn] date - дата повернення боргу; a fund - резерв, запас; funds [fAndz] капітал; to fund money - розміщувати гроші; to refund money -
повернути гроші; spending [`spendiN] витрати, fluctuation-коливання, to issue [ `ISH],[`IsjH] випускати в обіг
II. Read
and translate text 12, ask questions to the
underlined sentences, find different forms of infinitives with “to” or without
“to” in the text:
TEXT 12 EXCHANGES
An exchange is an organized meeting of people in an
appointed place to buy and sell. Certain rules govern the trading
there and the members of exchange are called brokers.
There are the two types of exchanges known as the commodity exchange and the
stock exchange.
Commodity exchanges were established with the aim
of trading cotton, wool, timber, wheat, skins and many other
commodities. Among well- known commodity exchanges are the Board of Trade in
Chicago trading corn, the New York Coffee and Sugar Exchange. The world-known
is British Metal Exchange trading metal, the Wool Exchange trading wool, Hatton
Garden trading diamonds, Beaver House trading furs. The Baltic
Exchange is a large grain market. In Japan there is the Tokyo Commodity
Exchange for Industry.
Stock exchanges are such places where securities,
stocks and bonds are sold and bought. It should be noted that the
fluctuation of prices on exchanges influences the prices of various commodities
on the world market.
The business of buying and selling on stock exchanges
is called dealing, while a transaction is called a deal.
The most famous stock exchanges are the New York Stock
Exchange, the Royal Exchange in London, the Tokyo Stock Exchange, the Osaka
Securities Exchange, the Australian Stock Exchange, the Sydney Futures Exchange
and others.
The governing body of a stock exchange is, as a rule,
the Council, which is elected by the members. A large stock exchange has the
main trading floor in some large city and some other cities and towns. Say, the stock exchanges of the United
Kingdom and the Irish Republic amalgamated in 1973. Since that time
it is known as "The Stock Exchange". The main trading floor and
central administration of it is in London.
What is a stock? The term "stock" means stock market holdings which pay a
fixed rate of interest. But in day-to-day dealings, the words stocks,
shares, equities and securities mean pretty much the same thing.
Ordinary
shares. If you invest in the stock market, you
will almost always be dealing with
what are known as ordinary shares. You may come across some
other types of shares. These include the following:
Partly-paid
shares. Companies
may issue partly-paid shares, which allow you to pay for the shares in
installments. You can only sell partly-paid shares if all of the
installments are up to date. If you miss an installment, you will
lose your shares and
any money you have already paid.
Penny shares. These are shares which have a low
price. They usually cost less than 15 pence each. They can be very risky
investments, but if the price rises
you may make a great deal of
money.
Preference
shares. These shares earn a fixed income.
You will receive any dividends before the people who hold ordinary shares in the same
company. If a company becomes bankrupt,
preference shareholders are paid first, after all the creditors have been paid
in full.
Unlisted
securities. Companies
which are not big enough to be listed on the Stock Exchange, or which do not
want to pay to be listed, can be sold on the Unlisted Securities Market (USM).
The Stock Exchange restructured the USM in the mid 1990s.
Gilts. Gilts, or Gilt-Edged Securities,
are securities issued by the British government which have a fixed rate of interest
(usually for a set term) and are sold on the stock market. The money that they
raise helps to fund government spending.
III. Retell the text according to the following
questions:
l.What is an
exchange? 2. Who is abroker? 3. What two
types of exchanges do you know? 4. Why were commodity exchanges
established? 5. Could you name the most well known commodity exchanges? 6. What are stock exchanges? 7. What does the fluctuation of prices on exchanges influence? 8. What is the difference between
commodity and stock exchanges? 6. What is dealing? 7. What are the most famous
stock exchanges? 8.What is the governing body of a stock exchange? 9.What is a
stock? 10.What types of shares do you know? 11.What is the difference between
ordinary and preference shares? 12. Do you see the difference between
partly-paid and penny shares? 13. What is the idea and purpose of the Unlisted
Securities Market? 14. Who issues gilts?
IV. Learn the following groups of:
a) synonyms:
Trade -
commerce, stocks - shares, types - kinds, main - chief, to deal with - to be
connected with, goods - commodities, to unite - to amalgamate.
b) antonyms:
Same -
different, fluctuation - stability, to allow - to forbid, to govern - to
submit, famous - unknown, to establish - to abolish, to lose - to acquire, to
amalgamate - to disintegrate, profit - loss.
V. Try to repeat a tongue twister several
times, as quickly as possible, without stumbling or mispronouncing: Nine nice night nurses nursing nicely.
VI. Fill in the blanks with
appropriate words:
govern, are divided into, exchange,
ordinary shares, penny shares, fixed, commodities, influence, stock exchanges
1.
Frequently product markets ... two classes: goods and services. 2. An organized
meeting of people in an appointed place to buy and sell is ... . 3.Fluctuations
of prices on exchanges ... the prices of various commodities on the world
market. 4. If you invest in the stock market, you will be dealing with ... .5.
Preference shares earn а ... income. 6.... are shares which have a low price.
7. Commodity exchanges were established with the aim of trading ... . 8.
Securities, stocks and bonds are sold and bought on ... . 9.Certain rules ...
the trading on an organized exchange.
VII. Make up sentences.
1.Places,
where, are, stock exchanges, such, securities, sold, are, bought, and.
2.Body, is,
governing, the, of, the Council, Stock, an exchange.
