1. Ordinary Shares or Equities - (a)These shares have a fixed dividend which

(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

paid his dividend either. Unlike the ordinary

shareholder, the preference shareholder is not

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

(if any) is determined by the company

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.

4. Read the information and complete the text using the words:

Bull(n) - «бык», покупатель ценной бумаги, играющий на повышение

Bear(n) - «медведь», продавец ценной бумаги, играющий на понижение

Stag(n) - спекулянт, покупающий новые ценные бумаги при объявлении подписки в надежде продать их с прибылью после начала торговли на вторичном рынке

fall, rise, stock market, profit, accounting period, forecast, sell, buy, price, shares, speculators

Bulls, Bears and Stags

The buying of something cheap at one time for the purpose of selling the same thing dearer at another time is speculation. People active in buying and selling shares on the 1) … are known as 2) … and fall into three categories: “bulls”, “bears” and “stags”.

A speculator may buy 3) …, for which he cannot or doesn’t wish to pay at the time, in the hope that during the 4) …, i.e. before the date of payment, the 5) … will have risen and he can then sell them at a profit. A buyer who buys like this in the hope of a 6) … in prices is a bull.

Bears expect a fall in share prices. They sell any shares they have now, and even shares they don’t have, because, as prices 7) … as expected, the shares will be available in a few hours or a few days at lower prices than at present.

In both cases the success of the speculation depends both on a correct 8) …of the security price movement and on a rather long time interval before payment must be made.

Stags are speculators who 9) … newly issued shares in the expectation that prices will rise, then 10) … them in the hope of making a quick 11) … . The activities of such speculators have been greatly reduced in recent years.

5. Chose the correct words to complete each sentence:

1) People who buy securities expecting their price to rise so they can resell them before the next settlement day are known as … .

a) bears b) bulls

2) People who sell shares hoping to buy them back at a lower price before the next settlement day are called … .

a) bears b) bulls

3) People who buy new share issues, hoping to resell them at a profit are known as … .

a) stags b) bears

4) Shareholders place their orders with, and sometimes seek advice from … , who are members of the Stock Exchange.

a) stockbrokers b) bankers

5) Another name for shares is … , because all shares of a company have an equal nominal value.

a) blue chips b) equities

6) … are often the only kind of shares with voting rights.

a) ordinary shares b) preference shares

7) … , as their name suggests, usually receive a fixed dividend, which must be paid in full before any dividend is paid on other shares.

a) ordinary shares b) preference shares

6. Read the text and translate it into Russian.

How to Make Money on the Stock Market

The surest way to earn money from investing is to create a portfolio of securities, to succeed in it investors need good sources of information. A lot of information is supplied by stockbrokers. They study market reports and get information about financial activity of companies. But brokers charge fees for their services.

Some investors prefer to avoid high brokerage fees. They implement their own investment strategy. Serious investors carefully study the stock market and become real experts.

A simpler investment strategy is to choose some reliable blue chip shares and stick to them. This strategy is safe and can earn money for a long period. Investors should avoid making common mistakes which are: paying too much for shares which would not go up; not knowing when to sell shares going down; paying too much attention to rumors.

There are also several techniques of predicting the stock prices. Most investors begin with fundamental analysis, which is the process of comparing a company’s current financial position and future prospects with those of other firms in the same or different industries. Some investors try to identify a specific stock’s behavior charting (изображая в виде графика) it over time and then predicting its future price movement. Other investors believe that prices are random (случайные, беспорядочные) and future stock prices are independent of past stock prices.

7. Summarize the information of the unit and speak on the topic: The Stock Exchange, Shares