Vocabulary notes. An accumulated interest –накопленный процент

an accumulated interest – накопленный процент

provided (syn. providing) – при условии

to go bust (syn. to go bankrupt) – обанкротиться

a capital gain – доход от прироста капитала (как результат роста ры­ночной стоимости активов; может быть получен при продаже активов)

capital outlay – капиталовложения

gilt-edged securities (gilts) – первоклассные (особо надежные) ценные бумаги (доcл. с золотым обрезом)

ordinary shares – обыкновенные акции

a fixed rate of interest – фиксированная процентная ставка

pay a dividend – приносить дивиденд

to cease – прекращать

a capital loss – капитальный убыток (потери от понижения рыночной стоимости активов)

a yield – доход по ценным бумагам (особенно облигациям)

a dividend yield – доход на акцию

overall return – общий, суммарный доход

a second layer of risk – дополнительный риск

a layer – слой

Assignments

I. Suggest the Russian equivalents

the idea of earning a return on money; your $1,000 of capital earns you $100 a year; a profit or a capital gain of $200 on your capital outlay of $1,000;

commodities like gold do not pay interest; securities that are traded on a stockmarket; your overall return over a year; most investors in ordinary shares are seeking capital gains at least as much as income; there is a second layer of risk; the company may not earn sufficient profits to pay a dividend; so you are taking the risk of capital gains and capital losses

II. Replace the parts in italics by synonyms

in case your bank does not go bankrupt; securities that are bought and sold on a stockmarket; to earn profits enough to pay a dividend.

III. Fill in the gaps with the words and expressions from the text

1. Fundamental to all financial markets is the idea of.__.

2. Your $1,000 of__ earns you $100 a year, which is __ on your money.

3. When you want your $1,000 back you get __.

4. Provided your bank does not __, your $1,000 of capital is __.

5. You may buy __, but if the price of gold fails to move, you've earned __ because commodities like gold __.

6. Of all __ traded on a stockmarket __ always provide an income, __ normally do, and traditional __ pay __.

7. Ordinary shares in companies normally pay __ the company __.

8. When you buy securities that are traded on __, the return is not limited to __ or __ you receive.

9. If the market value of your shares has risen, your __ over a year consists of __ and __.

10. Investors are generally prepared to accept __ on shares than on __ stocks because they expect the income __.

11. Most investors in ordinary shares are seeking __ at least as much as __.

12. With the government bond the income is at least __.

13. If the company does not __, it may __ to pay __.

IV. Find in the text English equivalents for the following

процент годовых; накопленные проценты; при условии, что...; обан­кротиться; сокращать покупательную способность денег; рисковать; зо­лотой слиток; ценные бумаги; государственные облигации; акции; фик­сированная процентная ставка; прекратить выплату дивидендов; началь­ный доход по акциям; приносить доход (проценты) (2 варианта); доходы на капитал (доходы от прироста капитала); потеря капитала

V. Explain in English

a capital gain; a capital loss; a return; an overall return; a dividend yield; a fixed rate of interest.

VI. Answer the questions

1. What are the ways of earning a return on money?

2. What are gilt-edged securities? Who issues them? Why are they considered to be of the highest class?

3. In what cases does the investor take the risk of capital gains? Capital losses?.

4. Which way of earning a return do you consider the safest and most profitable other things being equal?

VII. Translate into English using all the active possible

1. В условиях рыночной экономики всякая денежная сумма способна приносить доход.

2. Если вы владеете акциями какой-либо компании и цены на эти ак­ции поднялись, то вы можете получить доход, продав эти акции.

3. Продать или купить акции можно на особом рынке – фондовом.

4. Цена акции колеблется, ее курс может падать и повышаться. Это зависит от размеров прибыли, которую получает компания, и, следова­тельно, от дивиденда, который выплачивается по акциям, а также от банковской процентной ставки.

5. Предположим, цена на акции составляет $100. Если дивиденд по акциям равен $10, а рыночная ставка процента равна 10%, то 100-долларовая акция приносит доход в 10 долларов. Сумма наличными в 100 долларов, помещенная (вложенная) в банк, тоже приносит доход в 10 долларов. Следовательно, цена на акции не изменится.

6. Если дивиденд повысится до 20 долларов, а процентная ставка ос­танется неизменной (10%), то доход по акциям в этих новых условиях удвоится по сравнению с доходом от такой же суммы, помещенной в банк. Вполне естественно, что курс акции (цена на акции) удвоится.

INTEREST RATES AND BOND PRICES (СТАВКА ПРОЦЕНТА И ЦЕНЫ НА ОБЛИГАЦИИ)

The change in interest rates has important implications for the stockmarket prices of bonds, which pay a fixed rate of interest: fixed-interest securities, of which the traditional gilt-edged securities issued by the government arc the most familiar though companies also issue fixed-interest bonds. It works like this.

Gilt-edged securities are a form of IOU (I owe you) or promissory note issued by the government when it needs to borrow money. The government undertakes to pay so much a year in interest to the people who put up the money and who get the IOU in exchange. Normally the government agrees to redeem the stock at some date in the future, but to illustrate the interest rate mechanism it is easiest initially to take an irredeemable or undated stock, which does not have to be repaid.

The original investors who lend the money to the government do not have to hold on to the lOUs. They can sell them to other investors, who then become entitled to receive the interest from the government. Suppose the government needs to borrow money at a time when investors would expect an 11% yield on a gilt-edged security. It oners $11 a year interest for every $100 it borrows. The investor is prepared to pay $100 for the right to receive $11 a year interest, because this represents an 11% return on his outlay.

Then suppose that interest rates rise to a point where an investor would expect a 12,5% return if he bought a gilt-edged security. He will no longer pay $100 for the right to $11 a year in income. He will only be prepared to pay a price that gives him a 12,5% return on his outlay. The "right" price in this case is $88, because if he pays only $88 to receive $11 a year in income, he is getting a 12,5% return on his investment. So in the stockmarket the price of the gilt-edged security that pays $11 a year interest will have to fall to $88 before investors are prepared to buy it. The original investor who paid $100 thus sees the value of his investment fall because of the rise in interest rates. Conversely, the value of his investment would have risen if interest rates had fallen.

To summarize: If interest rates on securities go down, bond prices or prices for securities go up, and vise versa.

Дата добавления: 2015-10-31