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1. Complete the passage below using the appropriate words or phrases from the box.

securities shareholder stock market/stock exchange institutional investors

equities stake ordinary/common shares dividends

bonds issue shares broker traded

When a company needs to raise money in order to grow, it can do so on the 1 (a market place for buying and selling shares) by choosing between two different options, it can decide to 2 (or units of its capital) which can be bought by 3 or by the general public. Although different types of shares or 4 are available on the market, the most common are known as 5 .When an investor buys a share, using the services of a specialist company or 6 , he or she becomes a 7 and owns a part of (or has a 8 in) a particular company. Shareholders can make money if the company does well either by receiving 9 which are paid to them as a proportion of a company's annual profits or by seeing the value of their shares increase.

Alternatively a company can borrow money from investors by issuing 10 which are loans for fixed periods of time and which carry fixed interest rates. 11 is the term that is used to refer to both bonds and shares. Each year billions of shares and bonds are sold or 12 on the world's major Stock Exchanges in New York, London, Frankfurt and Tokyo.

2. Answer the questions to the text “Europeans Log On To Investment Fever” on page 76 of nIiB sb.

      1. What is Mr English addicted to? 2. Where is shopping for financial products getting popularity? 3. What does arrival of American Internet brokers into European on-line securities market lead to? 4. What business idea seems rather novel in Europe? 5. What is the difference in commission between buying shares from a full-service broker and on the Internet? 6. Why can’t European investors actively use US on-line brokers to buy shares at the European market? 7. What is a long-range goal of American on-line brokers? 8. What role is Europe’s single currency going to play in the development of on-line stock trading? 9. Who is going to be the main player in on-line share trading service in Britain? 10. What kind of backlash can Americans suffer from in Europe? 11. How low have commission fees for the Internet trades dipped in the USA?

3. Read the text about Janis Williams on page 77 of nIiB sb and frame questions to which the following words and phrases provide the answers.

1. On the stock market. 2. For further advice. 3. A selection of different companies’ shares. 4. How these companies have performed in the past. 5. Commission. 6. To the terms. 7. On the stock exchange. 8. The transaction. 9. At the end of the day. 10. A stockholder.

4. Listen to the dialogue “The Stock Market” and commentaries coming after it. Give English definitions to the words and expressions in bold print. Learn the dialogue by heart and dramatise it with a classmate.

The Stock Market

Heather: What’s the matter? You look terrible.

Paul: Haven’t you seen the paper? The stock market went down a lot yesterday. The NASDAQ is down 100 points and the Dow is down 30! My portfolio is in big trouble.

Heather: I knew you had some stock options in this company, but I didn’t know you were so heavily invested in the market.

Paul: I’m invested in the bond market, in derivatives, and I have shares in a lot of companies that took a nosedive yesterday.

Heather: I’m sure you have a good stockbroker who has made sure that your portfolio is diversified and you have different kinds of securities.

Paul: That’s my problem. I don’t have a stockbroker. I decided to invest on my own and to go for less secure stocks hoping for a better return. I thought I could tell the difference between a bear and a bull market as well as the brokers. I guess I was wrong.

Heather: The drop in stock prices won’t last. I’m sure the market will rebound. Just don’t panic and sell everything. The old saying, “buy low, sell high,” is still a good idea, I think.

Paul: I know, I know. I won’t do anything stupid — that is, I won’t do anything even more stupid. I’ll wait to see what happens before taking any action.

Heather: That’s a good idea. Come on. I’ll buy you lunch.

Paul: Thanks. Now that I’m poor, I won’t say ‘no’ to your charity.

(From ESL Podcast 276.)

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