3.Are,
penny, which, shares, have, low, shares, prices.
4.Buying,
the business, selling, of, is, called, stock, dealing, exchanges, on, and.
5.The stock
exchange, types, the, chief, two, exchanges,of, exchange, the commodity, and, are.
VIII.Read
and translate the meanings of the following terms. Translate the sentences with
them.
Exchange (verb) - 1) is to give or receive
goods, money, etc. in return for something of the same value; 2) is to give
something and receive something (from another person) in return; 3) is to
change one currency for another.
1. Can I exchange these shoes for a
larger size? 2.The sales conference is a good place to exchange information. 3.
They exchange their dollars for pounds.
Pay (verb) - 1) is to give money to
someone for something; 2) is to give money that is owned to someone; 3) is to
be profitable.
1. She paid for the goods by cheque.
2. Have you paid the telephone bill yet? 3. The business was sold because the
owners couldn't make it pay. 4. How much did you pay for your house?
Payment - 1) is paying or being paid; 2) is
an amount of money that is to be paid.
1. The bill of exchange was presented for
payment at the bank. 2. Will you accept $ 100 as payment for the work? 3. We
would be grateful for prompt payment of your account.
Debt - 1) is money owned by one person or
an organization to another; 2) is owing money, especially when you can't pay.
1. It took him years to pay off all
his debts. 2. The firm was hit by the recession and soon ran into debts. 3. We
were poor. But we avoided debt. 4. National debt is the debt of the national
government as distinguished from the debts of the political subdivisions of the
nation and private business and individuals. 5. Public debt is the total of the
nation's debts owed by state, local, and national governments.
IX. Translate the following extract in written form:
What is a
commodity exchange?
A commodity exchange is conceptually
comparable to a Stock Exchange. The difference between the two is that on a
Stock Exchange, securities are traded and on a Commodity Exchange, commodity
futures are traded.
What are
futures?
Futures are standardized
agreements between a buyer and a seller to exchange a pre-agreed quantity of an
asset of pre-specified quality at a specific price, and at a pre-specified
future date.
If the underlying asset is a
commodity, the futures are called commodity futures.
What is a
commodity?
A commodity is a material that
is traded in big quantities and whose quality standards and price are objective
and universally applicable. For example, gold is a commodity because quality
standards and price of gold are objective and universal, but gold jewellery is
not a commodity because the price of jewellery depends on subjective
factors such as design, brand image, etc. Other examples of commodities are: agricultural
produce such as food-grains, pulses, cotton, etc; metals such as
nickel, zinc, aluminum, etc.
X. A group work: students
should be divided into two groups. The task is to read text 13 and write down
some questions to it. Then each group will ask the opposite to discuss the text
with the help of written questions:
TEXT 13 NEW YORK STOCK EXCHANGE
For many years, more securities were exchanged on the New York
Stock Exchange than any other trading floor in the world. This made
the NYSE not only the busiest exchange in the world, but also the most
prestigious. The pictures of its chaotic trading floor will forever be the
image of what happens every trading day on Wall Street.
The New York Stock Exchange traces its history back to what is called the
Buttonwood Agreement of 1792. In that agreement, twenty-four brokers and
merchants decided to trade securities on a commission basis. In that same
year, a total of five securities were traded in New York City.
By 1817, the New York brokers establish a formal organization: the
New York Stock & Exchange Board. This group laid down the foundation
for rules of business conduct that enable the New York Stock Exchange to make
today's claim that they are the largest self-regulated organization in the
world.
Between the years 1828 and 1835, the volume on the exchange floor increased
50 fold, and average daily volume exceeded 8,000 shares. By 1863, the New
York Stock and Exchange Board adopted the shorter name of the New York Stock
Exchange. Two years later, they moved into 10-12 Broad Street. This
established the corner of Wall Street and Broad as the trading capital of the
world.
On December 15, 1886, the NYSE hits another milestone when over one million
shares exchange hands that day. Interestingly, October 10, 1953 marks the
last time that less than one million shares are exchanged.
Milestones
of the NYSE
Listed below are some of the
more intriguing milestones realized by the NYSE over the last 50 years or so:
·
1967 - Muriel Siebert becomes
the first woman allowed to become a member of the exchange.
·
1982 - The NYSE hits another
trading milestone, when over 100 million shares are exchanged in just one day.
·
1987 - On October 19, also
known as Black Monday, the Dow
Jones Industrial Average experiences its largest one-day percentage drop.
·
1992 - The average daily
volume on the exchange now exceeds 200 million shares.
·
1997 - On October 27, volume
on the exchange tops one billion shares for the first time.
·
2005 - On June 24, the NYSE
experiences its largest single volume trading day when over 3 billion shares
are exchanged.
·
2005 - On August 3, the
highest price ever paid for NYSE membership is now $3 million. (The
lowest price paid was $2,750 back in 1871.)
XI. Grammar.
Reported
Questions
|
Direct Question |
Reported Question |
|
“Where is
the Post Office, please?” |
She asked
me where the Post Office was. |
|
“What are
you doing?” |
She asked
me what I was doing. |
|
“Who was
that fantastic man?” |
She asked
me who that fantastic man had been. |
|
Direct
Question |
Reported
Question |
|
“Do you
love me?” |
He asked
me if I loved him. |
|
“Have you
ever been to Mexico?” |
She asked
me if I had ever been to Mexico. |
|
“Are you
living here?” |
She asked
me if I was living here. |