Ermolaeva_L_D_Ekonomika_i_biznes_1

Lloyds is a place where ship-owners are able to insure their ships and their cargoes in England. Sometimes a syndicate of underwriters (a group of individual insurers) has to accept the risk because it is too high for one underwriter to accept. Lloyds is the world centre of marine insurance; it started in 1680 in Tower Street, London.

II. Say whether each of the following statements is true or false. Correct false statements to make them true.

1.Ingosstrakh is the only insurance company where Russian foreign trade organizations take out insurance.

2.Underwriters at Lloyds sometimes form a syndicate to accept too high risk.

3.General average refers to risks affecting only one shipper's consignment.

4.The types of risks covered bу the insurance change depending on whether the goods are in transit or in a warehouse, etc.

III. Discuss in pairs why it is very important to encourage competition in the insurance business in our country.

IV. Use the resources in your library to gather information on Lloyds of London in the world of marine insurance. Then write a paragraph describing all the services offered by Lloyds of London. Use participles where it is necessary.

UNIT VI

Grammar: Participle Constructions.

 I. Read and memorize the following words and word combinations.

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 II. Read and translate the following pairs of words paying attention to the prefix of the verb “en”.

force – to enforce, trust – to entrust, list – to enlist, courage – to encourage, title – to entitle, rich – to enrich, chain – to enchain, large – to enlarge, able – to enable, roll – to enroll, danger – to endanger, close – to enclose.

III. Make verbs by adding the suffix “-ize” and translate them: special, computer, national, real, central.

IV. Read the following international words and guess their meanings:

optimist, pessimist, speculator, registration, client, broker, contract, agency, to sponsor.

 V. Match the following words on the left with the correct definitions on the

VI. Translate the following sentences paying attention to the Absolute Participle Construction.

1.Computers and visual units being used on the Stock Exchange, the members can keep in constant touch with the changing state of the market prices of securities and shares.

2.There are „speculators‟ working on the Stock Exchange such as stags, bears, bulls, the last buying shares in the hope that their prices will rise.

3.The plant having been supplied with good raw materials, the quality of products has been much improved.

4.The problems connected with the partnership having been discussed, the partners decided to draw up a deed of partnership setting down full details of arrangements made between the partners.

5.The deal having been struck, the shares were paid for in two weeks.

6.The three stages – growth, maturity (зрелость) and decline (упадок) are common to all markets, new consumers entering the market during the growth stage.

7.The Stock Exchange being a world market, the shares and securities of public companies, government and other organizations are bought and sold there.

VII. Point out the sentences where the Absolute Participle Construction is used.

1.Members of the Stock Exchange specializing in buying and selling certain type of shares and securities are now referred to as market makers.

2.There being a large demand for shares, their price rises.

3.Having bought shares at low price, the bull sold them at higher price in few days.

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4.Unit Trusts are organizations taking money from the public and investing it for them in a range of stocks and shares.

5.The contract having been entered into, the name from the old owner of the shares was changed into the new owner in the books of the company.

6.Having talked about money to be paid, two persons made an agreement about buying shares.

VIII. Join each of these pairs of sentences into one sentence using Abso-

lute Participle Construction.

Pattern: An agreement has been reached. The contract was signed. An agreement having been reached, the contract was signed.

1.The Stock Exchange has been reorganized. Each member was allowed to buy and sell shares on behalf of a client.

2.He conducts his business affairs carelessly. They must be in great confusion.

3.The use of computers on the Stock Exchange has been increased. The Stock Exchange became a more perfect market.

4.The company‟s financial affairs are approved by the council. Its shares are traded on the Stock Exchange.

5.The wholesaler‟s premises are usually a large warehouse. Large quantities of goods may be stored there.

TEXT A

THE STOCK EXCHANGE

The Stock Exchange is a world market where the shares and securities of public companies, government, local governments, foreign governments and other organizations are bought and sold. There are about 3000 members of the Stock Exchange who are involved daily in the buying and selling of these shares and securities. The main British Stock Exchange is in London and was founded in 1773. It has 22 branches in the main towns of the country.

Before October 1986 shares were bought and sold by Stock Exchange members called brokers and jobbers. The brokers bought or sold shares for members of the public and acted on their behalf. The jobbers bought or sold the shares from the market or other dealers and then sold them to the brokers.

In October 1986 there was a major reorganization of the way in which the Stock Exchange members conducted their business. These changes were referred to as the „Big Bang‟. We no longer have separate Stock Exchange members acting as brokers or jobbers, for each member is now allowed to buy or sell shares on behalf of a member of the public, or buy and sell shares on his own

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behalf. The members are now called broker/dealers, and the new system is referred to as one of „dual capacity‟. Меmbеrs of the Stock Exchange who specialize in certain types of share or security buying and selling are now referred to as market makers. The profit they make is called the „market maker‟s turn‟. The broker/dealer approaches a market dealer or more than one market dealer and makes the best bargain he can on behalf of his client. If a deal is made then the contract is entered into.

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Recently there has been an increasing use of computers and. visual display units on the Stock Exchange. These keep the members in constant touch with the changing state of the market prices of securities and shares and help them to make the best decision that is possible at the time. These facilities make the Stock Exchange a more perfect market.

The broker/dealer will send to his client the contract note, which shows:

1)the price at which the business was done;

2)the type and class of share or security;

3)the date and time of the deal;

4)the amount of commission charged;

5)the cost of the transfer fee;

6)details of the registration fee, charged for changing the names from the old

owners of the shares into the new owners (in the books of the company). Shares must be paid for on „settlement day‟, which occurs about once every

two weeks. Settlement day is usually about 10 days after the deal has been struck.

