1. If you possess a large amount of money, what are advantages and disadvantages of the following?

• putting it under the mattress

• buying a lottery ticket

• taking it all to Las Vegas or Monte Carlo

• putting it in a bank

• buying gold

• buying a Van Gogh painting

• investing in property or real estate

• buying bonds

• buying shares

B. Investing in your future

Each of us has a set of goals that we want to achieve in our lives: going to college, getting married, buying a car or house, or taking a vacation. In order to achieve your goals, think about how much money you need to afford your “dreams”. Create a timeline of your goals and write about how you plan to achieve them through long-term saving and investing.

Timeline of the goals

Year	Event	How I plan to achieve the goal
________ ________ ...	__________________ __________________ …	________________________________________ ________________________________________ …

Reading 1: Commodity and Stock Exchanges

A. Study the topical vocabulary.

exchange	обмен, торговля; биржа
stock exchange	фондовая биржа
stock market	рынок капитала, фондовый рынок
stock(s)	1) ценные бумаги, сертификаты акций, облигаций 2) акционерный капитал корпораций
share(s)	1) часть, доля; пай (во взаимном фонде) 2) акция, ценная бумага
equity	1) капитал компании 2) обыкновенная акция
securities	ценные бумаги
gilt-edged securities (gilts)	правительственные ценные бумаги с государствен­ной гарантией, считаются наиболее надежными инвестиционными активами
bond	облигация, ценная бумага с фиксированным доходом
grade	класс, сорт, сортировка
to grade	разместить товар на товарных биржах по сортам и качеству
supply and demand	предложение и спрос
listed securities	котируемые (на бирже) ценные бумаги
listed companies	компании, акции которых котируются на фондовой бирже
listing	«листинг», допуск ценной бумаги к официальной котировке
free economies	страны с рыночной экономикой
to raise capital	привлечь капитал
investment products	различные виды инвестиций
individual investors	инвесторы: физические лица
institutional investors	инвесторы: юридические лица
securities firms	холдинг-компании
dealers with assigned responsibility	дилеры, уполномоченные вести операции с ценными бумагами
financial record	данные о финансовом состоянии
to fund	финансировать
to fund shortfall	покрывать дефицит

B. Read the text below and find answers to the following questions.

1. What does the term “exchange” mean? What types of exchanges do you know?

2. Do Commodity Exchanges deal in all kinds of commodities? How are the goods bought and sold at Commodity Exchanges?

3. What are the main factors governing prices at the exchanges?

4. What is the main purpose of the stock market?

5. What kind of products are traded on Stock Exchanges?

6. Who are the participants of the Stock Exchange?

7. What is necessary for a company to be admitted to the Stock Exchange?

8. What basic types of securities are listed and traded on the Stock Exchange?

Exchange is the marketplace for buying and selling both the securities and commodities. The way in which an exchange is organized and operates is determined by the type of dealings that take place every trading day. According to this there are two main types of exchanges: the Commodity Exchange and the Stock Exchange.

Commodity Exchange is the marketplace where goods are bought and sold according to grades or standards and on the basis of standard contract terms. Commodity Exchanges usually deal in raw materials and some items of produce, such as cotton, wheat, vegetable oils etc., as these goods can be accurately graded and the grades practically remain unchanged every year. And Commodity Exchanges are called accordingly: the Wheat Exchange, the Metal Exchange and so on. Prices at these exchanges are determined by a complex interaction of factors. It may be said that the main factors governing prices are the interaction of supply and demand, the quality of the goods offered, the terms of contracts.

Stock Exchange is the marketplace where listed securities can be traded efficiently. Most free economies have stock markets which provide companies with a means of raising capital from investors in order to finance their businesses. They provide a wide variety of investment products to meet the varying needs and goals of the investing public.

Stock Exchange brings together those wanting to raise capital (whether industry or government) with those who wish to invest. It is made up of a broad spectrum of participants including listed companies, individual investors, institutional investors, securities firms and dealers with assigned responsibility.

The most famous and oldest Stock Exchanges that have a long history are the London Stock Exchange, the NYSE (New York Stock Exchange) and the Tokyo Stock Exchange. Each year many domestic and overseas companies turn to them to raise capital for their businesses or to have their shares more widely traded. The stocks of the largest and best-known companies are listed on these Stock Exchanges.

It costs money to become an Exchange member. On the NYSE, for example, there are about 650 seats. The seats can be bought and sold (the price of a seat amounts to $625,000). Before you are permitted to buy a seat you must pass a test that strictly checks your knowledge of the securities industry as well as your experience.

Companies raise money through the issue of shares on the Exchange market. To be admitted to the exchange, they apply for a place on the «Official List». To do this, a company must give as complete picture of itself as possible: its trading history and financial record, management and business prospects.

Stock market prices in a particular country are affected by stock market prices elsewhere in the world. They are determined by the constant interplay of supply and demand.

C. Find pairs of synonyms.

stocks	diversity
to fund	to authorize
variety	full
to deal in	to define
to determine	to influence
overseas	foreign
to entitle	to finance
shortfall	securities
to affect	to trade in
complete	deficit

D. Match the terms given in the box with the correct definitions below.

blue chips OTC vitality listed company RR market price share index bears bulls shareholder

1. Number indicating how prices of shares have fluctuated.

2. An employee of a stock exchange who accepts to buy and sell orders from customers.

3. Stock of a large, national company with a solid record of stable earnings and/or dividend growth and a reputation for high quality management and/or products.

4. A name for investors who buy shares because they expect their price to rise.

5. A name for shareholders who sell because they expect the price to fall.

6. Financial organizations that own a lot of shares.

7. A company whose securities are traded on an organized exchange.

8. The indicator of a good market.

9. Last reported price at which a security was sold on an exchange.

Reading 2: Stocks and Shares