Securities traded on uk securities markets nowadays include shares, corporate bonds, gilts or uk Government bonds.

In Ukraine stocks, corporate bonds, public and municipal bonds, mortgage certificates, investment certificates, treasury notes, etc. are issued.

At present securities investment and trading are among the most important activities in the financial service industry. Securities markets perform an important role of enabling corporates, entrepreneurs to raise resources for their companies and business ventures through public issues. Transfer of resources from those having resources (investors) to others who have a need for them (corporates) is most efficiently achieved through the securities market. Securities markets provide channels for reallocation of savings to investments and entrepreneurship.

NOTES:

share ( BrE) = stock (AmE)

shareholders ( BrE) = stockholders (AmE)

share certificate ( BrE) = stock certificate (AmE)

ordinary shares( BrE) = common stock (AmE)

preference share ( BrE) = preferred stock (AmE)

QUESTIONS:

1. What is a security?

2. Where are securities traded?

3. What types of securities markets exist?

4. What is the difference between brokers and dealers?

5. What are the main kinds of securities?

6. What is stock?

7. What types of stocks are there?

8. What age can a person buy or sell stocks at?

9. What is a stock certificate?

10. What is the difference between common stock and preferred stock?

11. What is a bond?

12. What do bonds guarantee?

13. What are convertible securities?

14. What is a bill?

15. What securities are issued in the USA?

16. What are commercial papers?

17. What securities are traded in UK nowadays?

18. What securities are issued in Ukraine?

19. Why are securities important for the economy?

Exercises:

I. Give the Ukrainian equivalents of the following words and phrases:

securities industry; buyers and sellers; to offer financial advice; to manage investments; a claim; an issuer; a debt instrument; short-term and long–term markets; money market; capital market; to earn commissions; a stock certificate; to enter in register; a specified future date; a share; market price; common stock; preferred stock; derivates; futures contracts; agreed price; a bill; under certain terms; at a fixed rate; a commercial paper; a maturity; create supply and demand for stock; options and futures; securities investment and trading; channels for reallocation of savings.

II. Give the English equivalents of the following words and phrases:

емітент; покупці та продавці; цінний папір; вимога; отримувати комісійні за свої послуги; звичайні акції; привілейовані акції; вносити до реєстру; промислова облігація; муніципальна облігація; конвертовані цінні папери; ринок капіталу; грошовий ринок; фондова біржа; похідний цінний папір; сертифікат акцій; строк виплати; депозитний сертифікат; фінансувати дефіцит уряду; комерційний вексель; узгоджена ціна; строк виплати, погашення; створювати попит та пропозицію на акції; канали перерозподілу заощаджень.

IV. True-False. Say whether each of the following statements is true or false. Can you correct the false statements?