8. Answer the following questions:

1. What is the most important thing in the choice of a bank?

2. What bank would one prefer doing small business?

3. Are there any advantages of a large bank?

4. How can one know the reputation of a bank?

5. What are the six main guides in choosing a proper bank?

Unit 5. Exchanges

1. Read and memorize the following words and word combinations:

• an exchange – біржа, обмін

• a stock exchange – фондова біржа

• a commodity exchange – товарна біржа

• a labour exchange – біржа праці

• a rate exchange – біржовий курс

• an exchange business – біржова операція

• a broker – брокер

• securities – цінні папери

• a bond – облігація

• a council – рада

• a trading floor – товарний зал

• a fixed rate – фіксований курс

• an ordinary share – звичайна акція

• an instalment – розстрочка

• an exchange trade – біржова торгівля

• a preference – пільга, перевага

• a preference share – привілейована акція

• a deal – частка, угода

• unlisted securities – не допущені на біржу цінні папери

• to be listed – бути допущеним на біржу

• gilts – цінні папери високої якості

• a stock market – біржовий ринок

• to fund money – розміщувати гроші

• to refund money – повернути гроші

• spending – витрати

2. Read, translate and retell the text.

What is an exchange? It is an organized meeting of people in an organized place to buy and sell. Certain rules govern the trading there and the members of exchange are called brokers.

There are two types of exchanges known as the commodity exchange and the stock exchange.

Commodity exchanges were established with the aim of trading cotton, wood, timber, wheat and many other commodities.

Stock exchanges are such places where securities, stocks and bonds are sold and bought. It should be noted that the function of prices on exchanges influences the prices of various commodities on the world market.

The business of buying and selling on stock exchanges is called dealing, while a transaction is called a deal.

The governing body of a stock exchange is, as a rule, the Council, which is elected by the members. A large stock exchange has the main trading floor in some large city and some other cities and towns.

Before you invest in the stock market, you need to know the meaning of a few basic terms. Let’s consider them.

What is a stock?The term “stock” means stock market holdings which pay a fixed rate of interest. But in day-to-day dealings, the words stocks, shares, equities and securities mean pretty much the same thing.

Ordinary shares.If you invest in the stock market, you will almost always be dealing with ordinary shares. You may come across some other types of shares. These include the following:

Party-paid shares.Companies may issue party-paid shares, which allow you to pay for the shares in instalments. You can only sell party-paid shares if all of the instalments are up to date. If you miss an instalment, you will lose your shares and any money you have already paid.

Penny shares.These are shares which have a low price. They can be very risky investments, but if the price rises you may make a great deal of money.

Preference shares.These shares earn a fixed income. You will receive any dividends before the people who hold ordinary shares in the same company. If a company becomes bankrupt, preference shareholders are paid first, after all the creditors have been paid in full.

Unlisted securities.Companies which are not big enough to be listed on the stock Exchange, or which do not want to be listed, can be sold on the Unlisted Securities Market (USM).