Vocabulary

issue – эмиссия

bond – облигация ; боны

loan – заем

maturity – срок платежа по векселю

desirable – желательный, подходящий

borrowing – заем; заимствование

a tax deductible expense – расход (трата) не облагаемый налогом

common stock – акционерный капитал; акция

to lend – давать взаймы; одолжить, ссужать

affair – дело

to vote – голосовать

a board of directors – совет директоров

sufficient – достаточный

to absorb – поглощать, забирать

to diminish – уменьшать

inventory – товарно-материальные ценности

insurance company – страховая компания

scarce – недостаточный, скудный

to be content – быть согласным

to plow back – вкладывать

Exercise 3: Complete the following sentences using the information from the Text 2.

1. A bond is .

1. a written promise to pay a definite sum of money in a year

2. an oral promise to pay a specific amount of money at a certain date in the future

3. a written promise to pay a specific amount of money which al­lows to pay it either at a certain date in the future or periodically over the course of a loan

2. Investors who buy common stock can .

1. receive dividends

2. manage a company

3. vote for the board of directors

3. The corporations called "growth companies" usually .

1. reinvest the most of their profits in research and expansion

2. pay out the most of their profits in the form of dividends to their stockholders

3. assure their stockholders a small but steady dividend

Exercise 4: Match the beginnings of the sentences to their ends using the information from the Text 2.

1. Five main methods used by corporation to raise new capital are...

2. A bond is...

3. Interest paid on bond is...

4. Issuing too much stock ...

5. A preferred stock is...

6. Short-term capital is...

7. If plenty of money is available for loans...

8. A "growth company" is...

A. a written promise to pay a specific amount of money at a certain date in the future or periodically over the course of a loan.

B. diminishes the basic value of each share.

C. a stock which dividends are paid before those with common stock.

D. issuing bonds, issuing preferred stock, borrowing, sales of common stock and using profits.

E. a corporation which takes most of its profits and reinvests them in research and expansion.

F. a tax deductible business expense for the corporation.

G. the rate will tend to move downward.

H. working capital to finance inventories.

Exercise 5: Give the Russian equivalents for the following words and phrases.

To raise new capital; to issue; a specific amount of money; a bond; a loan; "maturity"; desirable; borrowing; a tax deductible expense; common stock; to lend; affair; to vote for; a board of directors; to diminish; inven­tory; to plow back; to pay out.

Exercise 6: Find the antonyms to the following words and phrases in the text

to give back money; to disagree; scarce; profits; long-term capital; to pay out.

Exercise 7: Work with a partner to complete the missing parts of the lecture on economics.

There are five main ways used by companies to ____________. They are issuing bonds, sales of common stock, issuing preferred stock, ____________and using profits. Bonds are ____________ for the company because the interest rate is lower than in most other types of borrowing. The corpora­tion doesn't pay taxes on bonds, it is a tax ____________ for the company. Though holders of bonds ____________ money to the company, they can't share in ____________ and ____________ and vote for the ____________.

Exercise 8: Work with a partner and decide how you would explain these notions to an outsider.

+ a bond

+ a loan

+ "maturity"

+ a common stock

+ a holder

+ dividends

+ "growth companies"

Text 3: Probably, the best award for your business will be success itself, but in some countries if you really do well, you can get a special prize. Read an article about this and say if it's possible to organize such kind of competi­tion in our country.