Notes to the text

equities (syn. ordinary shares, equity shares, ordinary stocks) - обыкно­венные акции

to deplete - истощать,исчерпывать

to offset – возмещать

The opportunity cost – альтернативные издержки владения деньгами

Treasury bills - казначейские векселя

consequently - следовательно, поэтому

conversely - наоборот

temporary surplus - временный избыток, излишек

Exercise 1. Find in the text English equivalents for the following

равновесие денежного рынка; временная нехватка (избыток) денег; иметь на руках; быть в равновесии; восстанавливать равновесие; достичь равновесия; активы (облигации), приносящие процентный доход; увели­чивать богатство; исчерпывать (истощать) богатство; альтернативные издержки владения деньгами; компенсиро­вать издержки.

Exercise 2. Answer the questions

1. Explain in your own words the term "opportunity costs". What is the opportunity cost of holding money?

2. What's the equilibrium in the money market? How can it be reached?

3. How does the money market work?

4.How should people divide their wealth at any instant between money and bonds to gain the best profits possible and not to incur losses?

Exercise 3. Translate into English

1. Для экономики плох как недостаток, так и избыток денег, таккак первый ведет к снижению расходов во время упадка, а последний - к обесценению денег и снижению их покупательной способности во время инфляции.

2. Денежный рынок объединяет спрос и предложение денег для опре­деления равновесной ставки процента.

3. Равновесие денежного рынка устанавливается посредством изменения цен на облигации. С изменением цен на облигации процентные ставки ме­няются в обратном направлении. При равновесной ставке процента цены на облигации постоянны, а спрос и предложение денег равны-

4. Уменьшение предложения создает временную нехватку денег на де­нежном рынке. Люди и учреждения пытаются получить больше денег путем продажи облигаций. Поэтому предложение облигаций увеличива­ется, что понижает цену на облигации и поднимает процентную ставку.

5.Увеличение предложения денег создает временный их избыток, в результате чего увеличивается спрос на облигации и цена на них стано­вится выше. Процентная ставка падает, и на денежном рынке восстанав­ливается равновесие.

Text 2

THE TOKYO STOCK EXCHANGE

Before reading Text 2 think of your ideas that might be related to the topic “The Stock Exchange” (use your prior knowledge or experience).Write all your suggestions on the blackboard. Try to categorize them. Read the text, adding new information to your scheme.

Governments and business enterprises often issue securities to the investing public to finance their expenditures. To make it easier for them to raise new money, however, there must be a "secondary" market where investors can ac­quire or dispose of securities at prices that are fair and equitable. The Tokyo Stock Exchange, by providing a marketplace for securities, plays a vital role in the securities market.

The market of the Exchange is a two-way, continuous auction market where buy and sell orders directly interact with one another. A transaction is made when the buyer bidding at the highest price and the seller offering at the lowest price agree on a figure which is acceptable to each.

For the purpose of providing a fair and efficient marketplace, the Exchange not only provides a host of rules and regulations but also employs modern electronic and communications technology for trading.

The Tokyo Stock Exchange thus facilitates government and corporate financing by enabling people everywhere to have their investment decisions in listed securities executed quickly and conveniently. In doing so, it also contrib­utes to the growth of the nation's economy.

Transactions on the Tokyo Stock Exchange are made only in such securities that are listed on the Exchange.

Companies have found many benefits in listing their securities on the Ex­change: a greater number of shareholders; appearance of the company's name in the financial pages and stock tables of the press; and a substantial cost advan­tage in raising new capital.

When the Exchange receives an application for listing from a company, it carefully examines the applicant to ensure that the company is eligible for list­ing in the light of public interests and protection of investors. If the Exchange decides to list the company, it then seeks an approval from the Minister of Finance.

After a company joins the Exchange's listed company roster, the company is required by the Exchange to disclose financial and other material information about it promptly and in an accurate manner. Particularly, the Exchange gives great importance on timely disclosure of corporate information which may affect prices of the company's securities. The philosophy behind the Exchange's listing requirements is simply this: the investor who owns, buys or plans to buy listed securities is entitled to information about the company which will help him to make his investment decisions intelligently.

It is essential that all trading on the Exchange is conducted fairly and smoothly. The Tokyo Stock Exchange has therefore laid down detailed rules for trading, at the heart of which stand the principles of market concentration and auction. The principle of market concentration means the centralization of all stock orders on the stock exchange. This is designed to ensure fair price formation. The principle of auction is the basis of trading practice. It consists of price priority and time precedence. Under the price priority, the lowest-priced offer is given priority over all other offers, and the highest-priced bid has priority over all other bids. The time precedence is that when two buy or sell orders are received at the -same price, the trade goes to the order placed first.

The whole procedure of trading is conducted under rigid surveillance to en­sure fair price formation.

Exercise 1. Summarise the main points under the following headings:

The role of the Stock Exchange

Listing of the securities

The main principles of the Stock Exchange

Exercise 2. C omplete the sentences.

1). The Exchange must be sure that the company is …….for listing its securities.

a) eligible b) going c) protecting

2).All principles are designed to ensure fair price…...

a) making b) formation c) building

3).…… is public sale at which goods are sold to the person making the highest bids (offers).

a) auction b) market c) Stock Exchange

4). The company that has listed its securities should ….. financial and other material information.

a). Close b). Disclose c). Examine

5). Bonds and stocks are the main types of the …. that are traded on the Stock Exchange.

a).valued papers b).securities c). Companies

Exercise 3. Find English equivalents in the text:

выпускать ценные бумаги и облигации; подходящий; назначать цену; предлагать по цене; заключать сделки; рыночная концентрация; взаимодействовать; приемлемый (подходящий) для каждого; в основе; ценообразование.

Exercise 4. Sum up the Text using your scheme only

Дата добавления: 2015-07-20