I. Read and memorize the following words, word-combinations and word-groups:

internal funds — BHyrpiwHi 6oprn

external funds — 30BHiwHJ 6oprn

e.g. Since the funds come from within the firm they are described as internal funds. The rest must come from outside, or external funds.

to meet one's expenses — noKpMBa™ HMict BHTpani

e.g. As a firm sells its products or services, it receives money which it uses to meet its expenses.

depreciation — 3neu,iHeHHH, 3Hnx<eHHsi u,iH

to wear out — 3HO!±JVBaTncfl, cnpaubOByBaTucn

e.g. Depreciation represents the cost of replacing assets that wear out.

to cover the cost of smth. — noKpnTM Bapridb soro-He6yflb

e.g. Businesses use internal funds to cover the cost of depreciation.

short-term loans — KopoTKOcrpoKOBa no3M«a

e.g. Short-term loans are used to finance the everyday costs of doing business.

long-term loans — AoarocrpoKOBa no3WKa

e.g. Long-term loans mature {come due) in more than a year.

the principal — 3ano3nneHa cyMa

e.g. Creditors expect to receive interest and the return of the principal at the end of a specific period of time.

common stock — cninbHi aKu,i"i'

preferred stock — npneineiioBaHi aKu,ii

e.g. All corporations issue common stock; some, however, also issue preferred stock.

to have voting rights — mstm npaso ronocy

e.g. Preferred stockholders do not have voting rights.

security exchange — c^onflOBa 6ip>na

e.g. Security exchange is a market where brokers meet to buy and sell stocks and bonds for their customers.

default — HeBwnnaTa, HeBMKOHaHHti florOBopy

e.g. There is some risk of default on the bonds of even the strongest corporations.

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mutual funds — cninbHi <$joham

e.g. Mutual funds are corporations that sell stock and use the proceeds to invest or speculate in the securities markets.

balance sheet — 6anaHcoBnw 3bit

income statement — 3bJt npo npn6yroK

e.g. Two of the most important pieces of information contained in every prospectus and annual report are the balance sheet and the income statement.

assets — aKTMB (6anancy)

liabilities — nacMB (6anaHcy), 6oprw, 3a6oproBaHicTb

e.g. For every business the things that it owns are assets, and those it owes are liabilities.

net worth — Bapricrb Mawna 3a bmhsitkom 3o6oB'n3aHb, anacHMM Kan i ran niflnpHCMCTBa

e.g. The difference between assets and liabilities is its net worth.

II. Give English equivalents of the following:

ctjoHAOBa 6ipj«a

npMBineHOBatii aKu,ir" aKTHB(6anancy) BHyrpiuiHi 6oprn m3tm npaBo ronocy

noKpMTM BapTicTb ⁱraro-He6yflb nacMB(6anaMcy) 6anaHCOEMH 36it AosrocrpoKOBa no3WKa HeBKnfiaTa 3ano3HHena cyMa

III. Fill in the blanks with appropriate words:

«investors»

capital

money

net worth

customers

bonds

a security

exchange long-term

financing

. ... is the difference between assets and liabilities.

. Similarly, firms need ... to begin ope­ration, to meet their day-to-day expen­ses and to expand. ... charge purchases to their accounts for payment at a later date. ... is money that will be used for a year or more.

Many large corporations raise long-term capital through the sale of their .... Corporations sell stocks and bonds as a way of raising ....

... is a market where brokers meet to buy and sell stocks and bonds for their customers.

8.

Those who buy stocks to share in the profits and growth of a corporation over a long period of time are described as ...