Text 15.

Read the text and do the assignments. While reading, find words and expressions in the text that mean: купить/продать акции; брокерская компания; ценные бумаги; быть зарегистрированным на бирже; устанавливать цену; правило спроса и предложения; лицо, предлагающее самую высокую цену; разместить/выполнить заказ; получить подтверждение; операционный (торговый) зал биржи; зарегистрироваться на сайте фирмы.

When you want to buy groceries, you go to a grocery store. When you want to buy a sofa, you go a furniture store. And when you want to buy stocks, you need to do business with a brokerage firm. A brokerage firm is a dealer of stocks and other securities that acts as your agent when you want to buy or sell stocks.

Most trading of stocks happens on a stock exchange. These are special markets where buyers and sellers are brought together to buy and sell stocks. The best known stock exchanges are the New York Stock Exchange and the American Stock Exchange.

Besides these two national exchanges, there are many smaller regional stock exchanges, such as the Pacific in Los Angeles, the Philadelphia, the Boston, the Cincinnati, and the Chicago. Some small companies are listed only on a regional exchange, while some NYSE and AMEX companies are listed on these smaller exchanges, as well, to help trades happen faster and cheaper for investors.

When most people think of a stock exchange, they picture a scene of frantic activity, with traders in funny-looking jackets shouting commands, making strange hand signals, and writing up orders. Behind this frenzied spectacle, however, is a methodical and organized system of trading, in which the price of any stock is set purely by rule of supply and demand in an auction setting. Specialists help match buyers and sellers, but shares are always sold to the highest bidder.

From the perspective of an investor, buying and selling stocks seems pretty simple. If you use a full-service broker, just call them up on the phone and place an order for 100 shares of Coca-Cola. Within a few minutes, you'll receive a confirmation that your order has been completed, and you'll be the proud new owner of Coca-Cola's stock.

Behind the scenes, however, there's a lot of action that takes place between your order and the confirmation. Here's what has to happen:

1. You place the order with your broker to buy 100 shares of the Coca-Cola Company.

2. The broker sends the order to the firm's order department.

3. The order department sends the order to the firm's clerk who works on the floor of the exchange where shares of Coca-Cola are traded (the New York Stock Exchange).

4. The clerk gives the order to the firm's floor trader, who also works on the exchange floor.

5. The floor trader goes to the specialist's post for Coca-Cola and finds another floor trader who is willing to sell shares of Coca-Cola.

6. The traders agree on a price.

7. The order is executed.

8. The floor trader reports the trade to the clerk and the order department.

9. The order department confirms the order with the broker.

10. The broker confirms the trade with you.

That's how a traditional stock exchange works, but much of the action that takes place when you buy or sell a stock is being handled with the assistance of computers. Even if you bought a stock that trades on a stock exchange, your order may be executed with little or no intervention by humans. You can log on to a brokerage firm's Website, enter an order, have the trade be executed, and receive a confirmation all within sixty seconds or less.

Exercise 15-1. Decide if these statements are true or false according to the text. Change any which are false.

1. If you want to buy a stock, you go to a special firm that will tell you its fixed price.

2. A brokerage firm can deal with different kinds of securities.

3. Small companies cannot be listed on big national exchanges.

4. A stock exchange looks like complete chaos, but in fact it is a well-organized system.

5. Every brokerage firm has an order department that deals with the customers’ orders.

6. You can buy the shares you need even if you are not the highest bidder.

7. To buy or sell shares you have to go a brokerage firm in person.

Exercise 15-2. Answer the questions.

1. What is a stock exchange? Is it the same as a brokerage firm? (What are the biggest stock exchanges in the world?)

2. What does the abbreviation NYSE stand for?

3. How does a stock exchange set the price of any stock?

4. What happens if a brokerage firm buys stocks for you? Can you do it yourself?

5. To buy stocks, you can go to a brokerage firm in person or call them to place your order. Are there any other ways to do it?

Exercise 15-3. Translate the sentences into English paying attention to the words and phrases underlined.

1. Нельзя установить на акции строго фиксированную цену. Цена определяется правилом спроса и предложения.

2. Магазин будет продан лицу, предложившему самую высокую цену. Аукцион состоится через месяц.

3. Можете разместить свой заказ на нашем сайте. После перевода денег вы получите подтверждение, что заказ будет выполнен в двухнедельный срок.

4. Только для неспециалиста операционный зал биржи выглядит как полный хаос: шум, суета, странные жесты брокеров.

5. В начале 90-х годов в России было несколько сотен бирж, которые торговали всем, от нефти и газа до гвоздей и спичек.

6. Для многих компаний серьезной проблемой являются сезонные колебания спроса.

7. Электронные валютные торги проводятся в Москве по будням. В результате этих торгов определяется курс рубля по отношению к другим валютам.

Exercise 15-4. In your own words.

1. In a newspaper or the Internet (or any source you know) find information about a stock exchange to tell it to your class.

2. If you have ever tried to participate in the electronic trades, tell your class about it.

Text 16.

Read the text and do the assignments. While reading, find words and expressions in the text that mean: собрание акционеров; одобрить дивиденды; обыкновенная акция; финансовый год; (платить) наличными; номинальная стоимость; промежуточный дивиденд; сверхноминальная стоимость капитала; освобожденный (не подлежащий чему-л.); подлежащий (напр., налогообложению); цена, зарегистрированная при закрытии биржи; завершение торгов на бирже; биржевой брокер; размещать (на хранение) акции; схема, график, расписание.

The Board of Management of Royal KPN N. V. (KPN) hereby announces that the general meeting of shareholders held on April 27, 2001 approved a dividend for the 2000 fiscal year of NLG2.33 per ordinary share of NLG1.00 par value. After deduction of the interim dividend of NLG 0.80 per ordinary share, the final dividend will be NLG1.53 per ordinary share.