There are „speculators‟ working on the Stock Exchange and they are often called bulls, bears and stags.

A stag buys and sells newly issued shares and securities. A bull is an optimist who buys the shares at low price and hopes that in the future the price will rise.

A bear is a pessimist who agrees to sell shares he doesn‟t have hoping that by the time settlement day arrives he will be able to buy the shares at a lower price than he has agreed to sell them at.

If there is a large demand for shares, then the price of the shares will rise. If there is a small demand for the shares, their price will fall.

Instead of buying shares directly via Stock Exchange, members of public may invest in unit trusts. These are organizations that take money from the public and invest it for them in a range of stocks and shares. Investing in this way may be safer than buying shares in a single company, because falls in the value of some of the stocks held by the unit trust may be balanced by rises in the value of others.

 IX. In the following sentences replace the underlined words by a single word of the same meaning taken from the text.

1.Brokers buy and sell shares in the interests of a member of the public.

2.The British Stock Exchange has 22 divisions in the main towns of the country.

3.The changes of the way in which the Stock Exchange member carried on their business, were spoken of as the „Big Bang‟.

4.Settlement day takes place once every two weeks.

5.The broker begins talking to a market dealer and strikes the best bargain in the interests of his client.

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6.The use of computers on the Stock Exchange helps its members to maintain a constant communication with the changing state of the market prices of securities and shares.

 X. Complete the following sentences:

1.The Stock Exchange is a m... where s... and other securities are bought and s… .

2.The main Stock Exchange is in ... and was originally founded in ... .

3.There are about … members of the London Stock Exchange.

4.A broker/dealer may act on behalf of a member of the p… or he may buy or sell shares from a m… d… .

5.Before the „Big Bang‟ in 1986 there was single capacity dealing and functions of j ... And b... were separate.

6.Market makers usually specialize in buying and selling one part… k... of s… .

7.Computers have made the prices of shares known almost imm... around the world and made the Stock Exchange dealings a more p... market.

8.A b... is an o... who buys at a 1… price, hoping that the price of the s… will r... .

9.A s… deals in n… is... of shares.

XI. Choose the answer on the basis of the information you derived from the text.

1. What is the name of a speculator who buys shares in the hope that

2. If you wish to buy shares in a public limited company, what person would you approach?

a) a jobber;

b) a broker/dealer;

3. Accounts are settled once every 14 days (usually). How is that day called?

a) accounts day; b) settlement day;

4. Who are the specialists who buy and sell one particular kind of share or security on the floor of the Stock Exchange?

5. Who are the specialists who buy and sell shares on the floor of the

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Stock Exchange on behalf of members of the public?

6. What is the name of the document which sets out full details of the contract agreed between the broker and the jobber?

8. What is the name given to the fee charged for the work involved in entering the name of the new owner in the books of a company?

XII. Answer the questions using the information of text A.

1.What is the Stock Exchange?

2.Where is Britain‟s main Stock Exchange and when was it founded?

3.What is the approximate number of members of the Stock Exchange?

4.How do broker/dealers work on the Stock Exchange?

5.What happened in October 1986 in the event referred to as the „Big Bang‟?

6.What is a market dealer?

7.Why have computers and visual display units been found useful on the Stock Exchange?

8.What happens to the prices of shares when there is an increase in demand for the shares or a decrease in demand for the shares?

9.What can you say about the activities of bears, bulls and stags?

XIII. Here is an interview with the head of the firm “Russian Broker” on some questions concerning the Moscow Commodity Exchange. Translate the dialogue into English, then dramatize it.

С.: Читателей интересует такой вопрос: кто является организатором, владельцем и управляющим Московской товарной биржи (МТБ)?

Н.: Сами брокеры вложили свои деньги и создали МТБ – свое рабочее место. Они сами управляют этой биржей, так как еѐ главный управляющий орган – это собрание членов биржи.

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С.: Вы хотите сказать, что собрание членов биржи – это единственный управляющий орган МТБ?

Н.: Конечно, нет. Множество комитетов, созданных на бирже, также обеспечивают высокий уровень самоуправления. Каждый брокер состоит в одном или двух комитетах и работает в них почти каждый день, приходя за час до торгов.

С.: Не могли бы вы немного рассказать о том, как заключаются сделки на МТБ?

Н.: С удовольствием. Главным работником биржи является член биржи, представляющий какую-то брокерскую фирму. На бирже происходит встреча брокеров, представляющих интересы покупателей и интересы продавцов.

С.: Извините, что я вас прерываю. Но до того как эта встреча имеет место, брокер (или его фирма) должен иметь какой-то договор со своими клиентами?

Н.: Я как раз об этом хотел сказать. Каждая брокерская фирма заключает договор на брокерское обслуживание со своей клиентурой. Этот договор заключается на срок от одного до трех лет.

С.: А если, например, я – клиент и хочу дать только разовое поручение брокерской фирме. Возможно ли это?

Н.: Само собой разумеется, что существует и такой вариант. Вы можете заключить договор и на разовое поручение. При этом вы указываете условия и границы сделки. И брокер, приходя в зал и руководствуясь этими условиями, подыскивает подходящий товар.

С.: А что имеют в виду, когда товарную биржу называют регулятором цен?

Н.: Сегодня на мировых биржах не торгуют наличным товаром, а только будущим, кото-

рый будет произведен или построен через несколько месяцев. Число перепродаж одного контракта достигает 100, и благодаря этому цена того или иного товара выявляется с точностью 0,01. Таким образом, биржа предсказывает цены на три месяца вперед.

С.: Вы рассказали сейчас о мировых товарных биржах, а разве российская биржа работает не по тем же принципам (законам)?

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